DREYFUS VARIABLE INVESTMENT FUND, N-30D, 1996-08-19

DREYFUS VARIABLE INVESTMENT FUND
N-30D, 1996-08-19

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DREYFUS VARIABLE INVESTMENT FUND, CAPITAL APPRECIATION PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this semi-annual report on the
activity of the Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio for the six-month period ended June 30, 1996. During that period,
the Portfolio's shares provided a total return of 11.25%.* During the same
period, the Standard & Poor's 500 Composite Stock Price Index provided a
return of 10.09%.**
PORTFOLIO COMPOSITION
At the close of the period, the Portfolio had 4.9% of its net assets in
short-term Treasuries and the balance in equities. In the equity portion of
the Portfolio, industry concentrations were in consumer nondurables, health
care and financial services. As market conditions permit, we will reduce the
position in Treasuries and commit these assets to high quality equities.
ECONOMIC OUTLOOK
The resilience of the U.S. economy in the first half of 1996 exceeded
most projections. Our outlook was for a weaker first half than second; a
number of factors contributing to a rapidly growing money supply, however,
fueled a rebound in growth. This was led by the consumer sector, in the early
part of 1996, taking off from the weak performance of the final quarter of
1995. We believe growth in the second quarter was near 4.0%. However, we
continue to expect average GDP for the full year to be at 2.0%-2.5%, as we
believe demand will weaken considerably in the final quarters of this year.
In our view, consumption, which has been driving the economy, will falter in
the absence of excess liquidity, which was supplied by mortgage refinancings
and tax refunds earlier in the year. The historically high level of consumer
debt, and the increase in debt service as a percentage of income, should also
contribute to a significant slowdown in spending. Capital spending, which was
a major contributor to GDP growth in 1994 and 1995, has already weakened
considerably in 1996, and the export sector, although stronger than
anticipated, is not capable of supporting an extension of the current growth
spurt. Inflation reports remain constructive. However, with the economy near
full employment, any pickup in wage inflation will most likely lead to more
restrictive monetary policy.
INVESTMENT STRATEGY
With an emphasis on holdings in large capitalization, leading U.S.
multinationals, we believe the Portfolio is well positioned, with minimal
risk, for strong performance in an uncertain economic and market environment.
Companies with dominant global brands, such as Coca-Cola, Gillette,
McDonalds; companies with proprietary technologies such as General Electric
and Intel and those with leading pharmaceutical products such as Merck and
Pfizer, are expected to achieve above-average earnings from expanding sales
in foreign markets, although demand in the more mature markets, such as the
U.S., may have slowed.
In mature economies, pricing flexibility is minimal across most industry
sectors. An important exception is leading pharmaceutical companies, which
are strategically overweighted in the Portfolio. Such companies are able to
raise prices more consistently due to proprietary technologies, innovative
products and industry consolidation. Few companies can expect to maintain or
grow profit margins without increasing sales in international markets. To
compete effectively, corporations must already be well represented in new
markets, with widely tested brands, products, and technologies - and must be
led by world-class management teams
and backed by strong balance sheets and excess cash flow. Leading U.S.
multinationals are the innovators and global purveyors of many products,
services and technologies which have become defined as global industry and
product standards in the mature economies. These companies understand how to
adapt their products to new cultures, and how to educate new consumers to
appreciate dependability, quality and value. We expect that these basic
standards can be refined, understood and accepted on a wide scale in the
decades ahead. Our investment strategy is founded on identifying those
multinational companies which represent such standards through their
products, technologies and services.
INVESTMENT HIGHLIGHTS
Signs of stronger economic growth and the expectation of rising inflation
pressures caused uncertainty and volatility in equity markets during the
first half. Rapid rotation among industry groups also reflected investors'
confusion as to whether the economy would overheat, or if a stable period of
moderate growth would extend the current economic cycle in an environment of
low inflation. Any evidence of weaker earnings, or margin pressure, strongly
undermined the performance of individual issues. Therefore, in spite of the
fact of the Standard & Poor's 500 Composite Stock Price Index (S&P 500)
positive return, it was a difficult period in which to outperform the market.
The retail sector led the Index in the first half, rebounding off substantial
underperformance in 1995, and reflecting the pick-up in consumer spending. In
our view, the outlook for the retail group as a whole is uncertain, and the
sector is strategically underweighted in the portfolio. Consumer nondurables
was the fourth strongest industry group in the S&P 500 Index, and the
Portfolio's concentration in this area had the most positive impact on
performance. Correct issue selection, and the strategic overweighting of
certain issues, also supported the total return in excess of the Index.
Shares of Coca-Cola, PepsiCo, Philip Morris, Gillette and NIKE led the
consumer nondurable group. Performance in excess of the Index was also helped
by the appreciation of General Electric, Citicorp, Intel, American Home
Products, Johnson & Johnson, Chase Manhattan and Pfizer. Chemical shares had
the most negative impact on results during the period.
We appreciate your investment in the Capital Appreciation Portfolio of
the Dreyfus Variable Investment Fund and we will continue to seek rewarding
returns on your behalf.
Sincerely,
[Fayez Sarofim signature logo]
Fayez Sarofim
Portfolio Manger
July 17, 1996
New York, N.Y.

* Total return reflects reinvestment of dividends and any capital gains
paid. The Portfolio performance does not reflect the deduction of additional
charges imposed in connection with investing in variable insurance contracts.
**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 stock market performance.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS-95.2% SHARES VALUE
_______ ______
<S> <C> <C>
AEROSPACE &
ELECTRONICS-10.9% Emerson Electric....................... 7,000 $ 632,625
General Electric....................... 32,050 2,772,325
Intel.................................. 25,000 1,835,938
Motorola............................... 14,050 883,394
Philips Electronics, N.V. A.D.R........ 20,000 652,500
Rockwell International................. 15,000 858,750
Texas Instruments...................... 3,200 159,600
______
7,795,132
______
AUTO RELATED-2.9% Chrysler............................... 10,000 620,000
Ford Motor............................. 45,094 1,459,918
______
2,079,918
______
BANKING-8.7% Chase Manhattan........................ 30,000 2,118,750
Citicorp............................... 26,025 2,150,316
HSBC Holdings, A.D.R................... 3,500 526,750
HSBC Holdings PLC...................... 2,400 36,279
Keycorp................................ 1,800 69,750
SunTrust Banks......................... 36,000 1,332,000
______
6,233,845
______
CAPITAL GOODS-1.4% AlliedSignal........................... 18,000 1,028,250
______
CHEMICALS-3.2% Dow Chemical........................... 9,000 684,000
duPont (E.I.) de Nemours............... 18,000 1,424,250
Rohm & Haas............................ 3,000 188,250
______
2,296,500
______
ENERGY-9.2% Chevron................................ 30,000 1,770,000
Exxon.................................. 20,025 1,739,672
Mobil.................................. 11,025 1,236,178
Royal Dutch Petroleum.................. 12,000 1,845,000
______
6,590,850
______
FINANCE-
MISCELLANEOUS-5.7% American General....................... 35,000 1,273,125
Associates First Capital, Cl. A........ 4,200 158,025
Berkshire Hathaway, Cl. A.............. 40 (a) 1,228,000
Federal National Mortgage Association.. 42,000 1,407,000
______
4,066,150
______
FOOD, BEVERAGE
& TOBACCO-17.4% Anheuser-Busch Cos..................... 8,000 600,000
Coca-Cola.............................. 76,000 3,714,500
Earthgrains............................ 320 10,480
Kellogg................................ 15,000 1,098,750
Nestle, A.D.R.......................... 18,000 1,026,000

DREYFUS VARIABLE INVESTMENT FUND, CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ ______
FOOD, BEVERAGE
& TOBACCO (CONTINUED) PepsiCo................................ 60,000 $ 2,122,500
Philip Morris Cos...................... 30,000 3,120,000
Sara Lee............................... 2,500 80,938
Seagram................................ 21,500 722,937
______
12,496,105
______
HEALTH CARE-15.3% Abbott Laboratories.................... 30,000 1,305,000
American Home Products................. 25,000 1,503,125
Amgen.................................. 5,000 (a) 270,000
Johnson & Johnson...................... 46,100 2,281,950
Merck & Co............................. 35,000 2,261,875
Pfizer................................. 26,000 1,855,750
Roche Holdings, A.D.S.................. 20,000 1,527,500
______
11,005,200
______
LEISURE TIME-3.6% Disney (Walt).......................... 12,000 754,500
Eastman Kodak.......................... 11,000 855,250
McDonald's............................. 20,000 935,000
______
2,544,750
______
MEDIA/ENTERTAINMENT-1.8% McGraw-Hill............................ 22,000 1,006,500
News Corp, A.D.S....................... 5,000 117,500
Reader's Digest Association, Cl. A..... 4,000 170,000
______
1,294,000
______
MULTI INDUSTRY-1.5% Minnesota Mining & Manufacturing....... 15,000 1,035,000
______
OFFICE &
BUSINESS EQUIPMENT-.7% Electronic Data Systems................ 8,500 456,875
Ericsson (LM) Telephone, Cl. B, A.D.R.. 3,200 68,800
______
525,675
______
PAPER &
FOREST PRODUCTS-.6% International Paper.................... 12,500 460,937
______
PERSONAL CARE-7.7% Estee Lauder, Cl. A.................... 12,500 528,125
Gillette............................... 33,000 2,058,375
International Flavors & Fragrances..... 17,000 809,625
Procter & Gamble....................... 23,000 2,084,375
Unilever, N.V.......................... 500 72,562
______
5,553,062
______
RETAIL-2.8% May Department Stores.................. 6,000 262,500
Wal-Mart Stores........................ 30,000 761,250
Walgreen............................... 30,000 1,005,000
______
2,028,750
______

DREYFUS VARIABLE INVESTMENT FUND, CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ ______
TRANSPORTATION-1.8% Norfolk Southern....................... 10,000 $ 847,500
Union Pacific.......................... 6,000 419,250
______
1,266,750
______
TOTAL COMMON STOCKS
(cost $55,101,774)................... $68,300,874
======
PREFERRED STOCK-.7%
MEDIA/ENTERTAINMENT News Corp, A.D.S., Cum., $.40
(cost $494,202)...................... 25,000 $ 503,125
======
PRINCIPAL
SHORT-TERM INVESTMENTS-4.9% AMOUNT
_______
U.S. TREASURY BILLS: 5%, 8/1/96............................. $ 688,000 $ 684,993
4.68%, 8/8/96.......................... 1,215,000 1,208,488
5.48%, 8/22/96......................... 742,000 736,465
5.21%, 9/19/96......................... 928,000 917,300
______
TOTAL SHORT-TERM INVESTMENTS
(cost $3,547,778).................... $ 3,547,246
======
TOTAL INVESTMENTS (cost $59,143,754) ............................... 100.8% $72,351,245
====== ======
LIABILITIES, LESS CASH AND RECEIVABLES (.8%) $ (577,559)
====== ======
NET ASSETS.................................................................. 100.0% $71,773,686
====== ======
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $59,143,754)-see statement...................................... $72,351,245
Cash.................................................................... 341,771
Dividends receivable.................................................... 80,806
Prepaid expenses........................................................ 144
______
72,773,966
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 43,036
Payable for investment securities purchased............................. 935,713
Accrued expenses and other liabilities.................................. 21,531 1,000,280
_____ ______
NET ASSETS ................................................................ $71,773,686
======
REPRESENTED BY:
Paid-in capital......................................................... $57,976,295
Accumulated undistributed investment income-net......................... 479,787
Accumulated undistributed net realized gain on investments.............. 110,113
Accumulated net unrealized appreciation on investments-Note 5........... 13,207,491
______
NET ASSETS at value applicable to 3,644,066 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $71,773,686
======
NET ASSET VALUE, offering and redemption price per share
($71,773,686 / 3,644,066 shares)........................................ $19.70
======

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $16,251 foreign taxes withheld at source)...... $ 630,406
Interest.............................................................. 98,167
_____
TOTAL INCOME...................................................... $ 728,573
EXPENSES:
Investment advisory fee-Note 4(a)..................................... 162,306
Sub-investment advisory fee-Note 4(a)................................. 59,020
Professional fees..................................................... 9,636
Registration fees..................................................... 6,471
Custodian fees-Note 4(a).............................................. 3,108
Prospectus and shareholders' reports.................................. 1,268
Trustees' fees and expenses-Note 4(b)................................. 1,095
Shareholder servicing costs........................................... 154
Miscellaneous......................................................... 936
_____
TOTAL EXPENSES.................................................... 243,994
_____
INVESTMENT INCOME-NET............................................. 484,579
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 5................................. $ 120,771
Net unrealized appreciation on investments.............................. 5,477,495
_____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 5,598,266
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $6,082,845
=====

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1996
1995 (UNAUDITED)
________ __________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 594,080 $ 484,579
Net realized gain (loss) on investments............................. (11,330) 120,771
Net unrealized appreciation on investments for the period........... 7,555,530 5,477,495
______ ______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 8,138,280 6,082,845
______ ______
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net............................................... (592,944) (7,283)
______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold....................................... 27,535,981 24,308,987
Dividends reinvested................................................ 592,943 7,283
Cost of shares redeemed............................................. (4,862,457) (5,548,246)
______ ______
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS...... 23,266,467 18,768,024
______ ______
TOTAL INCREASE IN NET ASSETS.................................. 30,811,803 24,843,586
NET ASSETS:
Beginning of period................................................. 16,118,297 46,930,100
______ ______
End of period (including undistributed investment income-net:
$2,491 in 1995 and $479,787 in 1996).............................. $46,930,100 $71,773,686
====== ======
SHARES SHARES
______ ______
CAPITAL SHARE TRANSACTIONS:
Shares sold......................................................... 1,722,064 1,291,935
Shares issued for dividends reinvested.............................. 34,096 369
Shares redeemed..................................................... (305,274) (298,050)
______ ______
NET INCREASE IN SHARES OUTSTANDING................................ 1,450,886 994,254
====== ======

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, CAPITAL APPRECIATION PORTFOLIO
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Series' financial statements.

SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1996
____________________________
PER SHARE DATA: 1993(1) 1994 1995 (UNAUDITED)
____ ____ ____ ______
<S> <C> <C> <C> <C>
Net asset value, beginning of period.................... $12.50 $13.27 $13.44 $17.71
____ ____ ____ ____
INVESTMENT OPERATIONS:
Investment income-net................................... .08 .23 .23 .13
Net realized and unrealized gain on investments......... .76 .17 4.27 1.86
____ ____ ____ ____
TOTAL FROM INVESTMENT OPERATIONS...................... .84 .40 4.50 1.99
____ ____ ____ ____
DISTRIBUTIONS;
Dividends from investment income-net.................... (.07) (.23) (.23) -
____ ____ ____ ____
Net asset value, end of period.......................... $13.27 $13.44 $17.71 $19.70
==== ==== ==== ====
TOTAL INVESTMENT RETURN..................................... 6.74%(2) 3.04% 33.52% 11.25%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................. .28%(2) .25% .85% .41%(2)
Ratio of net investment income to average net assets.... 1.89%(2) 2.99% 2.08% .82%(2)
Decrease reflected in above expense ratios due to
undertakings by The Dreyfus Corporation............... 3.67%(2) .86% .02% -
Portfolio Turnover Rate................................. .01%(2) .12% 2.81% 1.90%(2)
Average commission rate paid(3)......................... - - - $.0746
Net Assets, end of period (000's Omitted)............... $3,770 $16,118 $46,930 $71,774
(1) From April 5, 1993 (commencement of operations) to December 31, 1993.
(2) Not annualized.
(3) For fiscal years beginning January 1, 1996, the Series is required to
disclose its average commission rate paid per share for purchases and
sales of investment securities.

See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND, CAPITAL APPRECIATION PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-GENERAL:
Dreyfus Variable Investment Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as an open-end management investment
company, operating as a series company currently offering eleven series,
including the Capital Appreciation Portfolio (the "Series") and is intended
to be a funding vehicle for variable annuity contracts and variable life
insurance policies to be offered by the separate accounts of life insurance
companies. The Series is a diversified portfolio. The Series' investment
objective is to provide long-term capital growth consistent with the
preservation of capital. The Dreyfus Corporation ("Dreyfus") serves as the
Series' investment adviser. Dreyfus is a direct subsidiary of Mellon Bank,
N.A. ("Mellon"). Fayez Sarofim & Co. ("Sarofim") serves as the Series'
sub-investment adviser. Premier Mutual Fund Services, Inc. acts as the
distributor of the Series' shares, which are sold without a sales charge.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(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.
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 Series 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, the difference between
the amounts of dividends, interest and foreign withholding taxes recorded on
the Series' 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 recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.

DREYFUS VARIABLE INVESTMENT FUND, CAPITAL APPRECIATION PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and
dividends from net realized capital gain are normally declared and paid
annually, but the Series may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Series not to distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the Series 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 Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
The Series 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 December 31, 1995. If not
applied, the carryover expires in fiscal 2003.
NOTE 3-BANK LINE OF CREDIT:
The Series participates in a $100 million unsecured line of credit
provided by The Bank of New York, primarily for temporary or emergency
purposes, including the meeting of redemption requests that otherwise might
require the untimely disposition of securities. Interest is payable at the
Federal Funds rate plus .50% on an annualized basis. For the period ended
June 30, 1996, the Series did not borrow under the line of credit.
NOTE 4-INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER
TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to an Investment Advisory Agreement with Dreyfus, the
investment advisory fee is based on the value of the Series' average daily
net assets and is computed at the following annual rates: .55 of 1% of the
first $150 million; .50 of 1% of the next $150 million; and .375 of 1% over
$300 million. The fee is payable monthly. Pursuant to a Sub-Investment
Advisory Agreement with Sarofim, the sub-investment advisory fee is based
upon the value of the Series' average daily net assets and is computed at the
following annual rates: .20 of 1% of the first $150 million; .25 of 1% of the
next $150 million; and .375 of 1% over $300 million. The fee is payable
monthly.
The agreements provide that if in any full year the aggregate expenses of
the Series, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series, the Series may deduct from the payments to be
made to Dreyfus and Sarofim, or Dreyfus and Sarofim will bear the amount of
such excess to the extent required by state law. There was no expense
reimbursement for the six months ended June 30, 1996.
The Series compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary
of Dreyfus, under a transfer agency agreement, for providing personnel and
facilities to perform transfer agency services for the Series.
Effective May 10, 1996, the Series entered into a custody agreement with
Mellon to provide custodial services for the Series. During the period from
May 10, 1996 through June 30, 1996, $235 was paid to Mellon pursuant to the
custody agreement.

DREYFUS VARIABLE INVESTMENT FUND, CAPITAL APPRECIATION PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(B) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and
an attendance fee of $250 per meeting. The Chairman of the Board receives an
additional 25% of such compensation.
NOTE 5-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the six months ended June 30, 1996,
amounted to $19,689,016 and $1,065,048, respectively.
At June 30, 1996, accumulated net unrealized appreciation on investments
was $13,207,491, consisting of $13,559,355 gross unrealized appreciation and
$351,864 gross unrealized depreciation.
At June 30, 1996, 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).

DREYFUS VARIABLE INVESTMENT FUND, CAPITAL APPRECIATION PORTFOLIO
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, CAPITAL APPRECIATION PORTFOLIO
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Variable Investment Fund,
Capital Appreciation Portfolio (one of the series constituting the Dreyfus
Variable Investment Fund), as of June 30, 1996, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended June 30, 1996. These financial statements and financial
highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1995 and financial highlights for each of the three years in the
period ended December 31, 1995 and in our report dated February 9, 1996 we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
July 30, 1996

[Dreyfus lion "d" logo]
DREYFUS VARIABLE INVESTMENT FUND,
CAPITAL APPRECIATION PORTFOLIO
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
SUB-INVESTMENT ADVISER
Fayez Sarofim & Co.
Two Houston Center,
Suite 2907
Houston, TX 77010
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. 112SA966
[Dreyfus logo]
Variable
Investment Fund,
CAPITAL APPRECIATION
PORTFOLIO
Semi-Annual Report
June 30, 1996

DREYFUS VARIABLE INVESTMENT FUND, DISCIPLINED STOCK PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
It is a pleasure to introduce Bert J. Mullins, Jr., who manages the
recently initiated Disciplined Stock Portfolio of Dreyfus Variable Investment
Fund.
In addition to being a portfolio manager with The Dreyfus Corporation,
Bert is also a vice president of Mellon Bank Corporation, our corporate
parent. He has long experience in managing investments. He joined Mellon in
1966 and has been managing mutual funds under the Mellon aegis since 1984,
using the "disciplined" approach since that time. Among other funds, he
manages Dreyfus Disciplined Stock Fund and Dreyfus Disciplined Equity Income
Fund.
We have great confidence in Bert Mullins' approach to this Portfolio.
Sincerely,
[Stephen E. Canter signature logo]
Stephen E. Canter
Chief Investment Officer
The Dreyfus Corporation
July 15, 1996
New York, N.Y.

DREYFUS VARIABLE INVESTMENT FUND, DISCIPLINED STOCK PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
The Disciplined Stock Portfolio of Dreyfus Variable Investment Fund began
operations April 30, 1996. This letter covers the Portfolio's first
semi-annual reporting period ended June 30, 1996, which included just two
months of Portfolio investment experience.
We are pleased to report that, in this brief period, your Portfolio
achieved a total return of 5.12%,* which compares with 2.97% for the Standard
& Poor's 500 Composite Stock Price Index during the same two months.**
THE ECONOMY
The U.S. economy is rebounding in 1996 following its midcycle growth
slowdown of last year. Yet overall corporate profit growth is slowing this
year. This is the sixth expansion year for this business cycle, and we
believe that it will prove a long cycle.
Economic growth has accelerated since year-end. The first quarter's 2.3%
real Gross Domestic Product growth brought with it a demand rebound that
depleted inventories. Even stronger second quarter growth is apparent, led by
manufacturers' attempts to rebuild inventories. In addition, steady job
creation continues to support growth in consumer incomes and spending. As
yet, there are few indications of economic cooling. Some previously strong
capital goods sectors may now be slowing, but overall economic growth is
broadening to more industries. Despite better economic performance this year
than last, profit growth may have peaked last year.
Although surging oil prices boosted overall inflation temporarily this
spring, all other price inflation has remained tame this year. Nevertheless,
signs of a faster economic pace have reignited fears of higher future
inflation, especially coming from upward pressure on wages as the labor
market tightens. Thus, bond yields have risen substantially this year.
Short-term market rates are also higher on expectations for Federal Reserve
tightening in coming months. So far, long-term rates have risen much more
than short-term rates, forcing the yield curve to steepen. A steep yield
curve is usually supportive of sustained growth in the real economy.
As we look forward, the question arises whether the higher interest rates
already in place and those in prospect will effectively cool the economy. At
present, however, any advance signs of an eventual cooling off in the economy
are hard to discern. The preoccupation at present is with the economy's
impressive strength, and the problems such growth could create.
MARKET OVERVIEW
The broad trend of the stock market was strongly upward during the six
months under review. However, there were many crosscurrents at work. Not all
stock groups benefited equally. The blue chips in the Dow Jones Industrial
Average enjoyed solid advances for the six months, as did the broader market
as represented by the Nasdaq Composite Index and the Standard & Poor's 500
Composite Stock Price Index. However, as spring turned into summer,
technology stocks began to lag, and small capitalization stocks were unable
to maintain the very fast growth pace of earlier months.

