DREYFUS PREMIER EQUITY FUNDS INC, N-30D, 1999-06-14

DREYFUS PREMIER EQUITY FUNDS INC
N-30D, 1999-06-14

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Semi-Annual Report Dreyfus Premier Aggressive Growth Fund

March 31, 1999

<PAGE>
Year 2000 Issues (Unaudited)

The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund's other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could
have an impact on the value of the fund's investments and its share price.
<PAGE>
Dreyfus Premier Aggressive Growth Fund
- -------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:

Dreyfus Premier Aggressive Growth Fund completed its latest semiannual
reporting period on March 31, 1999. For the six months ended March 31, 1999,
the total return for the various classes of shares was as follows:

Dreyfus Premier
Aggressive Growth Fund*
----------------------

Class A 16.20%
Class B 15.69%
Class C 15.72%
Class R 16.20%
Standard & Poor's 500 Composite
Stock Price Index** 27.32%

Dreyfus Premier Aggressive Growth Fund has the flexibility to invest in
growth companies, regardless of their size, to pursue its objective of capital
growth. During the reporting period, I felt that stocks in the middle and
small capitalization range showed better relative earnings growth potential
and more attractive valuations than large caps, and therefore weighted our
portfolio toward those stocks. However, large-cap stocks continued to dominate
the market during the period. In addition, the Fund continued its transition
from its previous emphasis on microcap stocks to focus on midcap growth
companies. Although we believe these changes can better position the Fund
going forward, performance suffered during the period.

Economic Review

The economy in the period ended March 31, 1999 had several persistent
themes. These included weakness in the world economy, strength in the U.S.
economy, pervasive disinflation and multiple rounds of central bank easing,
which lowered interest rates in many parts of the world.

Weakness in the world economy started in Asia with economic and financial
stresses throughout most of the continent. While China was able to generate
economic expansion by government spending, economic declines occurred in most
of the rest of Asia. The most severe phase of these crises occurred when Asian
currencies dropped and short-term interest rates rose there as well. Then
Latin America began to weaken, particularly Brazil. Tentative signs of a
bottoming in Asia had emerged by the end of your Fund's fiscal period;
however, Brazil had not yet turned the corner.

Europe was full of optimism about the benefits of currency unification
into the Euro as of year-end 1998. The reality was that economic growth in
Europe began the last year at a modest pace and showed signs of stagnation in
early 1999. Even so, the new European central bank postponed the reduction in
interest rates at the beginning of 1999, probably because of a desire to build
anti-inflationary credibility. The bank finally eased in April of this year.

The U.S. economy proved to be a superperformer during the period, growing
at an above-trend rate despite the economic weakness overseas. A major reason
for this was that the negative effects of foreign economic weakness on the
traditional industrial sector were offset by positive effects elsewhere in the
economy. Low inflation and low interest rates stimulated the housing and
consumer sectors, while the technology sector continued to expand.

The Federal Reserve eased monetary policy three times beginning on
September 30, 1998, lowering the federal funds rate from 5.50% to 4.75%. This
was not because of any shortfall in U.S. economic growth. Rather, it was a
response to a financial crisis linked to the Russian default and the financial
problems of a major hedge fund. Despite widespread fears, the U.S. economy
never did slow. Long-term interest rates declined into early October, when
fears of financial crisis, deflation and possible economic recession were at
their greatest. However, those rates then drifted higher as the financial
stresses eased and the feared economic slowdown did not materialize.
<PAGE>
Market Overview

Three key trends influenced stock market behavior during the fiscal half-
year. First, there were the moves by the Federal Reserve to ease interest
rates. Second, weakness in emerging-country economies and stresses in the
financial system contributed to both persistently weak commodity prices and a
drop in long-term Treasury bond yields to multidecade lows near the beginning
of the fiscal half-year period. Third, expectations for economic growth
plunged in September and October 1998 in response to a serious financial
crisis; yet by the end of March 1999, all three of these negative factors had
abated, changes that were not lost on the equity markets.

The erosion of expectations about corporate profit growth has contributed
to an outperformance by a small group of supercap growth stocks. The U.S.
economy has been led by strong growth in several new industries, including
communications and portions of the technology sector, notably the Internet.
Investors displayed more confidence in the prospect for strong, persistent
earnings growth for a small group of growth stocks than for the broad market.
Value stocks, which often have greater cyclical sensitivity to earnings
fluctuations, lagged behind growth stocks.

The six months ended March 31, 1999 were characterized by very different
performance by the various market sectors. Supercap growth stocks did best,
followed by large-cap stocks in general, with midcap and small-cap stocks
lagging behind. Significantly, the Dow Jones Industrials broke through 10,000
while indexes for smaller stocks lagged well behind. The strongest stocks in
many stock price indexes were either Internet stocks or indirect beneficiaries
of the Internet boom. Thus, for most stock market indexes, the average non-
Internet stock underperformed the overall index.

Portfolio Focus

The primary reason for the Fund's underperformance relative to the S&P
500 was the Fund's emphasis on midcap and small-cap stocks during a period
when large-cap stocks dominated the market. Since April 1998 approximately 90%
of the Fund's assets have been invested in companies that are new to the Fund.
Many of these companies are in the midcap range, which I believe provided
buying opportunities due to the weakness in the midcap market over the period.

In terms of sector allocations, technology stocks, which were
overweighted, contributed positively to the Fund's performance over this
period. These included stocks in areas such as semiconductors, computer
hardware, communications equipment, and electronics manufacturing. Many of
these companies had benefited from growth in the Internet and increased data
traffic. Stocks in the drug and biotechnology industries were also positive
contributors. Several biotechnology companies were reaping the rewards of
years of research, and, having received FDA approval to market their products,
were turning profitable. I also added some consumer growth issues such as
restaurants and specialty retailers, which were overweighted. Strong economic
growth, low interest rates, rising wages and stock market gains have led to a
high level of consumer confidence. The Fund's performance was also helped by
its being underweighted in stocks in the manufacturing and basic materials
sectors.

Stocks in a few industries such as healthcare services, which were
overweighted, hurt the Fund's performance. Some healthcare services and contract
research organizations caused us disappointments, and although I believe that
the long-term prospects for growth may be intact, near term the stocks have
underperformed. I continue to believe that the healthcare industry presents
long-term opportunities to invest in rapidly growing companies, despite the
market's current negative perception of the group. Some of the Fund's services
stocks, which were overweighted, also lagged the market. These included stocks
in environmental services, business services and information technology
services. If a company

<PAGE>
continues to hit its growth targets, and valuation remains reasonable, I often
will continue to hold the stock. However, in some cases we took profits in
stocks that had sharp moves up, only to watch the stocks continue to rise to
even higher valuations.

I generally sell securities from the Fund when there is an expected or
actual change in growth prospects, when valuation levels have become extreme,
or when I believe there are superior alternative investments. During recent
months I repositioned the Fund by eliminating several poorly performing
stocks, as well as stocks where the risk of future disappointment was deemed
to be high. Some examples included HemaCare, Chromatics Color Sciences
International, and Atlantic Pharmaceuticals.

Using a bottom-up strategy, the Dreyfus Premier Aggressive Growth Fund
generally focuses on new idea companies - companies that potentially can
deliver growth through new products, new services, or new ways of approaching
their business such that they can gain market share or create new markets.
When such companies are identified, I evaluate the potential sustainability of
growth vis-a-vis the company's competitive position within its industry. I
seek to maintain close relationships with company management, often meeting
with them directly to evaluate their ability to manage and deliver high levels
of growth. During the period, the Fund concentrated on midcap companies that
ranged from $1 billion to $8 billion in market value. Generally, I looked for
companies that have grown 20% or better with potentially sustainable earnings
growth and open-ended growth prospects. With a focus on aggressive growth, the
Fund continued to be designed for those investors with a tolerance for higher
risk and a long-term investment horizon.

Sincerely,

/s/Paul A. LaRocco

Paul A. LaRocco
Portfolio Manager

April 19, 1999
New York, N.Y.

* Total return includes reinvestment of dividends and any capital gains
paid, without taking into account the maximum initial sales charge in the
case of Class A shares or the applicable contingent deferred sales charge
imposed on redemptions in the case of Class B and Class C shares.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC.-Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of U.S. stock market performance.
<PAGE>
Dreyfus Premier Aggressive Growth Fund
- -------------------------------------------------------------------------------
Statement of Investments March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks-92.3% Shares Value
- ------------------------------------------------------------------------------------- ------------- -------------
<S> <C> <C> <C>
Aerospace-1.5% L-3 Communications Holdings................... 42,150 (a) $ 1,949,437
-------------
Apparel-1.5% Tommy Hilfiger................................ 27,000 (a) 1,859,625
-------------
Biotechnology-1.8% Biomatrix..................................... 16,600 (a) 1,294,800
Gilead Sciences............................... 21,325 (a) 970,288
-------------
2,265,088
-------------
Business Services-7.7% Affiliated Computer Services, Cl. A........... 36,850 (a) 1,685,888
Fiserv........................................ 40,824 (a) 2,189,187
Metzler Group................................. 45,775 (a) 1,436,191
Sterling Commerce............................. 66,000 (a) 2,029,500
SunGuard Data Systems......................... 60,275 (a) 2,411,000
-------------
9,751,766
-------------
Computer Equipment-2.9% Newbridge Networks............................ 94,300 (a) 2,923,300
Seagate Technology............................ 24,825 (a) 733,889
-------------
3,657,189
-------------
Computer Software/ AXENT Technologies............................ 76,700 (a) 1,845,594
Services-7.5% CNET.......................................... 4,225 (a) 389,228
CSG Systems International..................... 44,000 (a) 1,735,250
Citrix Systems................................ 31,450 (a) 1,199,031
Electronics for Imaging....................... 50,700 (a) 1,977,300
InfoSpace.com................................. 12,550 (a) 1,112,244
Sykes Enterprises............................. 21,575 (a) 697,142
VeriSign...................................... 3,550 (a) 546,700
-------------
9,502,489
-------------
Consumer Products-.7% Rexall Sundown................................ 46,325 (a) 888,861
-------------
Electronics-4.0% Celestica..................................... 50,000 (a) 1,621,875
Jabil Circuit................................. 37,000 (a) 1,498,500
Sanmina....................................... 30,500 (a) 1,944,375
-------------
5,064,750
-------------
Environmental Services-2.1% Republic Services, Cl. A...................... 82,000 (a) 1,327,375
Waste Management.............................. 30,000 1,331,250
-------------
2,658,625
-------------
Financial Services-3.3% Associates First Capital, Cl. A............... 54,150 2,436,750
E*TRADE Group................................. 8,950 (a) 521,897
FINOVA Group.................................. 22,575 1,171,078
-------------
4,129,725
-------------
</TABLE>

<PAGE>
Dreyfus Premier Aggressive Growth Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------------- ------------- -------------
<S> <C> <C> <C>
Health Services-9.9% Bergen Brunswig, Cl. A........................ 24,050 $ 481,000
Biogen........................................ 11,800 (a) 1,348,887
Cardinal Health............................... 12,500 825,000
ChiRex........................................ 103,379 (a) 2,532,785
PAREXEL International......................... 43,825 (a) 906,630
Pharmaceutical Product Development............ 90,000 (a) 3,020,625
Renal Care Group.............................. 85,950 (a) 1,686,769
Total Renal Care Holdings..................... 158,750 (a) 1,746,250
-------------
12,547,946
-------------
Insurance-.7% Conseco....................................... 28,819 889,787
-------------
Leisure & Entertainment-2.0% Fairfield Communities......................... 61,725 (a) 551,667
Premier Parks................................. 39,575 (a) 1,474,169
Sunterra...................................... 57,400 (a) 559,650
-------------
2,585,486
-------------
Manufacturing-2.2% Tyco International............................ 27,400 1,965,950
Zomax Optical Media........................... 42,175 (a) 848,772
-------------
2,814,722
-------------
Medical Supplies-1.6% CONMED........................................ 22,000 (a) 682,000
Sybron International.......................... 54,000 (a) 1,350,000
-------------
2,032,000
-------------
Oil & Gas-.7% Hanover Compressor............................ 31,700 (a) 840,050
-------------
Oil Services-2.5% BJ Services................................... 63,550 (a) 1,489,453
Halliburton................................... 42,000 1,617,000
-------------
3,106,453
-------------
Pharmaceuticals-5.9% Elan, A.D.S................................... 18,900 (a) 1,318,275
Medicis Pharmaceuticals, Cl. A................ 73,500 (a) 2,205,000
Mylan Laboratories............................ 85,000 2,332,187
Teva Pharmaceuticals, A.D.R................... 32,325 1,533,417
-------------
7,388,879
-------------
Publishing & Broadcasting-1.9% EchoStar Communications, Cl. A................ 13,750 (a) 1,122,344
Fox Entertainment Group, Cl. A................ 24,000 (a) 651,000
Infinity Broadcasting, Cl. A.................. 25,175 (a) 648,256
-------------
2,421,600
-------------
Restaurants-5.6% CKE Restaurants............................... 105,925 2,092,019
Dave & Buster's............................... 33,000 (a) 676,500
Outback Steakhouse............................ 76,175 (a) 2,494,731

</TABLE>

<PAGE>
Dreyfus Premier Aggressive Growth Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------------- ------------- -------------
<S> <C> <C> <C>
Restaurants (continued) Starbucks..................................... 63,250 (a) $ 1,774,953
-------------
7,038,203
-------------
Retail-12.1% Abercrombie & Fitch, Cl. A.................... 32,000 (a) 2,944,000
Bed Bath & Beyond............................. 34,050 (a) 1,242,825
Best Buy...................................... 26,575 (a) 1,381,900
Intellicell (Warrants)........................ 102,500 (a) --
Kmart......................................... 60,000 (a) 1,008,750
Linens' n Things.............................. 85,925 (a) 3,898,847
Meyer (Fred).................................. 23,000 (a) 1,354,125
Office Depot.................................. 19,700 (a) 725,206
Rental Service................................ 76,800 (a) 1,344,000
United Rentals................................ 47,375 (a) 1,350,188
-------------
15,249,841
-------------
Semiconductors &
Equipment-6.7% Applied Materials............................. 24,500 (a) 1,511,344
Brooks Automation............................. 68,050 (a) 1,522,619
Maxim Integrated Products..................... 17,875 (a) 967,484
SDL........................................... 14,400 (a) 1,306,800
SkyTel Communications......................... 35,050 (a) 582,706
Uniphase...................................... 15,225 (a) 1,752,778
Vitesse Semiconductor......................... 15,675 (a) 793,547
-------------
8,437,278
-------------
Telecommunication
Equipment-5.9% ADC Telecommunications........................ 43,100 (a) 2,055,331
Motorola...................................... 32,000 2,344,000
P-Com......................................... 116,175 (a) 885,834
RCN........................................... 47,625 (a) 1,598,414
Sawtek........................................ 18,225 (a) 615,094
-------------
7,498,673
-------------
Utilities-1.6% Montana Power................................. 26,675 1,962,280
-------------
TOTAL COMMON STOCKS
(cost $107,225,530)......................... $116,540,753
-------------
-------------
</TABLE>

See notes to financial statements.
<PAGE>
Dreyfus Premier Aggressive Growth Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Cost Value
- ------------------------------------------------------------------------------------- ------------- ------------
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments..... $119,120,698 $128,435,467
Cash....................................................... 8,511
Receivable for investment securities sold.................. 2,450,984
Dividends receivable....................................... 16,324
Prepaid expenses........................................... 26,056
-------------
130,937,342
-------------

LIABILITIES: Due to The Dreyfus Corporation and affiliates.............. 119,130
Due to Distributor......................................... 7,314
Payable for investment securities purchased................ 4,260,454
Payable for shares of Common Stock redeemed................ 147,587
Accrued expenses and other liabilities..................... 94,762
-------------
4,629,247
-------------

NET ASSETS.............................................................................. $126,308,095
-------------
-------------

REPRESENTED BY: Paid-in capital............................................ $227,318,473
Accumulated investment (loss).............................. (657,568)
Accumulated net realized gain (loss) on investments........ (109,667,579)
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4.................................... 9,314,769
-------------
NET ASSETS.............................................................................. $126,308,095
-------------
-------------

NET ASSET VALUE PER SHARE
--------------------------
Class A Class B Class C Class R
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net Assets....................................... $126,162,524 $78,409 $56,927 $10,235
Shares Outstanding............................... 15,172,321 9,676 6,972 1,231

