Dreyfus
Liquid
Assets, Inc.
A money market
mutual fund
April 1, 1997
1 Investment Objective
Dreyfus Liquid Assets is a money market fund whose goal is to provide you with
as high a level of current income as is consistent with the preservation of
capital. The Fund seeks to maintain a net asset value of $1.00 per share.
2 Investment Strategy
This Fund invests in short-term money market instruments, consisting exclusively
of securities issued or guaranteed by the U.S. Government or its agencies or
instrumentalities, certificates of deposit, time deposits, bankers' acceptances
and other sh ort-term obligations issued by domestic banks and London branches
of domestic banks, repurchase agreements, high grade commercial paper and other
short-term corporate obligations. The Fund will invest at least 25% of its
assets in bank obligations. The Fund will maintain a dollar-weighted average
portfolio maturity of 90 days or less and will
purchase only securities having remaining maturities of 13 months or less.
3 Investment Risks
n An investment in the Fund is neither insured nor guaranteed by the FDIC or
the U.S. Govern-ment. There can be no assurance that the Fund will be able to
maintain a stable net asset value of $1.00 per share.
n The Fund's yield will fluctuate based on market conditions.
n To the extent the Fund's investments are concentrated in the banking
industry, the Fund will have correspondingly greater exposure to the risk
factors which are characteristic of such investments.
4 Appropriate for Investors Who:
n Are averse to principal fluctuations.
n Seek high current income through a portfolio of money market instruments.
5 Fees and Expenses
Shareholder Transaction Expenses - The Fund has no shareholder transaction
expenses, although certain agents may charge their clients direct fees for
effecting transactions in Fund shares.
Annual Fund Operating Expenses are fees paid by the Fund and are reflected in
the Fund's share price.
The following expenses are expressed as a percentage of average daily net
assets:
Management Fees .47%
Other Expenses .32%
Total Fund Operating Expenses .79%
Example:
You would pay the following expenses on a $1,000 investment, assuming (1) 5%
annual return and
(2) redemption at the end of each time period:
1 Year 3 Years 5 Years 10 Years
$8 $25 $44 $98
The purpose of this section is to assist you in understanding the costs and
expenses borne by the Fund, the payment of which will reduce investors' annual
return. The example is an illustration only; actual expenses and returns will
vary.
6 Past Performance
Average Annual Total Return
for period ended 3/31/97
1 Year 5 Years 10 Years
Dreyfus
Liquid Assets 4.89% 4.03% 5.60%
Lipper Money Market
Instrument Funds1 4.76% 4.01% 5.50%
1 Source: Lipper Analytical Services, Inc.
7-day yield for period ended 3/31/97: 4.85%2
For current yield information call:
1-800-782-6620
Past performance is no guarantee of future results.
2 During this period, certain fees were being waived by The Dreyfus Corporation.
This waiver may be terminated or modified. Had these
expenses not been absorbed, the Fund's 7-day yield would have
been 4.83%.
7 Investment Adviser
The Dreyfus Corporation is the Fund's
investment adviser.
8 Purchases
The minimum initial investment is $2,500. The initial investment must be
accompanied by
the Fund's Account Application. Subsequent
investments must be at least $100. You may
purchase Fund shares by check or wire, or through the Dreyfus TeleTransfer
Privilege.
9 Redemptions
You can sell Fund shares by written request,
telephone, Dreyfus TeleTransfer ($500 minimum, $150,000 maximum), wire
redemption ($1,000 minimum, $250,000 maximum) or by writing a redemption check
($500 minimum).
When a redemption request is received in
proper form, the Fund will redeem the shares at the next determined net asset
value.
10 Distributions
Dividends are declared and paid daily; capital gains, if any, are declared and
paid annually. Dividends and capital gains can be mailed to you, sent directly
to your bank, swept into
another Dreyfus account or reinvested back into your Fund to purchase additional
shares at net asset value.
Distributions of net investment income are not subject to Federal income tax.
Distributions of any net realized short-term capital gains will be taxable as
ordinary income. Distributions from net realized long-term capital gains will be
taxable as long-term capital gains, regardless of how long investors have held
their shares.
11 Other Services
n Telephone Exchange Privilege
n Dreyfus-Automatic Asset Builder (R)
n Dreyfus Dividend Options
n Dreyfus Payroll Savings Plan
n Dreyfus Step Program
This Profile contains key information about the Fund. If you would like more
information before you invest, please consult the Fund's Prospectus. For details
about the Fund's holdings or recent investment strategies, please review the
Fund's most rec ent annual or semi-annual report. The Prospectus and reports may
be obtained at no cost by calling:
1-800-782-6620
(c) 1997, Dreyfus Service Corporation, Broker-Dealer
Premier Mutual Fund Services, Distributor
039retpro8-974