* Total return includes reinvestment of dividends and any capital gains
paid. The Portfolio's performance does not reflect the deduction of
additional charges imposed in connection with investing in variable insurance
contracts.
**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.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, DISCIPLINED STOCK PORTFOLIO
STATEMENT OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS-97.7% SHARES VALUE
______ ______
<S> <C> <C>
BASIC INDUSTRIES-5.2% Consolidated Papers.................... 250 $ 13,000
Dow Chemical........................... 400 30,400
Eastman Chemical....................... 550 33,481
Fort Howard............................ 1,000 (a) 19,875
Goodrich (B.F.)........................ 300 11,212
Kimberly-Clark......................... 900 69,525
Lubrizol............................... 600 18,225
Monsanto............................... 1,550 50,375
Morton International................... 800 29,800
PPG Industries......................... 800 39,000
Praxair................................ 900 38,025
Sealed Air............................. 300 (a) 10,088
Union Carbide.......................... 1,050 41,738
Westvaco............................... 800 23,900
________
428,644
_______
CAPITAL SPENDING-21.1% AGCO................................... 1,000 27,750
Adaptec................................ 550 (a) 26,056
Analog Devices......................... 1,050 (a) 26,775
Applied Materials...................... 350 (a) 10,675
Arrow Electronics...................... 200 (a) 8,625
Avnet.................................. 700 29,488
Case................................... 450 21,600
Ceridian............................... 450 (a) 22,725
cisco Systems.......................... 1,400 (a) 79,275
Compaq Computer........................ 800 (a) 39,400
Computer Associates International...... 600 42,750
Emerson Electric....................... 550 49,706
Gateway 2000........................... 300 (a) 10,200
General Electric....................... 2,850 246,525
General Motors, Cl. H.................. 600 36,075
Harnischfeger Industries............... 1,000 33,250
Hewlett-Packard........................ 600 59,775
Illinois Tool Works.................... 700 47,337
Intel.................................. 1,900 139,531
International Business Machines........ 900 89,100
Lockheed Martin........................ 450 37,800
Manpower............................... 500 19,625
McDonnell Douglas...................... 850 41,225
Microsoft.............................. 1,000 (a) 120,125
Olsten................................. 350 10,281
Omnicom Group.......................... 500 23,250
Oracle................................. 2,100 (a) 82,819
Parker-Hannifin........................ 550 23,306
Pitney Bowes........................... 300 14,325

DREYFUS VARIABLE INVESTMENT FUND, DISCIPLINED STOCK PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______
CAPITAL
SPENDING (CONTINUED) Raytheon............................... 1,000 $ 51,625
Rockwell International................. 800 45,800
Seagate Technology..................... 200 (a) 9,000
Sun Microsystems....................... 450 (a) 26,493
3Com................................... 800 (a) 36,600
Textron................................ 350 27,956
Thermo Electron........................ 750 31,219
U.S. Robotics.......................... 250 21,375
United Technologies.................... 450 51,750
Xerox.................................. 500 26,750
_______
1,747,942
_______
CONSUMER CYCLICAL-11.7% Albertson's............................ 900 37,238
Chrysler............................... 1,000 62,000
Cox Communications, Cl. A.............. 600 (a) 12,975
Dana................................... 450 13,950
Dayton Hudson.......................... 250 25,781
Dillard Department Stores, Cl. A....... 900 32,850
Disney (Walt).......................... 1,000 62,875
Eckerd................................. 1,600 (a) 36,200
Federated Department Stores............ 1,300 (a) 44,363
Gap.................................... 1,100 35,338
General Motors......................... 1,700 89,038
Goodyear Tire & Rubber................. 800 38,600
Infinity Broadcasting, Cl. A........... 900 (a) 27,000
King World Productions................. 200 (a) 7,275
Kroger................................. 500 (a) 19,750
Liz Claiborne.......................... 500 17,312
Marriott International................. 800 43,000
New York Times, Cl. A.................. 1,000 32,625
NewsCorp., A.D.S....................... 2,100 49,350
OfficeMax.............................. 800 (a) 19,100
Outback Steakhouse..................... 750 (a) 25,863
Reynolds & Reynolds, Cl. A............. 400 21,300
Safeway................................ 1,050 (a) 34,650
Sears, Roebuck......................... 2,000 97,250
TJX Cos................................ 800 27,000
Wal-Mart Stores........................ 1,600 40,600
Walgreen............................... 450 15,075
_______
968,358
_______
CONSUMER STAPLES-14.2% Anheuser-Busch Cos..................... 550 41,250
CPC International...................... 350 25,200
Coca-Cola.............................. 3,800 185,725

DREYFUS VARIABLE INVESTMENT FUND, DISCIPLINED STOCK PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______
CONSUMER
STAPLES (CONTINUED) ConAgra................................ 900 $ 40,838
Dole Food.............................. 800 34,400
Eastman Kodak.......................... 700 54,425
First Brands........................... 800 21,600
Gillette............................... 1,100 68,613
Hershey Foods.......................... 100 7,337
IBP.................................... 1,100 30,387
Johnson & Johnson...................... 2,900 143,550
PepsiCo................................ 3,750 132,656
Philip Morris Cos...................... 1,600 166,400
Procter & Gamble....................... 1,350 122,344
Ralston-Purina Group................... 400 25,650
Sara Lee............................... 1,300 42,088
Seagram................................ 950 31,944
_______
1,174,407
_______
ENERGY-9.8% Amoco.................................. 1,000 72,375
British Petroleum, A.D.S............... 1,000 106,875
Coastal................................ 800 33,400
Columbia Gas System.................... 500 26,063
Consolidated Natural Gas............... 750 39,188
Exxon.................................. 2,250 195,469
Halliburton............................ 800 44,400
Kerr-McGee............................. 400 24,350
Noble Drilling......................... 1,800 (a) 24,975
Royal Dutch Petroleum.................. 1,350 207,563
Sonat.................................. 750 33,750
_______
808,408
_______
FINANCIAL-13.7% ACE.................................... 350 16,450
Allstate............................... 1,350 61,593
Bank of Boston......................... 400 19,800
Bank of New York....................... 300 15,375
BankAmerica............................ 1,600 121,200
BayBanks............................... 700 75,425
Bear Stearns Cos....................... 1,600 37,800
CIGNA.................................. 600 70,725
Chase Manhattan........................ 1,350 95,344
Citicorp............................... 600 49,575
Federal National Mortgage Association.. 1,100 36,850
First Chicago NBD...................... 1,600 62,600
General Re............................. 200 30,450
ITT Hartford Group..................... 950 50,588
Merrill Lynch.......................... 400 26,050

DREYFUS VARIABLE INVESTMENT FUND, DISCIPLINED STOCK PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______
FINANCIAL (CONTINUED) NationsBank............................ 1,200 $ 99,150
Old Republic International............. 800 17,200
PNC Bank............................... 700 20,825
Providian.............................. 700 30,013
SAFECO................................. 900 31,838
Salomon................................ 800 35,200
Standard Federal Bancorporation........ 200 7,700
Transamerica........................... 250 20,250
Travelers Group........................ 2,200 100,375
_________
1,132,376
_________
HEALTH CARE-8.2% Becton, Dickinson...................... 250 20,062
Biogen................................. 300 (a) 16,462
Columbia/HCA Healthcare................ 500 26,687
Guidant................................ 500 24,625
Lilly (Eli)............................ 1,400 91,000
Medtronic.............................. 600 33,600
Merck & Co............................. 2,200 142,175
OrNda Healthcorp....................... 450 (a) 10,800
Oxford Health Plans.................... 500 (a) 20,562
PacifiCare Health Systems, Cl. B....... 250 (a) 16,937
Pfizer................................. 1,300 92,787
Pharmacia & Upjohn..................... 1,350 59,906
Schering-Plough........................ 1,000 62,750
SmithKline Beecham, A.D.S.............. 400 21,750
United Healthcare...................... 750 37,875
_________
677,978
_________
MINING AND METALS-1.5% Aluminum Co. of America................ 850 48,769
Barrick Gold........................... 1,500 40,687
Potash Corp. Saskatchewan.............. 550 36,437
_________
125,893
_________
TRANSPORTATION-1.3% CSX.................................... 300 14,475
Conrail................................ 900 59,737
Continental Airlines Cl. B............. 250 (a) 15,437
Delta Air Lines........................ 250 20,750
_________
110,399
_________
UTILITIES-11.0% AT&T................................... 2,500 155,000
Allegheny Power System................. 700 21,613
Ameritech.............................. 1,900 112,812
BellSouth.............................. 2,000 84,750
Boston Edison.......................... 600 15,300
CMS Energy............................. 300 9,263

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, DISCIPLINED STOCK PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $8,513,656)-see statement....................................... $8,778,979
Cash.................................................................... 160,607
Receivable for investment securities sold............................... 146,178
Dividends receivable.................................................... 11,125
___________
9,096,889
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 3,669
Payable for investment securities purchased............................. 810,299
Payable for shares of Beneficial Interest redeemed...................... 112
Accrued expenses........................................................ 6,647 820,727
__________ ___________
NET ASSETS ................................................................ $8,276,162
============
REPRESENTED BY:
Paid-in capital......................................................... $7,983,862
Accumulated undistributed investment income-net......................... 20,477
Accumulated undistributed net realized gain on investments.............. 6,500
Accumulated net unrealized appreciation on investments-Note 5........... 265,323
___________
NET ASSETS at value applicable to 630,111 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $8,276,162
============
NET ASSET VALUE, offering and redemption price per share
($8,276,162 / 630,111 shares)........................................... $13.13
=======

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, DISCIPLINED STOCK PORTFOLIO
STATEMENT OF OPERATIONS
FROM APRIL 30, 1996 (COMMENCEMENT OF OPERATIONS) TO JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $586 foreign taxes withheld at source)......... $ 24,452
Interest.............................................................. 10,146
___________
TOTAL INCOME...................................................... $ 34,598
EXPENSES:
Investment advisory fee-Note 4(a)..................................... 8,513
Custodian fees-Note 4(a).............................................. 5,822
Registration fees..................................................... 2,753
Auditing fees......................................................... 2,000
Prospectus and shareholders' reports.................................. 1,350
Shareholder servicing costs........................................... 84
Legal fees............................................................ 73
Trustees' fees and expenses-Note 4(b)................................. 54
Miscellaneous......................................................... 336
_______
TOTAL EXPENSES.................................................... 20,985
Less-reduction in investment advisory fee due to undertaking-Note 4(a) 6,864
_______
NET EXPENSES.................................................... 14,121
________
INVESTMENT INCOME-NET........................................... 20,477
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 5................................. $ 6,500
Net unrealized appreciation on investments.............................. 265,323
_______
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 271,823
________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $292,300
==========

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, DISCIPLINED STOCK PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
FROM APRIL 30, 1996 (COMMENCEMENT OF OPERATIONS) TO JUNE 30, 1996 (UNAUDITED)
<S> <C>
OPERATIONS:
Investment income-net................................................................... $ 20,477
Net realized gain on investments........................................................ 6,500
Net unrealized appreciation on investments for the period............................... 265,323
_________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................................. 292,300
_________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................................... 8,054,252
Cost of shares redeemed................................................................. (70,390)
_________
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.......................... 7,983,862
_________
TOTAL INCREASE IN NET ASSETS...................................................... 8,276,162
NET ASSETS:
Beginning of period..................................................................... -
_________
End of period (including undistributed investment income-net;
$20,477 on June 30, 1996)............................................................. $8,276,162
============
SHARES
_________
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................................. 635,503
Shares redeemed......................................................................... (5,392)
_________
NET INCREASE IN SHARES OUTSTANDING.................................................... 630,111
==========

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, DISCIPLINED STOCK PORTFOLIO
FINANCIAL HIGHLIGHTS (UNAUDITED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for the period from April 30, 1996
(commencement of operations) to June 30, 1996. This information has been
derived from the Series' financial statements.
<S> <C>
PER SHARE DATA:
Net asset value, beginning of period..................................................... $12.50
_______
INVESTMENT OPERATIONS:
Investment income-net.................................................................... .03
Net realized and unrealized gain on investments.......................................... .60
_______
TOTAL FROM INVESTMENT OPERATIONS....................................................... .63
_______
Net asset value, end of period........................................................... $13.13
========
TOTAL INVESTMENT RETURN...................................................................... 5.04%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................................................. .21%*
Ratio of net investment income to average net assets..................................... .31%*
Decrease reflected in above expense ratio due to undertaking
by The Dreyfus Corporation............................................................. .10%*
Portfolio Turnover Rate.................................................................. 13.20%*
Average commission rate paid............................................................. $.0437
Net Assets, end of period (000's Omitted)................................................ $8,276
*Not annualized.

See notes to financial statements.
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND, DISCIPLINED STOCK PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-GENERAL:
Dreyfus Variable Investment Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as an open-end management investment
company, operating as a series company currently offering eleven series,
including the Disciplined Stock Portfolio (the "Series") and is intended to
be a funding vehicle for variable annuity contracts and variable life
insurance policies to be offered by the separate accounts of life insurance
companies. The Series is a diversified portfolio. The Series' investment
objective is to provide investment results that are greater than the total
return performance of publicly-traded common stocks in the aggregate, as
represented by the Standard & Poor's 500 Composite Stock Price Index. The
Dreyfus Corporation ("Dreyfus") serves as the Series' investment adviser.
Dreyfus is a direct subsidiary of Mellon Bank, N.A. ("Mellon"). Effective May
24, 1996, Laurel Capital Advisors, an affiliate of Mellon, no longer serves
as the Series' sub-investment adviser. Premier Mutual Fund Services, Inc.
acts as the distributor of the Series' shares, which are sold without a sales
charge.
As of June 30, 1996, Allomon Corporation, a subsidiary of Mellon Bank
Investment Corporation, the parent company of which is Mellon, held 400,000
shares of the Series.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(A) PORTFOLIO VALUATION: Investments in securities 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.
(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.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Series may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the
policy of the Series not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Series 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
Internal Revenue Code, and to make distributions of taxable income sufficient
to relieve it from substantially all Federal income and excise taxes.

DREYFUS VARIABLE INVESTMENT FUND, DISCIPLINED STOCK PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3-BANK LINE OF CREDIT:
The Series participates in a $100 million unsecured line of credit
provided by The Bank of New York, primarily for temporary or emergency
purposes, including the meeting of redemption requests that otherwise might
require the untimely disposition of securities. Interest is payable at the
Federal Funds rate plus .50% on an annualized basis. During the period from
April 30, 1996 through June 30, 1996, the Series did not borrow under the
line of credit.
NOTE 4-INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to an Investment Advisory Agreement ("Agreement") with
Dreyfus, the investment advisory fee is computed at the annual rate of .75 of
1% of the value of the Series' average daily net assets and is payable
monthly. The Agreement provides that if in any full year the aggregate
expenses of the Series, exclusive of taxes, brokerage, interest on borrowings
and extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series, the Series may deduct from the payments to be
made to Dreyfus, or Dreyfus will bear the amount of such excess to the extent
required by state law.
However, Dreyfus has undertaken, from April 30, 1996 through December 31,
1996 to reduce the management fee paid by or reimburse such excess expenses
of the Series, to the extent that the Series' aggregate annual expenses
(exclusive of certain expenses as described above) exceed an annual rate of
1.25% of the value of the Series' average daily net assets. The reduction in
investment advisory fee, pursuant to the undertaking, amounted to $6,864
during the period from April 30, 1996 through June 30, 1996.
The Series compensates Dreyfus Transfer, Inc., a wholly owned subsidiary
of Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Series.
Pursuant to the custody agreement with Mellon, the Series paid $5,822 for
custodial services during the period ended June 30, 1996.
(B) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 5-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended June 30, 1996,
amounted to $8,286,333 and $476,468, respectively.
At June 30, 1996, accumulated net unrealized appreciation on investments
was $265,323, consisting of $390,554 gross unrealized appreciation and
$125,231 gross unrealized depreciation.
At June 30, 1996, 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).

[Dreyfus lion "d" logo]
DREYFUS VARIABLE INVESTMENT FUND,
DISCIPLINED STOCK PORTFOLIO
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
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. 150SA966
[Dreyfus logo]
Variable
Investment Fund,
DISCIPLINED STOCK
PORTFOLIO
Semi-Annual Report
June 30, 1996

DREYFUS VARIABLE INVESTMENT FUND, GROWTH AND INCOME PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
During the fiscal half-year ended June 30, 1996, the total return for the
Growth and Income Portfolio of Dreyfus Variable Investment Fund was 17.53%.*
This compares with a return of 10.09% for the Standard and Poor's 500
Composite Stock Price Index.** From inception on May 2, 1994 to June 30,
1996, the total return for the Portfolio was 87.95% and the average annual
total return was 33.75%. For the one-year period ended June 30, 1996, the
average annual total return was 41.30% compared with 25.98% for the Standard
& Poor's 500 Composite Stock Price Index.***
There were several reasons for this 17.53% total return of the Portfolio
in the first half of 1996. First, it was a favorable period for the stock
market overall. Second, the Portfolio was invested in several dozen holdings.
We believe this degree of concentration provides a combination of
diversification with a substantial sensitivity to the performance of
individual holdings. Third, the Portfolio was fortunate to have several
individual investments which performed quite well during the period. Given its
relative concentration, the Portfolio's performance is sensitive to the
performance of the larger individual holdings. Fourth, the decision to sell
several holdings after they had rallied strongly helped lock in some gains.
The volatility in the stock market has increased and has been quite high for
many individual stocks. After the strong gains in the stock market in recent
years, the valuations on some stocks have reached relatively high levels.
However, we continue to find investments at prices which appear attractive in
some portions of the stock market.
Your Portfolio is not required to be highly diversified and may minimize
or avoid completely an investment in sectors which offer an unappealing
balance of risk and potential reward. For example, by the end of the fiscal
half-year, your Fund's investment in technology stocks was well below the
normal representation in broad-based market indices, such as the Standard and
Poor's 500 Composite Stock Price Index. The reason was a perception of
relatively high risk despite the attractive long-term fundamentals of the
technology industries. However, if the relationship between perceived risk
and potential reward shifts, the weighting of these stocks could be increased
again.
The Portfolio's largest positions are in a variety of industries. Nabisco
Holdings is a large food company. York International is a leading company in
manufacturing air conditioners for consumers and businesses. ADT is a
security and alarm company. Time Warner is a broadly diversified media
company. MFS Communications is a rapidly growing company that provides
communications services, primarily to businesses.
We continue to use a mixture of convertible securities, real estate
investment trusts and utilities as a means of satisfying the income portion
of the Portfolio's joint objectives of growth and income. Investments in
smaller and mid-sized companies in such industries as telecommunications and
health care have been made in the effort to achieve the Portfolio's growth
objectives.
The first half of 1996 started with a widespread perception that the U.S.
economy was quite weak, but evidence of a stronger economy emerged over the
months that followed. This has been a period when economic perceptions were
important to the markets. Most interest rates rose in the first half of 1996
as a result of the evidence of a stronger economy. During the early part of
the fiscal half-year, there was a decoupling of the stock market from the
bond market, with stock prices rising even as bond prices dropped. Toward the
end of the fiscal half-year, however, stock prices began to weaken in
response to a higher level of interest rates and a growing fear of earnings
disappointments.

We believe that the U.S. economy is experiencing an upward drift in
inflation, combined with a deceleration of earnings growth. Our current
judgment is that the magnitude of the inflation acceleration will prove to be
moderate rather than dramatic. That is a tentative judgment, subject to
change if the evidence changes.
We continue to believe that the period of strongest earnings growth in
the U.S. economy is behind us. Corporate cost cutting is very far advanced in
many companies as are the benefits of refinancing high cost debt. We believe
that strong profit growth may become increasingly scarce over the next year.
We appreciate the willingness of our shareholders to invest in the Growth
and Income Portfolio of Dreyfus Variable Investment Fund. We will endeavor to
realize a favorable return for the shareholders commensurate with a
reasonable level of risk. There is likely to be an alternation of periods
where the net asset value of the Portfolio declines and periods when the net
asset value rises. Our focus is on achieving a satisfactory return for the
shareholders over a period of time.
Very truly yours,

[Richard B. Hoey signature logo]

Richard B. Hoey
Portfolio Manager
July 22, 1996
New York, N.Y.

DREYFUS VARIABLE INVESTMENT FUND, GROWTH AND INCOME PORTFOLIO
STATEMENT OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS-81.5% SHARES VALUE
_______ _______
<S> <C> <C> <C>
BASIC INDUSTRIES-1.1% Witco................................. 50,000 $ 1,718,750
___________
CAPITAL GOODS-8.4% Boeing................................. 40,000 3,485,000
Coltec Industries...................... 100,000 (a) 1,425,000
Thiokol................................ 80,000 3,160,000
York International..................... 100,000 5,175,000
___________
13,245,000
___________
CONSUMER-15.6% ADT.................................... 275,000 (a) 5,190,625
Canandaigua Wine, Cl. A................ 40,000 (a) 1,200,000
General Motors......................... 50,000 2,618,750
General Nutrition...................... 100,000 (a) 1,750,000
Nabisco Holdings....................... 150,000 5,306,250
OfficeMax.............................. 100,000 (a) 2,387,500
Thrifty Payless Holdings .............. 100,000 (a) 1,725,000
Tupperware............................. 100,000 (a) 4,225,000
___________
24,403,125
___________
ENERGY-6.2% Texaco................................. 50,000 4,193,750
UGI.................................... 200,000 4,400,000
Western Gas Resources.................. 74,400 1,209,000
___________
9,802,750
___________
FINANCIAL-6.0% Associates First Capital............... 21,300 801,413
Bank of Boston......................... 80,000 3,960,000
Chase Manhattan........................ 50,000 3,531,250
Medallion Financial.................... 88,000 1,100,000
___________
9,392,663
___________
HEALTH CARE-8.9% Fuisz Technologies..................... 30,000 (a) 570,000
Heartport.............................. 110,500 (a) 3,342,625
Heartstream............................ 180,000 (a) 2,475,000
MedPartners/Mullikin................... 50,000 (a) 1,043,750
Millennium Pharmaceuticals............. 100,000 (a) 1,550,000
ONCOR.................................. 250,000 (a) 1,375,000
Value Health........................... 150,000 (a) 3,543,750
___________
13,900,125
___________
INSURANCE-6.1% American Reinsurance................... 75,000 3,365,625
Everest Reinsurance Holdings........... 80,000 2,070,000
Travelers/Aetna Property Casualty...... 144,200 (a) 4,091,675
___________
9,527,300
___________
MEDIA/ENTERTAINMENT-5.4% Comcast, Cl. A......................... 200,000 3,700,000
Time Warner............................ 120,000 4,710,000
___________
8,410,000
___________

DREYFUS VARIABLE INVESTMENT FUND, GROWTH AND INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ _______

MINING & METALS-.7% Brascan................................ 62,700 $ 1,175,625
___________
PUBLISHING-2.3% Gannett................................ 50,000 3,537,500
___________
REAL ESTATE-9.4% Ambassador Apartments 100,000 1,687,500
Franchise Finance Corporation of America 175,000 4,025,000
Host Marriott.......................... 150,000 1,968,750
Merry Land & Investment................ 200,000 4,200,000
Redwood Trust.......................... 100,000 2,800,000
___________
14,681,250
___________
TECHNOLOGY-2.9% International Game Technology. 200,000 3,375,000
Thermo Electron........................ 30,000 1,248,750
___________
4,623,750
___________
TELECOMMUNICATIONS-3.1% MFS Communications..................... 1,503 56,550
McLeod................................. 45,000 1,080,000
Teleport Communications Group.......... 114,600 2,191,725
Tel-Save Holdings...................... 70,000 1,487,500
___________
4,815,775
___________
UTILITIES-5.4% Entergy................................ 150,000 4,256,250
Texas Utilities........................ 100,000 4,275,000
___________
8,531,250
___________
TOTAL COMMON STOCKS
(cost $123,427,816).................. $127,764,863
============
CONVERTIBLE PREFERRED STOCKS-9.3%
CONSUMER-.7% Kmart Financing, 7.75%................. 20,000 $ 1,085,000
___________
FINANCIAL-1.6% Banco Commercial Portugues, Ser. A, 8%. 50,000 2,487,500
___________
MEDIA/ENTERTAINMENT-3.4% SFX Broadcasting, Ser. D, 6.50%........ 48,000 (b) 2,502,000
Station Casinos, 7%.................... 50,000 2,875,000
___________
5,377,000
___________
REAL ESTATE-.5% Merry Land & Investment, Ser. C, $2.15 15,000 401,250
Tanger Factory Outlet, Ser. A, Cum., $1.80 20,000 441,250
___________
842,500
___________
TELECOMMUNICATIONS-3.1% MFS Communications, 8%................. 75,000 4,762,500
___________
TOTAL CONVERTIBLE PREFERRED STOCKS
(cost $13,892,294)................... $ 14,554,500
=============
PREFERRED STOCKS-1.0%
PUBLISHING; News Corp, A.D.R. .....................
(cost $1,514,625).................... 75,000 $ 1,509,375
=============

DREYFUS VARIABLE INVESTMENT FUND, GROWTH AND INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
CONVERTIBLE CORPORATE NOTES & BONDS-5.4% AMOUNT VALUE
_______ _______

FOREIGN/GOVERNMENTAL-1.3% Republic of Italy, Notes,
5%, 6/28/2001........................ $ 2,000,000 $ 2,045,000
___________
HEALTH CARE-.9% Complete Management, Sub. Deb.,
8%, 8/15/2003........................ 1,300,000 1,371,500
___________
RETAIL TRADE-.9% Williams-Sonoma, Sub. Notes,
5.25%, 4/15/2003..................... 1,250,000 (b) 1,346,875
___________
TECHNOLOGY-.4% Softkey International, Sr. Notes,
5.50%, 11/1/2000..................... 1,000,000 (b) 795,000
___________
TELECOMMUNICATIONS-1.9% Broadband Technologies, Sub. Notes,
5%, 5/15/2001........................ 3,000,000 (b) 2,985,000
___________
TOTAL CONVERTIBLE CORPORATE NOTES & BONDS
(cost $8,355,613).................... $ 8,543,375
=============
SHORT-TERM INVESTMENTS-18.7%
U.S. TREASURY BILLS: 4.68%, 8/8/1996........................ $ 2,839,000 $ 2,823,783
5.48%, 8/22/1996....................... 4,323,000 4,290,750
5%, 9/12/1996.......................... 4,959,000 4,907,030
5.21%, 9/19/1996....................... 17,523,000 17,320,960
___________
TOTAL SHORT-TERM INVESTMENTS
(cost $29,348,868)................... $ 29,342,523
=============
TOTAL INVESTMENTS (cost $176,539,216)....................................... 115.9% $ 181,714,636
======= =============
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (15.9%) $ (24,943,422)
======= =============
NET ASSETS.................................................................. 100.0% $ 156,771,214
======= =============

NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30,
1996, these securities amounted to $7,628,875 or approximately 4.9% of
net assets.

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>

DREYFUS VARIABLE INVESTMENT FUND, GROWTH AND INCOME PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $176,539,216)-see statement..................................... $181,714,636
Cash.................................................................... 695,531
Receivable for investment securities sold............................... 2,068,931
Dividends and interest receivable....................................... 260,730
Prepaid expenses........................................................ 217
_____________
184,740,045
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 91,061
Payable for investment securities purchased............................. 27,841,057
Accrued expenses........................................................ 36,713 27,968,831
____________ ____________
NET ASSETS.................................................................. $156,771,214
=============
REPRESENTED BY:
Paid-in capital......................................................... $135,608,331
Accumulated undistributed investment income-net......................... 30,390
Accumulated undistributed net realized gain on investments.............. 15,957,073
Accumulated net unrealized appreciation on investments-Note 5........... 5,175,420
_____________
NET ASSETS at value applicable to 7,406,193 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $156,771,214
=============
NET ASSET VALUE, offering and redemption price per share
($156,771,214 / 7,406,193 shares)....................................... $21.17
========
</TABLE>
<TABLE>

STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Interest.............................................................. $ 795,864
Cash dividends (net of $1,795 foreign taxes withheld at source)....... 746,419
__________
TOTAL INCOME.................................................... $ 1,542,283
EXPENSES:
Investment advisory fee-Note 4(a)..................................... 417,628
Registration fees..................................................... 24,462
Professional fees..................................................... 11,664
Custodian fees-Note 4(a).............................................. 9,399
Prospectus and shareholders' reports.................................. 5,137
Trustees' fees and expenses-Note 4(b)................................. 2,341
Shareholder servicing costs........................................... 705
Miscellaneous......................................................... 1,246
__________
TOTAL EXPENSES.................................................. 472,582
____________
INVESTMENT INCOME-NET........................................... 1,069,701
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 5................................. $15,958,499
Net unrealized appreciation on investments.............................. 161,957
__________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 16,120,456
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 17,190,157
=============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>

DREYFUS VARIABLE INVESTMENT FUND, GROWTH AND INCOME PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1996
1995 (UNAUDITED)
________ __________
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................. $ 572,821 $ 1,069,701
Net realized gain on investments....................................... 4,082,523 15,958,499
Net unrealized appreciation on investments for the period.............. 5,056,480 161,957
_____________ ____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. 9,711,824 17,190,157
_____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net.................................................. (548,022) (1,064,168)
Net realized gain on investments ...................................... (2,627,285) (1,457,186)
_____________ ____________
TOTAL DIVIDENDS...................................................... (3,175,307) (2,521,354)
_____________ ____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.......................................... 71,235,254 73,329,743
Dividends reinvested................................................... 3,175,307 2,521,354
Cost of shares redeemed................................................ (10,825,812) (4,909,846)
_____________ ____________
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS......... 63,584,749 70,941,251
_____________ ____________
TOTAL INCREASE IN NET ASSETS..................................... 70,121,266 85,610,054
NET ASSETS:
Beginning of period.................................................... 1,039,894 71,161,160
_____________ ____________
End of period (including undistributed investment income-net:
$24,857 in 1995 and $30,390 in 1996)................................. $ 71,161,160 $156,771,214
============= ==============

SHARES SHARES
____________ ____________
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 4,269,435 3,648,786
Shares issued for dividends reinvested................................. 179,268 120,204
Shares redeemed........................................................ (652,787) (245,535)
_____________ ____________
NET INCREASE IN SHARES OUTSTANDING................................... 3,795,916 3,523,455
============= ==============

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, GROWTH AND INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Series' financial statements.