NET ASSET VALUE PER SHARE........................ $8.32 $8.10 $8.17 $8.31
----- ----- ----- -----
----- ----- ----- -----
</TABLE>

<TABLE>

INVESTMENT INCOME
<S> <C> <C> <C>

INCOME: Interest.......................................... $ 195,209
Cash dividends (net of $1,299 foreign taxes
withheld at source)............................. 78,836
--------------
Total Income................................. $ 274,045
EXPENSES: Management fee--Note 3(a)......................... 485,220
Shareholder servicing costs--Note 3(c)............ 326,108
Professional fees................................. 39,366
Directors' fees and expenses--Note 3(d)........... 24,751
Prospectus and shareholders' reports.............. 22,839
Registration fees................................. 16,559
Custodian fees--Note 3(c)......................... 14,409
Distribution fees--Note 3(b)...................... 785
Interest expense--Note 2.......................... 711
Miscellaneous..................................... 865
--------------
Total Expenses................................. 931,613
--------------
INVESTMENT (LOSS).............................................................. (657,568)
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments:
Unaffiliated issuers............................ $(44,439,258)
Affiliated issuers.............................. (6,390,118)
--------------
Net Realized Gain (Loss)...................... (50,829,376)
Net unrealized appreciation (depreciation) on
investments:
Unaffiliated issuers.......................... 71,812,428
Affiliated issuers............................ (319,303) (71,493,125)
-------------- --------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... 20,663,749
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $ 20,006,181
--------------
--------------

</TABLE>

See notes to financial statements.
<PAGE>
Dreyfus Premier Aggressive Growth Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
----------------- ------------------
<S> <C> <C>
OPERATIONS:
Investment (loss)-net....................................................... $ (657,568) $ (2,638,304)
Net realized gain (loss) on investments..................................... (50,829,376) (54,972,290)
Net unrealized appreciation (depreciation) on investments................... 71,493,125 (124,315,957)
------------- -------------
Net Increase (Decrease) in Net Assets Resulting from Operations............. 20,006,181 (181,926,551)
------------- -------------

CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................... 162,222,261 340,176,835
Class B shares........................................................... 150,546 89,530
Class C shares........................................................... 52,201 29,895
Class R shares........................................................... 1,391 7,812
Cost of shares redeemed:
Class A shares........................................................... (176,803,986) (443,227,993)
Class B shares........................................................... (206,957) (133,256)
Class C shares........................................................... (17,154) -
Class R shares........................................................... (1,583) (3,988)
------------- -------------
Increase (Decrease) in Net Assets from Capital Stock Transactions..... (14,603,281) (103,061,165)
------------- -------------
Total Increase (Decrease) in Net Assets.......................... 5,402,900 (284,987,716)

NET ASSETS:
Beginning of Period......................................................... 120,905,195 405,892,911
------------- -------------
End of Period............................................................... $126,308,095 $120,905,195
------------- -------------
------------- -------------

</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Premier Aggressive Growth Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
Shares
-------------------------------------
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
----------------- ------------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Class A
--------
Shares sold................................................................. 20,508,400 28,800,679
Shares redeemed............................................................. (22,213,239) (37,362,516)
------------- -------------
Net Increase (Decrease) in Shares Outstanding......... (1,704,839) (8,561,837)
------------- -------------
------------- -------------

Class B
-------
Shares sold................................................................. 22,041 6,745
Shares redeemed............................................................. (25,755) (10,904)
------------- -------------
Net Increase (Decrease) in Shares Outstanding......... (3,714) (4,159)
------------- -------------
------------- -------------
Class C
-------
Shares sold................................................................. 6,196 2,699
Shares redeemed............................................................. (2,048) --
------------- -------------
Net Increase (Decrease) in Shares Outstanding......... 4,148 2,699
------------- -------------
------------- -------------
Class R
-------
Shares sold................................................................. 179 618
Shares redeemed............................................................. (202) (322)
------------- -------------
Net Increase (Decrease) in Shares Outstanding......... (23) 296
------------- -------------
------------- -------------

</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Premier Aggressive Growth Fund
- -------------------------------------------------------------------------------
Financial Highlights

Class A Shares
---------------------------------------------------------------------
Six Months Ended
March 31, 1999 Year Ended September 30,
-------------------------------------------------------
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994
---------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period............. $ 7.16 $15.94 $14.81 $16.31 $15.35 $18.53
------- ------ ------ ------ ------ ------
Investment Operations:
Investment income (loss)-net..................... (.04)(1) (.12)(1) (.33) (.12) .40 .40
Net realized and unrealized gain (loss)
on investments................................ 1.20 (8.66) 1.46 .01 1.23 (.56)
------- ------ ------ ------ ------ ------
Total from Investment Operations................. 1.16 (8.78) 1.13 (.11) 1.63 (.16)
------- ------ ------ ------ ------ ------
Distributions:
Dividends from investment income-net.............. - - - (.28) (.44) (.80)
Dividends from net realized gain on investments... - - - (1.11) (.23) (2.22)
------- ------ ------ ------ ------ ------
Total Distributions............................... - - - (1.39) (.67) (3.02)
------- ------ ------ ------ ------ ------
Net asset value, end of period.................... $ 8.32 $ 7.16 $15.94 $14.81 $16.31 $15.35
------- ------ ------ ------ ------ ------
------- ------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN(2)........................... 16.20%(3) (55.08%) 7.63% (.71%) 11.21% (1.50%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average
net assets................................... .72%(3) 1.24% 1.20% 1.11% 1.03% 1.03%
Ratio of interest expense, loan commitment fees
and dividends on securities sold short to
average net assets........................... .00%(3,4) .19% .47% .39% .08% .09%
Ratio of net investment income (loss) to average
net assets................................... (.51%)(3) (1.04%) (1.44%) (.66%) 2.55% 2.10%
Portfolio Turnover Rate........................... 81.43%(3) 106.58% 76.28% 131.43% 298.60% 158.05%
Net Assets, end of period (000's Omitted)......... $126,163 $120,782 $405,599 $480,638 $572,077 $570,360

<FN>
- -----------------
(1) Based on average shares outstanding at each month end.
(2) Exclusive of sales load.
(3) Not annualized.
(4) Amount represents less than .01%.
</FN>
</TABLE>

See notes to financial statements.
<PAGE>
Dreyfus Premier Aggressive Growth Fund
- -------------------------------------------------------------------------------
Financial Highlights (continued)

Class B Shares
--------------------------------------------------------
Six Months Ended
March 31, 1999 Year Ended September 30,
-------------------------------------
PER SHARE DATA: (Unaudited) 1998 1997 1996(1)
---------- ------- ------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.................... $ 7.01 $15.74 $14.73 $14.84
------ ------ ------ ------
Investment Operations:
Investment (loss)-net................................... (.08)(2) (.22)(2) (.22) (.10)
Net realized and unrealized gain (loss) on investments.. 1.17 (8.51) 1.23 (.01)
------ ------ ------ ------
Total from Investment Operations........................ 1.09 (8.73) 1.01 (.11)
------ ------ ------ ------
Net asset value, end of period.......................... $ 8.10 $ 7.01 $15.74 $14.73
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN(3)................................. 15.69%(4) (55.46%) 6.86% (.74%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets....... 1.15%(4) 2.09% 1.95% 1.47%(4)
Ratio of interest expense and loan commitment fees to
average net assets................................. .00%(4,5) .19% .43% .49%(4)
Ratio of net investment (loss) to average net assets.... (.95%)(4) (1.89%) (2.22%) (1.40%)(4)
Portfolio Turnover Rate................................. 81.43%(4) 106.58% 76.28% 131.43%
Net Assets, end of period (000's Omitted)............... $78 $94 $276 $13

<FN>
- ------------
(1) From January 3, 1996 (commencement of initial offering) to September 30, 1996.
(2) Based on average shares outstanding at each month end.
(3) Exclusive of sales load.
(4) Not annualized.
(5) Amount represents less than .01%.
</FN>
</TABLE>

See notes to financial statements.
<PAGE>
Dreyfus Premier Aggressive Growth Fund
- -------------------------------------------------------------------------------
Financial Highlights (continued)

Class C Shares
--------------------------------------------------------
Six Months Ended
March 31, 1999 Year Ended September 30,
-------------------------------------
PER SHARE DATA: (Unaudited) 1998 1997 1996(1)
---------- ------- ------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.................... $ 7.06 $15.76 $14.83 $14.84
------ ------ ------ ------
Investment Operations:
Investment (loss)-net................................... (.07)(2) (.18)(2) (.37)(2) (.24)(2)
Net realized and unrealized gain (loss) on investments.. 1.18 (8.52) 1.30 .23
------ ------ ------ ------
Total from Investment Operations........................ 1.11 (8.70) .93 (.01)
------ ------ ------ ------
Net asset value, end of period.......................... $ 8.17 $ 7.06 $15.76 $14.83
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN(3)................................. 15.72%(4) (55.20%) 6.27% (.07%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets....... 1.18%(4) 2.39% 1.99% 1.42%(4)
Ratio of interest expense and loan commitment fees to
average net assets................................. .00%(4,5) .07% .53% .47%(4)
Ratio of net investment (loss) to average net assets.... (.95%)(4) (1.90%) (2.37%) (1.32%)(4)
Portfolio Turnover Rate................................. 81.43%(4) 106.58% 76.28% 131.43%
Net Assets, end of period (000's Omitted)............... $57 $20 $2 $1

<FN>
- --------------
(1) From January 3, 1996 (commencement of initial offering) to September 30, 1996.
(2) Based on average shares outstanding at each month end.
(3) Exclusive of sales load.
(4) Not annualized.
(5) Amount represents less than .01%.
</FN>
</TABLE>

See notes to financial statements.
<PAGE>
Dreyfus Premier Aggressive Growth Fund
- -------------------------------------------------------------------------------
Financial Highlights (continued)

Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Class R Shares
--------------------------------------------------------
Six Months Ended
March 31, 1999 Year Ended September 30,
-------------------------------------
PER SHARE DATA: (Unaudited) 1998 1997 1996(1)
---------- ------- ------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.................... $ 7.16 $16.02 $14.84 $14.84
------ ------ ------ ------
Investment Operations:
Investment (loss)-net................................... (.03)(2) (.15)(2) (.10) (.02)
Net realized and unrealized gain (loss) on investments.. 1.18 (8.71) 1.28 .02
------ ------ ------ ------
Total from Investment Operations........................ 1.15 (8.86) 1.18 --
------ ------ ------ ------
Net asset value, end of period.......................... $ 8.31 $ 7.16 $16.02 $14.84
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN.................................... 16.20%(3) (55.31%) 7.95% --
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets....... .59%(3) 1.57% .76% .73%(3)
Ratio of interest expense and loan commitment fees to
average net assets................................. .00%(3,4) .16% .30% .35%(3)
Ratio of net investment (loss) to average net assets.... (.38%)(3) (1.30%) (.90%) (.56%)(3)
Portfolio Turnover Rate................................. 81.43%(3) 106.58% 76.28% 131.43%
Net Assets, end of period (000's Omitted)............... $10 $9 $15 $5

<FN>
- ------------
(1) From January 3, 1996 (commencement of initial offering) to September 30,
1996.
(2) Based on average shares outstanding at each month end.
(3) Not annualized.
(4) Amount represents less than .01%.
</FN>
</TABLE>

NOTE 1--Significant Accounting Policies:

Dreyfus Premier Aggressive Growth Fund (the "Fund") is a separate diversified
series of Dreyfus Premier Equity Fund's, Inc., (the "Company") which is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
an open-end management investment company and operates as a series company
currently offering four series, including the Fund. The Fund's investment
objective is capital growth. The Dreyfus Corporation (the "Manager") serves as
the Fund's investment adviser. The Manager is a direct subsidiary of Mellon
Bank, N.A. ("Mellon").

Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of
the Fund's shares. The Fund is authorized to issue 50 million shares of $1.00
par value Common Stock in each of the following classes of shares: Class A,
Class B, Class C and Class R shares. Class A shares are subject to a sales
charge imposed at the time of purchase, Class B shares are subject to a
contingent deferred sales charge ("CDSC") imposed on Class B share redemptions
made within six years of purchase, Class C shares are subject to a CDSC
imposed on Class C shares redeemed within one year of purchase and Class R
shares are sold at net asset value per share only to institutional investors.
Other differences between the classes include the services offered to and the
expenses borne by each class and certain voting rights.

The Company accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.

The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.

(a) Portfolio valuation: Investments in securities (including options and
financial futures) are valued at the last sales price on the securities
exchange on which such securities are primarily traded or at the last sales
price on the national securities market. Securities not listed on an exchange
or the national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked
prices, except for open short positions, where the asked price is used for
valuation purposes. Bid price is used when no asked price is available.
Securities for which there are no such valuations are valued at fair value as
determined in good faith under the direction of the Board of Directors.
Investments denominated in foreign currencies are translated to U.S. dollars
at the prevailing rates of exchange. Forward currency exchange contracts are
valued at the forward rate.

(b) Foreign currency transactions: The Fund does not isolate that portion of
the results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.

Net realized foreign exchange gains or losses arise from sales and maturities
of short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and the difference between the amounts of
dividends, interest and foreign withholding taxes recorded on the Fund's books
and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the value of
assets and liabilities other than investments in securities, resulting from
changes in exchange rates. Such gains and losses are included with net realized
and unrealized gain or loss on investments.

(c) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the Fund received

<PAGE>
Dreyfus Premier Aggressive Growth Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

net earnings credits of $401 during the period ended March 31, 1999 based on
available cash balances left on deposit. Income earned under this arrangement
is included in interest income.

(d) Affiliated issuers: Issuers in which the Fund held 5% or more of the
outstanding voting securities are defined as "affiliated" in the Act. The
following summarizes affiliated issuers during the period ended March 31,
1999:

Shares
-------------------------------------------------------------------------
Beginning Purchases/ Sales/ End of Dividend Market Value
Name of Issuer of Period Increases Decreases Period Income 3/31/99
- -------------- ------------- --------- --------- -------- ------ -------
<S> <C> <C> <C> <C> <C> <C>
CCA Cos............... 673,325 - 673,325 - - -
HemaCare.............. 530,500 - 530,500 - - -
ONCOR................. 1,907,825 - 1,907,825 - - -
OnGard Systems........ 570,000 - 570,000 - - -
STELAX Industries..... 2,229,950 - 2,229,950 - - -
</TABLE>

(e) Dividends to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain, if any, are normally declared and paid annually, but the Fund may
make distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.

(f) Federal income taxes: It is the policy of the Fund to continue to qualify
as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the applicable provisions of
the Code, and to make distributions of taxable income sufficient to relieve it
from substantially all Federal income and excise taxes.

The Fund has an unused capital loss carryover of approximately $2,409,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1998. The
carryover does not include net realized securities losses from November 1,
1997 through September 30, 1998 which are treated for Federal income tax
purposes as arising in fiscal 1999. If not applied, the carryover expires in
fiscal 2004.

NOTE 2--Bank Line of Credit:

The Fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the
time of borrowings.

The average daily amount of borrowings outstanding during the period ended
March 31, 1999 was approximately $30,800, with a related weighted average
annualized interest rate of 4.63%.

NOTE 3--Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .75 of 1% of the value of the
Fund's average daily net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses allocable to Class A,
exclusive of taxes, interest on borrowings (which, in the view of Stroock &
Stroock & Lavan LLP, counsel to the Fund, also includes loan commitment fees
and dividends on securities sold short), brokerage commissions and
extraordinary expenses, exceed

<PAGE>
Dreyfus Premier Aggressive Growth Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

1 1/2% of the average value of Class A net assets, the Fund may deduct from
payments to be made to the Manager, or the Manager will bear such excess
expense. No expense reimbursement was required for the period ended March 31,
1999.

Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $4,853 during the period ended March 31, 1999 from commissions earned
on sales of Fund shares.

(b) Under the Distribution Plan, adopted pursuant to Rule 12b-1 under the
Act, Class B and Class C shares pay the Distributor for distributing their
shares at an annual rate of .75 of 1% of the value of the average daily net
assets of Class B and Class C shares. During the period ended March 31, 1999,
Class B and Class C shares were charged $647 and $138, respectively, pursuant
to the Distribution Plan.