YEAR ENDED DECEMBER 31, SIX MONTHS ENDED
______________________________ JUNE 30, 1996
PER SHARE DATA: 1994(1) 1995 (UNAUDITED)
______ ______ ________
<S> <C> <C> <C>
Net asset value, beginning of period....................... $12.50 $11.98 $18.33
______ ______ ______
INVESTMENT OPERATIONS:
Investment income-net...................................... .28 .28 .16
Net realized and unrealized gain (loss) on investments..... (.43) 7.07 3.05
______ ______ ______
TOTAL FROM INVESTMENT OPERATIONS......................... (.15) 7.35 3.21
______ ______ ______
DISTRIBUTIONS:
Dividends from investment income-net....................... (.28) (.27) (.17)
Dividends from net realized gain on investments............ (.09) (.73) (.20)
______ ______ ______
TOTAL DISTRIBUTIONS...................................... (.37) (1.00) (.37)
______ ______ ______
Net asset value, end of period............................. $11.98 $18.33 $21.17
====== ======= =======
TOTAL INVESTMENT RETURN........................................ (1.22%)(2) 61.89% 17.53%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................... .22%(2) .92% .42%(2)
Ratio of net investment income to average net assets....... 2.25%(2) 2.21% .96%(2)
Decrease reflected in above expense ratios due to undertakings
by The Dreyfus Corporation............................... 1.28%(2) .03% -
Portfolio Turnover Rate.................................... 237.09%(2) 255.42% 147.96%(2)
Average commission rate paid(3)............................ - - $.1061
Net Assets, end of period (000's Omitted).................. $1,040 $71,161 $156,771
(1) From May 2, 1994 (commencement of operations) through December 31, 1994.
(2) Not annualized.
(3) For fiscal years beginning January 1, 1996, the Series is required to
disclose its average commission rate paid per share
for purchases and sales of investment securities.

See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND, GROWTH AND INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-GENERAL:
Dreyfus Variable Investment Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as an open-end management investment
company, operating as a series company, currently offering eleven series,
including the Growth and Income Portfolio (the "Series") and is intended to
be a funding vehicle for variable annuity contracts and variable life
insurance policies to be offered by the separate accounts of life insurance
companies. The Series is a non-diversified portfolio. The Series' investment
objective is to provide long-term capital growth, current income and growth
of income, consistent with reasonable investment risk. The Dreyfus
Corporation ("Dreyfus") serves as the Series' investment adviser. Dreyfus is
a direct subsidiary of Mellon Bank, N.A. ("Mellon"). Premier Mutual Fund
Services, Inc. acts as the distributor of the Series' shares, which are sold
without a sales charge.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(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.
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) 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.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. The Series declares and pays dividends from investment income-net on a
quarterly basis. Dividends from net realized capital gain are normally
declared and paid annually, but the Series may make distributions on a more
frequent basis to comply with the distribution requirements of the Internal
Revenue Code. To the extent that net realized capital gain can be offset by
capital loss carryovers, if any, it is the policy of the Series not to
distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Series 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 Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.

DREYFUS VARIABLE INVESTMENT FUND, GROWTH AND INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3-BANK LINE OF CREDIT:
The Series participates in a $100 million unsecured line of credit
provided by The Bank of New York, primarily for temporary or emergency
purposes, including the meeting of redemption requests that otherwise might
require the untimely disposition of securities. Interest is payable at the
Federal Funds rate plus .50% on an annualized basis. For the period ended
June 30, 1996, the Series did not borrow under the line of credit.
NOTE 4-INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to an Investment Advisory Agreement ("Agreement") with
Dreyfus, the investment advisory fee is computed at the annual rate of .75 of
1% of the value of the Series' average daily net assets and is payable
monthly.
The Agreement provides that if in any full year the aggregate expenses of
the Series, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series, the Series may deduct from the payments to be
made to Dreyfus, or Dreyfus will bear the amount of such excess to the extent
required by state law. There was no expense reimbursement for the six months
ended June 30, 1996.
The Series compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary
of Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Series.
Effective May 10, 1996, the Series entered into a custody agreement with
Mellon to provide custodial services for the Series. During the period from
May 10, 1996 to June 30, 1996 $1,597 was paid to Mellon pursuant to the
custody agreement.
(B) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 5-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the six months ended June 30, 1996,
amounted to $211,086,479 and $140,855,428, respectively.
At June 30, 1996, accumulated net unrealized appreciation on investments
was $5,175,420, consisting of $7,716,531 gross unrealized appreciation and
$2,541,111 gross unrealized depreciation.
At June 30, 1996, 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).

DREYFUS VARIABLE INVESTMENT FUND, GROWTH AND INCOME PORTFOLIO
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, GROWTH AND INCOME PORTFOLIO
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Variable Investment Fund,
Growth and Income Portfolio (one of the series constituting the Dreyfus
Variable Investment Fund), as of June 30, 1996, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended June 30, 1996. These financial statements and financial
highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1995 and financial highlights for each of the two years in the
period ended December 31, 1995 and in our report dated February 9, 1996 we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.

[Ernst & Young LLP signature logo]

New York, New York
July 30, 1996
[Dreyfus lion "d" logo]
DREYFUS VARIABLE INVESTMENT FUND,
GROWTH AND INCOME PORTFOLIO
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
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. 108SA966
[Dreyfus logo]
Variable
Investment Fund,
GROWTH AND INCOME
PORTFOLIO
Semi-Annual Report
June 30, 1996

DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
It is my pleasure to introduce Ronald Chapman, who took over management
of the International Equity Portfolio of Dreyfus Variable Investment Fund in
early 1996. He now heads International Equity Investing for Dreyfus.
Prior to joining our staff, Ron was actively involved in international
research and portfolio management at the Northern Trust Company for the past
ten years. He was instrumental in building that organization's highly
competitive products and performance record in international equities.
Earlier in his career, Ron served as an energy industry analyst in the
investment research departments of Northern Trust and Continental Illinois
Bank.
Ron brings to Dreyfus a disciplined approach to asset allocation and
portfolio construction. We have great confidence in his ability to manage
international investments for the benefit of Dreyfus shareholders.
Sincerely,

[Stephen E. Canter signature logo]

Stephen E. Canter
Chief Investment Officer
The Dreyfus Corporation
July 15, 1996
New York, N.Y.

DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
The International Equity Portfolio of Dreyfus Variable Investment Fund
recorded a return of 9.67%* for the six-month period ended June 30, 1996,
well ahead of the 4.52% return of the Morgan Stanley Capital International
Europe, Australasia, Far East (EAFE(R)) Index for the period.**
INVESTMENT STRATEGY
As the new manager of your Portfolio, I would like to take this
opportunity to lay out my investment approach before explaining my current
strategy for the Fund in the latter part of this letter.
During my twelve years in the international equity management business I
have developed an investment process designed to deliver to investors a
portfolio that includes a wide variety of holdings in fifteen to twenty-five
markets around the world, exposure to rapidly growing emerging markets when
they are attractive for investment, and active currency management. The
crucial challenge for a global investor is how to judge the relative
attractiveness of various markets when there are scores to choose from. I
address this challenge by evaluating inputs on growth, valuation, interest
rates, liquidity, technical factors and currency in each of the world's major
markets. My work in these areas is driven by PC-based tools I have developed
over time. Markets and industry sectors will be overweighted, underweighted
or market-weighted relative to those of the Morgan Stanley Capital
International (EAFE(R)) Index. Markets and industry sectors are overweighted
or underweighted by no more than 70% with two exceptions. First, the largest
market in the world outside the U.S., Japan, has a 50%-150% weighting band.
The second exception is the asset class of emerging markets. While these
markets comprise only 4% of the World Index, the International Equity
Portfolio will invest up to 30% of its assets in this area when significant
opportunities present themselves. The reasons for this policy are twofold.
First, emerging markets have the highest secular GDP and EPS growth rates in
the world and a global portfolio should offer shareholders substantial
exposure to this long-term opportunity. Second, emerging markets often reach
valuation extremes seldom seen in more developed equity markets. Making a
significant investment at the appropriate time positions the Portfolio to
benefit from these extraordinary opportunities.
In the investment process I have developed, stocks are managed in a
disciplined way. I search for stocks expected to have higher earnings growth
rates than the market in which they trade. Attractive companies often have
made a corporate change in management, strategy or business structure that
will positively alter their future growth rate. Stocks purchased also need to
have attractive valuations relative to both their own history and that of the
local market. Companies are sold when growth is forecast to fall below my own
or consensus estimates, the valuation target is reached or the weighting in
that market reduced as a result of an asset allocation decision.
Foreign currencies are at least partially hedged, where practicable, when
I believe that a given currency has 10% or more downside risk against the
U.S. Dollar over the next twelve to eighteen months.
GLOBAL OVERVIEW
What does my work reveal about world markets at the moment and what have
I done to position your Portfolio to benefit?
I remained convinced throughout the Spring of this year that the low
interest rate policies being pursued by most of the globe's central banks
would produce a period of more or less synchronized growth in the world's
developed and developing economies during the latter half of 1996 and 1997.
Recently, long-term U.S. interest rates have risen as U.S. bond investors
anticipate higher growth. While many of my peers believe interest rates on
30-year Treasury bonds will rise sharply from the current level of around 7%,
it is my view that rates will trade around current levels for some time. In
other words, a higher level of worldwide growth is now "in the market." As a
consequence, your Portfolio is not in a defensive posture at this stage. I
believe that the most attractive markets in the world today are selected
emerging markets, that Japan offers upside potential as it emerges from
recession, and that Europe has some potentially profitable individual stock
opportunities (many of which involve restructurings). The remainder of your
shareholder letter details my views on each of these major market areas.
EMERGING MARKETS
The growth of emerging markets continues year in and year out at a pace
two to five times that of the developed world. Investor enthusiasm for
emerging markets, however, runs hot and cold. In my opinion, investors are
currently only lukewarm on emerging markets due to concerns about the global
interest rate environment. As stated above, I believe interest rates are
settling into a trading range and that investors' recent fears of escalating
rates are overblown. As this concern fades over the next several months, many
will look anew around the world's markets for growth. The highest growth I
see in the latter half of 1996 and in 1997 is in the emerging markets of
Asia, particularly the Philippines, Indonesia, Thailand, Malaysia and, to a
lesser extent, Hong Kong. On average, earnings should grow at 20% in both
1996 and 1997 in these markets, yet their average price-earnings ratio is
only 14.4%. This is well below not only the price-earnings ratio of the U.S.
(where I believe earnings will grow little in 1996 and 1997) and Continental
European markets, but is far below the price-earnings ratios seen in Asian
emerging markets during historical periods when investor enthusiasm was
running high. In short, these markets appear to be fast growing and historical
ly cheap. I am bullish on Asian emerging markets. I also favor Latin American
emerging markets that are in the process of reform, seeking to become more
like the "Asian Model." I am particularly bullish on Mexico and Brazil.
JAPAN
I believe Japan offers attractive upside potential from current levels,
although one must consider how far it has risen from the lows of midsummer
1995 (about 50%). Earnings are rising strongly, valuation is attractive
relative to the market's history, interest rates are low (and will, I am
convinced, remain low). Japanese investors have large amounts of cash that
may find their way into the market, the Nikkei looks technically sound, and
the Yen supportive. In a world of bull markets more than a decade old, it is
useful to remember that the Japanese market peaked in 1989, stands today at
barely one-half the level of its all-time high of that year, and is thus one
of the few major markets in the world in the process of beginning a fresh
bull market. Your Portfolio has substantial investments in the Japanese
market.
EUROPE
In this investor's eyes, European markets offer low risk and only
moderate return over the balance of 1996. But beneath the surface are a fair
number of interesting individual investment ideas, many of which have to do
with the type of corporate restructuring that took place in the U.S. over the
last ten years.
Ownership of Dreyfus Variable Investment Fund - International Equity
Portfolio brings a world of opportunity to increase your long-term capital. I
continue to manage the Portfolio toward that goal.
Sincerely,
[Ron Chapman signature logo]
Ron Chapman
Portfolio Manager
July 15, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid. The Portfolio's performance does not reflect the deduction of
additional charges imposed in connection with investing in variable annuity
contracts and variable life insurance policies.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - The Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE(R)) Index is an unmanaged
index composed of a sample of companies representative of the market
structure of European and Pacific Basin countries. The return indicated
includes net dividends reinvested. The Index is the property of Morgan
Stanley & Co., Incorporated.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS-88.4% SHARES VALUE
_______ ______
<S> <C> <C>
AUSTRALIA-1.1% Boral.................................. 55,000 $ 142,841
Broken Hill Proprietary................ 4,000 55,310
_______
198,151
_______
FINLAND-1.7% Cultor Oy, Ser. 1...................... 6,500 319,672
_______
FRANCE-5.1% Elf Aquitaine.......................... 3,000 220,608
Groupe Danone.......................... 1,500 226,959
Lafarge................................ 2,500 151,258
Rhone-Poulenc, Cl. A................... 5,000 131,397
Societe Television Francaise 1......... 2,000 228,416
_______
958,638
_______
GERMANY-4.8% Continental............................ 12,000 194,552
Deutsche Bank.......................... 2,600 122,875
Puma................................... (a) 6,000 215,228
Thyssen................................ 1,200 219,048
VEBA................................... 2,700 143,321
_______
895,024
_______
HONG KONG-7.3% Cheung Kong Holdings................... 28,000 201,680
First Pacific.......................... 74,000 113,773
HKR International...................... 96,000 111,628
HSBC Holdings.......................... 13,000 196,512
Hang Seng Bank......................... 10,000 100,775
Henderson Land Development............. 12,000 89,922
Hong Kong & China Gas.................. 55,000 87,758
Hong Kong Electric Holdings............ 60,000 182,946
Hutchison Whampoa...................... 15,000 94,380
New World Infrastructure............... (a) 35,000 74,612
Swire Pacific, Cl. A................... 8,500 72,755
Wharf Holdings......................... 13,000 46,524
_______
1,373,265
_______
INDONESIA-1.2% PT Astra International................. 125,000 181,374
PT Telekomunikasi Indonesia, A.D.R..... 1,400 41,650
_______
223,024
_______
IRELAND-1.5% Independent Newspapers................. 33,333 154,232
Independent Newspapers (Rights)........ 20,000 2,138
Irish Continental Group................ 14,500 131,868
_______
288,238
_______
ITALY-4.4% Bulgari................................ 20,000 319,178
Credito Italiano....................... 95,000 111,473
Istituto Nazionale delle Assicurazioni. 150,000 224,707

DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ ______

ITALY (CONTINUED) Parmalat Finanziaria................... 120,000 $ 159,974
_______
815,332
_______
JAPAN- 32.2% Alpine Electronics..................... 4,000 74,783
Autobacs Seven......................... 2,000 193,342
Bank of Tokyo-Mitsubishi............... 4,000 92,658
DDI.................................... 15 130,780
Daikin Industries...................... 10,000 109,439
Daiwa House Industry................... 10,000 155,039
East Japan Railway..................... 24 125,855
Fuji Photo Film........................ 6,000 189,330
Hitachi................................ 14,000 130,233
Hitachi Credit......................... 6,000 106,156
Hitachi Zosen.......................... 13,000 73,625
I-O Data Device........................ 2,200 84,268
Ishikawajima-Harima Heavy Industries... 23,000 112,221
Isuzu Motors........................... 20,000 114,182
JGC.................................... 11,000 144,460
Kato Denki............................. 4,000 82,444
Kawasaki Heavy Industries.............. 33,000 167,031
Komori................................. 5,000 127,679
Matsushita Electric Industrial......... 8,000 148,837
Mitsubishi Chemical.................... 22,000 101,523
Mitsubishi Materials................... 25,000 135,887
Mitsui & Co............................ 12,000 108,673
Mitsui Fudosan......................... 8,000 107,980
Mitsui Marine & Fire Insurance......... 20,000 158,869
NKK....................................(a) 38,000 115,057
Nippon Express......................... 16,000 156,133
Nippon Steel........................... 30,000 102,873
Nippon Telegraph & Telephone........... 24 177,729
Nippon Yakin Kogyo..................... 30,000 141,997
Nissan Motor........................... 20,000 177,474
Ricoh.................................. 15,000 158,687
Rohm................................... 3,000 198,085
Royal.................................. 9,000 222,708
Sanyo Electric......................... 30,000 183,037
Shiseido............................... 20,000 255,358
Sony................................... 2,500 164,387
Sumitomo Bank.......................... 12,000 232,011
Sumitomo Electric Industries........... 11,000 157,501
Sumitomo Metal Mining.................. 11,000 95,203
TDK.................................... 3,000 178,933
Tokyo Style............................ 8,000 139,353
Toyota Motor........................... 7,000 174,920
_______
6,006,740
_______

DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ ______

MALAYSIA-2.8% Commerce Asset Holding................. 12,000 $ 73,136
DCB Holdings........................... 20,000 68,565
Edaran Otomobil Nasional............... 9,000 86,247
Metacorp............................... 24,000 69,286
R.J. Reynolds.......................... 25,000 73,677
Renong................................. 45,000 71,812
Tenaga Nasional........................ 20,000 84,202
_______
526,925
_______
MEXICO-1.9% Cemex, Ser. B.......................... 20,000 77,705
Fomento Economico Mexicano, Ser. B..... 25,000 70,910
Grupo Carso, Ser. A1...................(a) 10,000 70,976
Grupo Financiero Bancomer, Ser. B......(a) 180,000 78,364
Grupo Televisa, A.D.R..................(a) 2,000 61,500
_______
359,455
_______
NETHERLANDS-4.4% Ahrend Groep (Rights).................. 15,000 7,026
Oce-Van Der Grinten.................... 1,700 179,953
Philips Electronics.................... 3,000 97,482
Verenigde Nederlandse Uitgeversbedrijven
Verenigd Bezit....................... 35,000 543,033
_______
827,494
_______
NORWAY-1.7% Hafslund ASA, Cl. A.................... 4,250 30,402
Nycomed ASA, Cl. A..................... 4,250 6 1,130
Schibsted Group........................ 17,000 219,675
_______
311,207
_______
SINGAPORE-.1% Oversea-Chinese Banking (Rights)....... 800 6,409
_______
SPAIN-.6% Iberdrola.............................. 11,050 113,344
_______
SWEDEN-4.3% Scania, Cl. B.......................... 8,000 222,574
Skandia Forsakrings.................... 8,000 211,716
Sparbanken Sverige, Cl. A.............. 14,000 181,558
Svenskt Stal, Ser. B................... 14,000 181,558
_______
797,406
_______
SWITZERLAND-3.8% ABB.................................... 166 205,082
Compagnie Financiere Michelin.......... 300 146,050
Elektrowatt, Cl. B..................... 535 197,690
Sandoz................................. 140 159,888
_______
708,710
_______
THAILAND-1.6% Advanced Information Service (Foreign Registered) 4,500 66,666
Finance One Public (Foreign Registered) 10,000 64,618
Industrial Finance Corporation of Thailand 8,000 35,934
Krung Thai Bank Public (Foreign Registered) 15,000 70,331

DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ ______

THAILAND (CONTINUED) Thai Military Bank Public (Foreign Registered) 18,000 $ 70,922
_______
308,471
_______
UNITED KINGDOM-7.9% Asda Group............................. 130,000 236,090
Barclays............................... 22,000 263,796
British Steel.......................... 60,000 152,969
British Telecommunications............. 25,000 133,877
Lloyds TSB Group....................... 32,000 156,462
RTZ.................................... 11,000 162,717
TeleWest Communications................(a) 60,000 149,943
Williams Holdings...................... 40,000 210,168
_______
1,466,022
_______
TOTAL COMMON STOCKS
(cost $15,879,007)................... $16,503,527
=======
PREFERRED STOCKS-4.9%
BRAZIL-.9% Banco Bradesco......................... 6,600 $ 53,878
Companhia Energetica de Minas Gerais... 1,970 52,363
Petroleo Brasileiro S/A- Petrobras..... 425 52,252
_______
158,493
_______
GERMANY-2.7% Fresenius.............................. 1,450 261,971
Henkel KGaA Vorzug..................... 550 237,184
_______
499,155
_______
PORTUGAL-1.3% Banco Comercial Portugues.............. 5,000 248,750
_______
TOTAL PREFERRED STOCKS
(cost $729,489)...................... $ 906,398
=======
PRINCIPAL
SHORT-TERM INVESTMENTS-8.0% AMOUNT
_______
UNITED STATES; U.S. Treasury Bills;
5.10%, 9/19/96
(cost $1,488,926).................... $ 1,506,000 $ 1,488,636
=======
TOTAL INVESTMENTS (cost $18,097,422)........................................ 101.3% $18,898,561
====== =======
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (1.3%) $ (235,164)
====== =======
NET ASSETS.................................................................. 100.0% $18,663,397
====== =======
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $18,097,422)-see statement...................................... $18,898,561
Cash.................................................................... 337,517
Dividends receivable.................................................... 66,287
Receivable for investment securities sold............................... 59,726
Prepaid expenses........................................................ 124
______
19,362,215
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 10,955
Payable for investment securities purchased............................. 648,569
Net unrealized (depreciation) on forward currency
exchange contracts-Note 4(a).......................................... 7,060
Accrued expenses........................................................ 32,234 698,818
____ ______
NET ASSETS ................................................................ $18,663,397
======
REPRESENTED BY:
Paid-in capital......................................................... $17,565,642
Accumulated undistributed investment income-net......................... 121,387
Accumulated undistributed net realized gain on investments
and foreign currency transactions..................................... 182,532
Accumulated net unrealized appreciation on investments
and foreign currency transactions..................................... 793,836
______
NET ASSETS at value applicable to 1,327,183 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $18,663,397
=======
NET ASSET VALUE, offering and redemption price per share
($18,663,397 / 1,327,183 shares)........................................ $14.06
=======

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $24,695 foreign taxes withheld at source)...... $179,577
Interest.............................................................. 38,753
____
TOTAL INCOME...................................................... $ 218,330
EXPENSES:
Investment advisory fee-Note 3(a)..................................... 48,867
Custodian fees........................................................ 20,699
Auditing fees......................................................... 9,630
Prospectus and shareholders' reports.................................. 7,358
Registration fees..................................................... 3,439
Legal fees............................................................ 569
Trustees' fees and expenses-Note 3(b)................................. 268
Shareholder servicing costs........................................... 179
Miscellaneous......................................................... 454
____
TOTAL EXPENSES.................................................... 91,463
_____
INVESTMENT INCOME-NET............................................. 126,867
_____
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments and foreign currency
transactions-Note 4(a)................................................ $129,779
Net realized gain on forward currency exchange contracts................ 44,919
____
NET REALIZED GAIN..................................................... 174,698
Net unrealized appreciation on investments and foreign currency
transactions.......................................................... 471,795
_____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 646,493
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $773,360
=====

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1996
1995 (UNAUDITED)
_______ __________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 44,058 $ 126,867
Net realized gain on investments........................................ 26,932 174,698
Net unrealized appreciation on investments for the period............... 340,358 471,795
______ ______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 411,348 773,360
______ ______
DIVIDENDS TO SHAREHOLDERS:
From investment income-net.............................................. (43,430) -
In excess of investment income-net...................................... (5,480) -
______ ______
TOTAL DIVIDENDS....................................................... (48,910) -
______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 8,336,454 11,564,197
Dividends reinvested.................................................... 48,910 -
Cost of shares redeemed................................................. (2,164,243) (1,590,416)
______ ______
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.......... 6,221,121 9,973,781
______ ______
CAPITAL CONTRIBUTION FROM AN AFFILIATE OF THE ADVISER-Note 3(c)............. - 244,118
______ ______
TOTAL INCREASE IN NET ASSETS...................................... 6,583,559 10,991,259
NET ASSETS:
Beginning of period..................................................... 1,088,579 7,672,138
______ ______
End of period [including distributions in excess of investment
income-net; $(5,480) in 1995 and undistributed
investment income-net; $121,387 in 1996].................................... $ 7,672,138 $18,663,397
====== ======

SHARES SHARES
______ ______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 677,022 845,825
Shares issued for dividends reinvested.................................. 3,852 -
Shares redeemed......................................................... (172,921) (117,127)
______ ______
NET INCREASE IN SHARES OUTSTANDING.................................... 507,953 728,698
====== ======

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Series' financial statements.

SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1996
________________________
PER SHARE DATA: 1994(1) 1995 (UNAUDITED)
____ ____ ______
<S> <C> <C> <C>
Net asset value, beginning of period....................... $12.50 $12.02 $12.82
___ ___ ___
INVESTMENT OPERATIONS:
Investment income-net...................................... .15 .15 .10
Net realized and unrealized gain (loss) on investments..... (.40) .74 .92
___ ___ ___
TOTAL FROM INVESTMENT OPERATIONS......................... (.25) .89 1.02
___ ___ ___
DISTRIBUTIONS:
Dividends from investment income-net....................... (.14) (.08) -
Dividends in excess of investment income-net............... (.09) (.01) -
___ ___ ___
TOTAL DISTRIBUTIONS...................................... (.23) (.09) -
___ ___ ___
CAPITAL CONTRIBUTION FROM AN AFFILIATE OF THE ADVISER...... - - .22
___ ___ ___
Net asset value, end of period............................. $12.02 $12.82 $14.06
=== === ===
TOTAL INVESTMENT RETURN........................................ (2.00%)(2) 7.39% 9.67%(2,3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................... .23%(2) 1.59% .70%(2)
Ratio of net investment income to average net assets....... 1.11%(2) 1.13% .97%(2)
Decrease reflected in above expense ratios due to undertakings
by The Dreyfus Corporation............................... 1.70%(2) .45% -
Portfolio Turnover Rate.................................... 16.75%(2) 70.22% 142.02%(2)
Average commission rate paid(4)............................ - - $.0422
Net Assets, end of period (000's Omitted).................. $1,089 $7,672 $18,663
(1) From May 2, 1994 (commencement of operations) to December 31, 1994.
(2) Not annualized.
(3) Had the Series not had a capital contribution by the Adviser during the
period, the total investment return would have been 7.96%.
(4) For fiscal years beginning January 1, 1996, the Series is required to
disclose its average commission rate paid per share for purchases and
sales of investment securities.

See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-GENERAL:
Dreyfus Variable Investment Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as an open-end management investment
company, operating as a series company currently offering eleven series,
including the International Equity Portfolio (the "Series") and is intended
to be a funding vehicle for variable annuity contracts and variable life
insurance policies to be offered by the separate accounts of life insurance
companies. The Series is a non-diversified portfolio. The Series' investment
objective is to maximize capital growth. The Dreyfus Corporation ("Dreyfus")
serves as the Series' investment adviser. Dreyfus is a direct subsidiary of
Mellon Bank, N.A. M&G Investment Management Limited ("M&G") served as the
Series' sub-investment adviser until March 31, 1996. Premier Mutual Fund
Services, Inc. acts as the distributor of the Series' shares, which are sold
without a sales charge.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(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.
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 Series 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, the difference between
the amounts of dividends, interest and foreign withholding taxes recorded on
the Series' 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 recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.

DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Series may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. This may result in distributions
that are in excess of investment income-net and net realized gain on a fiscal
year basis. To the extent that net realized capital gain can be offset by
capital loss carryovers, if any, it is the policy of the Series not to
distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the Series 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 Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 3-INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER TRANSACT
IONS WITH AFFILIATES:
(A) Pursuant to an Investment Advisory Agreement ("Agreement") with
Dreyfus, the investment advisory fee is computed at the annual rate of .75 of
1% of the value of the Series' average daily net assets and is payable
monthly. Prior to April 1, 1996, pursuant to a Sub-Investment Advisory
Agreement between Dreyfus and M&G, the sub-investment advisory fee was
computed at an annual rate of .30 of 1% of the value of the Series' average
daily net assets and was payable monthly by Dreyfus.
The Agreement provides that if in any full year the aggregate expenses of
the Series, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series, the Series may deduct from the payments to be
made to Dreyfus, or Dreyfus will bear the amount of such excess expense to
the extent required by state law. There was no expense reimbursement for the
six months ended June 30, 1996.
The Series compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary
of Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Series.
(B) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(C) During the period ended June 30, 1996, an affiliate of the Series'
adviser reimbursed the Series for certain securities transactions. In
connection with these transactions, the Series recorded a realized loss and
an offsetting capital contribution in the amount of $244,118.
NOTE 4-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts,
during the six months ended June 30, 1996 amounted to $26,040,571 and
$16,209,520, respectively.

DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

The following summarizes open forward currency exchange contracts at June
30, 1996:
<TABLE>
<CAPTION>
FOREIGN UNREALIZED
CURRENCY APPRECIATION
FORWARD CURRENCY SALES CONTRACTS: AMOUNTS PROCEEDS VALUE (DEPRECIATION)
___________________ _______ ______ ______ _______
<S> <C> <C> <C> <C>
Dutch Guilders, expiring 9/10/96......... 1,166,230 $ 688,001 $ 686,139 $ 1,862
French Francs, expiring 9/10/96.......... 3,625,650 700,000 706,437 (6,437)
German Deutsche Marks,
expiring 9/10/96....................... 763,850 500,000 503,593 (3,593)
Japanese Yen, expiring 9/10/96........... 164,590,000 1,521,164 1,515,701 5,463
Swedish Krona, expiring 9/10/96.......... 4,199,520 624,000 631,317 (7,317)
Swiss Francs, expiring 9/10/96........... 370,020 300,000 297,038 2,962
____
$(7,060)
====
</TABLE>
The Series 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 Series 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 Series 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 Series realizes
a gain if the value of the contract decreases between those dates. With
respect to purchases of forward currency exchange contracts, the Series
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 Series realizes a gain if the value of the contract increases between
those dates. The Series is also exposed to credit risk associated with
counterparty nonperformance on these forward currency exchange contracts
which is typically limited to the unrealized gains on such contracts that
are recognized in the Statement of Assets and Liabilities.
(B) At June 30, 1996, accumulated net unrealized appreciation on
investments and forward currency exchange contracts was $794,079, consisting
of $1,183,441 gross unrealized appreciation and $389,362 gross unrealized
depreciation.
At June 30, 1996, 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).

DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Variable Investment Fund,
International Equity Portfolio (one of the series constituting the Dreyfus
Variable Investment Fund), as of June 30, 1996, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended June 30, 1996. These financial statements and financial
highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1995 and financial highlights for each of the two years in the
period ended December 31, 1995 and in our report dated February 9, 1996 we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.

[Ernst and Young LLP signature logo]

New York, New York
July 30, 1996

[Dreyfus lion "d" logo]
DREYFUS VARIABLE INVESTMENT FUND,
INTERNATIONAL EQUITY PORTFOLIO
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
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. 109SA966
[Dreyfus logo]
Variable
Investment Fund,
INTERNATIONAL EQUITY
PORTFOLIO
Semi-Annual Report
June 30, 1996

DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
It is a pleasure to introduce Sandor Cseh, the portfolio manager of the
International Value Portfolio of Dreyfus Variable Investment Fund.
In addition to being a portfolio manager with the Dreyfus Corporation,
Sandor is a director of International Investments with the Boston Company
where he spearheads their international equity group.
Prior to joining The Boston Company in 1994, he was president of his own
money management firm and, before that, was founder and manager of Provident
Capital Management Inc.'s International Funds Group. He started his career as
a securities analyst with several banks including Provident National and
Fleet Bank.
Sandor graduated with a B.S. in Finance from the University of Delaware
and is a Chartered Financial Analyst.
We at Dreyfus are pleased that you are one of our investors and that
Sandor Cseh will be working on your behalf.
Sincerely,

[Stephen E. Canter signature logo]

Stephen E. Canter
Chief Investment Officer
The Dreyfus Corporation

DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
This is the first letter reporting on operations of Dreyfus Variable
Investment Fund - International Value Portfolio. The Portfolio was initiated
April 30, 1996, and its semi-annual fiscal period ended June 30, 1996. Thus
the Portfolio has been in business just two months.
As it happens, the months of May and June were a period in which
international stocks, in general, slipped in value. Accordingly, we are
pleased that the net asset value of your Portfolio remained virtually
unchanged (total return 0.00%),* while the total return for its benchmark,
the Morgan Stanley Capital International Europe, Australasia, Far East
(EAFE(R)) Index declined -1.29%.**
FOREIGN MARKET OVERVIEW
Although foreign markets continued to lag the U.S. markets through the
first half of 1996, we are optimistic for their future outlook. In terms of
valuation levels, markets abroad in general compare favorably with those of
the U.S. Even Japan's market that has been historically expensive was selling
in early July at a lower price to book value ratio than the U.S. market (2.3
compared to 2.9).
In terms of price-earnings ratios, several markets now look very
attractive. Norway and Sweden are selling at 8.9 and 11.1 times earnings and
Europe overall is at 15 times earnings (compared with the U.S. at close to 17
times, also in early July). At the same time most of the world is lagging the
U.S. in the economic cycle. Germany and France are still in the very early
stages of recovery and there is a lot of room to improve efficiency (and
profits) through corporate restructuring.
Corporate profits in Europe should register growth of over 20% this year
and over 10% next and in Japan the rate of growth should be well in excess of
those levels.
PORTFOLIO FOCUS
Japanese stocks account for seven of the Portfolio's top ten holdings.
This emphasis reflects an increased level of confidence that the recovery
under way in Japan is sustainable. Gross Domestic Product in the first
quarter was extremely strong, 12.7% on an annualized basis. This was largely
due to supplemental spending programs by the government. Strength in the
consumer sector was visible in the automobile, packaged goods and cosmetics,
movies and entertainment industries, and in the broader-based retailers. In
fact, private consumption, which makes up 60% of Gross Domestic Product, rose
2.4% quarter on quarter. This was the strongest rise in private consumption
since 1978.
This period saw mixed performance from your stocks in the Netherlands.
Some of the strong performers included ABN_Amro Holdings and ING Group
(banking and financial services), Stad Rotterdam CVA (insurance), Hollandsche
Beton Group (construction and housing), and Hunter Douglas (conglomerate). We
added to your portfolio a long-time favorite stock of ours, Philips
Electronics NV, ADR. The stock recently over-reacted to a profit warning and
now is trading at a significant discount to the market. Management has
already taken steps to address these concerns with a realignment of
management responsibilities. We are encouraged by these actions and feel that
the market has yet to appreciate the restructuring potential at the company.

Other movements in the Portfolio included profit taking in British
Airways PLC, ADR in the United Kingdom. We were disappointed with an adverse
regulatory ruling at British Gas, ADR. As a result, we trimmed the holding.
Other names in the Portfolio included Sankyo Conpv, a manufacturer of
Pachinko machines (a game) in Japan, Fletcher Challenge Energy in New
Zealand, and Development Bank of Singapore. We initiated the position in
Sankyo Conpv because Pachinko parlors are going to have to upgrade their
machines as a result of new government regulations. Sankyo Conpv is one of
the leading manufacturers of Pachinko machines and it is very attractively
valued.
Fletcher Challenge Energy is an interesting stock. It recently started
trading. Its parent, Fletcher Challenge Corp., chose to list target stock in
each of the underlying businesses (paper, energy and buildings). Target stock
gives investors a claim on a stream of dividends and not the net assets of
the business. Many investors dislike this form of listing because potential
buyers of an individual business must make a bid for the entire company. The
stock initially languished for two reasons: the target stock issue and
because traditionally this company has been followed by paper analysts, who
do not fully appreciate its energy assets. As a result the stock is trading
at a significant discount to its underlying value.
We consider it a privilege to be managing assets on your behalf. We will
continue to exert our best efforts to bring you a rewarding return on your
investment.
Sincerely,
[Sandor Cseh signature logo]
Sandor Cseh
Portfolio Manager
July 18, 1996
New York, N.Y.

* Total return includes reinvestment of dividends and any capital gains
paid. The Portfolio's performance does not reflect the deduction of
additional charges imposed in connection with investing in variable insurance
contracts.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - The Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE(R)) Index is an unmanaged
index composed of a sample of companies representative of the market
structure of European and Pacific Basin countries. The return indicated
includes net dividends reinvested. The Index is the property of Morgan
Stanley & Co., Incorporated.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
STATEMENT OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS-89.3% SHARES VALUE
______ ______
<S> <C> <C>
ARGENTINA-1.0% YPF Sociedad Anonima, ADR. 2,500 $ 56,250
_____
AUSTRALIA-3.3% Amcor.................................. 4,300 29,272
Boral.................................. 18,000 46,748
Goodman Fielder ....................... 21,000 21,320
Southcorp Holdings..................... 18,000 44,623
Westpac Banking........................ 10,000 44,308
_____
186,271
_____
DENMARK-.9% Tele Danmark, ADR 2,000 50,750
_____
FRANCE-8.9% Alcatel Alsthom, ADR................... 2,600 45,825
C.S.F. (Thompson)...................... 1,500 42,158
Chargeurs International................ 200 8,939
Credit Local De France................. 400 32,553
Danone................................. 600 90,784
Elf Aquitaine, ADS..................... 2,500 91,875
Guyenne & Gascogne..................... 125 44,697
Pathe.................................. 200 46,926
Rhone-Poulenc, ADR..................... 1,500 39,750
Societe Generale....................... 600 65,961
_____
509,468
_____
GERMANY-5.3% Bayer.................................. 1,500 52,921
Deutsche Bank.......................... 1,800 85,067
Siemens................................ 1,300 69,373
Tarkett................................ 2,000 42,140
VEBA................................... 1,000 53,082
_____
302,583
_____
HONG KONG-2.3% Cheung Kong............................ 6,000 43,217
HSBC................................... 4,000 60,465
Yuen Yue Industrial.................... 100,000 28,424
_____
132,106
_____
ITALY-2.4% Fiat Spa............................... 10,000 33,690
Istituto Mobiliare Italiano, ADR....... 2,000 51,000
Stet, Di Risp.......................... 20,000 52,542
_____
137,232
_____
JAPAN-27.3% Canon.................................. 4,000 83,174
Chudenko............................... 1,000 36,297
Credit Saison.......................... 4,000 96,671
Dai-Tokyo Fire & Marine Insurance...... 13,000 97,811
Hitachi................................ 8,000 74,419
Hitachi Koki........................... 9,000 88,646
Honda Motor............................ 3,000 77,702

DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______

JAPAN (CONTINUED) Ito-Yokado............................. 1,000 $ 60,283
Kao.................................... 8,000 107,980
Mabuchi Motor.......................... 1,000 63,657
Mikuni Coca Cola....................... 4,000 60,192
Mitsubishi Heavy Industries............ 10,000 86,913
Murata Manufacturing................... 2,000 75,878
Nishimatsu Construction................ 5,000 54,720
Ono Pharmaceutical..................... 2,000 68,764
Sankyo Conpv........................... 2,500 95,759
Sekisui House.......................... 5,000 56,999
Toshiba................................ 11,000 78,248
Toyota Motor........................... 4,000 99,954
Yamato Transport....................... 8,000 94,118
_____
1,558,185
_____
MALAYSIA-2.0% Affin Holdings Berhad.................. 15,000 35,184
IOI Properties Berhad.................. 10,000 31,476
Malaysia International Shipping........ 15,000 46,612
_____
113,272
_____
MEXICO-.8% Telefonos De Mexico, Series L, ADR..... 1,300 43,550
_____
NETHERLANDS-8.3% ABN-Amro Holdings...................... 1,000 53,630
Akzo Nobel NV, ADR..................... 500 29,875
Hollandsche Beton Groep................ 300 57,436
Hunter Douglas......................... 816 55,658
ING Groep.............................. 770 22,946
Koninklinke KNP........................ 2,000 47,892
Philips Electronics NV, ADR............ 1,200 39,150
Royal PTT Nederland, ADR............... 1,000 37,750
Stad Rotterdam CVA..................... 1,516 54,877
Unilever NV, ADR....................... 500 72,563
_____
471,777
_____
NEW ZEALAND-1.3% Air New Zealand........................ 7,000 21,953
Fletcher Challenge Energy.............. 25,000 55,183
_____
77,136
_____
NORWAY-1.1% Christiania Bank....................... 10,000 23,537
Orkla AS............................... 800 38,889
_____
62,426
_____
PORTUGAL-.9% Portugal Telecom SA, ADR............... 2,000 52,500
_____
SINGAPORE-1.5%. Development Bank of Singapore.......... 4,000 49,911
Far East Levingston Shipbuilding....... 6,000 33,180
_____
83,091
_____

DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______

SPAIN-4.6% Corporacion Bancaria De Espana, ADR.... 3,700 $ 81,400
Gas Y Electridad SA.................... 1,000 55,382
Iberdrola SA........................... 3,000 30,772
Repsol SA, ADR......................... 2,700 93,825
_____
261,379
_____
SWEDEN-1.9% Marieberg Tidnings..................... 2,000 50,064
Scania AB `A', ADR..................... 1,000 27,750
Swedish Match, ADR..................... 130 4,014
Volvo AB `B', ADR...................... 1,300 29,250
_____
111,078
_____
SWITZERLAND-5.8% Ciba-Geigy AG.......................... 50 60,854
Magazine Zum Globus.................... 100 58,260
Nestle SA.............................. 70 79,832
Schweizerischer Banksverein............ 350 68,995
Zurich Versicherungs................... 225 61,233
_____
329,174
_____
UNITED KINGDOM-9.7% Abbey National......................... 6,000 50,385
BTR.................................... 20,000 78,697
British Airways PLC, ADR............... 300 25,725
British Gas, ADR....................... 900 25,200
Devro.................................. 7,100 26,670
Hanson, ADR............................ 2,500 35,625
National Westminster Bank.............. 8,000 76,430
Powergen............................... 10,000 72,798
RTZ.................................... 6,000 88,755
Scapa Group............................ 10,000 36,787
Smith (David S.) Holdings.............. 8,000 33,962
_____
551,034
_____
TOTAL COMMON STOCKS
(cost $5,109,042).................... $5,089,262
=====
CONVERTIBLE PREFERRED STOCKS-.9%
GERMANY; Henkel KGaA-Vorzug
(cost $53,475)....................... 125 $ 53,905
=====
PREFERRED STOCKS-1.1%
GERMANY; RWE AG (non-voting)
(cost $58,114)....................... 2,000 $ 61,438
=====

DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
SHORT-TERM INVESTMENTS-7.3% AMOUNT VALUE
______ ______
U.S. TREASURY BILLS: 5.03%, 7/5/96.......................... $ 40,000 $ 39,971
5.38%, 7/25/96......................... 228,000 227,227
5%, 9/12/96............................ 151,000 149,418
_____
TOTAL SHORT-TERM INVESTMENTS
(cost $416,677)...................... $ 416,616
=====
TOTAL INVESTMENTS (cost $5,637,308)......................................... 98.6% $5,621,221
====== =====
CASH AND RECEIVABLES (NET).................................................. 1.4% $ 77,513
====== =====
NET ASSETS.................................................................. 100.0% $5,698,734
====== =====

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $5,637,308)-see statement....................................... $5,621,221
Cash.................................................................... 187,541
Dividends receivable.................................................... 19,367
Net unrealized appreciation on forward currency
exchange contracts-Note 4(a).......................................... 27
_____
5,828,156
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 2,280
Payable for investment securities purchased............................. 117,527
Accrued expenses........................................................ 9,615 129,422
____ _____
NET ASSETS.................................................................. $5,698,734
=====
REPRESENTED BY:
Paid-in capital......................................................... $5,694,877
Accumulated undistributed investment income-net......................... 45,219
Accumulated net realized (loss) on investments.......................... (25,244)
Accumulated net unrealized (depreciation) on investments
and foreign currency transactions..................................... (16,118)
_____
NET ASSETS at value applicable to 456,002 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized)........................................................ $5,698,734
=====
NET ASSET VALUE, offering and redemption price per share
($5,698,734 / 456,002 shares)........................................... $12.50
=====

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
STATEMENT OF OPERATIONS
FROM APRIL 30, 1996 (COMMENCEMENT OF OPERATIONS) TO JUNE 30, 1996 (UNAUDITED)
INVESTMENT INCOME:
<S> <C> <C>
INCOME:
Cash dividends (net of $8,115 foreign taxes withheld at source)....... $ 48,708
Interest.............................................................. 9,953
____
TOTAL INCOME.................................................... $ 58,661
EXPENSES:
Investment advisory fee-Note 3(a)..................................... 8,962
Custodian fees........................................................ 4,444
Auditing fees......................................................... 2,500
Registration fees..................................................... 1,964
Prospectus and shareholders' reports.................................. 250
Shareholder servicing costs........................................... 58
Legal fees............................................................ 52
Trustees' fees and expenses-Note 3(b)................................. 28
Miscellaneous......................................................... 322
____
TOTAL EXPENSES.................................................. 18,580
Less-reduction in investment advisory fee due to
undertaking-Note 3(a)............................................. 5,138
____
NET EXPENSES.................................................... 13,442
____
INVESTMENT INCOME-NET........................................... 45,219
____
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments and foreign currency
transactions-Note 4(a)................................................ $(20,005)
Net realized (loss) on forward currency exchange contracts.............. (5,239)
____
NET REALIZED (LOSS)................................................... (25,244)
Net unrealized (depreciation) on investments and foreign currency
transactions.......................................................... (16,118)
____
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (41,362)
____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 3,857
====

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
FROM APRIL 30, 1996 (COMMENCEMENT OF OPERATIONS) TO JUNE 30, 1996 (UNAUDITED)
<S> <C>
OPERATIONS:
Investment income-net..................................................................... $ 45,219
Net realized (loss) on investments ....................................................... (25,244)
Net unrealized (depreciation) on investments for the period............................... (16,118)
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................................... 3,857
______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold............................................................. 5,736,410
Cost of shares redeemed................................................................... (41,533)
______
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS............................ 5,694,877
______
TOTAL INCREASE IN NET ASSETS........................................................ 5,698,734
NET ASSETS:
Beginning of period....................................................................... -
______
End of period (including undistributed investment income-net;
$45,219 on June 30, 1996)............................................................... $5,698,734
======

SHARES
______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................................... 459,367
Shares redeemed........................................................................... (3,365)
______
NET INCREASE IN SHARES OUTSTANDING...................................................... 456,002
======

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
FINANCIAL HIGHLIGHTS (UNAUDITED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for the period from April 30, 1996
(commencement of operations) to June 30, 1996. This information has been
derived from the Series' financial statements.
<S> <C>
PER SHARE DATA:
Net asset value, beginning of period.................................................... $12.50
___
INVESTMENT OPERATIONS:
Investment income-net................................................................... .10
Net realized and unrealized (loss) on investments....................................... (.10)
___
TOTAL FROM INVESTMENT OPERATIONS...................................................... -
___
Net asset value, end of period.......................................................... $12.50
===
TOTAL INVESTMENT RETURN..................................................................... -
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................................. .25%*
Ratio of net investment income to average net assets.................................... .85%*
Decrease reflected in above expense ratio due to undertaking
by The Dreyfus Corporation............................................................ .10%*
Portfolio Turnover Rate................................................................. 3.09%*
Average commission rate paid............................................................ $.0402
Net Assets, end of period (000's Omitted)............................................... $5,699
* Not annualized.

See notes to financial statements.
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-GENERAL:
Dreyfus Variable Investment Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as an open-end management investment
company, operating as a series company currently offering eleven series,
including the International Value Portfolio (the "Series") and is intended to
be a funding vehicle for variable annuity contracts and variable life
insurance policies to be offered by the separate accounts of life insurance
companies. The Series is a diversified portfolio. The Series' investment
objective is long-term capital growth. The Dreyfus Corporation ("Dreyfus")
serves as the Series' investment adviser. Dreyfus is a direct subsidiary of
Mellon Bank, N.A. ("Mellon"). Effective May 24, 1996, TBC Asset Management,
an affiliate of Mellon, no longer serves as the Series' sub-investment
adviser. Premier Mutual Fund Services, Inc. acts as the distributor of the
Series' shares, which are sold without a sales charge.
As of June 30, 1996, Allomon Corporation, a subsidiary of Mellon Bank
Investments Corporation, the parent company of which is Mellon, held 400,000
shares of the Series.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(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.
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 Series 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, the difference between
the amounts of dividends, interest and foreign withholding taxes recorded on
the Series' 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 recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.

DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

(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 Series
may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code. To the extent that
net realized capital gain can be offset by capital loss carryovers, if any,
it is the policy of the Series not to distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the Series 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
Internal Revenue Code, and to make distributions of taxable income sufficient
to relieve it from substantially all Federal income and excise taxes.
NOTE 3-INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to an Investment Advisory Agreement ("Agreement") with
Dreyfus, the investment advisory fee is computed at the annual rate of 1% of
the value of the Series' average daily net assets and is payable monthly. The
Agreement provides that if in any full year the aggregate expenses of the
Series, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series, the Series may deduct from the payments to be
made to Dreyfus, or Dreyfus will bear the amount of such excess to the extent
required by state law.
However, Dreyfus has undertaken, from April 30, 1996 through December 31,
1996, to reduce the management fee paid by or reimburse such excess expenses
of the Series, to the extent that the Series' aggregate annual expenses
(exclusive of certain expenses as described above) exceed an annual rate of
1.50% of the value of the Series' average daily net assets. The reduction in
investment advisory fee, pursuant to the undertaking, amounted to $5,138
during the period from April 30, 1996 through June 30, 1996.
The Series compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary
of Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Series.
(B) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 4-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts,
during the period from April 30, 1996 through June 30, 1996 amounted to
$5,319,174 and $102,573, respectively.
In addition, the following summarizes open forward currency exchange
contracts at June 30, 1996:
<TABLE>
<CAPTION>
FOREIGN UNREALIZED
CURRENCY APPRECIATION
FOREIGN CURRENCY BUY CONTRACTS: AMOUNTS COST VALUE (DEPRECIATION)
___________________ ______ _______ _______ _______
<S> <C> <C> <C> <C>
Japanese Yen, expiring 7/2/96............... 2,776,028 $25,328 $25,317 $(11)
Malaysian Ringgit, expiring 7/3/96 ......... 78,852 31,579 31,617 38
__
$ 27
==
</TABLE>

DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

The Series 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 Series 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 Series 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 Series realizes a
gain if the value of the contract decreases between those dates. With respect
to purchases of forward currency exchange contracts, the Series 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 Series
realizes a gain if the value of the contract increases between those dates.
The Series is also exposed to credit risk associated with counterparty
nonperformance on these forward currency exchange contracts which is
typically limited to the unrealized gains on such contracts that are
recognized in the Statement of Assets and Liabilities.
(B) At June 30, 1996, accumulated net unrealized depreciation on
investments and forward currency exchange contracts was $16,060, consisting
of $170,946 gross unrealized appreciation and $187,006 gross unrealized
depreciation.
At June 30, 1996, 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).

[Dreyfus lion "d" logo]
DREYFUS VARIABLE INVESTMENT FUND,
INTERNATIONAL VALUE PORTFOLIO
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
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. 152SA966
[Dreyfus logo]
Variable
Investment Fund,
INTERNATIONAL VALUE
PORTFOLIO
Semi-Annual Report
June 30, 1996

DREYFUS VARIABLE INVESTMENT FUND, MANAGED ASSETS PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
The Managed Assets Portfolio of the Dreyfus Variable Investment Fund
completed its latest semi-annual period June 30, 1996. We are pleased to be
able to report that during the first half of the current year, the Portfolio
became more focused to benefit from a U.S. equity market decline. In general,
the Portfolio was positioned to benefit should the dollar decline and gold
shares rise. Please note that, consistent with the Fund's Prospectus and our
investment approach, we have the flexibility to change these positions when
we believe conditions warrant. In addition, the Fund continues to hold a
significant U.S. Treasury bill position in anticipation of buying stocks at
much cheaper levels.
The Portfolio's total return for the six months ended June 30, 1996 was
3.68% based upon net asset value per share,* while the Standard & Poor's 500
Composite Stock Price Index rose 10.09%.**
ECONOMIC ENVIRONMENT
The U.S. economy is rebounding in 1996 following its midcycle growth
slowdown of last year. Yet overall corporate profit growth is slowing this
year. This is the sixth expansion year for this business cycle, and we
believe that it will prove a long cycle.
Economic growth has accelerated since year-end. The first quarter's 2.3%
real Gross Domestic Product growth brought with it a demand rebound that
depleted inventories. Even stronger second quarter growth is apparent, led by
manufacturers' attempts to rebuild inventories. In addition, steady job
creation continues to support growth in consumer incomes and spending. As
yet, there are few indications of economic cooling. Some previously strong
capital goods sectors may now be slowing, but overall economic growth is
broadening to more industries. Despite better economic performance this year
than last, profit growth may have peaked last year.
Non-oil price inflation has remained tame this year, although surging oil
prices boosted overall inflation temporarily this spring. Nevertheless, signs
of a faster economic pace have reignited fears of higher future inflation,
especially coming from upward pressure on wages as the labor market tightens.
Thus, bond yields have risen substantially this year. Short-term market rates
are also higher on expectations for Federal Reserve tightening in coming
months. So far, long-term rates have risen much more than short-term rates,
forcing the yield curve to steepen. A steep yield curve is usually supportive
of sustained growth in the real economy.
As we look forward, the question arises whether the higher interest rates
already in place and those in prospect will effectively cool the economy. At
present, however, any advance signs of an eventual cooling off in the economy
are hard to discern. The preoccupation at present is with the economy's
impressive strength, and the problems such growth could create.
MARKET OVERVIEW
The broad trend of the stock market was strongly upward during the six
months under review. However, there were many crosscurrents at work. Not all
stock groups benefited equally. The blue chips in the Dow Jones Industrial
Average enjoyed solid advances for the six months, as did the broader market
as represented by the Nasdaq Composite Index and the Standard & Poor's 500
Composite Stock Price Index. However, as spring turned into summer,
technology stocks began to lag, and small capitalization stocks were unable
to maintain the very fast growth pace of earlier months.

From time to time, unexpected signs of economic strength, particularly
employment and unemployment numbers, jolted the equity markets with the
specter of renewed inflation. Especially in the latter part of the half-year,
concerns over inflation and higher interest rates restrained market
performance in a number of industry categories.
Profits, always a major element in stock performance, continued strong
for a good part of the period. However, fear of rising labor costs and
intensified competition at home and abroad have cast some shadows over the
profit outlook. This has been balanced, however, by the very large sum of
money that continues to be invested in equity mutual funds, much of it from
people planning for their retirement. As the half-year ended, broad market
averages were still solidly above where they stood when the year began.
PORTFOLIO FOCUS
The Portfolio continues to hold index put options and short future
positions that should benefit from the declines in the U.S. equity markets.
The value of the options has declined, but the loss has been limited to the
premiums paid. After going through a period during the second half of 1995
with minimal short exposure, in February 1996, we became more confident that
the market's rise may be very near its end and substantially increased the
short positions by buying more puts on the S&P 500 Index. At this time, we
are maintaining near maximum short positions in puts. While the core position
that the Portfolio holds would benefit from a market decline, the Portfolio
has traded S&P 500 Futures in an attempt to enhance performance. Through a
discipline of buying when the market appears oversold while selling when
conditions signal the end of a rise, a contrary style has been adopted that
complements our longer-term philosophies.
We have believed that the general stock market has been overvalued for
some time now based on many valuation parameters. Just recently the market
rose to levels where it appeared expensive to us based on earnings.
Additionally, the market euphoria reached what we saw as dangerous levels as
initial public offerings skyrocketed, mergers and acquisitions were at levels
usually accompanied by market peaks, and money flowing into mutual funds
appeared to have reached the mania stage. The market mood seemed to be
finally reflecting the pessimistic stance we have held for some time.
GOLD MINING SHARES
The Portfolio's gold share position has been cut in half to 14% of the
total portfolio. During the first quarter of 1996, the gold stocks and gold
bullion exhibited many of the signs typical of a trading top, including high
valuations and bullish sentiment. While we still believe that gold bullion
may rise substantially, the risk/reward ratio of holding gold shares has
become less favorable. However, we continue to closely monitor the gold
market in anticipation of attractive opportunities.
SPECIAL SITUATIONS
We continue to search for profitable opportunities abroad given our
cautious stance toward the U.S. dollar. In an effort to diversify non-dollar
exposure, investments were made in a number of additional foreign markets
while the exposure to the German and Swiss currencies was reduced. Presently,
we have 26% of assets in debt securities denominated in German Deutchemarks,
Swiss Francs, Italian Lira, Swedish Krona and British Pounds. The new countries
chosen appear to offer favorable fundamental characteristics such as high real
interest rates and stronger economic growth than presently expected in the
United States. At this time, we have hedged the Deutschemarks and Swiss Francs.
The Mexican peso crisis along with the collapse in the U.S. bond market
created an opportunity in foreign bonds, but the markets appeared to have
corrected this. The Portfolio has taken profits on its fixed income
securities in Venezuela and Argentina due to our belief that the bonds have
reached their fair values.
With interest rates rising to over 7% from under 6%, we believe that a
short-term buying opportunity in U.S. Treasury bonds exists, and therefore
purchased a position amounting to 5% of the Portfolio. We have also used the
rise in interest rates to take profits in the Interest Only securities which
generally benefit from rising interest rates due to prepayment speeds.
We consider it a privilege to manage assets on your behalf. Thank you for
your continued investment in this Portfolio.
Sincerely,

Comstock Partners, Inc.
Investment Policy Committee
July 17, 1996
Jersey City, New Jersey

<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, MANAGED ASSETS PORTFOLIO
STATEMENT OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS-19.0% SHARES VALUE
________ ________
<S> <C> <C>
CHEMICALS-.5% P.T. Tri Polyta Indonesia, A.D.R................ 12,500 $ 134,375
__________
CONGLOMERATES-.8% Teledyne........................................ 5,300 191,463
__________
ELECTRICAL EQUIPMENT-.3% Hitachi, A.D.R.................................. 800 75,000
__________
ENERGY-.7% Baker Hughes.................................... 5,500 180,813
__________
FINANCE-.3% Pioneer Group................................... 2,800 74,900
__________
FOODS & BEVERAGES-.1% Castle & Cooke.................................. 1,133 18,133
__________
GOLD MINING-12.0% Ashanti Goldfields, G.D.R....................... 13,615 268,896
Canyon Resources.............................(a) 68,000 187,000
Crown Resources..............................(a) 28,000 147,000
Driefontein Consolidated, A.D.R................. 16,300 213,938
East Rand Gold & Uranium, A.D.R................. 30,000 72,000
Elandsrand Gold Mining, A.D.R................... 25,000 137,500
Free State Consolidated Gold Mines, A.D.R....... 9,800 90,650
Geomaque Explorations........................(a) 25,800 51,468
Getchell Gold................................(a) 3,300 108,900
Golden Shamrock Mines........................... 310,700 278,754
Granges......................................(a) 45,000 62,706
Greenstone Resources.........................(a) 19,600 229,996
Kloof Gold Mining, A.D.R........................ 6,300 61,031
Pegasus Gold.................................(a) 12,000 147,000
Rea Gold.....................................(a) 40,000 85,075
Royal Oak Mines..............................(a) 63,000 232,313
Santa Fe Pacific Gold........................... 11,400 161,025
Sutton Resources.............................(a) 12,000 135,000
TVX Gold........................................ 11,200 81,973
Vaal Reefs Exploration & Mining, A.D.R.......... 28,000 224,000
__________
2,976,225
__________
HOLDING COMPANIES-.6% Horsham......................................... 10,000 138,750
__________
METALS-.7% Silver Standard (Warrants)................(a,b). 40,000 180,418
__________
MISCELLANEOUS-1.1% Fleming Russia Securities Fund...............(a) 15,000 170,700
Lazard Vietnam Fund..........................(a) 10,000 106,250
__________
276,950
__________
RETAIL TRADE-1.3% Duty Free International......................... 8,200 125,050
Hartmarx.....................................(a) 30,000 187,500
__________
312,550
__________
SEMICONDUCTORS-.6% Fujitsu......................................... 3,000 27,360
NEC, A.D.R...................................... 1,600 86,400
Oki Electric Industries......................... 3,000 20,520
Toshiba......................................... 3,000 21,340
__________
155,620
__________
TOTAL COMMON STOCKS
(cost $4,304,338)............................. $ 4,715,197
==============

DREYFUS VARIABLE INVESTMENT FUND, MANAGED ASSETS PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PREFERRED STOCKS-0.0% SHARES VALUE
_________ _________

CONGLOMERATES; Teledyne, Ser. E
(cost $3,135)................................. 213 $ 3,275
==============
CONTRACTS
SUBJECT
PUT OPTIONS-3.1% TO PUT
_________
Standard & Poor's 500 Index Flex Options:
December `96 @ $525........................... 1,300 $ 2,112
March `97 @ $600.............................. 43,000 384,313
Standard & Poor's 500 Index:
September `96 @ $550.......................... 12,700 8,731
September `96 @ $575.......................... 7,500 7,500
December `96 @ $525........................... 1,300 1,787
December `96 @ $550........................... 21,500 51,063
December `96 @ $600........................... 7,500 41,250
March `97 @ $600.............................. 6,000 51,000
June `97 @ $550............................... 6,000 40,500
June `97 @ $600............................... 14,500 188,500
_________
TOTAL PUT OPTIONS
(cost $1,623,765)............................. $ 776,756
==========
PRINCIPAL
BONDS-31.7% AMOUNT
___________
DOMESTIC BONDS-5.7% U.S Treasury Bond;
6%, 2/15/2026................................. $ 1,600,000 $ 1,419,500
___________
FOREIGN BONDS-26.0% Australian Securities;
Republic of Australia,
12%, 7/15/1999..........................(c) 1,180,500 1,296,508
Austrian Securities;
Republic of Austria,
4.50%, 2/12/2000.......................(d) 1,197,127 1,238,428
European Investment Bank:
10.80%, 3/15/1999..........................(e) 619,296 658,466
11.45%, 10/14/1997.........................(e) 619,296 642,674
German Securities;
Bundesrepublik Deutschland,
9%, 10/20/2000........................(f) 1,115,852 1,263,814
Swedish Securities;
Republic of Sweden,
11%, 1/21/1999.........................(g) 1,206,364 1,328,327
___________
6,428,217
___________
TOTAL BONDS
(cost $7,742,448)............................. $ 7,847,717
==========
DREYFUS VARIABLE INVESTMENT FUND, MANAGED ASSETS PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
SHORT-TERM INVESTMENTS-44.3% AMOUNT VALUE
_________ _________

U.S. TREASURY BILLS: 4.87%, 7/5/96................................... $ 750,000 $ 749,460
4.97%, 7/11/96.................................. 43,000 42,937
4.95%, 7/25/96.................................. 6,488,000 6,466,005
4.95%, 8/1/96................................(h) 1,672,000 1,664,693
5.04%, 8/22/96.................................. 268,000 266,001
5.09%, 9/19/96.................................. 1,787,000 1,766,396
___________
TOTAL SHORT-TERM INVESTMENTS
(cost $10,956,844)............................ $10,955,492
===========
TOTAL INVESTMENTS (cost $24,630,530)................................................. 98.1% $24,298,437
======= ============
CASH AND RECEIVABLES (NET)........................................................... 1.9% $ 462,282
======= ============
NET ASSETS........................................................................... 100.0% $24,760,719
======= ============
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Securities exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified
institutional buyers. At June 30, 1996, these securities
amounted to $180,418 or .7% of net assets.
(c) Denominated in Australian Dollars.
(d) Denominated in Swiss Francs.
(e) Denominated in Italian Lira.
(f) Denominated in German Deutsche Marks.
(g) Denominated in Swedish Krona.
(h) Partially held by the custodian in a segregated account as
collateral for open financial futures positions.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF FINANCIAL FUTURES JUNE 30, 1996 (UNAUDITED)
UNREALIZED
MARKET VALUE APPRECIATION
NUMBER OF COVERED (DEPRECIATION)
FINANCIAL FUTURES PURCHASED: CONTRACTS BY CONTRACTS EXPIRATION AT 6/30/96
______ _____________ ___________ ___________
<S> <C> <C> <C> <C>
Nikkei 225 Index............................. 2 $ 226,950 September `96 $ 6,800
Standard & Poor's 500........................ 15 5,076,000 September `96 60,750
FINANCIAL FUTURES SOLD SHORT:
Japanese Yen................................. 2 (230,525) September `96 2,625
Standard & Poor's 500........................ 16 (5,561,000) March `97 (130,000)
___________
$ (59,825)
=============

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, MANAGED ASSETS PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $24,630,530)-see statement...................................... $24,298,437
Cash.................................................................... 135,890
Dividends and interest receivable....................................... 333,389
Net unrealized appreciation on forward currency
exchange contracts-Note 4(a).......................................... 27,192
Receivable for investment securities sold............................... 27,392
Receivable for futures variation margin-Note 4(a)....................... 125
Prepaid expenses........................................................ 139
___________
24,822,564
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 7,708
Due to Comstock Partners, Inc........................................... 7,703
Payable for forward currency exchange contracts......................... 26,131
Accrued expenses........................................................ 20,303 61,845
________ ___________
NET ASSETS.................................................................. $24,760,719
=============
REPRESENTED BY:
Paid-in capital......................................................... $25,516,108
Accumulated undistributed investment income-net......................... 469,186
Accumulated net realized (loss) on investments.......................... (859,022)
Accumulated net unrealized (depreciation) on investments and
foreign currency transactions [including ($59,825) net unrealized
(depreciation) on financial futures].................................. (365,553)
___________
NET ASSETS at value applicable to 2,041,047 shares outstanding
(unlimited number of $.001 par value shares of Beneficial Interest
authorized)............................................................. $24,760,719
==============
NET ASSET VALUE, offering and redemption price per share
($24,760,719 / 2,041,047 shares)........................................ $12.13
=======

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, MANAGED ASSETS PORTFOLIO
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Interest.............................................................. $ 555,966
Cash dividends (net of $1,475 foreign taxes withheld at source)....... 36,678
___________
TOTAL INCOME...................................................... $ 592,644
EXPENSES:
Investment advisory fee-Note 3(a)..................................... 48,286
Sub-investment advisory fee-Note 3(a)................................. 48,286
Professional fees..................................................... 6,246
Custodian fees........................................................ 5,744
Prospectus and shareholders' reports.................................. 2,061
Trustees' fees and expenses-Note 3(b)................................. 532
Shareholder servicing costs........................................... 147
Registration fees..................................................... 100
Miscellaneous......................................................... 2,193
___________
TOTAL EXPENSES.................................................... 113,595
___________
INVESTMENT INCOME-NET............................................. 479,049
___________
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments, options and foreign currency
transactions-Note 4(a)................................................ $ 669,995
Net realized gain on forward currency exchange contracts-Note 4(a);
Short Transactions.................................................... 210,167
Net realized (loss) on financial futures-Note 4(a):
Long transactions..................................................... (102,790)
Short transactions.................................................... (228,971)
___________
NET REALIZED GAIN................................................. 548,401
Net unrealized (depreciation) on investments and foreign currency
transactions [including ($51,921) net unrealized (depreciation)
on financial futures]................................................. (81,285)
___________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 467,116
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 946,165
============

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, MANAGED ASSETS PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1996
1995 (UNAUDITED)
_____________ ___________
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................. $ 1,034,491 $ 479,049
Net realized gain (loss) on investments................................ (1,254,703) 548,401
Net unrealized appreciation (depreciation) on investments
for the period....................................................... 162,896 (81,285)
_____________ ___________
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (57,316) 946,165
_____________ ___________
DIVIDENDS TO SHAREHOLDERS:
From investment income-net............................................. (1,307,692) -
In excess of investment income-net..................................... (9,863) -
_____________ ___________
TOTAL DIVIDENDS...................................................... (1,317,555) -
_____________ ___________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.......................................... 8,040,165 3,398,557
Dividends reinvested................................................... 1,317,555 -
Cost of shares redeemed................................................ (13,220,570) (4,855,804)
_____________ ___________
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS (3,862,850) (1,457,247)
_____________ ___________
TOTAL (DECREASE) IN NET ASSETS................................... (5,237,721) (511,082)
NET ASSETS:
Beginning of period................................................... 30,509,522 25,271,801
_____________ ___________
End of period [including distributions in excess of investment
income-net; ($9,863) in 1995 and undistributed
investment income-net; $469,186 in 1996]............................. $ 25,271,801 $ 24,760,719
============ =============

SHARES SHARES
_____________ ___________
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 654,797 274,903
Shares issued for dividends reinvested................................. 112,098 -
Shares redeemed........................................................ (1,074,101) (392,997)
_____________ ___________
NET (DECREASE) IN SHARES OUTSTANDING................................. (307,206) (118,094)
============= =============

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, MANAGED ASSETS PORTFOLIO
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Series' financial statements.

See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND, MANAGED ASSETS PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-GENERAL:
Dreyfus Variable Investment Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as an open-end management investment
company, operating as a series company currently offering eleven series,
including the Managed Assets Portfolio (the "Series") and is intended to be a
funding vehicle for variable annuity contracts and variable life insurance
policies to be offered by the separate accounts of life insurance companies.
The Series is a diversified portfolio. The Series' investment objective is to
maximize total return, consisting of capital appreciation and current income.
The Dreyfus Corporation ("Dreyfus") serves as the Series' investment adviser.
Dreyfus is a direct subsidiary of Mellon Bank, N.A. Comstock Partners, Inc.
("Comstock Partners") serves as the Series' sub-investment adviser. Premier
Mutual Fund Services, Inc. acts as the distributor of the Series' shares,
which are sold without a sales charge.
The Fund currently functions as the funding vehicle for the Dreyfus
Series 2000 Variable Annuity Contract (the "Account") issued by Mutual
Benefit Life Insurance Company ("Mutual Benefit Life"). On July 16, 1991, the
Superior Court of New Jersey entered an Order (the "Order") appointing the
New Jersey Insurance Commissioner as Rehabilitator of Mutual Benefit Life.
The Commissioner was granted immediate exclusive possession and control of,
and title to, the business and assets of Mutual Benefit Life, including the
assets and liabilities of the Account.
The Commissioner was empowered by the Order to take such steps as he
deemed appropriate toward removing the cause and conditions that made
rehabilitation necessary. On January 15, 1993, the Commissioner filed the
First Amended Plan of Rehabilitation ("Plan") with the Court. The Plan
stipulated that the assets and liabilities of the Account would be
transferred to a separate account of MBL Life Assurance Corporation
("MBLLAC"), a wholly-owned subsidiary of Mutual Benefit Life. The Plan also
provided for the transfer of the ownership of the stock of MBLLAC to a Trust.
The Commissioner was designated as the sole Trustee of the Trust. On August
12, 1993, the Court rendered an opinion approving the Plan with certain
modifications. Two subsequent amendments to the Plan were filed and approved
by the Court. None of the modifications or amendments affected the status of
the Account. On November 10, 1993, the Court issued an Order of Confirmation
permitting the implementation of the Plan.
An order was also issued by the Court on January 28, 1994, approving the
form of the Third Amended Plan of Rehabilitation, the Election Materials and
related documents. On April 29, 1994, the Plan was implemented. Substantially
all of the assets of Mutual Benefit Life were transferred to MBLLAC which
assumed and reinsured Mutual Benefit Life's restructured insurance
liabilities. The stock of MBLLAC was assigned to the Stock Trust and the
Commissioner was designated as Trustee.
In view of the terms and conditions of both the Order and the Plan,
applications for new contracts and additional purchase payments under
existing contracts are currently not being accepted by the Account. The terms
of the Order and the Plan permit redemptions from the Account to continue as
requested.
The proceedings of the New Jersey Insurance Commissioner with respect to
Mutual Benefit Life or the Account do not apply to the separate accounts of
other life insurance companies that may use the Fund as a funding vehicle for
contracts or policies issued by them.

DREYFUS VARIABLE INVESTMENT FUND, MANAGED ASSETS PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Fund accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on a pro rata basis.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(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.
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 Series 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, the difference between
the amounts of dividends, interest and foreign withholding taxes recorded on
the Series' 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 recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Series may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. This may result in distributions
that are in excess of investment income-net on a fiscal year basis. To the
extent that the net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Series not to distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the Series 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 Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.

DREYFUS VARIABLE INVESTMENT FUND, MANAGED ASSETS PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Series has an unused capital loss carryover of approximately
$1,782,000 available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent to
December 31, 1995. The carryover does not include net realized securities
losses from November 1, 1995 through December 31, 1995 which are treated, for
Federal income tax purposes, as arising in fiscal 1996. If not applied,
$5,500 of the carryover expires in fiscal 2001, $364,100 expires in fiscal
2002 and $1,412,400 expires in fiscal 2003.
NOTE 3-INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER TRANSACT
IONS WITH AFFILIATES:
(A) Pursuant to an Investment Advisory Agreement with Dreyfus, the
investment advisory fee is computed at the annual rate of .375 of 1% of the
value of the Series' average daily net assets and is payable monthly.
Pursuant to a Sub-Investment Advisory Agreement with Comstock Partners, the
sub-investment advisory fee is computed at the annual rate of .375 of 1% of
the value of the Series' average daily net assets and is payable monthly.
The agreements provide that if in any full year the aggregate expenses of
the Series, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series, the Series may deduct from the payments to be
made to Dreyfus and Comstock Partners, or Dreyfus and Comstock Partners will
bear the amount of such excess to the extent required by state law. There was
no expense reimbursement for the six months ended June 30, 1996.
The Series compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary
of Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Series.
(B) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 4-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, options and forward currency exchange
contracts, during the six months ended June 30, 1996 amounted to $6,296,193
and $9,971,101, respectively.
The following summarizes open forward currency exchange contracts at June
30, 1996:
<TABLE>
<CAPTION>
FOREIGN
CURRENCY UNREALIZED
FORWARD CURRENCY SALES CONTRACTS: AMOUNT PROCEEDS VALUE APPRECIATION
_______________________________ ______ ____________ _______ _________________
<S> <C> <C> <C> <C>
German Deutsche Marks,
expiring 7/17/96.................... 1,950,000 $1,297,302 $1,280,620 $16,682
Swiss Francs, expiring 8/5/96......... 1,580,000 1,275,016 1,264,506 10,510
___________
$27,192
============
</TABLE>
The Series 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 Series is obligated to buy or sell a foreign currency at a
specified rate on a certain
DREYFUS VARIABLE INVESTMENT FUND, MANAGED ASSETS PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
date in the future. With respect to sales of forward currency exchange
contracts, the Series 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 Series realizes a gain if the value of the
contract decreases between those dates. With respect to purchases of forward
currency exchange contracts, the Series 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 Series realizes a gain if the
value of the contract increases between those dates. The Series is also
exposed to credit risk associated with counterparty nonperformance on these
forward currency exchange contracts which is typically limited to the
unrealized gains on such contracts that are recognized in the Statement of
Assets and Liabilities.
The Series may invest in financial futures contracts in order to gain
exposure to or protect against changes in the market. The Series is exposed
to market risk as a result of changes in the value of the underlying
financial instruments (see the Statement of Financial Futures). Investments
in financial futures require the Series to "mark to market" on a daily basis,
which reflects the change in the market value of the contracts 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 Series 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. Contracts open at June 30,
1996, and their related unrealized market appreciation (depreciation) are set
forth in the Statement of Financial Futures.
The Series may purchase put and call options, including restricted
options, which are not exchange traded, in order to gain exposure to or
protect against changes in the market. The Series' exposure to credit risk
associated with counterparty nonperformance on these investments is typically
limited to the market value of such investments that are disclosed in the
Statement of Investments.
(B) At June 30, 1996, accumulated net unrealized depreciation on
investments and forward currency exchange contracts was $364,726, consisting
of $1,007,728 gross unrealized appreciation and $1,372,454 gross unrealized
depreciation.
At June 30, 1996, 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).

DREYFUS VARIABLE INVESTMENT FUND, MANAGED ASSETS PORTFOLIO
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, MANAGED ASSETS PORTFOLIO
We have reviewed the accompanying statement of assets and liabilities,
including the statements of investments and financial futures, of Dreyfus
Variable Investment Fund, Managed Assets Portfolio (one of the series
constituting the Dreyfus Variable Investment Fund), as of June 30, 1996, and
the related statements of operations and changes in net assets and financial
highlights for the six month period ended June 30, 1996. These financial
statements and financial highlights are the responsibility of the Fund's
management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1995 and financial highlights for each of the five years in the
period ended December 31, 1995 and in our report dated February 9, 1996 we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.

[Ernst & Young LLP signature logo]

New York, New York
July 30, 1996

[Dreyfus lion "d" logo]
DREYFUS VARIABLE INVESTMENT FUND,
MANAGED ASSETS PORTFOLIO
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
SUB-INVESTMENT ADVISER
Comstock Partners, Inc.
10 Exchange Place
Jersey City, NJ 07302
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. 118SA966
[Dreyfus logo]
Variable
Investment Fund,
MANAGED ASSETS
PORTFOLIO
Semi-Annual Report
June 30, 1996

DREYFUS VARIABLE INVESTMENT FUND, MONEY MARKET PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
The Money Market Portfolio of Dreyfus Variable Investment Fund completed
its latest semi-annual fiscal period June 30, 1996, after six months during
which interest rates initially declined, and then began a rise that has
lasted through the end of the reporting period.
We are pleased to report that the Portfolio provided an annualized yield
of 4.93% to its shareholders for this six-month period. After taking into
account the effect of compounding the annualized effective yield was 5.04%.*
THE ECONOMY
The U.S. economy is rebounding in 1996 following its midcycle growth
slowdown of last year. Yet overall corporate profit growth is slowing this
year. Although actual inflation remains steady, faster economic growth has
reignited fears of higher future inflation. This has pushed bond yields
higher and built expectations for a Federal Reserve Board tightening in
coming months. This year is the sixth expansion year for this business cycle,
and we believe that it will prove a long cycle.
Economic growth has accelerated since year-end. The first quarter's 2.3%
real Gross Domestic Product growth brought with it a demand rebound that
depleted inventories. Even stronger second quarter growth is apparent, led by
manufacturers' attempts to rebuild inventories. In addition, steady job
creation continues to support growth in consumer incomes and spending. As
yet, there are few indications of economic cooling. Some previously strong
capital goods sectors may now be slowing, but overall economic growth is
broadening to more industries. Despite better economic performance this year
than last, profit growth may have peaked last year.
Non-oil price inflation has remained tame this year, although surging oil
prices boosted overall inflation temporarily this spring. Nevertheless, signs
of a faster economic pace have reignited fears of higher future inflation,
especially coming from upward pressure on wages as the labor market tightens.
Thus, bond yields have risen substantially this year. Short-term market rates
are also higher on expectations for Federal Reserve tightening in coming
months. So far, long-term rates have risen much more than short-term rates,
forcing the yield curve to steepen. A steep yield curve is usually supportive
of sustained growth in the real economy.
As we look forward, the question arises whether the higher interest rates
already in place and those in prospect will effectively cool the economy. At
present, however, any advance signs of an eventual cooling off in the economy
are hard to discern. The preoccupation at present is with the economy's
impressive strength, and the problems such growth could create.
THE MONEY MARKET AND THE PORTFOLIO
During the latest six months, the money markets generally have reflected
the underlying economic conditions described in the preceding section.
At the end of January, shortly after the latest semi-annual fiscal period
began, the Federal Reserve Board, still concerned about slack in the economy,
lowered interest rates by one quarter of one percent. The Federal Funds rate
was set at 5 1/4% and the discount rate at 5%.

As the previous year ended and a new one began, we had prepared the
Portfolio for the possibility of lower rates, by extending average
maturities.
After the Fed's January 31 action, economic statistics began to indicate
that business activity was accelerating. By springtime this was beginning to
change the course of interest rates. Short-term yields started firming. In
recognition of this market trend, we began gradually to shorten average
maturities, as opportunities arose. To make the Fund's returns as attractive
as possible, we tried to maintain maturities that were a bit longer than the
market average. However, in the face of rising concern about a possible
revival of inflation, average maturities were reduced as the year proceeded.
Currently, the market clearly expects another change in course by the
Federal Reserve. The central bank has not revised its interest rate targets
since late January. Accordingly, we have been positioning the portfolio for
the possibility of higher rates.
The political season is now getting underway with a vengeance, with the
two major party conventions scheduled for August, followed by the election
campaign itself. This also must be factored into the interest rate equation.
Recent history demonstrates, however, that political nominating conventions
in past years have not dissuaded the Federal Reserve from taking any action
it deems necessary to manage the money supply and interest rates.
We appreciate the opportunity to manage money on your behalf and will
continue our best efforts to bring you rewarding returns.
Sincerely,

[Patricia A. Larkin signature logo]

Patricia A. Larkin
Senior Portfolio Manager

July 15, 1996
New York, N.Y.