(c) Under the Shareholder Services Plan, Class A, Class B and Class C shares
pay the Distributor at the annual rate of .25 of 1% of the value of their
average daily net assets for the provision of certain services. The services
provided may include personal services relating to shareholder accounts, such
as answering shareholder inquiries regarding the Fund and providing reports
and other information, and services related to the maintenance of shareholder
accounts. The Distributor may make payments to Service Agents (a securities
dealer, financial institution or other industry professional) in respect of
these services. The Distributor determines the amounts to be paid to Service
Agents. During the period ended March 31, 1999, Class A, Class B and Class C
shares were charged $161,466, $215 and $46, respectively, pursuant to the
Shareholder Services Plan.

The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the period
ended March 31, 1999, the Fund was charged $118,621 pursuant to the transfer
agency agreement.

The Fund compensates Mellon under a custody agreement for providing custodial
services for the Fund. During the period ended March 31, 1999, the Fund was
charged $14,409 pursuant to the custody agreement.

(d) Each director who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $4,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.

NOTE 4--Securities Transactions:

The following summarizes the aggregate amount of purchases and sales of
investment securities, excluding short-term securities, during the period
ended March 31, 1999:
Purchases Sales
--------- -----------
Unaffiliated issuers.................... $99,233,606 $121,121,812
Affiliated issuers...................... - 269,289
----------- ------------
Total.............................. $99,233,606 $121,391,101
---------- ------------
---------- ------------

At March 31, 1999, accumulated net unrealized appreciation on investments was
$9,314,769, consisting of $19,437,188 gross unrealized appreciation and
$10,122,419 gross unrealized depreciation.

At March 31, 1999, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).

<PAGE>
Dreyfus Premier Aggressive Growth Fund
200 Park Avenue
New York, NY 10166

Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 009SA993

Semi-Annual Report

Dreyfus Premier Emerging Markets Fund

March 31, 1999
<PAGE>
Year 2000 Issues (Unaudited)

The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund's other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could
have an impact on the value of the fund's investments and its share price.
<PAGE>
Dreyfus Premier Emerging Markets Fund
- --------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:

We are pleased to provide you with this semiannual report for Dreyfus
Premier Emerging Markets Fund, covering the six-month period October 1, 1998
through March 31, 1999. This was an unprecedented period for emerging markets.
As the six months began, emerging markets had been experiencing the greatest
investment challenges since Latin American nations defaulted in the early
1980s and the Mexican peso was devalued in 1994. Yet, as April began, it
appeared that these highly sensitive markets might have bottomed out and that
a period of recovery could be in the offing.

We are pleased that all classes of shares achieved positive returns for the
six months under review, as shown by the following table:

Total Return, Six Months Ended March 31, 1999
Dreyfus Premier Emerging Markets Fund *
---------------------------------------------
Class A Shares 27.07%
Class B Shares 26.46%
Class C Shares 26.54%
Class R Shares 27.23%
Morgan Stanley Capital International
Emerging Markets Free Index **
(MSCI/EMF) 32.66%

Economic Overview

Since the beginning of March 1999, international investor sentiment towards
emerging markets has been improving and Asian economies have been showing
signs of economic growth. Commodity prices seem to have started a bottoming-
out process and inventories have started to decline in oil, natural gas,
paper, nickel and soybean oil. Gold, silver and copper unfortunately still
show high inventory levels, and therefore historically low prices in their
respective spot markets. Since commodities contribute heavily to the exports
of emerging nations, it is important to realize the impact commodities can
have on emerging countries' trade balances. If export volumes show signs of a
rebound and if the value of individual export products increase, the trade
surpluses of the respective countries generally improve, leading to an influx
of foreign currencies, which in turn can lead to greater stability of local
currencies.

The U.S. and European economies have been providing a stable environment
for world financial markets in the past year after the collapse of Southeast
Asian economies, the collapse of the Russian economy and now the substantial
devaluation of the Brazilian real. The concerted effort of the G7 nations and
their central banks have provided substantial liquidity in world financial
markets when most investors feared a financial meltdown after the collapse of
the Long Term Capital hedge fund last year.

It seems the efforts led by the International Monetary Fund in Southeast
Asia last year worked faster than expected toward restructuring activities and
economic growth in countries such as South Korea, Thailand and Indonesia.
Unfortunately, countries such as Russia still remain in a very difficult
position and will require a much longer adjustment period. On the other hand,
the IMF has been very involved in helping the Brazilian government implement
new policies to lower its fiscal deficit to more reasonable levels.
<PAGE>
Interest rates worldwide have been trending down since the major collapse
of Southeast Asian economies last year. Some exceptions still exist in Brazil,
Russia, Venezuela and Turkey due to local issues. The IMF is currently very
active in Brazil and Turkey advising the directors of those countries' Central
Banks and Ministries of Finance to take the necessary steps to control their
fiscal imbalances.

The resilience of U.S. economic growth has continued to surprise
international markets, and interest rate cuts are expected in Europe to
stimulate better economic growth hereafter. On the other hand, the Japanese
economy seems to be in a process of bottoming out, and the stability of the
Japanese yen since last October seems to provide greater stability for other
Asian currencies.

Finally, there still seems to be uncertainty regarding the Bank of China
policy of keeping the renminbi at the RMB 8.28 per U.S. dollars level. At this
time, it seems the Chinese government is focusing on WTO entry, restructuring
its banking industry and reforming its state-owned enterprises while providing
a stable environment to Southeast Asian currencies. Since the renminbi is not
a freely floating currency, many economists believe that an organized
devaluation of the currency should not create a panic in international markets
and that Southeast Asian currencies are currently stable enough to withstand a
change in policy in China.

Investment Approach

The fund seeks to achieve long-term capital growth by investing in a
diversified and structured portfolio of growth companies in emerging markets.
The investment process is driven by a macroeconomic top-down process and a
bottom-up company and sector analysis focusing on companies exhibiting growth
and reasonable value. The top-down country allocation evaluates macroeconomic
and geopolitical trends by identifying countries undergoing both market-
oriented economic reform and political reform that we believe can foster their
passage to developed country status over time. We also assess sovereign and
market-specific risk by evaluating political stability, judicial independence,
and fiscal, monetary and foreign exchange policies. Traditional analysis of
market earnings growth, interest rate trends and other pertinent variables are
also used. Markets exhibiting positive trends in these areas and reasonable
valuation relative to other emerging markets are considered for purchase.
Generally, the fund's investments in a market are reduced or liquidated when a
substantial number of the variables mentioned above turn neutral-to-negative
or when valuation of that market ceases to be attractive compared to other
emerging markets.

In the bottom-up process, growth and valuation factors are evaluated to
determine the company's attractiveness within its sector, local market, region
and/or the emerging market universe. The bottom-up approach evaluates growth
factors for each company such as revenue prospects, operating cash flow,
ability to achieve consistent earnings and management's ability to achieve
higher operating margins. The valuation factors for each company consist of
price-to-earnings, price-to-book value, price-to-cash flow and enterprise
value-to-earnings before tax, depreciation, amortization ratios and dividend
yield. Regulatory changes, industry-specific trends, competitive strengths and
technological advances are also closely assessed when evaluating various
investment alternatives. Our visits to companies play an important role in the
stock picking process. Generally, a company will be sold from the fund if the
company's growth falls below expectations, the valuation target is reached or
the weighting in that market is reduced as a result of an asset allocation
decision.
<PAGE>
Foreign currencies are very difficult to hedge in emerging markets and we
believe the most efficient way to limit losses from currency devaluation is by
selling the assets in a specific country when probabilities of a currency
devaluation increase due to worsening of economic fundamentals.

Portfolio Focus

The fund was fully invested as of March 31, 1999, in order to take
advantage of a period where liquidity in world financial markets was
increasing and emerging markets assets were trading at low historical
valuations.

As of March 31, 1999, the fund was slightly overweight in Latin America,
slightly underweight in Southeast Asian markets, overweight in developing
European markets and underweight in South Africa compared to the geographic
allocation of the MSCI/EMF Index.

In Latin America, the fund was overweight in Brazil, Mexico and Chile,
economies that we believed should benefit from the lowering of regional
interest rates and greater liquidity of local financial markets. The
devaluation of the Brazilian real was obviously a setback for Brazilian
companies but fortunately the telecommunications and electric utility
companies held in the fund had limited U.S. dollar debt levels and strong
earnings growth potential regardless of the negative economic effects of a
devaluation. The fund's investments included Copel, an electric utility
company in the State of Parana, Brazil, and subsidiaries of Telebras, the
recently privatized telecommunications company of Brazil. On the other hand,
we believe that Mexico should benefit from stable export growth to the U.S.
and a more efficient corporate sector. We continued to hold Telefonos de
Mexico, Cl.L, ADS, the largest Mexican telecommunications company, and Fomento
Economico Mexicano, ADR, a large beer and soft drink holding company in
Mexico.

In Asia, the fund held Korea Data System and Trigem Computer of South
Korea, companies that have benefited from the high growth of the lower priced
personal computers. The fund also had an overweight position in markets such
as Singapore, Hong Kong, the Philippines and Thailand because valuations were
still attractive and we believe that the restructuring process taking place in
Southeast Asia should improve the growth expectations and the quality of the
companies' potential earnings. As we had previously seen in Mexico in 1995 and
1996, when economies go through very difficult economic periods, the better
quality companies generally try to take advantage of the down cycle to
restructure their operations and buy assets previously trading at unattainable
valuations. An example of these restructuring trends is Development Bank of
Singapore: it has been acquiring assets in the region at historically low book
valuations and implementing a restructuring process to increase returns on
assets. The fund has been fortunate to benefit from the Internet frenzy seen
in international markets through its investments in Pacific Internet, an
Internet service provider incorporated in Singapore, and companies such as
Hong Kong Telecom, ADR, and Wharf Holdings, which have holdings in very fast-
growing Internet or cable businesses.

Finally, the fund's exposure to Europe, the Middle East and Africa
continued to focus on the cheaper valuations of companies such as Ceske
Radiokomunikace, GDR, a Czech telecommunications company, MOL Magyar Olaj-es
Gazipari, GDR, a Hungarian oil and gas company, and Akbank T.A.S., ADR, the
most conservative Turkish bank, currently trading at historically attractive
valuations. After benefiting from a very strong performance in our Greek
holdings, we have reduced our exposure to Greece due to high valuations and
the beginning of the Kosovo conflict in the vicinity.
<PAGE>
We hope that 1999 will be a much better year for investors in emerging
markets and look forward to communicating our investment strategies in our
next correspondence.

Sincerely yours,

/s/ Danial Beneat

Daniel Beneat
Portfolio Manager

April 26, 1999
New York, N.Y.

* Total return includes reinvestment of dividends and any capital gains
paid, and does not take into consideration the maximum initial sales charge
in the case of Class A shares, or the applicable contingent deferred sales
charge imposed on redemptions in the case of Class B and Class C shares.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- The Morgan Stanley Capital
International Emerging Markets Free Index (MSCI/EMF), which is the property
of Morgan Stanley & Co. Incorporated, is a market capitalization weighted
index composed of companies representative of the market structure of 26
Emerging Market countries in Europe, Latin America and the Pacific Basin, and
includes gross dividends reinvested. The MSCI/EMF Index excludes closed
markets and those shares in otherwise free markets which are not purchasable
by foreigners.
<PAGE>
Dreyfus Premier Emerging Markets Fund
- -------------------------------------------------------------------------------
Statement of Investments March 31, 1999 (Unaudited)

<TABLE>
<CAPTION>
Common Stocks--91.0% Shares Value
- ------------------------------------------------------------------------------- ------------ ---------
<S> <C> <C>
Argentina--2.0% YPF Sociedad Anonima, ADS............................ 1,000 $ 31,563

Brazil--5.9% Comp Paranaense Energia B', ADS....................... 7,000 52,500
Tele Centro Sul Partici, ADS.......................... 500 (a) 23,094
Uniao de Bancos Brasileiros, GDR...................... 1,000 19,250
----------
94,844
----------

Chile--4.9% Compania de Telecomunicaciones de Chile, ADS.......... 1,500 35,344
Santa Isabel, ADS..................................... 5,000
43,750
----------
79,094
----------

Columbia--1.0% Banco Ganadero, ADR.................................... 1,000 16,875
----------

Czech Republic--2.1% Ceske Radiokomunikace, GDR............................. 1,000 (a) 34,300
----------

Greece--2.3% Hellenic Telecommunication Organization................ 1,000 24,208
National Bank of Greece................................ 200 13,498
----------
37,706
----------

Hong Kong--7.2% Cheung Kong Holdings................................... 4,000 30,453
Hong Kong Telecom, ADR................................. 2,000 39,125
Hutchison Whampoa...................................... 2,000 15,743
Wharf Holdings......................................... 20,000 30,712
----------
116,033
----------

Hungary--3.6% MOL Magyar Olaj-es Gazipari, GDR....................... 1,500 32,025
Magyar Tavkozlesi, ADR................................. 1,000 26,750
----------
58,775
----------

Indonesia--1.8% P. T. Telekomunikasi, ADS.............................. 4,500 28,688
----------

Israel--2.9% Koor Industries, ADS................................... 800 16,900
NICE-Systems, ADR...................................... 1,000 (a) 29,500
----------
46,400
----------

Luxembourg--1.8% Quilmes Industrial, ADS................................ 3,000 28,312
----------

Mexico--12.2% Fomento Economico Mexicano, ADR........................ 1,500 46,406
Grupo Casa Autrey, ADS................................. 3,500 17,938
Grupo Financiero Banamex Accival....................... 12,000 (a) 25,973
Grupo Imsa, ADS........................................ 2,000 31,625
Grupo Televisa, GDS.................................... 1,000 (a) 31,375
Panamerican Beverages.................................. 1,000 17,563
Telefonos de Mexico, Cl. L, ADS........................ 400 26,200
----------
197,080
----------
</TABLE>
<PAGE>

Dreyfus Premier Emerging Markets Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999 (Unaudited)

<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------- ------------ ---------
<S> <C> <C>
Peru--1.0% Telefonica del Peru, ADS.............................. 1,200 $15,300
----------
Philippines--2.4% Equitable Banking..................................... 4,000 7,535
Metropolitan Bank & Trust............................. 700 5,555
Philippine Long Distance Telephone.................... 1,000 26,323
----------

39,413
-----------

Singapore--10.0% City Developments..................................... 6,000 31,268
Development Bank of Singapore......................... 5,000 37,927
Elec & Eltek International............................ 5,000 18,400
Jardine Matheson...................................... 10,000 30,200
Pacific Internet...................................... 750 (a) 43,641
-----------
161,436
----------

South Africa--3.4% Carson Holdings....................................... 14,058 (a) 16,217
Profurn............................................... 50,000 38,178
-----------
54,395
-----------
South Korea--10.2% Housing & Commercial Bank, GDR........................ 1,500 29,138
Korea Data System..................................... 3,000 63,080
Samsung Electronics, GDR.............................. 2,000 (a) 31,950
Trigem Computer....................................... 3,000 40,831
-----------

164,999
-----------
Taiwan--5.2% Siliconware Precision Industries, GDR................. 3,500 (a) 46,288
Taiwan Semiconductor Manufacturing, ADS............... 1,600 (a) 37,800
-----------
84,088
-----------
Thailand--3.5% Advanced Info Service................................. 3,000 21,711
Cogeneration.......................................... 30,000 (a) 18,358
PTT Exploration and Production........................ 2,000 (a) 15,538
-----------
55,607
-----------
Turkey--4.5% Akbank T. A. S., ADR.................................. 5,000 31,375
Haci Omer Sabanci, ADR................................ 7,000 41,475
-----------
72,850
-----------
United Kingdom--3.1% Antofagasta Holdings.................................. 12,000 49,617
-----------

TOTAL COMMON STOCKS
(cost $1,309,451)...................................
$1,467,375
-----------
-----------
</TABLE>
<PAGE>

Dreyfus Premier Emerging Markets Fund

- -------------------------------------------------------------------------------

Statement of Investments (continued) March 31, 1999 (Unaudited)

<TABLE>
<CAPTION>
Preferred Stocks--6.9% Shares Value
- ------------------------------------------------------------------------------- ------------ ---------
<S> <C> <C>
Brazil--6.9 Embratel Participacoes................................ 2,000 (a) $ 33,549
Tele Celular Sul Participacoes........................ 20,000 40,058
Telecomunicacoes de Sao Paulo......................... 300 36,769
-----------
TOTAL PREFERRED STOCKS
(cost $108,153)..................................... $ 110,376
-----------
-----------
TOTAL INVESTMENTS (cost $1,417,604)............................................ 97.9% $1,577,751
-----------
-----------
CASH AND RECEIVABLES (NET)..................................................... 2.1% $ 34,510
-----------
-----------
NET ASSETS..................................................................... 100.0% $ 1,612,261
-----------
-----------

<FN>
Notes to Statement of Investments:

- -------------------------------------------------------------------------------
(a) Non-income producing.

</FN>
</TABLE>

See notes to financial statements.
<PAGE>
Dreyfus Premier Emerging Markets Fund

- -------------------------------------------------------------------------------
Statement of Assets and Liabilities March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Cost Value

------------ --------
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments.... $1,417,604 $1,577,751
Cash....................................................... 2,618
Receivable for investment securities sold.................. 15,921
Due from The Dreyfus Corporation........................... 14,102
Dividends receivable....................................... 6,534
Prepaid expenses........................................... 25,460
-------
-------
1,642,386
-------
-------

LIABILITIES: Due to Distributor......................................... 514
Payable for investment securities purchased................ 15,161
Accrued expenses........................................... 14,450
----------

30,125
----------

NET ASSETS..................................................................... $1,612,261
----------
----------

REPRESENTED BY: Paid-in capital........................................... $2,145,933
Accumulated distributions in excess of investment
income--net............................................. (6,733)
Accumulated net realized gain (loss) on investments
and foreign currency transactions....................... (686,484)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions........ 159,545
----------
NET ASSETS..................................................................... $1,612,261
----------
----------
</TABLE>

NET ASSET VALUE PER SHARE

-------------------------
Class A Class B Class C Class R
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net Assets........................................ $1,092,034 $ 226,576 $ 146,086 $ 147,565

Shares Outstanding................................ 119,803 24,961 16,059 16,164

NET ASSET VALUE PER SHARE......................... $9.12 $9.08 $9.10 $9.13
----- ----- ----- -----
----- ----- ----- -----
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Premier Emerging Markets Fund

- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended March 31, 1999 (Unaudited)

<TABLE>
<CAPTION>
INVESTMENT INCOME

<S> <C> <C>
INCOME: Cash dividends (net of $2,728 foreign taxes
withheld at source).................................. $ 13,151
Interest 2,179
----------
Total Income......................................... $ 15,330

EXPENSES: Management fee--Note 3(a).............................. 8,457
Registration fees...................................... 35,601
Professional fees...................................... 11,004
Custodian fees......................................... 7,207
Prospectus and shareholders' reports................... 2,811
Shareholder servicing costs--Note 3(c)................. 1,927
Distribution fees--Note 3(b)........................... 1,114
Directors' fees and expenses--Note 3(d)................ 394
Miscellaneous.......................................... 641
----------
Total Expenses....................................... 69,156
Less--expense reimbursement from Dreyfus
due to undertaking--Note 3(a)........................ (52,980)
----------
Net Expenses......................................... 16,176
---------

INVESTMENT LOSS................................................................ (846)

REALIZED GAIN AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments and
foreign currency transactions........................ $ (7,865)
Net unrealized appreciation (depreciation) on
investments and foreign currency transactions........ 339,592
----------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... 331,727
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $330,881
--------
--------
</TABLE>
See notes to financial statements.

<PAGE>
Dreyfus Premier Emerging Markets Fund

- -------------------------------------------------------------------------------
Statement of Changes in Net Assets

<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998*
--------- _________________
<S> <C> <C>
OPERATIONS:
Investment income (loss)--net............................................... $ (846) $ 4,760
Net realized gain (loss) on investments..................................... (7,865) (678,619)
Net unrealized appreciation (depreciation) on investments................... 339,592 (180,047)
--------------- ---------
Net Increase (Decrease) in Net Assets Resulting from Operations........... 330,881 (853,906)
--------------- ---------

DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares............................................................ (8,004) --

Class B shares............................................................ (883) --

Class C shares............................................................ (464) --

Class R shares............................................................ (1,296) --

--------------- --------
Total Dividends........................................................ (10,647)

--------------- ---------

CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares............................................................ 42,524 1,420,000
Class B shares............................................................ 65,827 207,994
Class C shares............................................................ -- 200,000
Class R shares............................................................ --
200,000 Dividends reinvested:
Class A shares............................................................ 8,004 --
Class B shares............................................................ 883 --
Class C shares............................................................ 464 --
Class R shares............................................................ 1,296 --
Cost of shares redeemed:
Class A shares............................................................ (993) --
Class B shares............................................................ (66) --
--------------- ----------
Increase (Decrease) in Net Assets from Capital Stock Transactions....... 117,939 2,027,994)
--------------- ----------
Total Increase (Decrease) in Net Assets............................... 438,173 1,174,088

NET ASSETS:
Beginning of Period......................................................... 1,174,088 --
--------------- ----------
End of Period............................................................... $1,612,261 $1,174,088)
--------------- ----------
--------------- ----------
Undistributed investment income (distributions in excess of investment
income)--net................................................................. $ (6,733) $ 4,760
------------- --------

<FN>
- -------------------
*From March 31, 1998 (commencement of operations) to September 30, 1998.
</FN>
</TABLE>
See notes to financial statements.

<PAGE>
Dreyfus Premier Emerging Markets Fund

- -------------------------------------------------------------------------------
Statement of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
Shares
-------------------------------------------
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998*
------------------ -------------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Class A
-------
Shares sold................................................................. 5,289 113,621
Shares issued for dividends reinvested...................................... 1,016 --
Shares redeemed............................................................. (123) --
----- -------
Net Increase (Decrease) in Shares Outstanding......................... 6,182 113,621
----- -------
----- -------

Class B
-------
Shares sold................................................................. 8,156 16,700
Shares issued for dividends reinvested...................................... 113 --
Shares redeemed............................................................. (8) --
----- -------

Net Increase (Decrease) in Shares Outstanding......................... 8,261 16,700
----- -------
----- -------

Class C
-------
Shares sold................................................................. ---- 16,000
Shares issued for dividends reinvested...................................... 59 --
----- -------

Net Increase (Decrease) in Shares Outstanding......................... 59 16,000
----- -------
----- -------

Class R
-------
Shares sold................................................................. -- 16,000
Shares issued for dividends reinvested...................................... 164 --
----- -------

Net Increase (Decrease) in Shares Outstanding.......................... 164 16,000
----- -------
----- -------

<FN>
- -------------------
*From March 31, 1998 (commencement of operations) to September 30, 1998.
</FN>
</TABLE>

See notes to financial statements.
<PAGE>
Dreyfus Premier Emerging Markets Fund
- -------------------------------------------------------------------------------
Financial Highlights

<TABLE>
<CAPTION>
Class A Shares Class B Shares
-------------------------------------- ------------------------------------
Six Months Ended Six Months Ended
March 31, 1999 Period Ended March 31, 1999 Period Ended
PER SHARE DATA: Unaudited) September 30, 1998(1) Unaudited) September 30,
1998(1)
-------------- ------------------ ----------------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.......... $ 7.24 $ 12.50 $ 7.21 $12.50
-------- ------- -------- ------
Investment Operations:
Investment income (loss)--net................. .00(2) .04 (.02) .00(2)
Net realized and unrealized gain (loss)
on investments.............................. 1.95 (5.30) 1.93 (5.29)
-------- ------- -------- ------
Total from Investment Operations.............. 1.95 (5.26) 1.91 (5.29
-------- ------- -------- ------
Distributions:
Dividends from investment income--net......... (.07) -- (.04) --
-------- ------- -------- ------
Net asset value, end of period................ $ 9.12 $ 7.24 $ 9.08 $ 7.21
-------- ------- -------- ------
-------- ------- -------- ------

TOTAL INVESTMENT RETURN(3,4)..................... 27.07% (42.08%) 26.46% (42.32%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets (3)... 1.12% 1.15% 1.50% 1.54%
Ratio of net investment income (loss) to
average net assets(3)........................ 01% .35% (.37%) (.04%)
Decrease reflected in above expense ratios
due to undertakings by the Manager(3)........ 3.90% 2.44% 3.90% 2.48%
Portfolio Turnover Rate(3)..................... 97.63% 234.00% 97.63% 234.00%
Net Assets, end of period (000's Omitted)..... $1,092 $822 $227 $120

<FN>
- -------------------
(1) From March 31, 1998 (commencement of operations) to September 30, 1998.
(2) Amount represents less than $.01 per share.
(3) Not annualized.
(4) Exclusive of sales load.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Premier Emerging Markets Fund
- -------------------------------------------------------------------------------
Financial Highlights (continued)

Class C Shares Class R Shares
-------------------------------------- ------------------------------------
Six Months Ended Six Months Ended
March 31, 1999 Period Ended March 31, 1999 Period Ended
PER SHARE DATA: Unaudited) September 30, 1998(1) Unaudited) September 30,
1998(1)
-------------- ------------------ ----------------- --------------
<S> <C> <C> <C> <C>

Net asset value, beginning of period............. $ 7.21 $ 12.50 $ 7.25 $12.50
-------- ------- -------- ------
Investment Operations:
Investment income (loss)--net................. (.03) .00(2) .01 .05
Net realized and unrealized gain (loss)
on investments.............................. 1.95 (5.29) 1.95 (5.30)
-------- ------- -------- ------
Total from Investment Operations.............. 1.92 (5.29) 1.96 (5.25)
-------- ------- -------- ------

Distributions:
Dividends from investment income--net......... (.03) -- (.08) --
-------- ------- -------- ------

Net asset value, end of period................ $ 9.10 $ 7.21 $ 9.13 $ 7.25
-------- ------- -------- ------
-------- ------- -------- ------

TOTAL INVESTMENT RETURN(3)....................... 26.54%(4) (42.32%)(4) 27.23%
(42.00%) RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets (3)... 1.49% 1.53% .99% 1.03%
Ratio of net investment income (loss) to
average net assets (3)...................... (.37%) (.03%) .13% .47%
Decrease reflected in above expense ratios
due to undertaking by the Manager (3)....... 3.90% 2.43% 3.90% 2.44%
Portfolio Turnover Rate (3)................... 97.63% 234.00% 97.63% 234.00%
Net Assets, end of period (000's Omitted)..... $146 $115 $148 $116

See notes to financial statements.
<PAGE>
Dreyfus Premier Emerging Markets Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Dreyfus Premier Emerging Markets Fund (the Fund) is a separate non-
diversified series of Dreyfus Premier Equity Funds, Inc., (the Company)
which is registered under the Investment Company Act of 1940, as amended (the
Act) as an open-end management investment company and operates as a series
company currently offering four series, including the Fund. The Fund's
investment objective is long-term capital growth. The Dreyfus Corporation (the
Manager) serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary of Mellon
Bank Corporation.

Premier Mutual Fund Services, Inc. (the Distributor) is the distributor of
the Fund's shares. The Fund is authorized to issue 50 million shares of $1.00
par value Common Stock in each of the following classes of shares: Class A,
Class B, Class C and Class R shares. Class A shares are subject to a sales
charge imposed at the time of purchase, Class B shares are subject to a
contingent deferred sales charge (CDSC) imposed on Class B share redemptions
made within six years of purchase, Class C shares are subject to a CDSC
imposed on Class C shares redeemed within one year of purchase and Class R
shares are sold at net asset value per share only to institutional investors.
Other differences between the classes include the services offered to and the
expenses borne by each class and certain voting rights.

As of March 31, 1999, MBC Investment Corp., an indirect subsidiary of Mellon
Bank Corporation, held the following shares:

Class A..................112,981 Class C....................16,059
Class B...................16,084 Class R....................16,164

Net realized foreign exchange gains or losses arise from sales and maturities
of short-term securities, sales of foreign currencies, currency gains or
losses realized on securities transactions and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received
or paid. Net unrealized foreign exchange gains and losses arise from changes
in the value of assets and liabilities other than investments in securities,
resulting from changes in exchange rates. Such gains and losses are included
with net realized and unrealized gain or loss on investments.
<PAGE>
Dreyfus Premier Emerging Markets Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

(c) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis.
Dividend income is recognized on the ex-dividend date and interest
income, including, where applicable, amortization of discount on
investments, is recognized on the accrual basis. Under the terms of the
custody agreement, the Fund received net earnings credits of $493 during
the period ended March 31, 1999 based on available cash balances left on
deposit. Income earned under this arrangement is included in interest
income.

(d) Dividends to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net
realized capital gain, if any, are normally declared and paid annually,
but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code of 1986,
as amended (the Code). To the extent that net realized capital gain can
be offset by capital loss carryovers, if any, it is the policy of the
Fund not to distribute such gain.

(e) Federal income taxes: It is the policy of the Fund to continue to qualify
as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the applicable
provisions of the Code, and to make distributions of taxable income
sufficient to relieve it from substantially all Federal income and excise
taxes.

NOTE 2--Bank Line of Credit:

The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (the Facility) primarily to be utilized for
temporary or emergency purposes, including the financing of redemptions. In
connection therewith, the Fund has agreed to pay commitment fees on its pro
rata portion of the Facility. Interest is charged to the Fund at rates based
on prevailing market rates in effect at the time of borrowings. During the
period ended March 31, 1999, the Fund did not borrow under the Facility.

NOTE 3--Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement (Agreement) with the Manager, the
management fee is computed at the annual rate of 1.25% of the value of
the Fund's average daily net assets and is payable monthly. The Manager
has undertaken from October 1, 1998 through September 30, 1999 to reduce
the management fee paid by or reimburse such excess expenses of the Fund,
to the extent that the Fund's aggregate expenses, excluding 12b-1
distribution fees, shareholder service plan fees, taxes, brokerage,
interest on borrowings (which, in the view of Stroock & Stroock & Lavan
LLP, counsel to the Fund, also contemplates commitment fees) and
extraordinary expenses exceed an annual rate of 2% of the value of the
Fund's average daily net assets. The expense reimbursement, pursuant to
the undertaking, amounted to $52,980 during the period ended March 31,
1999.

(b) Under the Distribution Plan, adopted pursuant to Rule 12b-1 under the
Act, Class B and Class C shares pay the Distributor for distributing
their shares at an annual rate of .75 of 1% of the value of their average
daily net assets. During the period ended March 31, 1999, Class B and
Class C shares were charged $638 and $476, respectively, pursuant to the
Distribution Plan.

(c) Under the Shareholder Services Plan, Class A, Class B and Class C shares
pay the Distributor a fee at the annual rate of .25 of 1% of the value of
their average daily net assets for the provision of certain services. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents (a securities dealer, financial institution or other
industry professional) in respect of these services. The Distributor
determines the amounts to be paid to Service Agents. During the period
ended March 31, 1999, Class A, Class B and Class C shares were charged
$1,160, $213 and $159,respectively, pursuant to the Shareholder Services
Plan.
<PAGE>
Dreyfus Premier Emerging Markets Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

(d) Each director who is not an affiliated person as defined in the Act
receives from the Company an annual fee of $4,500 and an attendance fee of
$500 per meeting. The Chairman of the Board receives an additional 25% of such
compensation.

NOTE 4--Securities Transactions:

The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended March 31, 1999,
amounted to $1,950,824 and $1,224,208, respectively.

At March 31, 1999, accumulated net unrealized appreciation on investments
was $160,147, consisting of $246,402 gross unrealized appreciation and
$86,255 gross unrealized depreciation.

At March 31, 1999, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes
(see the Statement of Investments).

<PAGE>
[This page intentionally left blank.]
<PAGE>
Dreyfus Premier Emerging
Markets Fund
200 Park Avenue
New York, NY 10166

Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian
The Bank of New York
90 Washington Street
New York, NY 10286

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 329SA993

Dreyfus Premier Growth and Income Fund

Semi-Annual Report

March 31, 1999
<PAGE>
Year 2000 Issues (Unaudited)

The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund's other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could
have an impact on the value of the funds investments and its share price.
<PAGE>
Dreyfus Premier Growth and Income Fund
- ------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:

March 31, 1999 marked the end of the latest semiannual reporting period for
the Dreyfus Premier Growth and Income Fund. The past six months have been a
very challenging investment environment, with many crosscurrents buffeting
world economies and financial markets. Total returns for the various share
classes during the six-month period ended March 31, 1999 are shown in the
following table:

Total Return*
-------------
Class A....................................... 18.80%
Class B....................................... 18.34%
Class C....................................... 18.32%
Class R....................................... 18.82%

Large-capitalization stocks, as measured by the Standard & Poors 500
Composite Stock Price Index, returned in total 27.32%, while small-cap stocks
returned 10.00%, as measured by the Russell 2000 Index.**

Economic Review

Weakness in the world economy started in Asia with economic and financial
stresses throughout most of the continent. While China was able to generate
economic expansion by government spending, economic declines occurred in most
of the rest of Asia. The most severe phase of these crises occurred when Asian
currencies dropped and short-term interest rates rose there as well. Then
Latin America began to weaken, particularly Brazil. Tentative signs of a
bottoming in Asia had emerged by the end of your funds fiscal period;
however, Brazil had not yet turned the corner.

Europe was full of optimism about the benefits of currency unification into
the Euro as of year-end 1998. The reality was that economic growth in Europe
began the last year at a modest pace and showed signs of stagnation in early
1999. Even so, the new European central bank postponed the reduction in
interest rates at the beginning of 1999, probably because of a desire to build
anti-inflationary credibility. The bank finally eased in April of this year.

Market Overview

The six months ended March 31, 1999 encompassed markedly different market
phases. A broad stock market decline was well established by the beginning of
October 1998. The market reached a low on October 8, 1998 and then began a
sustained recovery.
<PAGE>
Three key trends influenced stock market behavior during the fiscal half-
year. First, there were the moves by the Federal Reserve to ease interest
rates. Second, weakness in emerging-country economies and stresses in the
financial system contributed to both persistently weak commodity prices and a
drop in long-term Treasury bond yields to multidecade lows near the beginning
of the fiscal half-year period. Third, expectations for economic growth
plunged in September and October 1998 in response to a serious financial
crisis; yet by the end of March 1999, all three of these negative factors had
abated, changes that were not lost on the equity markets.

Portfolio Focus

Although we continued to manage the fund with a value orientation, we
focused primarily on large-capitalization stocks with above-average earnings
growth potential and moderate valuations relative to the S&P 500. As the
various discussions above have highlighted, the key investment drivers in the
market were liquidity and concerns about earnings growth. This led to an
investment environment where performance continued to be driven by a narrow
group of large-capitalization stocks, with an emphasis on growth stocks.

During the past six months, three sectors were the primary drivers of the
fund's performance. Financials were the best-performing group, followed by
technology and then consumer cyclicals. Within finance, performance was led by
outstanding gains in American International Group, Citigroup and Chase
Manhattan. Technology was powered by Lexmark International Group, Cl.A, Sun
Microsystems and Perkin-Elmer. Finally, consumer cyclicals were very strong,
with gains in Dayton Hudson (the funds best-performing individual holding),
Carnival and General Motors. On the other side of the ledger, electric
utilities actually had a negative absolute return, with holdings Texas
Utilities and Duke Energy declining in the six-month period. Finally, issue
selection and a small- to midcap bias hurt results. An assortment of stocks
from various industries (Tenet Healthcare, Texaco, Lockheed Martin, Beverly
Enterprises and Everest Reinsurance Holdings) registered the largest negative
results.

In the current equity environment, which favors a select number of large-
capitalization growth stocks, we believe that issue selection with a large-
capitalization bias should be the key factor determining investment success.
The current market environment is a difficult one for a value-oriented fund
such as ours, but we continue to look for stocks with above-average long-term
earnings growth potential that are attractively priced relative to the broad
market average as we continue to believe that valuation will ultimately
prevail. An example of a recently purchased stock that meets our investment
criteria is Carnival, which operates the world's largest multiple-night cruise
line under the names Carnival Cruise, Holland America Line, and Windstar
Cruises; markets sightseeing tours; and operates 14 hotels under the name
Westmark Hotels. We originally purchased this stock in October 1998 at a
substantial discount to the market. The companys earnings are projected to
grow at a mid- to high-teens rate, well ahead of the market.
<PAGE>
We are grateful for the opportunity to invest your capital and will be
working diligently on your behalf to achieve satisfying long-term investment
results.
Sincerely,

/s/Douglas D. Ramos, CFA

Douglas D. Ramos, CFA
Portfolio Manager

April 19, 1999
New York, N.Y.

* Total return includes reinvestment of dividends and any capital gains
paid, and does not take into consideration the maximum initial sales charge
in the case of Class A shares or the applicable contingent deferred sales
charge imposed on redemptions in the case of Class B and Class C shares.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC.--Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of U.S. stock market performance. The Russell 2000 Index is
a widely accepted unmanaged index composed of the 2,000 smallest companies
in the Russell 3000 Index. The Russell 3000 Index is composed of 3,000 of
the largest U.S. Companies by market capitalization.
<PAGE>
Dreyfus Premier Growth and Income Fund
- ------------------------------------------------------------------------------
Statement of Investments March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks--99.4% Shares Value
- ------------------------------------------------------------------------------- -------------- --------------
<S> <C> <C>
Commercial Services--1.0% Fortune Brands............................... 9,700 $ 375,269
McGraw-Hill Cos. ............................ 1,000 54,500
Valassis Communications...................... 11,000 (a) 569,250
--------------
999,019
--------------

Consumer Durables--6.9% Eastman Kodak................................ 7,000 447,125
Ford Motor................................... 32,700 1,855,725
General Motors............................... 24,000 2,085,000
Leggett & Platt.............................. 70,000 1,400,000
Newell Rubbermaid............................ 19,600 931,000
--------------
6,718,850
--------------

Consumer Non-Durables--3.2% Anheuser-Busch Cos........................... 15,000 1,142,813
ConAgra...................................... 10,000 255,625
Kimberly-Clark............................... 10,000 479,375
PepsiCo...................................... 25,000 979,688
Philip Morris Cos. .......................... 6,900 242,793
--------------
3,100,294
--------------

Consumer Services--4.9% Carnival..................................... 40,600 1,971,638
Cendant...................................... 90,800 (a) 1,430,100
Gannett...................................... 11,000 693,000
Time Warner.................................. 10,200 724,837
--------------
4,819,575
--------------

Electronic Technology--11.5% Boeing....................................... 13,200 450,450
Compaq Computer.............................. 19,000 602,063
Hewlett-Packard.............................. 14,300 969,719
Intel........................................ 18,000 2,144,250
International Business Machines.............. 12,000 2,127,000
Lexmark International Group, Cl. A........... 10,200 (a) 1,139,850
Lockheed Martin.............................. 26,000 979,875
Motorola..................................... 9,000 659,250
Oracle....................................... 14,700 387,712
Sun Microsystems............................. 4,000 (a) 499,750
Texas Instruments............................ 8,000 794,000
United Technologies.......................... 4,000 541,750
--------------
11,295,669
--------------

Energy Minerals--5.7% Exxon........................................ 14,000 987,875
Mobil........................................ 17,000 1,496,000
Royal Dutch Petroleum, A.D.R. ............... 40,000 2,080,000
Texaco....................................... 10,000 567,500
USX-Marathon Group........................... 15,000 412,500
--------------
5,543,875
--------------
</TABLE>
<PAGE>
Dreyfus Premier Growth and Income Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------- -------------- --------------
<S> <C> <C>
Finance--21.7% American General............................. 7,300 $ 514,650
American International Group................. 19,921 2,402,971
Associates First Capital, Cl. A.............. 13,000 585,000
Bank One..................................... 9,000 495,562
BankAmerica.................................. 26,200 1,850,375
BankBoston................................... 11,000 476,437
CIGNA........................................ 16,600 1,391,288
Chase Manhattan.............................. 16,000 1,301,000
Citigroup.................................... 39,700 2,535,838
Everest Reinsurance Holdings................. 15,000 467,812
Federal Home Loan Mortgage................... 24,000 1,371,000
Federal National Mortgage Association........ 27,800 1,925,150
First Union.................................. 14,500 774,844
Fleet Financial Group........................ 17,000 639,625
Household International...................... 12,400 565,750
Morgan (J.P.)................................ 4,000 493,500
Morgan Stanley, Dean Witter.................. 12,300 1,229,231
UnionBanCal.................................. 9,100 309,968
Wells Fargo.................................. 32,000 1,122,000
XL Capital Limited, Cl. A.................... 12,800 777,600
--------------
21,229,601
--------------

Health Services--2.1% Columbia/HCA Healthcare...................... 59,000 1,117,313
Wellpoint Health Networks.................... 13,000 985,562
--------------
2,102,875
--------------

Health Technology--7.7% American Home Products....................... 20,700 1,350,675
Becton, Dickinson............................ 18,000 689,625
Bristol-Myers Squibb......................... 13,000 836,062
Pharmacia & Upjohn........................... 36,100 2,251,738
Zeneca....................................... 50,000 2,359,968
--------------
7,488,068
--------------

Industrial Services--1.1% Schlumberger................................. 10,000 601,875
Waste Management............................. 10,400 461,500
--------------
1,063,375
--------------

Process Industries--.9% duPont (E.I.) de Nemours..................... 6,000 348,375
Mead......................................... 17,000 522,750
--------------
871,125
--------------

Producer Manufacturing--9.1% AlliedSignal................................. 27,000 1,328,063
General Electric............................. 23,000 2,544,375
Honeywell.................................... 13,000 985,562
Ingersoll-Rand............................... 6,000 297,750
</TABLE>

<PAGE>
Dreyfus Premier Growth and Income Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------- -------------- --------------
<S> <C> <C>

Producer Manufacturing (continued) Masco.................................. 54,400 $ 1,536,800
Tyco International..................... 17,000 1,219,750
Xerox.................................. 18,000 960,750
--------------
8,873,050
--------------

Retail Trade--8.7% American Stores........................ 61,300 2,022,900
Dayton Hudson.......................... 30,000 1,998,750
Federated Department Stores............ 17,000 (a) 682,125
Kroger................................. 13,500 (a) 808,312
May Department Stores.................. 40,950 1,602,169
TJX Cos. .............................. 42,500 1,445,000
--------------
8,559,256
--------------

Utilities--14.9% AT&T.................................... 21,000 1,676,063
Bell Atlantic........................... 27,000 1,395,562
Coastal................................. 46,600 1,537,800
Duke Energy............................. 8,000 437,000
El Paso Energy.......................... 11,700 382,443
GTE..................................... 36,000 2,178,000
MCI WorldCom............................ 19,500 (a) 1,726,969
SBC Communications...................... 38,000 1,790,750
Sprint (FON Group)...................... 15,900 1,560,188
Texas Utilities......................... 46,000 1,917,625
--------------
14,602,400
--------------

TOTAL COMMON STOCKS
(cost $84,240,464).................... $97,267,032
--------------
--------------

Principal
Short-Term Investments--.7% Amount
- ------------------------------------------------------------------------------- --------------
U.S. Treasury Bills: 4.46%, 4/1/1999......................... $ 450,000 $ 450,000
4.42%, 5/20/1999........................ 227,000 225,625
--------------

TOTAL SHORT-TERM INVESTMENTS
(cost $675,634)........................ $ 675,625
--------------
--------------

TOTAL INVESTMENTS (cost $84,916,098)........................................... 100.1% $97,942,657
------ --------------
------ --------------

LIABILITIES, LESS CASH AND RECEIVABLES......................................... (.1%) $ (113,622)
------ --------------
------ --------------

NET ASSETS..................................................................... 100.0% $ 97,829,035
------ --------------
------ --------------

<FN>
Notes to Statement of Investments:
- -------------------
(a) Non-income producing.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Premier Growth and Income Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Cost Value
------------- -------------
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments..... $ 84,916,098 $ 97,942,657
Cash........................................................ 515,954
Receivable for investment securities sold................... 1,409,445
Dividends receivable........................................ 139,969
Net unrealized appreciation on forward currency
exchange contracts--Note 4(a)............................. 34,664
Receivable for shares of Common Stock subscribed............ 12,053
Prepaid expenses............................................ 26,758
-------------
100,081,500
-------------

LIABILITIES: Due to The Dreyfus Corporation and affiliates............... 74,130
Due to Distributor.......................................... 62,473
Payable for investment securities purchased................. 1,740,583
Payable for shares of Common Stock redeemed................. 341,521
Payable for futures variation margin--Note 4(a)............. 8,226
Accrued expenses............................................ 25,532
-------------
2,252,465
-------------

NET ASSETS..................................................................... $ 97,829,035
-------------
-------------

REPRESENTED BY: Paid-in capital............................................. $ 81,883,367
Accumulated distributions in excess of investment
income--net............................................... (30)
Accumulated net realized gain (loss) on investments......... 2,884,620
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions.......... 13,061,078
-------------

NET ASSETS..................................................................... $ 97,829,035
-------------
-------------
</TABLE>

<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
-------------------------

Class A Class B Class C Class R
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net Assets.................................. $32,700,822 $61,487,600 $3,357,886 $282,727
Shares Outstanding.......................... 1,586,071 3,022,858 164,892 13,613

NET ASSET VALUE PER SHARE.................. $20.62 $20.34 $20.36 $20.77
------ ------ ------ ------
------ ------ ------ ------
</TABLE>

See notes to financial statements.
<PAGE>
Dreyfus Premier Growth and Income Fund
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended March 31, 1999 (Unaudited)

<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C> <C>

INCOME: Cash dividends (net of $3,787 foreign taxes
withheld at source)....................................... $ 779,273
Interest.................................................... 141,397
--------------
Total Income.............................................. $ 920,670
EXPENSES: Management fee--Note 3(a)................................... 376,631
Distribution fees--Note 3(b)................................ 249,770
Shareholder servicing costs--Note 3(c)...................... 198,974
Professional fees........................................... 32,454
Registration fees........................................... 26,223
Directors fees and expenses--Note 3(d)..................... 16,402
Custodian fees--Note 3(c)................................... 10,487
Prospectus and shareholders reports........................ 4,807
Loan commitment fees--Note 2................................ 241
Miscellaneous............................................... 1,402
--------------

Total Expenses............................................ 917,391
--------------

INVESTMENT INCOME--NET......................................................... 3,279
--------------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments:
Long transactions......................................... $ 2,662,429
Short sale transactions................................... (1,021)
Net realized gain (loss) on financial futures............... 1,062,318
Net realized gain (loss) on forward currency
exchange contracts........................................ 19,539
------------
Net Realized Gain (Loss)................................ 3,743,265
Net unrealized appreciation (depreciation) on
investments and forward currency exchange
contracts................................................. 13,124,933
--------------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... 16,868,198
--------------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $16,871,477
--------------
--------------
</TABLE>

See notes to financial statements.
<PAGE>
Dreyfus Premier Growth and Income Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets

<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
---------------- ------------------
OPERATIONS:
<S> <C> <C>
Investment income (loss)--net............................................... $ 3,279 $ (17,100)
Net realized gain (loss) on investments..................................... 3,743,265 1,604,173
Net unrealized appreciation (depreciation) on investments................... 13,124,933 (9,184,986)
-------------- --------------
Net Increase (Decrease) in Net Assets Resulting from Operations......... 16,871,477 (7,597,913)
-------------- --------------

DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares............................................................ (3,173) (103,354)
Class B shares............................................................ -- --
Class C shares............................................................ -- --
Class R shares............................................................ (136) (1,288)
Net realized gain on investments:
Class A shares............................................................ (62,028) (4,256,479)
Class B shares............................................................ (118,673) (7,237,792)
Class C shares............................................................ (6,549) (521,235)
Class R shares............................................................ (492) (27,101)
-------------- --------------
Total Dividends......................................................... (191,051) (12,147,249)
-------------- --------------

CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares............................................................ 2,153,807 5,975,661
Class B shares............................................................ 2,842,655 11,287,995
Class C shares............................................................ 465,708 948,288
Class R shares............................................................ 14,176 53,341
Dividends reinvested:
Class A shares............................................................ 59,473 4,018,653
Class B shares............................................................ 105,597 6,501,854
Class C shares............................................................ 4,503 326,647
Class R shares............................................................ 627 28,399
Cost of shares redeemed:
Class A shares............................................................ (6,991,166) (13,783,908)
Class B sharesV............................................................ (10,973,606) (15,779,224)
Class C shares............................................................ (1,390,785) (2,140,721)
Class R shares............................................................ (44,892) (27,614)
-------------- --------------
Increase (Decrease) in Net Assets from Capital Stock Transactions....... (13,753,903) (2,590,629)
-------------- --------------
Total Increase (Decrease) in Net Assets............................... 2,926,523 (22,335,791)

NET ASSETS:
Beginning of Period......................................................... 94,902,512 117,238,303
-------------- --------------
End of Period............................................................... $ 97,829,035 $ 94,902,512
-------------- --------------
-------------- --------------
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Premier Growth and Income Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets (continued)
<TABLE>
<CAPTION>

Shares
-----------------------------------------
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
------------------ ------------------
CAPITAL SHARE TRANSACTIONS:
<S> <C> <C>
Class A
-------
Shares sold................................................................. 108,487 309,070
Shares issued for dividends reinvested...................................... 3,022 218,373
Shares redeemed............................................................. (355,161) (717,728)
----------- -----------
Net Increase (Decrease) in Shares Outstanding....................... (243,652) (190,285)
----------- -----------
----------- -----------

Class B
-------
Shares sold................................................................. 145,387 577,515
Shares issued for dividends reinvested...................................... 5,438 355,874
Shares redeemed............................................................. (561,922) (824,107)
----------- -----------
Net Increase (Decrease) in Shares Outstanding....................... (411,167) (109,282)
----------- -----------
----------- -----------

Class C
-------
Shares sold................................................................. 23,522 49,565
Shares issued for dividends reinvested...................................... 231 17,869
Shares redeemed............................................................. (71,726) (110,512)
----------- -----------
Net Increase (Decrease) in Shares Outstanding....................... (47,943) (43,078)
----------- -----------
----------- -----------

Class R
-------
Shares sold................................................................. 708 2,717
Shares issued for dividends reinvested...................................... 31 1,531
Shares redeemed............................................................. (2,266) (1,383)
----------- -----------
Net Increase (Decrease) in Shares Outstanding....................... (1,527) (2,865)
----------- -----------
----------- -----------
</TABLE>

See notes to financial statements.
<PAGE>
Dreyfus Premier Growth and Income Fund
- -------------------------------------------------------------------------------
Financial Highlights

<TABLE>
<CAPTION>
Class A
-----------------------------------------
Six Months Ended
March 31, 1999 Year Ended September 30,
PER SHARE DATA: (Unaudited) 1998 1997 1996(1)
----------- -------- -------- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period...................... $17.39 $20.94 $18.45 $12.50
------ ------ ------ ------
Investment Operations:
Investment income--net.................................... .06 .10 .24 .10
Net realized and unrealized gain (loss) on investments.... 3.21 (1.44) 3.39 5.94
------ ------ ------ ------
Total from Investment Operations.......................... 3.27 (1.34) 3.63 6.04
------ ------ ------ ------
Distributions:
Dividends from investment income--net..................... (.00)(2) (.05) (.25) (.09)
Dividends from net realized gain on investments........... (.04) (2.16) (.89) --
------ ------ ------ ------
Total Distributions....................................... (.04) (2.21) (1.14) (.09)
------ ------ ------ ------
Net asset value, end of period............................ $20.62 $17.39 $20.94 $18.45
------ ------ ------ ------
------ ------ ------ ------

TOTAL INVESTMENT RETURN(3)................................... 18.80%(4) (7.00%) 20.90% 48.24%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................... .67%(4) 1.25% 1.24% .94%(4)
Ratio of net investment income to average net assets...... .25%(4) .47% 1.27% .92%(4)
Decrease reflected in above expense ratios
due to undertakings by the Manager...................... -- .01% .11% .30%(4)
Portfolio Turnover Rate................................... 60.01%(4) 133.00% 265.33% 205.64%(4)
Net Assets, end of period (000s Omitted).................. $32,701 $31,824 $42,309 $30,330
<FN>
- -------------------
(1) From December 29, 1995 (commencement of operations) to September 30, 1996.
(2) Amount represents less than $.01 per share.
(3) Exclusive of sales load.
(4) Not annualized.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Premier Growth and Income Fund
- ---------------------------------------
Financial Highlights (continued)

Class B
----------------------------------------
-Six Months Ended
March 31, 1999 Year Ended September 30,

PER SHARE DATA: (Unaudited) 1998 1997 1996(1)
----------- -------- -------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period......................... $17.22 $20.85 $18.37 $12.50
------ ------ ------ ------
Investment Operations:
Investment income (loss)--net................................ (.03) (.06) .10 .03
Net realized and unrealized gain (loss) on investments....... 3.19 (1.41) 3.38 5.87
------ ------ ------ ------
Total from Investment Operations............................. 3.16 (1.47) 3.48 5.90
------ ------ ------ ------
Distributions:
Dividends from investment income--net........................ -- -- (.11) (.03)
Dividends from net realized gain on investments.............. (.04) (2.16) (.89) --
------ ------ ------ ------
Total Distributions............................................. (.04) (2.16) (1.00) (.03)
------ ------ ------ ------
Net asset value, end of period.................................. $20.34 $17.22 $20.85 $18.37
------ ------ ------ ------
------ ------ ------ ------

TOTAL INVESTMENT RETURN(2)...................................... 18.34%(3) (7.69%) 20.08% 47.14%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...................... 1.04%(3) 2.00% 2.00% 1.52%(3)
Ratio of net investment income (loss) to average net assets.. (.12%)(3) (.28%) .50% .34%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager......................... -- .01% .11% .30%(3)
Portfolio Turnover Rate...................................... 60.01%(3) 133.00% 265.33% 105.64%(3)
Net Assets, end of period (000s Omitted)..................... $61,488 $59,144 $69,330 $37,534
<FN>
- -------------------
(1) From December 29, 1995 (commencement of operations) to September 30, 1996.
(2) Exclusive of sales load.
(3) Not annualized.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Premier Growth and Income Fund
- -------------------------------------------------------------------------------
Financial Highlights (continued)

Class C
----------------------------------------
-Six Months Ended
March 31, 1999 Year Ended September 30,

PER SHARE DATA: (Unaudited) 1998 1997 1996(1)
----------- -------- -------- --------

<S> <C> <C> <C> <C>
Net asset value, beginning of period......................... $17.24 $20.87 $18.40 $12.50
------ ------ ------ ------
Investment Operations:
Investment income (loss)--net................................ (.04) (.06) .09 .03
Net realized and unrealized gain (loss) on investments....... 3.20 (1.41) 3.38 5.88
------ ------ ------ ------
Total from Investment Operations................................ 3.16 (1.47) 3.47 5.91
------ ------ ------ ------
Distributions:
Dividends from investment income--net........................ -- -- (.11) (.01)
Dividends from net realized gain on investments.............. (.04) (2.16) (.89) --
------ ------ ------ ------
Total Distributions.......................................... (.04) (2.16) (1.00) (.01)
------ ------ ------ ------
Net asset value, end of period.................................. $20.36 $17.24 $20.87 $18.40
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN(2)...................................... 18.32%(3) (7.63%) 19.89% 47.27%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...................... 1.02%(3) 1.96% 2.00% 1.52%(3)
Ratio of net investment income (loss) to average net assets.. (.11%)(3) (.25%) .52% .30%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager......................... -- .01% .11% .30%(3)
Portfolio Turnover Rate...................................... 60.01%(3) 133.00% 265.33% 205.64%(3)
Net Assets, end of period (000s Omitted)..................... $3,358 $3,670 $5,340 $2,642
<FN>
- -------------------
(1) From December 29, 1995 (commencement of operations) to September 30, 1996.
(2) Exclusive of sales load.
(3) Not annualized.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Premier Growth and Income Fund
- -------------------------------------------------------------------------------
Financial Highlights (continued)

Class R
----------------------------------------
-Six Months Ended
March 31, 1999 Year Ended September 30,

PER SHARE DATA: (Unaudited) 1998 1997 1996(1)
----------- -------- -------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period......................... $17.52 $21.11 $18.42 $12.50
------ ------ ------ ------
Investment Operations:
Investment income--net....................................... .08 .07 .20 .43
Net realized and unrealized gain (loss) on investments....... 3.22 (1.40) 3.67 5.61
------ ------ ------ ------
Total from Investment Operations................................ 3.30 (1.33) 3.87 6.04
------ ------ ------ ------
Distributions:
Dividends from investment income--net........................ (.01) (.10) (.29) (.12)
Dividends from net realized gain on investments.............. (.04) (2.16) (.89) --
------ ------ ------ ------
Total Distributions............................................. (.05) (2.26) (1.18) (.12)
------ ------ ------ ------
Net asset value, end of period.................................. $20.77 $17.52 $21.11 $18.42
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN......................................... 18.82%(2) (6.89%) 22.25% 48.38%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...................... .62%(2) 1.15% .99% .79%(2)
Ratio of net investment income to average net assets......... .30%(2) .57% 1.50% 1.01%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager......................... -- .01% .12% .30%(2)
Portfolio Turnover Rate...................................... 60.01%(2) 133.00% 265.33% 205.64%(2)
Net Assets, end of period (000s Omitted).................... $283 $265 $259 $174
<FN>
- -------------------
(1) From December 29, 1995 (commencement of operations) to September 30, 1996.
(2)Not annualized.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Premier Growth and Income Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Dreyfus Premier Growth and Income Fund (the "Fund") is a separate non-
diversified series of Dreyfus Premier Equity Funds, Inc. (the "Company") which
is registered under the Investment Company Act of 1940, as amended (the
"Act"), as an open-end management investment company and operates as a series
company currently offering four series, including the Fund. The Fund's
investment objective is long-term capital growth, current income and growth of
income, consistent with reasonable investment risk. The Dreyfus Corporation
(the "Manager") serves as the Funds investment adviser. The Manager is a
direct subsidiary of Mellon Bank, N.A. (Mellon).

Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of
the Funds shares. The Fund is authorized to issue 50 million shares of $1.00
par value Common Stock in each of the following classes of shares: Class A,
Class B, Class C and Class R shares. Class A shares are subject to a sales
charge imposed at the time of purchase, Class B shares are subject to a
contingent deferred sales charge ("CDSC") imposed on Class B share redemptions
made within six years of purchase, Class C shares are subject to a CDSC
imposed on Class C shares redeemed within one year of purchase and Class R
shares are sold at net asset value per share only to institutional investors.
Other differences between the classes include the services offered to and the
expenses borne by each class and certain voting rights.

The Company accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that funds
operations; expenses which are applicable to all funds are allocated among them
on a pro rata basis.

Net realized foreign exchange gains or losses arise from sales and maturities
of short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and the difference between the amounts of
dividends, interest, and foreign withholding taxes recorded on the Funds books
and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains or losses arise from changes in the value of
assets and liabilities other than investments in securities, resulting from
changes in exchange rates. Such gains and losses are included with net realized
and unrealized gain or loss on investments.

(c) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
<PAGE>
Dreyfus Premier Growth and Income Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the Fund receives net
earnings credits based on available cash balances left on deposit.

(d) Dividends to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid on a quarterly
basis. Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code of 1986, as
amended (the "Code"). To the extent that net realized capital gain can be offset
by capital loss carryovers, if any, it is the policy of the Fund not to
distribute such gain.

(e) Federal income taxes: It is the policy of the Fund to continue to qualify
as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the applicable provisions of
the Code, and to make distributions of taxable income sufficient to relieve it
from substantially all Federal income and excise taxes.

NOTE 2--Bank Line of Credit:

The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (the "Facility") primarily to be utilized for
temporary or emergency purposes, including the financing of redemptions. In
connection therewith, the Fund has agreed to pay commitment fees on its pro
rata portion of the Facility. Interest is charged to the Fund at rates based
on prevailing market rates in effect at the time of borrowings. During the
period ended March 31, 1999, the Fund did not borrow under the Facility.

NOTE 3--Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement with the Manager, the management fee
is computed at the annual rate of .75 of 1% of the value of the Funds average
daily net assets and is payable monthly.

Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $1,134 during the period ended March 31, 1999 from commissions earned
on sales of Fund shares.

(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the Distributor for distributing
their shares at an annual rate of .75 of 1% of the value of the average daily
net assets of Class B and Class C shares. During the period ended March 31,
1999, Class B and Class C shares were charged $236,203 and $13,567,
respectively, pursuant to the Plan.

(c) Under the Shareholder Services Plan, Class A, Class B and Class C shares
pay the Distributor at the annual rate of .25 of 1% of the value of their
average daily net assets for the provision of certain services. The services
provided may include personal services relating to shareholder accounts, such
as answering shareholder inquiries regarding the Fund and providing reports
and other information, and services related to the maintenance of shareholder
accounts. The Distributor may make payments to Service Agents (a securities
dealer, financial institution or other industry professional) in respect of
these services. The Distributor determines the amounts to be paid to Service
Agents. During the period ended March 31, 1999, Class A, Class B and Class C
shares were charged $41,942, $78,735 and $4,522, respectively, pursuant to the
Shareholder Services Plan.

The Fund compensates Mellon under a custody agreement for providing custodial
services for the Fund. During the period ended March 31, 1999, the Fund was
charged $10,487 pursuant to the custody agreement.
<PAGE>
Dreyfus Premier Growth and Income Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(d) Each director who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $4,500 and an attendance fee of
$500 per meeting. The Chairman of the Board receives an additional 25% of such
compensation.

NOTE 4--Securities Transactions:

(a) The following summarizes the aggregate amount of purchases and sales of
investment securities and securities sold short, excluding short-term
securities and forward currency exchange contracts, during the period ended
March 31, 1999:

Purchases Sales
----------- -----------
Long transactions.......................... $56,523,462 $61,457,410
Short sale transactions.................... 81,068 80,047
----------- -----------
Total.................................... $56,604,530 $61,537,457
----------- -----------
----------- -----------

The Fund is engaged in short-selling which obligates the Fund to replace the
security borrowed by purchasing the security at current market value. The Fund
would incur a loss if the price of the security increases between the date of
the short sale and the date on which the Fund replaces the borrowed security.
The Fund would realize a gain if the price of the security declines between
those dates. Until the Fund replaces the borrowed security, the Fund will
maintain daily, a segregated account with a broker and custodian, of
permissable liquid assets sufficient to cover its short position. At March 31,
1999, there were no securities sold short outstanding.

The Fund enters into forward currency exchange contracts in order to hedge
its exposure to changes in foreign currency exchange rates on its foreign
portfolio holdings. When executing forward currency exchange contracts, the Fund
is obligated to buy or sell a foreign currency at a specified rate on a certain
date in the future. With respect to sales of forward currency exchange
contracts, the Fund would incur a loss if the value of the contract increases
between the date the forward contract is opened and the date the forward
contract is closed. The Fund realizes a gain if the value of the contract
decreases between those dates. With respect to purchases of forward currency
exchange contracts, the Fund would incur a loss if the value of the contract
decreases between the date the forward contract is opened and the date the
forward contract is closed. The Fund realizes a gain if the value of the
contract increases between those dates. The Fund is also exposed to credit risk
associated with counter party nonperformance on these forward currency exchange
contracts which is typically limited to the unrealized gain on each open
contract.

The following summarizes open forward currency exchange contracts at March
31, 1999:

<TABLE>
<CAPTION>
Foreign Currency Unrealized
Forward Currency Exchange Contracts Amounts Proceeds Value Appreciation
- ----------------------------------- --------- ---------- ---------- ------------
Sales:
- ------
<S> <C> <C> <C> <C>
British Pounds, expiring 4/15/99... 793,434 $1,300,000 $1,278,892 $21,108
British Pounds, expiring 6/25/99... 525,248 859,830 846,274 13,556
-------
Total........................... $34,664
-------
-------
</TABLE>

The Fund may invest in financial futures contracts in order to gain exposure
to or protect against changes in the market. The Fund is exposed to market
risk as a result of changes in the value of the underlying financial
<PAGE>
Dreyfus Premier Growth and Income Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

instruments. Investments in financial futures require the Fund to "mark to
market" on a daily basis, which reflects the change in the market value of the
contract at the close of each day's trading. Typically, variation margin
payments are received or made to reflect daily unrealized gains or losses.
When the contracts are closed, the Fund recognizes a realized gain or loss.
These investments require initial margin deposits with a custodian, which
consist of cash or cash equivalents, up to approximately 10% of the contract
amount. The amount of these deposits is determined by the exchange or Board of
Trade on which the contract is traded and is subject to change. At March 31,
1999, there were no financial futures contracts outstanding.

(b) At March 31, 1999, accumulated net unrealized appreciation on investments
and forward currency exchange contracts was $13,061,223, consisting of
$14,936,086 gross unrealized appreciation and $1,874,863, gross unrealized
depreciation.

At March 31, 1999, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).

<PAGE>

Dreyfus Premier Growth
and Income Fund
200 Park Avenue
New York, NY 10166

Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 320SA993

Semi-Annual Report

- -------------------------------------------------------------------------------
Dreyfus Premier
Market Neutral
Fund
- -------------------------------------------------------------------------------

March 31, 1999

<PAGE>

Year 2000 Issues (Unaudited)

The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund's other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.

<PAGE>

Dreyfus Premier Market Neutral Fund
- -------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:

We are pleased to provide you with this semiannual report for Dreyfus Premier
Market Neutral Fund for the six months ended March 31, 1999.

The equity market continued a narrow leadership pattern particularly in the
first quarter of 1999. The market winners were dominated by the larger companies
with the highest perceived long-term growth prospects regardless of stock
valuation (e.g. high price-to-earning or price-to-book ratios), or near-term
earnings--or indeed, complete lack thereof. In this respect, the narrow patterns
evidenced in the second half of 1998 continued into this year.

This has been an unexpected and unprecedented market environment in which our
approach to picking stocks had to operate. This approach, which looks to
outperform U.S. T-bills over a wide array of market conditions, generated
negative returns for the six-month period, as shown in the following table:

Total Return*

Class A Shares.......................................... - 8.58%
Class B Shares.......................................... - 8.96%
Class C Shares.......................................... - 8.95%
Class R Shares.......................................... - 8.49%
Return on 90-Day Treasury Bills**....................... 2.15%
Standard & Poor's 500 Composite
Stock Price Index***.................................. 27.32%

This performance resulted from a confluence of what we believe were unusual
and nonsustainable events including:

- An economic environment which continued to surprise on the upside with
respect to GDP growth and which has simultaneously produced reduced inflation
and inflationary expectations. In addition the yield curve has been flat, and
there has been unexpectedly slow global economic growth. This set of conditions
has not occurred simultaneously in the past, and certainly not in an economic
cycle which is this far along in duration.

- A market environment where value has been trounced in favor of perceived
and anticipated long-term growth. A portion of this effect is a purely rational
response to the unusual economic conditions noted above. (Falling inflation and
interest rates generally favor growth over value as investors discount expected
future earnings at a lower rate.)

- A market environment where near-term realized earnings momentum has been
punished with negative returns. In addition the very largest stocks were favored
over small or medium companies.

- A market environment which, in addition, has favored "New Economy" stocks
with market returns substantially greater than existing businesses. This has
been accompanied by truly stupendous forecasts of long-term growth. There may be
Internet and wireless communications stocks which will be very successful in the
near and long term but the earnings multiples and absolute capitalizations are
often ludicrously high and unsustainable.

- Individual stock volatility (measured stock to stock rather than by
aggregate market levels), which has spiked upwards during the last six months
and which magnifies negative returns to stock selection.

<PAGE>

Portfolio Focus

We continue to believe that the narrowness of this current market is
unsustainable and have positioned your portfolio in anticipation of a broadening
of market leadership.

One other point regarding the recent volatility deserves mention. We use
quantitative models of risk to define a range of possible outcomes in our
relative return.In their projections for the past year, and in particular the
first quarter of 1999, these models produced an estimate of risk (i.e., ranges
of possible results relative to the benchmark) that proved to be markedly low
when compared to subsequent realized results. We observe that these models were
built by looking at an extended period in the past where average volatility was
lower than it has been recently. When overall volatility exceeds that
experienced in the period on which models are based, such risk models will tend
to understate the range of possible outcomes.

We look forward to the remainder of 1999 with considerable optimism and an
expectation that market conditions will favor our investment approach.

Sincerely,

/s/ John S. Cone

John S. Cone
Portfolio Manager

April 28, 1999 New York, N.Y.

** 90-Day Treasury bill returns are an average-price based return on all
three-month Treasury bill auctions over the course of the previous month.

*** SOURCE: LIPPER ANALYTICAL SERVICES, INC.--Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of U.S. stock market performance.

<PAGE>

Dreyfus Premier Market Neutral Fund
- -------------------------------------------------------------------------------
Statement of Investments March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks--93.0% Shares Value
- ------------------------------------------------------------------------------- ---------- ----------
<S> <C> <C>
Commercial Services--7.1% Donnelley (R.R.) & Sons....................... 800 $ 25,750
Grainger (W.W.)............................... 400 17,225
Ikon Office Solutions......................... 600 7,687
Modis Professional Services................... 500 (a) 4,531
Ogden......................................... 5,700 137,156
Supervalu..................................... 5,700 117,562
----------
309,911
----------

Consumer Durables--2.2% Centex........................................ 100 3,337
Electronic Arts............................... 300 (a) 14,250
International Game Technology................. 700 10,194
Shaw Industries............................... 3,600 (a) 66,600
----------
94,381
----------

Consumer Non-Durables--5.9% American Greetings, Cl. A..................... 100 2,538
Flowers Industries............................ 3,300 81,262
Fruit Of The Loom, Cl. A...................... 2,800 (a) 29,050
IBP........................................... 4,200 78,225
Interstate Bakeries........................... 1,100 23,719
Universal..................................... 1,500 38,344
Warnaco Group, Cl. A.......................... 200 4,937
----------
258,075
----------

Consumer Services--9.2% Brinker International......................... 1,600 (a) 41,300
Hollinger International, Cl. A................ 7,500 101,719
Knight-Ridder................................. 1,800 90,000
Manpower...................................... 3,100 72,462
Tribune....................................... 700 45,806
Viacom, Cl. B................................. 600 (a) 50,362
----------
401,649
----------

Electronic Technology--17.0% Adaptec....................................... 2,700 (a) 61,594
Apple Computer................................ 2,000 (a) 71,875
Comverse Technology........................... 200 (a) 17,000
Cordant Technologies.......................... 2,200 87,587
EG&G.......................................... 3,900 102,862
Intel......................................... 100 11,913
Lucent Technologies........................... 1,200 129,300
Novell........................................ 100 (a) 2,519
QUALCOMM...................................... 500 (a) 62,188
Rockwell International........................ 400 16,975
Sanmina....................................... 100 (a) 6,375
Seagate Technology............................ 900 (a) 26,606
Solectron..................................... 200 (a) 9,712
Thermo Instrument Systems..................... 2,800 (a) 40,425
Unisys........................................ 2,400 (a) 66,450
Western Digital............................... 3,200 (a) 25,400
----------
738,781
----------
</TABLE>

<PAGE>

Dreyfus Premier Market Neutral Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------- ---------- ----------
<S> <C> <C>
Finance--9.7% Bear Stearns Cos.............................. 200 $ 8,938
Charter One Financial......................... 800 23,088
City National................................. 2,500 77,188
Equitable Cos................................. 700 49,000
Federal Home Loan Mortgage.................... 500 28,562
Golden State Bancorp.......................... 1,700 (a) 37,825
Hibernia, Cl. A............................... 1,100 14,438
Liberty Property Trust........................ 2,000 41,500
Morgan Stanley Dean Witter.................... 1,100 109,931
North Fork Bancorp............................ 300 6,338
UnionBanCal................................... 700 23,844
----------
420,652
----------

Health Services--6.6% Cardinal Health............................... 2,050 135,300
HEALTHSOUTH................................... 1,700 (a) 17,638
Integrated Health Services.................... 2,800 15,400
Omnicare...................................... 500 9,531
PacifiCare Health Systems, Ser. B............. 1,100 (a) 75,075
United Healthcare............................. 700 36,838
----------
289,782
----------

Health Technology--.3% Bard (C.R.)................................... 100 5,044
Centocor...................................... 200 (a) 7,400
----------
12,444
----------

Industrial Services--2.7% Republic Industries........................... 9,500 (a) 117,563
----------
Minerals--1.8% Owens-Corning................................. 2,400 76,350
----------

Process Industries--9.9% Archer-Daniels-Midland........................ 8,600 126,313
Crane......................................... 1,700 41,119
Crompton & Knowles............................ 1,000 15,750
Engelhard..................................... 2,100 35,569
Goodrich (B.F.)............................... 900 30,881
Premark International......................... 300 9,881
RPM........................................... 6,500 86,531
Sherwin-Williams.............................. 3,000 84,375
----------
430,419
----------

Producer Manufacturing--6.7% Aeroquip-Vickers.............................. 400 22,925
Dana.......................................... 400 15,200
Harnischfeger Industries...................... 5,300 30,144
Ingersoll-Rand................................ 200 9,925
Minnesota Mining & Manufacturing.............. 400 28,300
Navistar International........................ 300 (a) 12,056
Pentair....................................... 3,000 101,250
TRW........................................... 300 13,650
</TABLE>

<PAGE>

Retail--3.5% Best Buy...................................... 200 (a) 10,400
Federated Department Stores................... 600 (a) 24,075
K mart........................................ 5,500 (a) 92,469
Office Depot.................................. 500 (a) 18,406
OfficeMax..................................... 1,100 (a) 9,487
----------
154,837
----------

Technology Services--.9% Bergen Brunswig, Cl. A........................ 800 16,000
Oracle........................................ 600 (a) 15,825
Reynolds & Reynolds, Cl. A.................... 300 5,700
----------
37,525
----------

Transportation--.1% Galileo International......................... 100 4,837
----------

Utilities--9.4% AirTouch Communications....................... 100 (a) 9,663
Citizens Utilities............................ 6,750 52,314
Florida Progress.............................. 500 18,875
LG&E Energy................................... 5,200 108,225
Northern States Power......................... 800 18,550
Paging Network................................ 6,800 (a) 31,875
Public Service Enterprise Group............... 4,000 152,750
UtiliCorp United.............................. 750 17,062
----------
409,314
----------
TOTAL COMMON STOCKS
(cost $4,529,432).......................... $4,049,389
----------
----------
<CAPTION>

Principal
Short-Term Investments--.6% Amount
- ------------------------------------------------------------------------------- -------------
<S> <C> <C> <C>
Repurchase Agreement; Bear Stearns & Cos., 4.92% dated
3/31/1999, due 4/1/1999 in the amount of
$25,637 (fully collateralized by $20,000
U.S. Treasury Bonds, 10.375%, 11/15/2012,
value $27,179)
(cost $25,633)............................. $ 25,633 $ 25,633
----------
----------

TOTAL INVESTMENTS (cost $4,555,065)............................................ 93.6% $4,075,022
------ ----------
------ ----------
CASH AND RECEIVABLES (NET)..................................................... 6.4% $ 277,831
------ ----------
------ ----------
NET ASSETS..................................................................... 100.0% $4,352,853
------ ----------
------ ----------
</TABLE>

Notes to Statement of Investments:
- -------------------------------------------------------------------------------
(a) Non-income producing.

See notes to financial statements.

<PAGE>

Dreyfus Premier Market Neutral Fund
- -------------------------------------------------------------------------------
Statement of Securities Sold Short March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks: Shares Value
- ------------------------------------------------------------------------------- ---------- ----------
<S> <C> <C>
Commercial Services--1.2% Cintas........................................ 500 $ 32,688
Interpublic Group Cos......................... 100 7,788
Lamar Advertising, Cl. A...................... 300 10,181
----------
50,657
----------

Consumer Durables--1.5% Mattel........................................ 2,600 64,675
----------

Consumer Non-Durables--13.1% Campbell Soup................................. 2,000 81,375
Coca-Cola..................................... 600 36,825
Colgate-Palmolive............................. 100 9,200
Hershey Foods................................. 1,800 100,800
Kellogg....................................... 3,900 131,869
Nabisco Holdings, Cl. A....................... 500 20,781
Nike, Cl. B................................... 1,100 63,456
Reebok International.......................... 1,100 17,463
Sara Lee...................................... 800 19,800
Wrigley (Wm.) Jr.............................. 1,000 90,438
----------
572,007
----------

Consumer Services--12.4% AT&T-Liberty Media, Cl. A..................... 800 42,100
Cendant....................................... 100 1,575
Central Newspapers............................ 200 6,225
Hearst-Argyle Television, Cl. A............... 300 7,388
Host Marriott................................. 6,600 73,425
MGM Grand..................................... 2,900 97,513
Mirage Resorts................................ 4,200 89,250
Scripps (E.W.), Cl. A......................... 500 22,125
Sinclair Broadcast Group, Cl. A............... 300 4,369
Starwood Hotels & Resorts Worldwide........... 400 11,425
TV Guide, Cl. A............................... 400 14,750
Times Mirror, Cl. A........................... 2,700 145,959
USA Networks.................................. 700 25,069
----------
541,173
----------

Electronic Technology--8.3% Analog Devices................................ 100 2,975
Applied Materials............................. 200 12,338
General Motors, Cl. H......................... 900 45,394
LSI Logic..................................... 300 9,356
Northrop Grumman.............................. 700 41,913
Perkin-Elmer.................................. 600 58,238
Storage Technology............................ 2,200 61,325
Univision Communications, Cl. A............... 400 20,000
Varian Associates............................. 2,800 108,500
----------
360,039
----------

Energy--4.1% Atlantic Richfield............................ 2,000 146,000
Murphy Oil.................................... 300 12,450

</TABLE>

<PAGE>

Finance--7.8% CNA Financial................................. 300 11,644
Chubb......................................... 200 11,713
Cincinnati Financial.......................... 300 10,931
Franklin Resources............................ 1,600 45,000
Keystone Financial............................ 1,800 58,050
Mercury General............................... 300 10,463
Owen Financial................................ 4,700 41,419
U.S. Bancorp.................................. 1,400 47,688
Union Planters................................ 1,100 48,331
United Asset Management....................... 2,300 52,038
----------
337,277
----------

Health Technology--4.7% Boston Scientific............................. 1,000 40,563
Immunex....................................... 400 33,300
Lilly (Eli)................................... 300 25,463
Medtronic..................................... 1,476 105,903
----------
205,229
----------

Industrial Services--.5% Nabors Industries............................. 600 10,913
Rowan Cos..................................... 700 8,881
----------
19,794
----------

Minerals--2.1% Newmont Mining................................ 1,000 17,500
Phelps Dodge.................................. 1,400 68,950
USX-U.S. Steel Group.......................... 300 7,050
----------
93,500
----------

Process Industries--9.8% duPont (E.I.) de Nemours...................... 1,300 75,481
Fort James.................................... 300 9,506
Hercules...................................... 2,700 68,175
Lyondell Chemical............................. 1,100 15,056
Millipore..................................... 4,500 108,563
Monsanto...................................... 1,500 68,906
Sealed Air.................................... 1,000 49,188
Wesco Financial............................... 100 33,800
----------
428,675
----------

Producer Manufacturing--2.3% AGCO.......................................... 2,300 15,094
Xerox......................................... 1,600 85,400
----------
100,494
----------

Retail--9.4% Amazon.com.................................... 600 103,313
Barnes & Noble................................ 700 22,488
</TABLE>

<PAGE>

Dreyfus Premier Market Neutral Fund
- -------------------------------------------------------------------------------
Statement of Securities Sold Short (continued) March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------- ---------- ----------
<S> <C> <C>
Retail (continued) CVS........................................... 200 $ 9,500
CompUSA....................................... 1,600 11,200
Consolidated Stores........................... 2,100 63,656
Fastenal...................................... 1,300 45,581
Whole Foods Market............................ 800 27,500
Winn-Dixie Stores............................. 3,400 127,075
----------
410,313
----------

Technology Services--5.5% At Home, Cl. A................................ 200 31,500
Cambridge Technology Partners................. 1,600 22,200
Ceridian...................................... 1,400 51,188
Computer Associates International............. 1,300 46,231
Intuit........................................ 300 30,525
Parametric Technology......................... 1,600 31,600
PeopleSoft.................................... 1,900 27,788
----------
241,032
----------

Transportation--3.9% CSX........................................... 400 15,575
Kansas City Southern Industries............... 600 34,200
Northwest Airlines............................ 400 11,125
US Airways Group.............................. 2,200 107,388
----------
168,288
----------

Utilities--8.5% Ameritech..................................... 200 11,575
Cincinnati Bell............................... 2,900 65,069
Entergy....................................... 1,600 44,000
IPALCO Enterprises............................ 5,600 122,850
Illinova...................................... 3,400 72,038
Peoples Energy................................ 500 16,156
Telephone & Data Systems...................... 500 28,250
Williams Cos.................................. 200 7,900
----------
367,838
----------
TOTAL SECURITIES
SOLD SHORT (proceeds $4,246,820)........... $4,139,341
----------
----------
</TABLE>

See notes to financial statements.

<PAGE>

Dreyfus Premier Market Neutral Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Cost Value
---------- ----------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of
Investments--Note 1(b).......................... $4,555,065 $4,075,022
Cash............................................. 132,261
Due from The Dreyfus Corporation................. 2,260
Receivable from brokers for proceeds on
securities sold short.......................... 4,246,820
Dividends and interest receivable................ 11,110
Receivable for investment securities sold........ 1,295
Prepaid expenses................................. 88,712
----------
8,557,480
----------

LIABILITIES: Due to Distributor............................... 2,287
Securities sold short, at value
(proceeds $4,246,820)--see statement........... 4,139,341
Payable for investment securities purchased...... 41,813
Payable for shares of Common Stock redeemed...... 6
Dividends payable on securities sold short....... 5,054
Accrued expenses................................. 16,126
----------
4,204,627
----------

NET ASSETS..................................................................... $4,352,853
----------
----------

REPRESENTED BY: Paid-in capital.................................. $5,256,365
Accumulated undistributed investment income--net.. 34,345
Accumulated net realized gain (loss) on investments (565,293)

Accumulated net unrealized appreciation (depreciation)
on investments and securities sold short--Note 4(b) (372,564)
----------

NET ASSETS..................................................................... $4,352,853
----------
----------
</TABLE>

<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
-------------------------
Class A Class B Class C Class R
---------- ---------- -------- --------
<S> <C> <C> <C> <C>
Net Assets........................................... $1,707,034 $1,788,492 $425,551 $431,776
Shares Outstanding................................... 165,651 173,845 41,274 41,789

NET ASSET VALUE PER SHARE............................ $10.31 $10.29 $10.31 $10.33
------ ------ ------ ------
------ ------ ------ ------
</TABLE>

See notes to financial statements.

<PAGE>

Dreyfus Premier Market Neutral Fund
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended March 31, 1999 (Unaudited)
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME

INCOME: Interest................................... $ 105,606
Cash dividends............................. 41,844
---------
Total Income............................. $ 147,450

EXPENSES: Management fee--Note 3(a).................. 34,701
Dividends on securities sold short......... 36,333
Auditing fees.............................. 12,300
Distribution fees--Note 3(b)............... 8,845
Registration fees.......................... 5,608
Shareholder servicing costs--Note 3(c)..... 5,412
Legal fees................................. 4,611
Prospectus and shareholders' reports....... 3,810
Custodian fees............................. 986
Directors' fees and expenses--Note 3(d).... 874
Miscellaneous.............................. 9,600
---------
Total Expenses........................... 123,080
Less--expense reimbursement from Dreyfus
due to undertaking--Note 3(a)............ (45,400)
---------
Net Expenses............................. 77,680
---------

INVESTMENT INCOME--NET.................................................... 69,770
---------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments:
Long transactions........................ $(464,433)
Short sale transactions.................. (48,208)
---------
Net Realized Gain (Loss).............. (512,641)

Net unrealized appreciation (depreciation) on
investments and securities sold short.... 20,491
---------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................... (492,150)
---------

NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................... $(422,380)
---------
---------
</TABLE>

See notes to financial statements.

<PAGE>

Dreyfus Premier Market Neutral Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999 Period Ended
(Unaudited) September 30, 1998*
---------------- -------------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................. $ 69,770 $ 40,429
Net realized gain (loss) on investments................................ (512,641) (12,782)
Net unrealized appreciation (depreciation) on investments.............. 20,491 (393,055)
---------- ----------
Net Increase (Decrease) in Net Assets Resulting from Operations.. (422,380) (365,408)
---------- ----------
DIVIDENDSTOSHAREHOLDERSFROM:
Investment income--net:
Class A shares...................................................... (35,269) --
Class B shares...................................................... (29,552) --
Class C shares...................................................... (6,986) --
Class R shares...................................................... (8,759) --
Net realized gain on investments:
Class A shares...................................................... (15,621) --
Class B shares...................................................... (16,475) --
Class C shares...................................................... (3,894) --
Class R shares...................................................... (3,880) --
---------- ----------
Total Dividends.................................................. (120,436) --
---------- ----------
CAPITALSTOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares...................................................... 2,100 2,012,390
Class B shares...................................................... -- 2,167,422
Class C shares...................................................... 3,400 500,000
Class R shares...................................................... 7,000 500,000
Dividends reinvested:
Class A shares...................................................... 50,839 --
Class B shares...................................................... 44,473 --
Class C shares...................................................... 10,840 --
Class R shares...................................................... 12,640 --
Cost of shares redeemed:
Class A shares...................................................... (1,447) --
Class B shares...................................................... -- (48,574)
Class C shares...................................................... (6) --
---------- ----------
Increase (Decrease) in Net Assets from Capital Stock Transactions 129,839 5,131,238
---------- ----------
Total Increase (Decrease) in Net Assets....................... (412,977) 4,765,830

NET ASSETS:

Beginning of Period.................................................... 4,765,830 --
---------- ----------
End of Period.......................................................... $4,352,853 $4,765,830
---------- ----------
---------- ----------
Undistributed investment income--net...................................... $ 34,345 $ 45,141
---------- ----------
<FN>
- ------------------
* From June 29, 1998 (commencement of operations) to September 30, 1998.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>

Dreyfus Premier Market Neutral Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
Shares
-------------------------------------
Six Months Ended
March 31, 1999 Period Ended
(Unaudited) September 30, 1998*
---------------- -------------------
CAPITAL SHARE TRANSACTIONS:

Class A
-------
<S> <C> <C>
Shares sold............................................................. 202 161,000
Shares issued for dividends reinvested.................................. 4,576 --
Shares redeemed......................................................... (127) --
---------- ----------
Net Increase (Decrease) in Shares Outstanding....... 4,651 161,000
---------- ----------
---------- ----------
Class B
-------
Shares sold............................................................. -- 173,948
Shares issued for dividends reinvested.................................. 4,003 --
Shares redeemed......................................................... -- (4,106)
---------- ----------
Net Increase (Decrease) in Shares Outstanding....... 4,003 169,842
---------- ----------
---------- ----------
Class C
-------
Shares sold............................................................. 302 40,000
Shares issued for dividends reinvested.................................. 973 --
Shares redeemed......................................................... (1) --
---------- ----------
Net Increase (Decrease) in Shares Outstanding....... 1,274 40,000
---------- ----------
---------- ----------
Class R
-------
Shares sold............................................................. 652 40,000
Shares issued for dividends reinvested.................................. 1,137 --
---------- ----------
Net Increase (Decrease) in Shares Outstanding....... 1,789 40,000
---------- ----------
---------- ----------
<FN>
- -----------------
* From June 29, 1998 (commencement of operations) to September 30, 1998.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>

Dreyfus Premier Market Neutral Fund
- -------------------------------------------------------------------------------
Financial Highlights

Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Class A Shares Class B Shares
------------------------------------- -------------------------------------
Six Months Ended Six Months Ended
March 31, 1999 Period Ended March 31, 1999 Period Ended
PER SHARE DATA: (Unaudited) September 30, 1998(1) (Unaudited) September 30, 1998(1)
----------- -------------------- ------------- ---------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period. $11.61 $12.50 $11.59 $12.50
------ ------ ------ ------
Investment Operations:
Investment income--net................ .19 .11(2) .15 .09(2)
Net realized and unrealized gain (loss)
on investments.................... (1.17) (1.00) (1.18) (1.00)
------ ------ ------ ------
Total from Investment Operations..... (.98) (.89) (1.03) (.91)
------ ------ ------ ------
Distributions:
Dividends from investment income--net. (.22) -- (.17) --
Dividends from net realized gain
on investments.................... (.10) -- (.10) --
------ ------ ------ ------
Total Distributions.................. (.32) -- (.27) --
------ ------ ------ ------
Net asset value, end of period....... $10.31 $11.61 $10.29 $11.59
====== ====== ====== ======
TOTAL INVESTMENT RETURN(3,4)............. (8.58%) (7.12%) (8.96%) (7.28%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average
net assets(3)...................... .71% .51% 1.09% .71%
Ratio of dividends on securities sold short
to average net assets(3)........... .78% .33% .78% .33%
Ratio of net investment income to
average net assets(3).............. 1.68% .92% 1.31% .73%
Decrease reflected in above expense ratios
due to undertakings by the Manager(3) .98% .42% .98% .41%
Portfolio Turnover Rate(3)............ 61.83% 36.54% 61.83% 36.54%
Net Assets, end of period (000's Omitted) $1,707 $1,869 $1,788 $1,968

<FN>
- ------------------
(1) From June 29, 1998 (commencement of operations) to September 30, 1998.
(2) Based on average shares outstanding at each month end.
(3) Not annualized.
(4) Exclusive of sales load.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>

Dreyfus Premier Market Neutral Fund
- -------------------------------------------------------------------------------
Financial Highlights (continued)

Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Class C Shares Class R Shares
------------------------------------- -------------------------------------
Six Months Ended Six Months Ended
March 31, 1999 Period Ended March 31, 1999 Period Ended
PER SHARE DATA: (Unaudited) September 30, 1998(1) (Unaudited) September 30, 1998(1)
----------- -------------------- ------------- ---------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period. $11.61 $12.50 $11.62 $12.50
------ ------ ------ ------
Investment Operations:
Investment income--net................ .15 .09(2) .20 .11(2)
Net realized and unrealized gain (loss)
on investments.................... (1.18) (.98) (1.17) (.99)
------ ------ ------ ------
Total from Investment Operations..... (1.03) (.89) (.97) (.88)
------ ------ ------ ------
Distributions:
Dividends from investment income--net. (.17) -- (.22) --
Dividends from net realized gain
on investments.................... (.10) -- (.10) --
------ ------ ------ ------
Total Distributions.................. (.27) -- (.32) --
------ ------ ------ ------
Net asset value, end of period....... $10.31 $11.61 $10.33 $11.62
====== ====== ====== ======
TOTAL INVESTMENT RETURN(3)............... (8.95%)(4) (7.12%)(4) (8.49%) (7.04%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average
net assets(3)...................... 1.09% .71% .59% .51%
Ratio of dividends on securities sold short
to average net assets(3)............ .78% .33% .78% .33%
Ratio of net investment income to
average net assets(3).............. 1.31% .73% 1.80% .92%
Decrease reflected in above expense ratios
due to undertakings by the Manager(3) .98% .42% .98% .38%
Portfolio Turnover Rate(3)............ 61.83% 36.54% 61.83% 36.54%
Net Assets, end of period (000's Omitted) $426 $464 $432 $465

<FN>
- -----------------
(1) From June 29, 1998 (commencement of operations) to September 30, 1998.
(2) Based on average shares outstanding at each month end.
(3) Not annualized.
(4) Exclusive of sales load.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>

Dreyfus Premier Market Neutral Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Dreyfus Premier Market Neutral Fund (the "Fund") is a separate diversified
series of Dreyfus Premier Equity Funds, Inc., (the "Company") which is
registered under the Investment Company Act of 1940, as amended (the "Act") as
an open-end management investment company and operates as a series company
currently offering four series, including the Fund. The Fund's investment
objective is long-term capital appreciation, while maintaining minimum exposure
to general equity market risk. The Dreyfus Corporation (the "Manager") serves as
the Fund's investment adviser. The Manager is a direct subsidiary of Mellon
Bank, N.A., which is a wholly-owned subsidiary of Mellon Bank Corporation.

Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of
the Fund's shares. The Fund is authorized to issue 50 million shares of $1.00
par value Common Stock in each of the following classes of shares: Class A,
Class B, Class C and Class R shares. Class A shares are subject to a sales
charge imposed at the time of purchase, Class B shares are subject to a
contingent deferred sales charge ("CDSC") imposed on Class B share redemptions
made within six years of purchase, Class C shares are subject to a CDSC imposed
on Class C shares redeemed within one year of purchase and Class R shares are
sold at net asset value per share only to institutional investors. Other
differences between the classes include the services offered to and the expenses
borne by each class and certain voting rights.

As of March 31, 1999, MBC Investment Corp., an indirect subsidiary of Mellon
Bank Corporation, held the following shares:

Class A..................164,551 Class C..................40,973
Class B..................163,903 Class R..................41,137

The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.

(a) Portfolio valuation: Investments in securities (including options and
financial futures) are valued at the last sales price on the securities exchange
on which such securities are primarily traded or at the last sales price on the
national securities market. Securities not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices, except for open
short positions, where the asked price is used for valuation purposes. Bid price
is used when no asked price is available. Securities for which there are no such
valuations are valued at fair value as determined in good faith under the
direction of the Board of Directors. Forward currency exchange contracts are
valued at the forward rate.

(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis.

<PAGE>

Dreyfus Premier Market Neutral Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The Fund may enter into repurchase agreements with financial institutions,
deemed to be creditworthy by the Fund's Manager, subject to the seller's
agreement to repurchase and the Fund's agreement to resell such securities at a
mutually agreed upon price. Securities purchased subject to repurchase
agreements are deposited with the Fund's custodian and, pursuant to the terms of
the repurchase agreement, must have an aggregate market value greater than or
equal to the repurchase price plus accrued interest at all times. If the value
of the underlying securities falls below the value of the repurchase price plus
accrued interest, the Fund will require the seller to deposit additional
collateral by the next business day. If the request for additional collateral is
not met, or the seller defaults on its repurchase obligation, the Fund maintains
the right to sell the underlying securities at market value and may claim any
resulting loss against the seller.

(c) Dividends to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain, if any, are normally declared and paid annually, but the Fund may
make distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.

(d) Federal income taxes: It is the policy of the Fund to continue to qualify
as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the applicable provisions of
the Code, and to make distributions of taxable income sufficient to relieve it
from substantially all Federal income and excise taxes.

The Fund has an unused capital loss carryover of approximately $11,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1998. If not
applied, the carryover expires in fiscal 2006.

NOTE 2--Bank Line of Credit:

The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (the "Facility") primarily to be utilized for
temporary or emergency purposes, including the financing of redemptions. In
connection therewith, the Fund has agreed to pay commitment fees on its pro rata
portion of the Facility. Interest is charged to the Fund at rates based on
prevailing market rates in effect at the time of borrowings. During the period
ended March 31, 1999, the Fund did not borrow under the Facility.

NOTE 3--Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of 1.50% of the value of the
Fund's average daily net assets and is payable monthly. The Manager has
undertaken from October 1, 1998 through September 30, 1999 to reduce the
management fee paid by or reimburse such excess expenses of the Fund, to the
extent that the Fund's aggregate expenses, excluding 12b-1 distribution fees,
taxes, brokerage, shareholder service plan fees, loan commitment fees and
extraordinary expenses exceed an annual rate of 2.75% of the value of the Fund's
average daily net assets. The expense reimbursement, pursuant to the
undertaking, amounted to $45,400 during the period ended March 31, 1999.

Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $31 during the period ended March 31, 1999 from commissions earned on
sales of the Fund's shares.

<PAGE>

Dreyfus Premier Market Neutral Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(b) Under the Distribution Plan, adopted pursuant to Rule 12b-1 under the
Act, Class B and Class C shares pay the Distributor for distributing their
shares at an annual rate of .75 of 1% of the value of their average daily net
assets. During the period ended March 31, 1999, Class B and Class C shares were
charged $7,151 and $1,694, respectively, pursuant to the Distribution Plan.

(c) Under the Shareholder Services Plan, Class A, Class B and Class C shares
pay the Distributor a fee at the annual rate of .25 of 1% of the value of their
average daily net assets for the provision of certain services. The services
provided may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the Fund and providing reports and
other information, and services related to the maintenance of shareholder
accounts. The Distributor may make payments to Service Agents (a securities
dealer, financial institution or other industry professional) in respect of
these services. The Distributor determines the amounts to be paid to Service
Agents. During the period ended March 31, 1999, Class A, Class B and Class C
shares were charged $2,269, $2,383 and $565, respectively, pursuant to the
Shareholder Services Plan.

NOTE 4--Securities Transactions:

(a) The following summarizes the aggregate amount of purchases and sales of
investment securities and securities sold short, excluding short-term securities
during the period ended March 31, 1999:

Purchases Sales
---------- ----------
Long transactions................... $2,626,698 $2,695,077
Short sale transactions............. 3,350,322 2,774,675
---------- ----------
Total............................ $5,977,020 $5,469,752
========== ==========

The Fund is engaged in short-selling which obligates the Fund to replace the
security borrowed by purchasing the security at current market value. The Fund
would incur a loss if the price of the security increases between the date of
the short sale and the date on which the Fund replaces the borrowed security.
The Fund would realize a gain if the price of the security declines between
those dates. The Fund's long security positions serve as collateral for the open
short positions. Securities sold short at March 31, 1999, and their related
market values and proceeds are set forth in the Statement of Securities Sold
Short.

(b) At March 31, 1999, accumulated net unrealized depreciation on investments
and securities sold short was $372,564, consisting of $613,220 gross unrealized
appreciation and $985,784 gross unrealized depreciation.

At March 31, 1999, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).

<PAGE>

Dreyfus Premier Market Neutral Fund
200 Park Avenue
New York, NY 10166

Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian
Custodial Trust Company
101 Carnegie Center
Princeton, NJ 08540

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 335SA993