* Annualized effective yield is based upon dividends declared daily and
reinvested monthly. The performance does not reflect the deduction of
additional charges imposed in connection with investing in variable insurance
contracts.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, MONEY MARKET PORTFOLIO
STATEMENT OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT-23.9% AMOUNT VALUE
_________ _________
<S> <C> <C>
Bank of Tokyo - Mitsubishi, Ltd. (Yankee)
5.74%, 1/15/97.......................................................... $ 1,000,000 $ 1,000,000
Bayerische Vereinsbank AG (Yankee)
5.20%-5.38%, 1/29/97-2/24/97............................................ 2,000,000 2,000,000
Industrial Bank of Japan Ltd. (Yankee)
5.44%, 9/10/96.......................................................... 2,000,000 2,000,000
Mitsubishi Bank Ltd. (London)
5.24%, 8/30/96.......................................................... 1,000,000 1,000,016
Sumitomo Bank Ltd. (Yankee)
5.50%, 9/3/96........................................................... 2,000,000 1,999,637
SwedBank (Yankee)
5.34%, 7/16/96.......................................................... 2,000,000 2,000,000
Union Bank California, N.A.
5.68%, 12/17/96......................................................... 2,000,000 2,000,000
____________
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $11,999,653)...................................................... $11,999,653
=============
BANKERS' ACCEPTANCES-5.9%
Dai-Ichi Kangyo Bank Ltd. (Yankee)
5.51%, 9/11/96.......................................................... $ 1,000,000 $ 989,240
Sanwa Bank Ltd. (Yankee)
5.47%-5.62%, 8/1/96-10/7/96............................................. 2,000,000 1,980,493
____________
TOTAL BANKERS' ACCEPTANCES
(cost $2,969,733)....................................................... $ 2,969,733
=============
COMMERCIAL PAPER-31.3%
Abbey National North America
5.20%, 7/26/96.......................................................... $ 2,000,000 $ 1,992,958
B.B.V. Finance (DE) Inc.
5.39%, 8/7/96........................................................... 2,000,000 1,989,064
Bear Stearns Companies Inc.
5.80%, 7/22/96.......................................................... 1,000,000 996,757
Caisse D'Amortissemente De La Dette Sociale
5.66%, 12/27/96......................................................... 2,000,000 1,945,306
General Electric Capital Corp.
5.44%, 12/27/96......................................................... 800,000 779,196
General Electric Capital Services Inc.
5.42%, 8/22/96.......................................................... 2,000,000 1,984,487
General Motors Acceptance Corp.
5.42%, 8/1/96........................................................... 2,000,000 1,990,786

DREYFUS VARIABLE INVESTMENT FUND, MONEY MARKET PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
COMMERCIAL PAPER (CONTINUED) AMOUNT VALUE
___________ ___________

Lehman Brothers Holdings Inc.
5.45%, 7/10/96.......................................................... $ 2,000,000 $ 1,997,285
Spintab AB
5.46%, 7/16/96.......................................................... 2,000,000 1,995,525
___________
TOTAL COMMERCIAL PAPER
(cost $15,671,364)...................................................... $15,671,364
===========
CORPORATE NOTES-6.0%
Bear Stearns Companies Inc.
5.38%, 2/18/97(a)....................................................... $ 1,000,000 $ 1,000,000
Merrill Lynch & Co. Inc.
5.47%, 5/13/97 (a)...................................................... 2,000,000 1,999,665
___________
TOTAL CORPORATE NOTES
(cost $2,999,665)....................................................... $ 2,999,665
===========
SHORT-TERM BANK NOTES-12.0%
Bank of America Illinois
5.42%, 11/1/96.......................................................... $ 1,000,000 $ 1,000,492
Banc One Milwaukee
5.37%, 2/6/97 (a)....................................................... 2,000,000 1,999,536
Comerica Bank
5.40%, 9/18/96 (a)...................................................... 2,000,000 1,999,735
First National Bank of Boston
5.46%, 7/10/96 (a)...................................................... 1,000,000 1,000,000
___________
TOTAL SHORT-TERM BANK NOTES
(cost $5,999,763)....................................................... $ 5,999,763
===========
U.S. GOVERNMENT AGENCIES-17.9%
Federal Farm Credit Banks , Floating Rate Notes
5.33%, 11/7/96-7/25/97 (a).............................................. $ 5,000,000 $ 4,998,167
Federal National Mortgage Association, Floating Rate Notes
5.36%-5.42%, 12/16/96-1/21/98 (a)....................................... 4,000,000 3,997,500
___________
TOTAL U.S. GOVERNMENT AGENCIES
(cost $8,995,667)....................................................... $ 8,995,667
===========

DREYFUS VARIABLE INVESTMENT FUND, MONEY MARKET PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
TIME DEPOSITS-2.7% AMOUNT VALUE
__________ __________

Berliner Handels-Und Frankforter Bank (Grand Cayman)
5.50%, 7/1/96
(cost $1,360,000)....................................................... $ 1,360,000 $ 1,360,000
===========
TOTAL INVESTMENTS (cost $49,995,845) ....................................... 99.7% $49,995,845
======= ===========
CASH AND RECEIVABLES (NET) ................................................. .3% $ 167,275
======= ===========
NET ASSETS ................................................................. 100.0% $50,163,120
======= ===========

NOTE TO STATEMENT OF INVESTMENTS;
(a) Variable rate - subject to periodic change.

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 2(a)........................... $49,995,845
Interest receivable..................................................... 356,020
Prepaid expenses and other assets....................................... 37
__________
50,351,902
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 19,594
Due to Custodian........................................................ 141,148
Accrued expenses........................................................ 28,040 188,782
__________ __________
NET ASSETS.................................................................. $50,163,120
=============
REPRESENTED BY:
Paid-in capital......................................................... $50,150,567
Accumulated undistributed investment income-net......................... 13,454
Accumulated net realized (loss) on investments.......................... (901)
__________
NET ASSETS at value applicable to 50,150,567 shares outstanding (unlimited
number of $.001 par value shares of Beneficial Interest authorized)..... $50,163,120
=============
NET ASSET VALUE, offering and redemption price per share
($50,163,120 / 50,150,567 shares)....................................... $1.00
=======

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $1,299,019
EXPENSES:
Investment advisory fee-Note 3(a)..................................... $117,294
Prospectus and shareholders' reports.................................. 7,307
Custodian fees........................................................ 6,082
Professional fees..................................................... 5,761
Registration fees..................................................... 1,731
Trustees' fees and expenses-Note 3(b)................................. 1,198
Shareholder servicing costs........................................... 216
Miscellaneous......................................................... 504
_______
TOTAL EXPENSES.................................................. 140,093
________
INVESTMENT INCOME-NET....................................................... 1,158,926
NET REALIZED (LOSS) ON INVESTMENTS-Note 2(b)................................ (122)
________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,158,804
============

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1996
1995 (UNAUDITED)
___________ __________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 2,065,786 $ 1,158,926
Net realized (loss) on investments................................... (848) (122)
_____________ _____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 2,064,938 1,158,804
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................ (2,059,102) (1,158,051)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................ 132,951,838 80,535,869
Dividends reinvested................................................. 2,059,103 1,158,051
Cost of shares redeemed.............................................. (124,496,329) (76,780,404)
_____________ _____________
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS....... 10,514,612 4,913,516
_____________ _____________
TOTAL INCREASE IN NET ASSETS................................... 10,520,448 4,914,269
NET ASSETS:
Beginning of period.................................................. 34,728,403 45,248,851
_____________ _____________
End of period (including undistributed investment income-net:
$12,579 in 1995 and $13,454 in 1996)............................... $ 45,248,851 $ 50,163,120
=============== ==============

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment ratios, return to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Series' financial statements.

SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1996
__________________________________________________
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
_____ _____ _____ _____ _____ ____________
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_____ _____ _____ _____ _____ _______
INVESTMENT OPERATIONS;
Investment income-net................. .058 .041 .032 .043 .055 .025
_____ _____ _____ _____ _____ _______
DISTRIBUTIONS;
Dividends from investment income-net.. (.058) (.041) (.032) (.043) (.055) (.025)
_____ _____ _____ _____ _____ _______
Net asset value, end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN................... 5.99% 4.14% 3.29% 4.37% 5.66% 4.97%(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - - - - .62% .60%(1)
Ratio of net investment income to
average net assets.................. 5.78% 4.10% 3.23% 4.62% 5.51% 4.93%(1)
Decrease reflected in above expense ratios due
to undertakings by
The Dreyfus Corporation................... 3.94% 4.25% 2.81% .88% .03% -
Net Assets, end of period (000's Omitted) $1,619 $790 $7,651 $34,728 $45,249 $50,163
(1) Annualized

See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND, MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-GENERAL:
Dreyfus Variable Investment Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as an open-end management investment
company, operating as a series company currently offering eleven series,
including the Money Market Portfolio (the "Series") and is intended to be a
funding vehicle for variable annuity contracts and variable life insurance
policies to be offered by the separate accounts of life insurance companies.
The Series is a diversified portfolio. The Series' investment objective is to
provide as high a level of current income as is consistent with the
preservation of capital and the maintenance of liquidity. The Dreyfus
Corporation ("Dreyfus") serves as the Series' investment adviser. Dreyfus is
a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc.
acts as the distributor of the Series' shares, which are sold without a sales
charge.
It is the Series' policy to maintain a continuous net asset value per
share of $1.00; the Series has adopted certain investment, portfolio
valuation and dividend and distribution policies to enable it to do so. There
is no assurance, however, that the Fund will be able to maintain a stable net
asset value of $1.00.
The Fund currently functions as the funding vehicle for the Dreyfus
Series 2000 Variable Annuity Contract (the "Account") issued by Mutual
Benefit Life Insurance Company ("Mutual Benefit Life"). On July 16, 1991, the
Superior Court of New Jersey entered an Order (the "Order") appointing the
New Jersey Insurance Commissioner as Rehabilitator of Mutual Benefit Life.
The Commissioner was granted immediate exclusive possession and control of,
and title to, the business and assets of Mutual Benefit Life, including the
assets and liabilities of the Account.
The Commissioner was empowered by the order to take such steps as he
deemed appropriate toward removing the cause and conditions that made
rehabilitation necessary. On January 15, 1993, the Commissioner Filed the
First Amended Plan of Rehabilitation ("Plan") with the Court. The Plan
stipulated that the assets and liabilities of the Account would be
transferred to a separate account of MBL Life Assurance Corporation
("MBLLAC"), a wholly-owned subsidiary of Mutual Benefit Life. The Plan also
provided for the transfer of the ownership of stock of MBLLAC to a Trust. The
Commissioner was designated as the sole Trustee of the Trust. On August 12,
1993, the Court rendered an opinion approving the Plan with certain
modifications. Two subsequent amendments to the Plan were filed and approved
by the Court. None of the modifications or amendments affected the status of
the Account. On November 10, 1993, the Court issued an Order of Confirmation
permitting the implementation of the Plan.
An order was also issued by the Court on January 28, 1994, approving the
form of the Third amended Plan of Rehabilitation, the Election Materials and
related documents. On April 29, 1994, the Plan was implemented. Substantially
all of the assets of Mutual Benefit Life were transferred to MBLLAC which
assumed and reinsured Mutual Benefit Life's restructured insurance
liabilities. The stock of MBLLAC was assigned to the Stock Trust and the
Commissioner was designated as Trustee.
In view of the terms and conditions of both the Order and the Plan,
applications for new contracts and additional purchase payments under
existing contracts are currently not being accepted by the Account. The terms
of the Order and the Plan permit redemptions from the Account to continue as
requested.

DREYFUS VARIABLE INVESTMENT FUND, MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The proceedings of the New Jersey Insurance Commissioner with respect to
Mutual Benefit Life or the Account do not apply to
the separate accounts of other life insurance companies that may use the Fund
as a funding vehicle for contracts or policies issued by them.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Trustees to represent the fair
value of the Series' investments.
(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. Interest
income is recognized on the accrual basis. Cost of investments represents
amortized cost.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Series to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and
paid annually, but the Series may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that a net realized capital gain can be offset by a capital loss
carryover, if any, such gain will not be distributed.
On July 1, 1996, the Fund declared a cash dividend of approximately
$.000268 per share from undistributed investment income-net which includes
investment income-net for Saturday, June 29, 1996 and Sunday, June 30, 1996.
(D) FEDERAL INCOME TAXES: It is the policy of the Series 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 Internal Revenue Code, and to make distributions
of taxable income sufficient to relieve it from substantially all Federal
income and excise taxes.
NOTE 3-INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to the provisions of an Investment Advisory Agreement
("Agreement") with Dreyfus, the investment advisory fee is computed at the
annual rate of .50 of 1% of the value of the Series' average daily net assets
and is payable monthly. The Agreement provides that if in any full year the
aggregate expenses of the Series, exclusive of taxes, interest on borrowings
and extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series, the Series may deduct from the payments to be
made to Dreyfus, or Dreyfus will bear the amount of such excess to the extent
required by state law. There was no expense reimbursement for the six months
ended June 30, 1996.

DREYFUS VARIABLE INVESTMENT FUND, MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

The Fund entered into a transfer agency agreement with Dreyfus Transfer,
Inc. a wholly-owned subsidiary of the Dreyfus, under a transfer agency
agreement for providing personnel and facilities to perform transfer agency
services for the Fund.
(B) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.

DREYFUS VARIABLE INVESTMENT FUND, MONEY MARKET PORTFOLIO
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, MONEY MARKET PORTFOLIO
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Variable Investment Fund,
Money Market Portfolio (one of the series constituting the Dreyfus Variable
Investment Fund), as of June 30, 1996, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended June 30, 1996. These financial statements and financial
highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1995 and financial highlights for each of the five years in the
period ended December 31, 1995 and in our report dated February 9, 1996, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.

[Ernst & Young LLP signature logo]

New York, New York
July 30, 1996

[Dreyfus lion "d" logo]
DREYFUS VARIABLE INVESTMENT FUND,
MONEY MARKET PORTFOLIO
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
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. 117SA966
[Dreyfus logo]
Variable
Investment Fund,
MONEY MARKET
PORTFOLIO
Semi-Annual Report
June 30, 1996

DREYFUS VARIABLE INVESTMENT FUND, QUALITY BOND PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus Variable
Investment Fund - Quality Bond Portfolio. For its semi-annual reporting
period ended June 30, 1996, your Fund produced a total return of -1.90% per
share, based upon net asset value.* Income dividends of $.322 per share were
declared during the period, which is equivalent to an annualized distribution
rate per share of 5.70%.**
THE ECONOMY
So far this year, the economic story has been upbeat: solid growth,
strong gains in employment and low inflation. Yet along with this good news
has come the fear that the Federal Reserve Board ("Fed") will tighten
monetary policy lest the continued economic expansion bring a resurgence in
inflation. The growth in the economy has resulted in strong gains in
employment. Over recent months, these reports of new jobs have been
accompanied by rises in long-term interest rates, a reflection of the
market's concern that inflation perceptions by the Fed would result in its
acting to cool down an economy that risks overheating. To date, the Fed has
refrained from any overt tightening moves. (The Fed has cut rates three times
between July of `95 and January of `96, and has since held the Federal Funds
rate steady at 5.25%, even as long-term rates in the bond market have risen
more than a full percentage point.)
The interplay between job growth and economic growth has become the
dominant force affecting the outlook of investors for inflation and the
possibility that the Fed will raise short-term interest rates. Along with
handsome increases in new jobs have come solid gains in retail sales,
although many economists feel that heavy consumer debt burdens will act as a
constraint against any acceleration in growth. Automobile sales remain
strong, the third year in a row of steady growth for auto manufacturers. Yet,
what investors focus on and what concerns the Fed may be two different
things. On June 19th, the Fed's Beige Book, a survey of business conditions
in the 12 districts of the Federal Reserve, reported that the economy was
growing at a moderate pace and that despite the tightening labor markets
"indications of rising wages remain scattered". Recent statements by
officials of the Federal Reserve Board have suggested that "sustained
moderate growth" is the most likely path for the economy and that labor
markets, while tightening, do not yet indicate significant inflationary
pressures. There seem to be few signs of inflation. Commodity and producer
prices remain subdued. Anecdotal reports from companies continue to attest
to their lack of ability to raise prices. Another measure of potential
inflation, delivery lead times - one of Chairman Greenspan's favorite
indicators - has been little changed for months. Furthermore, some of the
inflationary consequences of running large budget deficits have eased due
to the growth in the economy. Higher than expected tax payments - a result
of economic growth - have reduced the Federal budget deficit to the $130
billion level, the lowest since the early 1980s.
Nevertheless, there are limits to non-inflationary economic expansion. As
always, we remain watchful for signs of price pressures that could lead to a
resurgence of inflation. For now, there are few indications of that. In fact,
there also appears to be a growing consensus that the rate of economic growth
could taper off in the second half of the year due to the effect of higher
long-term interest rates on certain key sectors of the economy like housing
and consumer spending.

THE PORTFOLIO
For the first half of 1996, we have been in a rising rate environment.
Negative returns have been the rule in securities with longer maturities. As
an example, the 10-year Treasury Note began the year yielding 5.6%. As of
June 30, the same note was yielding 6.7%, that is an increase of more than 110
basis points. Similarly, the 30-year Treasury bond yield increased from 6% to
6.9%. The question regarding the direction of interest rates going forward
rests with the market's perception of economic growth and inflation.
During the course of the last six months, we have attempted to place a
more defensive emphasis in managing the Portfolio. Last year, the Portfolio's
duration was a half to three quarters of a year longer than the Merrill Lynch
Domestic Master Index (subindex D010). This year we have attempted to
maintain a duration of about a half-year shorter than that index. In a rising
rate environment, which is what we have been in, the Portfolio's performance
has benefited from such a tactical move.
With a total return during the reporting period of -1.90%, the Portfolio
outperformed the average of the Lipper Category. The average total return of
all funds in the Portfolio's Lipper Category during the reporting period was
- -2.18%.*** We managed to outperform the average fund by .28%. From a
standpoint of transactions we have sold a 4% position in Generalitat de
Catalunya and reinvested those proceeds in GNMA 7 1/2% securities. With new
cash flows, we have continued to invest in another 5% position of GNMA 6 1/2%
securities and about 15% in 7 1/2% securities. We have also added General
Electric and General Motors Acceptance Corp. to our holdings.
Included in this report is a series of detailed statements about your
Portfolio's holdings and its financial condition. We hope they are
informative. Please know that we appreciate greatly your continued confidence
in the Portfolio and in The Dreyfus Corporation.
Very truly yours,

Garitt A. Kono
Portfolio Manager
July 15, 1996
New York, N.Y.

* Total return includes reinvestment of dividends and any capital gains
paid. The Portfolio's performance does not reflect the deduction of
additional charges imposed in connection with investing in variable insurance
contracts.
**Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period, divided by the net asset
value per share at the end of the period.
***SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Average total return for all
funds in the Corporate Debt A Rated Category reflect reinvestment of
distributions. The Fund's share price, yield and investment return fluctuate
and an investor may receive more or less than original cost upon redemption.
Past performance is no guarantee of future results.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, QUALITY BOND PORTFOLIO
STATEMENT OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES-80.2% AMOUNT VALUE
_______ ______
<S> <C> <C>
AEROSPACE-.4% McDonnell Douglas,
Notes, 8 1/4%, 2000.................. $ 200,000 $ 209,465
______
BANKING-2.4% BankAmerica,
Sub. Notes, 6 3/4%, 2005............. 1,000,000 961,381
First Chicago, Sub. Notes:
8 1/4%, 2002......................... 15,000 15,883
6 7/8%, 2003......................... 100,000 98,940
NationsBank,
Sub. Notes, 6 1/2%, 2003............. 175,000 168,723
______
1,244,927
______
CONSUMER-.5% News America Holdings (Gtd. by News):
Sr. Deb., 8 1/4%, 2018............... 100,000 98,567
Sr. Notes, 9 1/8%, 1999.............. 25,000 26,642
Time Warner,
Deb., 9.15%, 2023.................... 125,000 129,124
______
254,333
______
FINANCE-15.4% Avco Financial Services,
Sr. Notes, 6.35%, 2000............... 1,000,000 983,747
Commercial Credit,
Notes, 7 3/4%, 2005.................. 1,000,000 1,031,051
Dresdner Bank AG,
Sub. Notes, 6 5/8%, 2005............. 1,000,000 957,692
Ford Motor Credit,
Notes, 7 1/2%, 2004.................. 1,000,000 1,013,858
General Electric Capital,
Gtd. Sub. Notes, 7 7/8%, 2006........ 1,000,000 1,051,413
General Motors Acceptance, Notes:
8 3/4%, 1997......................... 1,000,000(a) 1,085,010
5 5/8%, 2001......................... 2,000,000 1,899,788
______
8,022,559
______
INDUSTRIAL-3.6% American Brands,
Deb., 8 5/8%, 2021................... 400,000 435,942
Archer-Daniels-Midland,
Deb., 10 1/4%, 2006.................. 400,000 486,702
Eastman Kodak,
Deb., 9.95%, 2018.................... 400,000 504,261
Ford Motor,
Deb., 8 7/8%, 2022................... 400,000 447,654
______
1,874,559
______

DREYFUS VARIABLE INVESTMENT FUND, QUALITY BOND PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
_____________ __________

INSURANCE-.3% SunAmerica:
Deb., 9.95%, 2012.................... $ 13,000 $ 15,359
Notes, 9%, 1999...................... 130,000 136,489
______
151,848
______
FOREIGN-.1% Kingdom of Sweden,
Bonds, Ser. A, Zero Coupon, 1997..... 60,000 57,384
______
OTHER-.2% City of New York,
General Obligation Bonds, Ser. D, 10%, 2007 25,000 27,688
FICO Coupon Strips,
Ser. 1, Zero Coupon, 5/11/2000....... 95,000 74,098
______
101,786
______
MORTGAGE OBLIGATIONS-1.9% Nomura Asset Securities,
Commercial Mortgage Pass-Through Ctfs.,
Ser. 1996-MD V, Cl. A-1B, 7.12%, 2036........ 1,000,000 970,000
______
U.S. GOVERNMENT
AND AGENCIES-55.4% Federal National Mortgage Association,
Callable Principal Strips,
Ser. 1, Zero Coupon, 8/21/1996....... 55,000 (b) 54,566
Government National Mortgage Association I:
6 1/2%, 4/15/2026-5/15/2026.................. 3,025,255 2,819,145
7 1/2%, 3/15/2008-8/15/2008.................. 5,818,086 5,865,329
7 1/2%, 1/15/2023-8/15/2025.......... 10,695,991 10,586,942
U.S. Treasury Bonds:
10 3/4%, 8/15/2005................... 100,000 127,016
11 1/4%, 2/15/2015................... 100,000 144,359
7 1/4%, 5/15/2016.................... 1,200,000 1,229,063
U.S. Treasury Notes:
7 1/4%, 8/31/1996.................... 230,000 230,647
7 3/8%, 11/15/1997................... 1,000,000 1,017,813
8 1/2%, 11/15/2000................... 600,000 646,781
7 1/2%, 2/15/2005.................... 3,000,000 3,157,031
5 7/8%, 11/15/2005................... 3,000,000 2,827,031
______
28,705,723
______
TOTAL BONDS AND NOTES
(cost $42,158,699)................... $41,592,584
======

DREYFUS VARIABLE INVESTMENT FUND, QUALITY BOND PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
SHORT-TERM INVESTMENTS-18.9% AMOUNT VALUE
_______ ______
AGENCY DISCOUNT NOTE; Federal Home Loan Mortgage Corp.,
5.48%, 7/1/1996
(cost $9,800,000).................... $ 9,800,000 $ 9,800,000
======
TOTAL INVESTMENTS (cost $51,958,699)........................................ 99.1% $51,392,584
====== ======
CASH AND RECEIVABLES (NET).................................................. .9% $ 461,512
====== ======
NET ASSETS.................................................................. 100.0% $51,854,096
====== ======
NOTES TO STATEMENT OF INVESTMENTS:
(a) Security is subject to repurchase by the issuer at the option of the
holder. Final maturity is 7/15/2005.
(b) Zero coupon until 8/21/96, date on which a stated coupon rate of
8.40% becomes effective; the stated maturity date is 2001.

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, QUALITY BOND PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $51,958,699)-see statement...................................... $51,392,584
Cash.................................................................... 45,982
Interest receivable..................................................... 535,918
Prepaid expenses........................................................ 18,087
______
51,992,571
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $27,867
Payable for shares of Beneficial Interest redeemed...................... 81,739
Accrued expenses........................................................ 28,869 138,475
____ ______
NET ASSETS.................................................................. $51,854,096
======
REPRESENTED BY:
Paid-in capital......................................................... $52,271,624
Accumulated undistributed investment income-net......................... 256,016
Accumulated net realized (loss) on investments.......................... (107,429)
Accumulated net unrealized (depreciation) on investments-Note 5......... (566,115)
______
NET ASSETS at value applicable to 4,577,068 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $51,854,096
======
NET ASSET VALUE, offering and redemption price per share
($51,854,096 / 4,577,068 shares)........................................ $11.33
======

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, QUALITY BOND PORTFOLIO
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 1,496,569
EXPENSES:
Investment advisory fee-Note 4(a)..................................... $ 146,972
Auditing fees......................................................... 11,265
Prospectus and shareholders' reports.................................. 7,292
Registration fees..................................................... 5,592
Custodian fees-Note 4(a).............................................. 5,570
Legal fees............................................................ 1,536
Trustees' fees and expenses-Note 4(b)................................. 995
Shareholder servicing costs........................................... 134
Miscellaneous......................................................... 2,568
______
TOTAL EXPENSES.................................................. 181,924
______
INVESTMENT INCOME-NET........................................... 1,314,645
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 5............................... $ (247,182)
Net unrealized (depreciation) on investments............................ (1,816,642)
______
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (2,063,824)
______
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (749,179)
======

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, QUALITY BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1996
1995 (UNAUDITED)
________ __________
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................. $ 1,394,941 $ 1,314,645
Net realized gain (loss) on investments................................ 628,024 (247,182)
Net unrealized appreciation (depreciation) on investments
for the period....................................................... 2,002,134 (1,816,642)
_______ ______
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...... 4,025,099 (749,179)
_______ ______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net.................................................. (1,396,840) (1,061,527)
Net realized gain on investments....................................... (387,055) -
_______ ______
TOTAL DIVIDENDS...................................................... (1,783,895) (1,061,527)
_______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.......................................... 25,461,134 20,966,301
Dividends reinvested................................................... 1,783,895 1,061,527
Cost of shares redeemed................................................ (5,283,531) (5,809,867)
_______ ______
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS......... 21,961,498 16,217,961
_______ ______
TOTAL INCREASE IN NET ASSETS..................................... 24,202,702 14,407,255
NET ASSETS:
Beginning of period.................................................... 13,244,139 37,446,841
_______ ______
End of period (including undistributed investment income-net:
$2,898 in 1995 and $256,016 in 1996)................................. $37,446,841 $51,854,096
======= ======

SHARES SHARES
_______ ______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 2,224,658 1,821,099
Shares issued for dividends reinvested................................. 155,421 92,766
Shares redeemed........................................................ (466,867) (507,444)
_______ ______
NET INCREASE IN SHARES OUTSTANDING................................... 1,913,212 1,406,421
======= ======

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, QUALITY BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Series' financial statements.

SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1996
____________________________________________________
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
____ ____ ____ ____ ____ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $10.01 $10.67 $10.94 $11.81 $10.53 $11.81
____ ____ ____ ____ ____ ____
INVESTMENT OPERATIONS:
Investment income-net................. .70 .92 .76 .73 .68 .32
Net realized and unrealized gain (loss)
on investments...................... .66 .30 .88 (1.27) 1.42 (.53)
____ ____ ____ ____ ____ ____
TOTAL FROM INVESTMENT OPERATIONS.... 1.36 1.22 1.64 (.54) 2.10 (.21)
____ ____ ____ ____ ____ ____
DISTRIBUTIONS:
Dividends from investment income-net.. (.70) (.92) (.76) (.73) (.69) (.27)
Dividends from net realized gain
on investments...................... - (.03) (.01) (.01) (.13) -
____ ____ ____ ____ ____ ____
TOTAL DISTRIBUTIONS................. (.70) (.95) (.77) (.74) (.82) (.27)
____ ____ ____ ____ ____ ____
Net asset value, end of period........ $10.67 $10.94 $11.81 $10.53 $11.81 $11.33
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................... 14.12% 12.09% 15.33% (4.59%) 20.42% (3.81%)(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - - - - .81% .80%(1)
Ratio of net investment income to
average net assets.................. 7.52% 8.54% 6.51% 7.03% 6.13% 5.80%(1)
Decrease reflected in above expense ratios
due to undertakings by
The Dreyfus Corporation................... 13.13% 5.33% 3.51% 1.20% .04% -
Portfolio Turnover Rate............... - 9.39% 110.62% 64.80% 263.53% 51.24%(2)
Net Assets, end of period (000's Omitted) $410 $ 405 $4,706 $13,244 $37,447 $51,854
(1) Annualized.
(2) Not annualized.

See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND, QUALITY BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-GENERAL:
Dreyfus Variable Investment Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as an open-end management investment
company, operating as a series company currently offering eleven series,
including the Quality Bond Portfolio (the "Series") and is intended to be a
funding vehicle for variable annuity contracts and variable life insurance
policies to be offered by the separate accounts of life insurance companies.
The Series is a diversified portfolio. The Series' investment objective is to
provide the maximum amount of current income to the extent consistent with
the preservation of capital and the maintenance of liquidity. The Dreyfus
Corporation ("Dreyfus") serves as the Series' investment adviser. Dreyfus is
a direct subsidiary of Mellon Bank, N.A. ("Mellon"). Premier Mutual Fund
Services, Inc. acts as the distributor of the Series' shares, which are sold
without a sales charge.
The Fund currently functions as the funding vehicle for the Dreyfus
Series 2000 Variable Annuity Contract (the "Account") issued by Mutual
Benefit Life Insurance Company ("Mutual Benefit Life"). On July 16, 1991, the
Superior Court of New Jersey entered an Order (the "Order") appointing the
New Jersey Insurance Commissioner as Rehabilitator of Mutual Benefit Life.
The Commissioner was granted immediate exclusive possession and control of,
and title to, the business and assets of Mutual Benefit Life, including the
assets and liabilities of the Account.
The Commissioner was empowered by the Order to take such steps as he
deemed appropriate toward removing the cause and conditions that made
rehabilitation necessary. On January 15, 1993, the Commissioner filed the
First Amended Plan of Rehabilitation ("Plan") with the Court. The Plan
stipulated that the assets and liabilities of the Account would be
transferred to a separate account of MBL Life Assurance Corporation
("MBLLAC"), a wholly-owned subsidiary of Mutual Benefit Life. The Plan also
provided for the transfer of the ownership of the stock of MBLLAC to a Trust.
The Commissioner was designated as the sole Trustee of the Trust. On August
12, 1993, the Court rendered an opinion approving the Plan with certain
modifications. Two subsequent amendments to the Plan were filed and approved
by the Court. None of the modifications or amendments affected the status of
the Account. On November 10, 1993, the Court issued an Order of Confirmation
permitting the implementation of the Plan.
An order was also issued by the Court on January 28, 1994, approving the
form of the Third Amended Plan of Rehabilitation, the Election Materials and
related documents. On April 29, 1994, the Plan was implemented. Substantially
all of the assets of Mutual Benefit Life were transferred to MBLLAC which
assumed and reinsured Mutual Benefit Life's restructured insurance
liabilities. The stock of MBLLAC was assigned to the Stock Trust and the
Commissioner was designated as Trustee.
In view of the terms and conditions of both the Order and the Plan,
applications for new contracts and additional purchase payments under
existing contracts are currently not being accepted by the Account. The terms
of the Order and the Plan permit redemptions from the Account to continue as
requested.
The proceedings of the New Jersey Insurance Commissioner with respect to
Mutual Benefit Life or the Account do not apply to the separate accounts of
other life insurance companies that may use the Fund as a funding vehicle for
contracts or policies issued by them.

DREYFUS VARIABLE INVESTMENT FUND, QUALITY BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(A) PORTFOLIO VALUATION: Investments (excluding short-term investments
and U.S. Government obligations) are valued each business day by an
independent pricing service ("Service") approved by the Board of Trustees.
Investments for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the
Service from dealers in such securities) and asked prices (as calculated by
the Service based upon its evaluation of the market for such securities).
Other investments (which constitute a majority of the portfolios' securities)
are carried at fair value as determined by the Service, based on methods
which include consideration of: yields or prices of securities of comparable
quality, coupon, maturity and type; indications as to values from dealers;
and general market conditions. Investments in U.S. Government obligations are
valued at the mean between quoted bid and asked prices. Short-term investments
are carried at amortized cost, which approximates value.
(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. Interest
income, including, where applicable, amortization of discount on investments,
is recognized on the accrual basis.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Series may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Series not to distribute such
gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Series 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 Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 3-BANK LINE OF CREDIT:
The Series participates in a $100 million unsecured line of credit
provided by The Bank of New York, primarily for temporary or emergency
purposes, including the meeting of redemption requests that otherwise might
require the untimely disposition of securities. Interest is payable at the
Federal Funds rate plus .50% on an annualized basis. For the period ended
June 30, 1996, the Series did not borrow under the line of credit.

DREYFUS VARIABLE INVESTMENT FUND, QUALITY BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

NOTE 4-INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to an Investment Advisory Agreement ("Agreement") with
Dreyfus, the investment advisory fee is computed at the annual rate of .65 of
1% of the value of the Series' average daily net assets and is payable
monthly. The Agreement provides that if in any full year the aggregate
expenses of the Series, exclusive of taxes, brokerage, interest on borrowings
and extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series, the Series may deduct from the payments to be
made to Dreyfus, or Dreyfus will bear the amount of such excess to the extent
required by state law. There was no expense reimbursement for the six months
ended June 30, 1996.
The Series compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary
of Dreyfus, under a transfer agency agreement, for providing personnel and
facilities to perform transfer agency services for the Series.
Effective May 10, 1996, the Series entered into a custody agreement with
Mellon to provide custodial services for the Series. During the period from
May 10, 1996 through June 30, 1996, $795 was paid to Mellon pursuant to the
custody agreement.
(B) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 5-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the six months ended June 30, 1996,
amounted to $33,394,198 and $18,278,480, respectively.
At June 30, 1996, accumulated net unrealized depreciation on investments
was $566,115, consisting of $335,948 gross unrealized appreciation and
$902,063 gross unrealized depreciation.
At June 30, 1996, 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).

DREYFUS VARIABLE INVESTMENT FUND, QUALITY BOND PORTFOLIO
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, QUALITY BOND PORTFOLIO
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Variable Investment Fund,
Quality Bond Portfolio (one of the Series constituting the Dreyfus Variable
Investment Fund), as of June 30, 1996, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended June 30, 1996. These financial statements and financial
highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1995 and financial highlights for each of the five years in the
period ended December 31, 1995 and in our report dated February 9, 1996, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.

[Ernst and Young LLP signature logo]

New York, New York
July 30, 1996

[Dreyfus lion "d" logo]
DREYFUS VARIABLE INVESTMENT FUND,
QUALITY BOND PORTFOLIO
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
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. 120SA966
[Dreyfus logo]
Variable
Investment Fund,
QUALITY BOND
PORTFOLIO
Semi-Annual Report
June 30, 1996

DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report that the Small Cap Portfolio of Dreyfus Variable
Investment Fund outperformed its benchmark market indexes for the first six
months of this year, the fiscal period ended June 30, 1996. The Portfolio
produced a total return of 10.67%* for the half-year, compared to 10.36% for
the Russell 2000 Index of small stocks and 10.09% for the Standard & Poor's
500 Composite Stock Price Index.**
In this letter we review the economic environment for the first half of
the year, and conditions in the equity markets, then conclude with details
about the Portfolio holdings.
ECONOMIC ENVIRONMENT
The U.S. economy appears to be rebounding in 1996 following its mid-cycle
growth slowdown of last year, yet overall corporate profit growth is slowing
this year. Although actual inflation remains steady, faster economic growth
has reignited fears of higher future inflation. This has pushed bond yields
higher and built expectations for a Federal Reserve Board tightening in
coming months. This is the sixth expansion year for this business cycle, and
we believe that it will prove a long cycle.
Economic growth has accelerated since year-end. The first quarter's 2.2%
real GDP growth brought with it a demand rebound that depleted inventories.
Even stronger second quarter growth is apparent, led by manufacturers'
attempts to rebuild inventories. In addition, steady job creation continues
to support growth in consumer incomes and spending. As yet, there are few
indications of economic cooling. Some previously strong capital goods sectors
may now be slowing, but overall economic growth appears to be broadening to
more industries. Despite better economic performance this year than last,
profit growth may have peaked last year.
Non-oil price inflation has remained tame this year, although surging oil
prices boosted overall inflation temporarily this spring. Nevertheless, signs
of a faster economic pace have reignited fears of higher future inflation,
especially coming from upward pressure on wages as the labor market tightens.
Thus, bond yields have risen substantially this year. Short-term market rates
are also higher on expectations for Federal Reserve tightening in coming
months. So far, long-term rates have risen much more than short-term rates,
forcing the yield curve to steepen. A steep yield curve is usually supportive
of sustained growth in the real economy.
As we look forward, the question arises whether the higher interest rates
already in place and those in prospect will effectively cool the economy. At
present, however, any advance signs of an eventual cooling off are hard to
discern. The preoccupation at present is with the economy's impressive
strength, and the problems such growth could create.
MARKET OVERVIEW
The broad trend of the stock market was strongly upward during the six
months under review. However, there were many cross-currents at work. Not all
stock groups benefited equally. The blue chips in the Dow Jones Industrial
Average enjoyed solid advances for the six months, as did the broader market
as represented by the NASDAQ Composite and the Standard & Poor's 500.
However, as spring turned into summer, the S & P 500 receded from its May
high, technology stocks began to lag, and small capitalization stocks were
unable to maintain the very fast growth pace of earlier months.

From time to time, unexpected signs of economic strength, particularly
employment and unemployment numbers, jolted the equity markets with the fear
of renewed inflation. Especially in the latter part of the half-year, concern
about inflation and higher interest rates restrained market performance in a
number of industry categories.
Profits, always a major element in stock performance, continued strong
for a good part of the period. However, fear of rising labor costs and
intensified competition at home and abroad have cast some shadows over the
profit outlook. This has been balanced, however, by the very large sum of
money that continues to be invested in equity mutual funds, much of it from
people planning for their retirement.
As the half-year ended, broad market averages were still solidly above
where they stood when the year began. This, however, was prior to the
downdraft in stock prices that occurred in mid-July.
PORTFOLIO FOCUS
The companies in which the Portfolio is invested have by and large
produced above-average returns during the six-month period. In fact, for the
first time in two years, small cap stocks in general slightly outperformed
their larger compatriots. In the final analysis, as you know, it is good
products, good management and good business fundamentals that drive
investment results. We believe we have assembled companies with these
characteristics in your Portfolio.
Your Portfolio's performance was also helped by some external factors.
First, a record number of new companies were born during this period, and
these dynamic companies were getting an especially warm reception in the
initial public offering arena. We owned a number of these issues. Second, in
an economic environment of positive growth, accompanied with a rising dollar,
the companies in which we invest tend to perform relatively better than the
large, U.S.-based multinationals that comprise a large part of the S&P 500
Index. Last, after two years of relative dormancy in the small cap
marketplace, our style of investing re-emerged into fashion. By the end of
the second quarter, however, it became apparent to us that the investment
landscape may once again have shifted. Technology, health care and recent IPO
darlings were unceremoniously dumped. Of course, wholesale liquidation
provides opportunities, and we will be, as usual, vigilant in uncovering
oversold situations in the coming months.
From the beginning of the year, your managers have been reducing the
weighting in technology, where a lot of the excitement had occurred, but
where a lot of the recent earnings disappointments and reality checks have
been centered. We remain enthusiastic about McAfee Associates, a utility
software company; Vanstar, a systems integrator, and PictureTel, a supplier
of video conferencing equipment. We had redeployed some of the proceeds from
technology into the healthcare sector in order to seek the growth in earnings
usually attributed to technology. Stocks that we continue to like are Mentor,
a plastic surgery products company, Universal Health Services, Cl.B, a
hospital management company, and CorVel, a healthcare information systems
company.
We continue to be sanguine as to the health of the industrial economy in
the U.S. and abroad. Companies in the materials and processing sectors that
we are enthusiastic about include Cambrex, which sells bulk additives to the
pharmaceutical industry, Culligan Water Technologies, and USA Waste Service.
Machinery stocks we favor include Albany International, Cl.A, the dominant
worldwide manufacturer of paper machine clothing; Titan Wheel International,
a manufacturer of wheels and tires; and Keystone International, a producer of
valves for fluid handling. As a sector approach to global markets, a major
theme continues to be commercial aerospace, where the suppliers to the
largest U.S. export company, Boeing, are small cap firms. The Portfolio owns
Rohr, Coltec Industries, Thiokol, and Crane.
Capital goods stocks have outperformed consumer stocks for the past two
years. We expect this trend to continue and therefore continue to underweight
the consumer segment of the economy. Still, there are always exceptions.
These exceptions include Tiffany & Co. and Stein Mart. Meredith. is a
publishing favorite.
As the interest rate outlook remains uncertain, we think a continued
underweighting in financial services is appropriate. The exception here,
however, is niche insurance companies. Although characterized as interest
rate-sensitive, we believe their growth prospects transcend the macroeconomic
environment. Examples include Everest Reinsurance Holdings, FINOVA Group,
Executive Risk and Frontier Insurance Group.
The workhorse sector of the Portfolio has been the energy companies. Our
early and contrary commitment to this sector has added value to your
Portfolio in almost every month of 1996. Names we like are exploration and
production companies Parker & Parsley Petroleum, Devon Energy, Ranger Oil and
Cairn Energy U.S.A, as well as Global Industries, an offshore energy
construction corporation. We look for even better things to come from this
sector for the balance of the year.
As we conclude, it has once again become fashionable to spend a great
deal of time and energy trying to forecast macroeconomics and Federal Reserve
policy. We want to assure the shareholders of the Small Cap Portfolio that we
will not be participants in this current vogue. We know from experience that
good, consistent long-term performance comes from uncovering companies with
good business fundamentals at reasonable valuations. We will not stray from
this pursuit.
We thank you for your interest. You may be sure we will exert our best
efforts on your behalf.
Sincerely,
[ Thomas A. Frank signature logo]
Thomas A. Frank
Portfolio Manager
July 17, 1996
New York, N.Y.

* Total return includes reinvestment of dividends and any capital gains
paid. The Portfolio's performance does not reflect the deduction of
additional charges imposed in connection with investing in variable annuity
contracts and variable life insurance policies.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Russell 2000 Index is a widely accepted unmanaged index of small cap stock
performance. The Standard & Poor's 500 Composite Stock Price Index is a
widely accepted unmanaged index of stock market performance.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
STATEMENT OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS-91.9% SHARES VALUE
_______ _______
<S> <C> <C>
CONSUMER-12.9% Bush Boake Allen..........................(a) 97,500 $2,120,625
Canandaigua Wine, Cl. A...................(a) 230,000 6,900,000
Designer Holdings............................ 62,000 1,650,750
Genovese Drug Stores, Cl. A.................. 77,000 654,500
Meredith..................................... 150,000 6,262,500
Metromedia International Group............(a) 215,000 2,633,750
Outboard Marine.............................. 325,000 5,890,625
Party City................................... 100,000 1,775,000
Scholastic................................(a) 125,000 7,750,000
Sensormatic Electronics...................... 300,000 4,912,500
Station Casinos...........................(a) 550,000 7,906,250
Stein Mart................................(a) 237,000 4,325,250
Sun International Hotels..................... 240,000 11,640,000
TCA Cable TV................................. 232,500 7,033,125
Talbots...................................... 215,000 6,960,625
Thermedics................................(a) 250,000 6,250,000
Thomas Nelson................................ 125,000 1,671,875
Tiffany & Co................................. 110,000 8,030,000
Warnaco Group, Cl. A......................... 335,000 8,626,250
____________
102,993,625
____________
ENERGY-6.4% Cairn Energy USA..........................(a) 600,000 8,625,000
Core Laboratories, N.V....................(a,b) 502,000 7,279,000
Devon Energy................................. 300,000 7,350,000
Global Industries.........................(a) 320,000 9,520,000
Parker & Parsley Petroleum................... 380,000 10,545,000
Ranger Oil................................... 1,100,000 8,112,500
____________
51,431,500
____________
FINANCIAL SERVICES-17.2% ACE.......................................... 115,000 5,405,000
Alexander & Alexander Services............... 300,000 5,925,000
Bank Plus ................................... 350,000 3,062,500
Capital Re................................... 149,700 5,501,475
CapMAC Holdings.............................. 152,800 4,354,800
Center Financial............................. 250,000 6,039,062
Charter One Financial........................ 150,000 5,231,250
D & N Financial...........................(a) 252,500 3,535,000
Dime Bancorp..............................(a) 401,000 5,213,000
Duff & Phelps Credit Rating...............(b) 340,000 7,225,000
Enhance Financial Services Group............. 278,800 7,806,400
Everest Reinsurance Holdings................. 250,000 6,468,750
Executive Risk............................... 215,000 8,223,750
FINOVA Group................................. 145,000 7,068,750
Frontier Insurance Group..................... 172,500 5,951,250
GCR Holdings................................. 165,000 4,372,500

DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ _______

FINANCIAL SERVICES
(CONTINUED) Hibernia, Cl. A.............................. 550,000 $ 5,981,250
National Re.................................. 230,500 8,701,376
Presidential Life............................ 375,000 3,890,625
Profit Recovery Group International.......... 225,000 4,556,250
Reliance Group Holdings...................... 700,000 5,250,000
Standard Federal Bancorporation.............. 130,000 5,005,000
Terra Nova (Bermuda) Holdings, Cl. A......... 176,500 2,824,000
Western National............................. 540,000 9,922,500
____________
137,514,488
____________
HEALTH CARE-12.3% ARV Assisted Living.......................... 166,000 2,573,000
American Medical Response.................(a) 200,000 7,050,000
AmeriSource Health, Cl. A.................(a) 125,000 4,156,250
Apria Healthcare Group....................(a) 125,000 3,921,875
Assisted Living Concepts..................(a) 92,000 1,886,000
Ballard Medical Products..................... 200,000 3,825,000
Bone Care International...................... 75,000 487,500
ChiRex....................................... 341,400 3,926,100
CorVel....................................(a) 178,000 6,363,500
Emeritus..................................(a) 100,000 1,762,500
GMIS......................................(a) 280,000 3,360,000
Guidant...................................... 100,000 4,925,000
Guilford Pharmaceuticals..................(a) 175,000 4,156,250
Lunar.....................................(a) 175,000 6,037,500
Mentor....................................... 550,000 14,025,000
ONCOR.....................................(a) 560,200 3,081,100
OccuSystems...............................(a) 125,000 4,671,875
Quantum Health Resources..................(a) 275,000 4,675,000
SangStat Medical..........................(a) 100,000 1,700,000
Sterling House............................... 80,000 1,520,000
Total Renal Care Holdings.................... 129,300 5,462,925
Universal Health Services, Cl. B..........(a) 340,000 8,882,500
____________
98,448,875
____________
MATERIALS &
PROCESSING-14.9% AES.......................................(a) 25,000 706,250
Cambrex...................................(a) 185,000 9,458,125
Crane ....................................... 165,000 6,765,000
Crompton & Knowles........................... 500,000 8,375,000
Culligan Water Technologies.................. 275,000 10,450,000
Donna Karan International.................... 73,000 2,044,000
Freeport McMoRan............................. 219,998 7,809,929
IMCO Recycling............................... 323,500 5,823,000
International Specialty Products..........(a) 330,000 3,630,000

DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ _______

MATERIALS &
PROCESSING (CONTINUED) Jacobs Engineering Group..................(a) 110,000 $ 2,901,250
Longview Fibre............................... 225,000 3,825,000
Minerals Technologies........................ 100,000 3,425,000
OM Group..................................... 165,000 6,476,250
Pride Petroleum Services..................(a) 225,000 3,206,250
Reliance Steel & Aluminum.................... 90,000 3,285,000
Rexene....................................... 540,000 5,332,500
Santa Fe Pacific Gold........................ 512,500 7,239,062
Sterling Chemicals........................(a) 345,000 4,010,625
Strategic Distribution....................(a) 900,000 7,087,500
USA Waste Service.........................(a) 300,000 8,887,500
Uniroyal Chemical.........................(a) 300,000 4,462,500
VWR Scientific Products...................... 250,000 4,000,000
____________
119,199,741
____________
PRODUCER DURABLES-9.9% Albany International, Cl. A................... 335,000 7,579,375
Applied Extrusion Technologies.............(a) 250,000 3,187,500
Avondale Industries........................(a) 402,000 7,236,000
Coltec Industries..........................(a) 700,000 9,975,000
Huntco, Cl. A................................. 300,000 5,550,000
Keystone International........................ 290,000 6,017,500
MagneTek...................................(a) 439,000 4,225,375
Manitowoc..................................... 100,000 3,587,500
Precision Castparts........................... 170,000 7,310,000
Rohr.......................................(a) 425,000 8,871,875
Stewart & Stevenson Services.................. 275,000 6,256,250
Titan Wheel International..................... 365,000 5,840,000
Watts Industries, Cl. A....................... 200,000 3,725,000
____________
79,361,375
____________
TECHNOLOGY-15.9% Aspect Telecommunications..................(a) 175,000 8,662,500
Auspex Systems.............................(a) 350,000 5,250,000
Edify......................................... 200,000 5,300,000
GT Interactive Software....................... 175,000 2,931,250
Gensym.....................................(b) 362,500 7,975,000
IDX Systems................................... 200,000 7,800,000
IMNET Systems................................. 200,000 6,100,000
Individual.................................... 170,000 2,805,000
Interphase.................................(a) 213,000 3,301,500
Learning Tree International................... 135,000 4,151,250
McAfee Associates..........................(a) 185,000 9,065,000
NICE-Systems, A.D.R........................... 250,000 4,750,000
Open Market................................... 180,000 4,387,500
PictureTel.................................(a) 225,000 8,859,375

DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ _______

TECHNOLOGY (CONTINUED) Security Dynamics Technologies.............(a) 55,000 $ 4,523,750
Thiokol....................................... 235,000 9,282,500
Toolex Alpha, N.V............................. 212,000 5,088,000
Vanstar....................................... 500,000 8,375,000
Veeco Instruments..........................(a) 190,000 2,683,750
VideoServer................................(a) 200,000 7,800,000
Xircom.....................................(a) 550,000 8,112,500
____________
127,203,875
____________
TRANSPORT & AUTOS-.5% Kansas City Southern Industries................ 90,000 3,858,750
____________
UTILITIES-1.9% Boston Communications Group.................... 310,000 5,115,000
ICT Group..................................... 245,500 4,725,875
McLeod, Cl. A................................. 240,000 5,760,000
____________
15,600,875
____________
TOTAL COMMON STOCKS
(cost $617,099,235)......................... $735,613,104
=============

PRINCIPAL
SHORT-TERM INVESTMENTS-10.7% AMOUNT
_____________
U.S. TREASURY BILLS: 4.95%, 7/25/96................................ $ 20,304,000 $ 20,235,169
4.96%, 8/1/1996............................... 8,361,000 8,324,462
5.05%, 8/22/96................................ 23,731,000 23,553,967
5.03%, 9/12/96................................ 2,433,000 2,407,502
5.10%, 9/19/96................................ 11,030,000 10,902,824
5.11%, 10/3/96................................ 20,412,000 20,137,255
____________
TOTAL SHORT-TERM INVESTMENTS
(cost $85,572,816).......................... $ 85,561,179
==============
TOTAL INVESTMENTS (cost $702,672,051).............................................. 102.6% $821,174,283
======= ==============
LIABILITIES, LESS CASH AND RECEIVABLES............................................. (2.6%) $ (20,549,632)
======= ==============
NET ASSETS......................................................................... 100.0% $800,624,651
======= ==============

NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Investments in non-controlled affiliates (cost $14,557,280)-see Note
2(d).

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $702,672,051)-see statement..................................... $821,174,283
Cash.................................................................... 5,424,998
Receivable for investment securities sold............................... 4,129,320
Dividends and interest receivable....................................... 305,052
Prepaid expenses........................................................ 4,332
______________
831,037,985
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 499,272
Payable for investment securities purchased............................. 29,779,788
Accrued expenses........................................................ 134,274 30,413,334
____________ _____________
NET ASSETS.................................................................. $800,624,651
==============
REPRESENTED BY:
Paid-in capital......................................................... $654,826,339
Accumulated undistributed investment income-net......................... 882,268
Accumulated undistributed net realized gain on investments.............. 26,413,812
Accumulated net unrealized appreciation on investments-Note 5(b)........ 118,502,232
______________
NET ASSETS at value, applicable to 15,683,513 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized)........................................................ $800,624,651
===============
NET ASSET VALUE, offering and redemption price per share
($800,624,651 / 15,683,513 shares)...................................... $51.05
======

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends:
Unaffiliated issuers.............................................. $ 2,053,961
Affiliated issuers................................................ 19,050 $ 2,073,011
__________
Interest.............................................................. 1,490,631
_____________
TOTAL INCOME.................................................... 3,563,642
EXPENSES:
Investment advisory fee-Note 4(a)..................................... 2,480,105
Registration fees..................................................... 66,106
Professional fees..................................................... 48,581
Custodian fees-Note 4(a).............................................. 36,787
Trustees' fees and expenses-Note 4(b)................................. 14,375
Prospectus and shareholders' reports.................................. 922
Shareholder servicing costs........................................... 357
Miscellaneous......................................................... 1,009
__________
TOTAL EXPENSES.................................................. 2,648,242
_____________
INVESTMENT INCOME-NET........................................... 915,400
_____________
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 5(a):
Long transactions:
Unaffiliated issuers.............................................. $22,452,553
Affiliated issuers................................................ 267,008
__________
NET REALIZED GAIN..................................................... 22,719,561
Net unrealized appreciation on investments:
Unaffiliated issuers.............................................. 34,759,808
Affiliated issuers................................................ 7,239,883 41,999,691
__________ ____________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 64,719,252
_____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $65,634,652
=============

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1996
1995 (UNAUDITED)
____________ __________
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................. $ 1,890,946 $ 915,400
Net realized gain on investments....................................... 15,353,990 22,719,561
Net unrealized appreciation on investments for the period.............. 70,759,767 41,999,691
_____________ _____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. 88,004,703 65,634,652
_____________ _____________
DIVIDENDS TO SHAREHOLDERS:
From investment income-net............................................. (1,926,351) -
In excess of investment income-net..................................... (33,132) -
From net realized gain on investments.................................. (10,361,085) -
_____________ _____________
TOTAL DIVIDENDS...................................................... (12,320,568) -
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.......................................... 299,512,811 208,945,885
Dividends reinvested................................................... 12,320,568 -
Cost of shares redeemed................................................ (17,451,351) (17,237,050)
_____________ _____________
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS......... 294,382,028 191,708,835
_____________ _____________
TOTAL INCREASE IN NET ASSETS..................................... 370,066,163 257,343,487
NET ASSETS:
Beginning of period.................................................... 173,215,001 543,281,164
_____________ _____________
End of period [including distributions in excess of investment
income-net; ($33,132) in 1995 and undistributed
investment income-net; $882,268 in 1996]............................. $543,281,164 $800,624,651
============= ==============

SHARES SHARES
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 7,174,006 4,260,105
Shares issued for dividends reinvested................................. 274,387 -
Shares redeemed........................................................ (413,128) (354,915)
_____________ _____________
NET INCREASE IN SHARES OUTSTANDING................................... 7,035,265 3,905,190
============= ==============

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Series' financial statements.

SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1996
________________________________________________________
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
______ ______ ______ ______ ______ ____________
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $10.21 $20.60 $22.71 $34.45 $36.52 $46.13
______ ______ ______ ______ ______ ________
INVESTMENT OPERATIONS:
Investment income-net................. .14(1) .18(1) .14 .17 .16 .06
Net realized and unrealized gain
on investments...................... 15.85(1) 13.10(1) 14.93 2.50 10.54 4.86
______ ______ ______ ______ ______ ________
TOTAL FROM INVESTMENT OPERATIONS 15.99(1) 13.28(1) 15.07 2.67 10.70 4.92
_______ ______ ______ ______ ______ ________
DISTRIBUTIONS:
Dividends from investment income-net.. (.15) (.15) (.14) (.16) (.18) -
Dividends in excess of
investment income-net.......... - - (.01) - - -
Dividends from net realized gain
on investments...................... (5.45) (11.02) (3.18) (.33) (.91) -
Dividends in excess of net realized gain
on investments...................... - - - (.11) - -
______ ______ ______ ______ ______ ________
TOTAL DISTRIBUTIONS................. (5.60) (11.17) (3.33) (.60) (1.09) -
______ ______ ______ ______ ______ ________
Net asset value, end of period........ $20.60 $22.71 $34.45 $36.52 $46.13 $51.05
====== ====== ======= ====== ======= ========
TOTAL INVESTMENT RETURN................... 159.73% 71.28% 68.31% 7.75% 29.38% 10.67%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.16% .94% .25% .55% .83% .40%(2)
Ratio of net investment income to
average net assets.................. .77% .76% .89% 1.18% .54% .14%(2)
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation............ 3.64% 2.29% 1.79% .52% - -
Portfolio Turnover Rate............... 388.70% 358.27% 244.59% 106.00% 99.02% 45.13%(2)
Average commission rate paid(3)....... - - - - - $.0579
Net Assets, end of period (000's Omitted) $1,554 $2,679 $18,337 $173,215 $543,281 $800,625
(1) Based on average shares outstanding.
(2) Not annualized.
(3) For fiscal years beginning January 1, 1996, the Series is reqiured to
disclose its average commission rate paid per share for purchases and
sales of investment securities.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-GENERAL:
Dreyfus Variable Investment Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as an open-end management investment
company, operating as a series company currently offering eleven series,
including the Small Cap Portfolio (the "Series") and is intended to be a
funding vehicle for variable annuity contracts and variable life insurance
policies to be offered by the separate accounts of life insurance companies.
The Series is a diversified portfolio. The Series' investment objective is to
maximize capital appreciation. The Dreyfus Corporation ("Dreyfus") serves as
the Series' investment adviser. Dreyfus is a direct subsidiary of Mellon
Bank, N.A. ("Mellon"). Premier Mutual Fund Services, Inc. acts as the
distributor of the Series' shares, which are sold without a sales charge.
The Fund currently functions as the funding vehicle for the Dreyfus
Series 2000 Variable Annuity Contract (the "Account") issued by Mutual
Benefit Life Insurance Company ("Mutual Benefit Life"). On July 16, 1991, the
Superior Court of New Jersey entered an Order (the "Order") appointing the
New Jersey Insurance Commissioner as Rehabilitator of Mutual Benefit Life.
The Commissioner was granted immediate exclusive possession and control of,
and title to, the business and assets of Mutual Benefit Life, including the
assets and liabilities of the Account.
The Commissioner was empowered by the Order to take such steps as he
deemed appropriate toward removing the cause and conditions that made
rehabilitation necessary. On January 15, 1993, the Commissioner filed the
First Amended Plan of Rehabilitation ("Plan") with the Court. The Plan
stipulated that the assets and liabilities of the Account would be
transferred to a separate account of MBL Life Assurance Corporation
("MBLLAC"), a wholly-owned subsidiary of Mutual Benefit Life. The Plan also
provided for the transfer of the ownership of the stock of MBLLAC to a Trust.
The Commissioner was designated as the sole Trustee of the Trust. On August
12, 1993, the Court rendered an opinion approving the Plan with certain
modifications. Two subsequent amendments to the Plan were filed and approved
by the Court. None of the modifications or amendments affected the status of
the Account. On November 10, 1993, the Court issued an Order of Confirmation
permitting the implementation of the Plan.
An order was also issued by the Court on January 28, 1994 approving the
form of the Third Amended Plan of Rehabilitation, the Election Materials and
related documents. On April 29, 1994, the Plan was implemented. Substantially
all of the assets of Mutual Benefit Life were transferred to MBLLAC which
assumed and reinsured Mutual Benefit Life's restructured insurance
liabilities. The stock of MBLLAC was assigned to the Stock Trust and the
Commissioner was designated as Trustee.
In view of the terms and conditions of both the Order and the Plan,
applications for new contracts and additional purchase payments under
existing contracts are currently not being accepted by the Account. The terms
of the Order and the Plan permit redemptions from the Account to continue as
requested.
The proceedings of the New Jersey Insurance Commissioner with respect to
Mutual Benefit Life or the Account do not apply to the separate accounts of
other life insurance companies that may use the Fund as a funding vehicle for
contracts or policies issued by them.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.

DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(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 Trustees.
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 Series 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, the difference between
the amounts of dividends, interest and foreign withholding taxes recorded on
the Series' 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 recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(D) AFFILIATED ISSUERS: Issuers in which the Series held 5% or more of
the outstanding voting securities are defined as "affiliated" in the Act.
(E) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Series may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. This may result in distributions
that are in excess of investment income-net and net realized gain on a fiscal
year basis. To the extent that net realized capital gain can be offset by
capital loss carryovers, if any, it is the policy of the Series not to
distribute such gain.
(F) FEDERAL INCOME TAXES: It is the policy of the Series 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 Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 3-BANK LINE OF CREDIT:
The Series participates in a $100 million unsecured line of credit
provided by The Bank of New York, primarily for temporary or emergency
purposes, including the meeting of redemption requests that
DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
otherwise might require the untimely disposition of securities. Interest is
payable at the Federal Funds rate plus .50% on an annualized basis. For the
period ended June 30, 1996, the Series did not borrow under the line of
credit.
NOTE 4-INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to an Investment Advisory Agreement ("Agreement") with
Dreyfus, the investment advisory fee is computed at the annual rate of .75 of
1% of the value of the Series' average daily net assets and is payable
monthly. The Agreement provides that if in any full year the aggregate
expenses of the Series, exclusive of taxes, brokerage, interest on borrowings
(which in the view of Stroock & Stroock & Lavan, counsel to the Fund, also
contemplates dividends on securities sold short), and extraordinary expenses,
exceed the expense limitation of any state having jurisdiction over the
Series, the Series may deduct from the payments to be made to Dreyfus, or
Dreyfus will bear the amount of such excess to the extent required by state
law. There was no expense reimbursement for the six months ended June 30,
1996.
The Series compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary
of Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Series.
Effective May 10, 1996, the Series entered into a custody agreement with
Mellon to provide custodial services for the Series. During the period from
May 10, 1996 through June 30, 1996, $4,611 was paid to Mellon pursuant to the
custody agreement.
(B) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 5-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 six months ended June 30, 1996:
<TABLE>
<CAPTION>

PURCHASES SALES
_____________ ___________
<S> <C> <C>
Long transactions:
Unaffiliated issuers........................................... $455,275,496 $277,103,742
Affiliated issuers............................................. 2,484,854 656,440
Short sale transactions.......................................... 2,258,200 2,258,200
______________ ______________
TOTAL.......................................................... $460,018,550 $280,018,382
============= ==============
</TABLE>
The Series is engaged in short-selling which obligates the Series to
replace the security borrowed by purchasing the security
at current market value. The Series would incur a loss if the price of the
security increases between the date of the short sale and the date on which
the Series replaces the borrowed security. The Series would realize a gain if
the price of the security declined between those dates. Until the Series
replaces the borrowed security, the Series will maintain daily, a segregated
account with a broker and custodian of cash and/or U.S. Government securities
sufficient to cover its short position. At June 30, 1996, there were no
securities sold short outstanding.
(B) At June 30, 1996, accumulated net unrealized appreciation on
investments was $118,502,232, consisting of $135,212,105 gross unrealized
appreciation and $16,709,873 gross unrealized depreciation.
At June 30, 1996, 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).

DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Variable Investment Fund,
Small Cap Portfolio (one of the series constituting the Dreyfus Variable
Investment Fund), as of June 30, 1996, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended June 30, 1996. These financial statements and financial
highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1995 and financial highlights for each of the five years in the
period ended December 31, 1995 and in our report dated February 9, 1996 we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.

[Ernst & Young LLP signature logo]

New York, New York
July 30, 1996

[Dreyfus lion "d" logo]
DREYFUS VARIABLE INVESTMENT FUND,
SMALL CAP PORTFOLIO
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
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. 121SA966
[Dreyfus logo]
Variable
Investment Fund,
SMALL CAP PORTFOLIO
Semi-Annual Report
June 30, 1996

DREYFUS VARIABLE INVESTMENT FUND, SMALL COMPANY STOCK PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
It is a pleasure to introduce James C. Wadsworth, the manager of the
Small Company Stock Portfolio of Dreyfus Variable Investment Fund. This
Portfolio had its inception on April 30, 1996, under Jim Wadsworth's
guidance.
Jim, who is First Vice President and Chief Equity Officer for Mellon Bank
Corporation, our corporate associate, joined Mellon in 1977. He has served
successively as equity security analyst, investment officer, assistant vice
president, vice president and director of investment research. In addition to
managing this portfolio, Jim Wadsworth also manages several of our other
equity mutual funds. He is a graduate of Muskingum College and holds a
Masters degree in finance and investments from the University of Michigan. He
is also a Chartered Financial Analyst.
We have great confidence in Jim Wadsworth's ability to manage equity
securities on your behalf.
Sincerely,

[Stephen E. Canter signature logo]

Stephen E. Canter
Chief Investment Officer
The Dreyfus Corporation

DREYFUS VARIABLE INVESTMENT FUND, SMALL COMPANY STOCK PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to send you this first report on Dreyfus Variable
Investment Fund - Small Company Stock Portfolio. This Portfolio commenced
operations April 30, 1996. Accordingly, this report for the Portfolio's first
semi-annual fiscal period ended June 30, 1996, covers just two months of
Portfolio operations.
As it happens, the two-month period was one of market pressures on small
company stocks, which had previously enjoyed a very sharp rise in average
valuations. Nonetheless, the Portfolio in this brief time performed roughly
in line with its benchmark stock index, the Russell 2500 Stock Index. For the
two months ended June 30, 1996, the Portfolio's total return was -0.48%,*
compared to -0.44% for the Russell 2500 Stock Index.**
ECONOMIC ENVIRONMENT
The U.S. economy appears to be rebounding in 1996 following its midcycle
growth slowdown of last year, yet overall corporate profit growth is slowing
this year. Although actual inflation remains steady, faster economic growth
has reignited fears of higher future inflation. This has pushed bond yields
higher and built expectations for a Federal Reserve Board tightening in
coming months. This year is the sixth expansion year for this business cycle,
and we believe that it will prove a long cycle.
Economic growth has accelerated since year-end. The first quarter's 2.3%
real Gross Domestic Product growth comprised a demand rebound that depleted
inventories. Even stronger second quarter growth is apparent, led by
manufacturers' attempts to rebuild inventories. In tandem, steady job
creation continues to support growth in consumer incomes and spending. As
yet, there are few indications of economic cooling. Some previously strong
capital goods sectors may now be slowing, but overall economic growth is
broadening to more industries. Despite better economic performance this year
than last, profit growth may have peaked last year.
Non-oil price inflation has remained tame this year, although surging oil
prices boosted overall inflation temporarily this spring. Nevertheless, signs
of a faster economic pace have reignited fears of higher future inflation,
especially coming from upward pressure on wages as the labor market tightens.
Thus, bond yields have risen substantially this year. Short-term market rates
are also higher on expectations for Federal Reserve tightening in coming
months. So far, long-term rates have risen much more than short-term rates,
forcing the yield curve to steepen. A steep yield curve is usually supportive
of sustained growth in the real economy.
As we look forward, the question arises whether the higher interest rates
already in place and those in prospect will effectively cool the economy. At
present, however, any advance signs of an eventual cooling off in the economy
are hard to discern. The preoccupation at present is with the economy's
impressive strength, and the problems such growth could create.
MARKET OVERVIEW
The broad trend of the stock market was strongly upward during the six
months under review. However, there were many crosscurrents at work. Not all
stock groups benefited equally. The blue chips in the Dow Jones Industrial
Average enjoyed solid advances for the six months, as did the broader market
as represented by the Nasdaq Composite Index and the Standard & Poor's 500
Composite Stock Price Index. However, as spring turned into summer,
technology stocks began to lag, and small capitalization stocks were unable
to maintain the very fast growth pace of earlier months.
From time to time, unexpected signs of economic strength, particularly
employment and unemployment numbers, jolted the equity markets with the fear
of renewed inflation. Especially in the latter part of the half-year, concern
about inflation and higher interest rates restrained market performance in a
number of industry categories.
Profits, always a major element in stock performance, continued strong
for a good part of the period. However, fear of rising labor costs and
intensified competition at home and abroad have cast some shadows over the
profit outlook. This has been balanced, however, by the very large sum of
money that continues to be invested in equity mutual funds, much of it from
people planning for their retirement.
As the half-year ended, broad market averages were still solidly above
where they stood when the year began. This, however, was prior to the
downdraft in stock prices that occurred in mid-July.
PORTFOLIO FOCUS
The Portfolio invests primarily in a diversified, higher risk group of
domestic and foreign common stocks of small to medium-sized companies, having
a market capitalization generally ranging from $100 million to $1.5 billion
in value, which offer reasonable expectations of above-average intermediate
to long-term growth of principal value. Also, investment in initial public
offerings of stocks will occasionally be made when it is determined that such
an offering may provide an above-average appreciation opportunity. In
general, industry investments are similar to the Russell 2500 Stock Index.
The selection, retention and elimination of individual common stocks is based
on a series of valuation models and research analysis enhancements. The
investment objective is to exceed the total return performance of the Russell
2500 Stock Index while maintaining a similar level of risk.
The Portfolio has performed in line with the benchmark for the two-month
period since inception on April 30, 1996. A few IPO investments were made,
but their contribution to performance was inconsequential in that they added
just five basis points. Investment in smaller capitalization stocks entails
risk along with the opportunity for reward. The Portfolio uses an investment
process that historically has been uniquely successful in consistently
outperforming its benchmark.
Our investment policy is based on taking a long-term view of the markets,
and judging success in terms of years rather than over a few months' time.
From experience, we know that time rewards the patient investor.
Please be assured that we will exert our very best efforts to bring you
rewarding returns on the assets you have confided to this Portfolio.
Sincerely,
[James C. Wadsworth signature logo]
James C. Wadsworth
Portfolio Manager
July 22, 1996
New York, N.Y.

* Total return includes reinvestment of dividends and any capital gains
paid. The Portfolio's performance does not reflect the deduction of
additional charges imposed in connection with investing in variable annuity
contracts and variable life insurance policies.
**Source: Frank Russell Company. Reflects the reinvestment of income
dividends and where applicable capital gain distributions. The Russell 2500
Stock Index is a widely accepted measure of small cap stock performance.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, SMALL COMPANY STOCK PORTFOLIO
STATEMENT OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS-78.8% SHARES VALUE
______ ______
<S> <C> <C>
BASIC INDUSTRIES-5.0% ACX Technologies....................... 1,650 (a) $ 32,794
American Buildings..................... 600 (a) 17,550
AptarGroup............................. 700 21,175
Arcadian............................... 1,900 37,525
Cabot.................................. 1,800 44,100
Caraustar Industries................... 950 25,175
Clayton Homes.......................... 2,650 53,000
Cytec Industries....................... 850 (a) 72,675
Medusa................................. 850 26,350
Sealed Air............................. 600 (a) 20,175
Triangle Pacific....................... 850 (a) 16,787
_________
367,306
_________
BUSINESS SERVICES-6.8% Analysts International................. 600 25,200
Heritage Media, Cl. A.................. 850 (a) 33,894
Humingbird Communications.............. 850 (a) 25,925
Mutual Risk Management................. 1,933 60,406
NetManage.............................. 1,550 (a) 17,050
PHH.................................... 700 39,900
Philip Environmental................... 4,900 (a) 38,588
Pittston Brinks Group.................. 2,050 59,706
Regis.................................. 1,275 39,844
Sotheby's Holdings, Cl. A.............. 2,000 29,000
Sterling Software...................... 950 (a) 73,150
SunGard Data Systems................... 1,300 (a) 52,162
_________
494,825
_________
CAPITAL GOODS-14.9% AGCO................................... 1,900 52,725
AMETEK................................. x1,300 28,275
Adaptec................................ 1,100 (a) 52,112
Altron................................. 1,450 (a) 29,363
Amphenol, Cl. A........................ 1,350 (a) 31,050
Atmel.................................. 1,900 (a) 57,238
CIDCO.................................. 1,100 (a) 38,775
Cognex................................. 950 (a) 15,319
Colonial Data Technologies............. 2,500 (a) 37,187
Cypress Semiconductor.................. 2,600 (a) 31,200
Dallas Semiconductor................... 1,050 19,031
ECI Telecom............................ 1,300 30,225
Electroglas............................ 950 (a) 13,538
Electronics For Imaging................ 1,750 (a) 121,406
Elsag Bailey Process Automation, N.V... 1,650 (a) 44,138
Gateway 2000........................... 950 (a) 32,300
Hadco.................................. 950 (a) 20,425
In Focus Systems....................... 700 (a) 16,975

DREYFUS VARIABLE INVESTMENT FUND, SMALL COMPANY STOCK PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______

CAPITAL GOODS (CONTINUED) Kennametal............................. 950 $ 32,300
Network Equipment Technologies......... 950 (a) 20,187
Plantronics............................ 600 (a) 22,050
Quanex................................. 1,300 30,713
Read-Rite.............................. 1,300 (a) 18,362
Rohr................................... 1,200 (a) 25,050
Silicon Valley Group................... 2,400 (a) 45,000
Tech Data.............................. 1,550 (a) 33,713
Tellabs................................ 1,350 (a) 90,281
Thermedics............................. 950 (a) 23,750
Thiokol................................ 500 19,750
Wyle Electronics....................... 1,050 34,781
Zebra Technologies, Cl. A.............. 1,300 (a) 23,075
________
1,090,294
________
CONSUMER CYCLICAL-15.1% Apple South............................ 1,100 29,425
Borg-Warner Automotive................. 850 33,575
Clear Channel Communications........... 600 (a) 49,425
CompUSA................................ 2,150 (a) 73,369
Devon Group............................ 850 (a) 27,625
Eckerd................................. 2,150 (a) 48,644
Fila Holdings ADS...................... 600 51,750
Fingerhut.............................. 1,900 29,688
Gentex................................. 1,700 (a) 33,150
Harman International................... 700 34,475
Haverty Furniture...................... 1,650 16,912
Infinity Broadcasting, Cl. A........... 1,700 (a) 51,000
Interface, Cl. A....................... 1,550 24,025
Intimate Brands, Cl. A................. 850 19,444
Luby's Cafeterias...................... 850 19,975
Regal Cinemas.......................... 1,250 (a) 57,187
Rex Stores............................. 1,300 (a) 19,988
Reynolds & Reynolds, Cl. A............. 500 26,625
Richfood Holdings...................... 1,550 50,375
Ruby Tuesday........................... 100 2,263
Ryan's Family Steak House.............. 2,650 (a) 24,512
Scholastic............................. 400 (a) 24,800
Sports Authority....................... 1,000 (a) 32,750
Staples................................ 1,800 (a) 35,100
Sturm Ruger............................ 450 20,925
Tommy Hilfiger......................... 850 (a) 45,581
Toro................................... 600 19,875
Vanguard Cellular Systems.............. 1,650 (a) 35,888
Waban.................................. 1,300 (a) 31,037
Wallace Computer Services.............. 700 41,825

DREYFUS VARIABLE INVESTMENT FUND, SMALL COMPANY STOCK PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______

CONSUMER CYCLICAL (CONTINUED) Warnaco Group, Cl. A................... 1,700 $ 43,775
Winnebago Industries................... 2,000 16,500
Zale................................... 1,550 (a) 26,156
__________
1,097,644
__________
CONSUMER STAPLES-2.5% IBP.................................... 2,250 62,156
Ionics................................. 400 (a) 18,800
Morningstar Group...................... 2,650 (a) 29,482
Paragon Trade Brands................... 850 (a) 18,275
Robert Mondavi, Cl. A.................. 1,100 (a) 34,650
Ultratech Stepper...................... 1,100 (a) 20,625
__________
183,988
__________
ENERGY-5.0% Benton Oil & Gas....................... 2,050 (a) 45,100
Cairn Energy USA....................... 1,900 (a) 27,313
Holly.................................. 750 18,750
KN Energy.............................. 750 25,125
Nabors Industries...................... 2,850 (a) 46,312
Pacific Enterprises.................... 2,050 60,731
Reading & Bates........................ 1,900 (a) 42,038
Smith International.................... 1,350 (a) 40,669
Valero Energy.......................... 1,100 27,500
WICOR.................................. 850 32,087
__________
365,625
__________
HEALTH CARE-7.7% AmeriSource Health, Cl. A.............. 1,400 (a) 46,550
Lincare Holdings....................... 1,500 (a) 58,875
Living Centers of America.............. 950 (a) 32,656
Mariner Health Group................... 1,800 (a) 33,075
NABI................................... 1,700 (a) 16,150
OrNda Healthcorp....................... 3,300 (a) 79,200
PacifiCare Health Systems, Cl. B....... 500 (a) 33,875
Rotech Medical......................... 1,600 (a) 31,200
Teva Pharmaceutical Industries, A.D.R.. 1,650 62,494
Universal Health Services, Cl. B....... 1,900 (a) 49,638
Vencor................................. 1,700 (a) 51,850
Vital Signs............................ 1,100 22,550
Vivra.................................. 1,300 (a) 42,737
__________
560,850
__________
INTEREST SENSITIVE-13.6% AMBAC.................................. 600 31,275
AMRESCO................................ 1,550 26,544
Advanta, Cl. B......................... 600 27,150
Bancorp Hawaii......................... 1,300 46,800
CMAC Investment........................ 1,200 69,000

DREYFUS VARIABLE INVESTMENT FUND, SMALL COMPANY STOCK PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______

INTEREST SENSITIVE (CONTINUED) California Federal Bancorp............. 1,300 (a) $ 23,725
Cash America International............. 2,000 13,000
City National.......................... 1,900 29,925
Conseco................................ 850 34,000
Crestar Financial...................... 950 50,707
Cullen Frost Bankers................... 1,400 38,850
Edwards (A.G.)......................... 1,050 28,481
First Tennessee National............... 1,200 36,750
Firstar................................ 950 43,819
Franchise Finance Corp. of America..... 1,200 27,600
Health Care Property Investors......... 1,050 35,438
Kimco Realty........................... 950 26,837
Mid Ocean.............................. 850 34,850
Money Store............................ 1,550 34,294
ONBANCorp.............................. 950 31,112
Old Kent Financial..................... 892 34,899
Old Republic International............. 1,400 30,100
People's Bank.......................... 1,900 42,275
RCSB Financial......................... 600 15,525
Reliance Group Holdings................ 3,200 24,000
Signet Banking......................... 2,050 47,663
Standard Federal Bancorporation........ 950 36,575
USLIFE................................. 1,100 36,162
United Companies Financial............. 1,050 35,700
__________
993,056
__________
MINING AND METALS-2.3% Brush Wellman.......................... 1,100 20,900
Cable Design Technologies.............. 850 (a) 27,837
Noble Drilling......................... 3,600 (a) 49,950
Pittston Minerals Group................ 1,200 15,750
Potash................................. 800 53,000
__________
167,437
__________
TRANSPORTATION-1.6% Air Express International.............. 600 16,950
America West Airlines, Cl. B........... 2,150 (a) 47,300
Illinois Central....................... 1,100 31,212
Pittston Burlington Group.............. 950 20,544
__________
116,006
__________
UTILITIES-4.3% CalEnergy.............................. 1,900 (a) 48,450
DQE.................................... 1,450 39,875
Frontier............................... 1,100 33,687
Illinova............................... 1,300 37,375
LCI International...................... 2,150 (a) 67,457

DREYFUS VARIABLE INVESTMENT FUND, SMALL COMPANY STOCK PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______

UTILITIES (CONTINUED) MidAmerican Energy..................... 2,250 $ 38,812
Pinnacle West Capital.................. 1,550 47,081
__________
312,737
__________
TOTAL COMMON STOCKS
(cost $5,871,757).................... $5,749,768
============

PRINCIPAL
SHORT-TERM INVESTMENTS-17.8% AMOUNT
________
U.S. TREASURY BILLS: 4.95%, 7/5/96.......................... $ 101,000 $ 100,927
5.355%, 7/25/96........................ 232,000 231,214
4.92%, 8/8/96.......................... 53,000 52,716
4.99%, 8/22/96......................... 81,000 80,396
5.05%, 9/12/96......................... 202,000 199,883
5%, 9/19/96............................ 641,000 633,609
__________
TOTAL SHORT-TERM INVESTMENTS
(cost $1,298,985).................... $1,298,745
============
TOTAL INVESTMENTS (cost $7,170,742)......................................... 96.6% $7,048,513
====== ============
CASH AND RECEIVABLES (NET).................................................. 3.4% $ 248,378
====== ============
NET ASSETS.................................................................. 100.0% $7,296,891
====== ============

NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, SMALL COMPANY STOCK PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $7,170,742)-see statement....................................... $7,048,513
Cash.................................................................... 269,597
Receivable for investment securities sold............................... 36,612
Dividends receivable.................................................... 3,790
____________
7,358,512
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 7,112
Payable for investment securities purchased............................. 46,800
Payable for shares of Beneficial Interest redeemed...................... 156
Accrued expenses........................................................ 7,553 61,621
__________ ____________
NET ASSETS ................................................................ $7,296,891
=============
REPRESENTED BY:
Paid-in capital......................................................... $7,383,489
Accumulated undistributed investment income-net......................... 9,785
Accumulated undistributed net realized gain on investments.............. 25,846
Accumulated gross unrealized (depreciation) on investments.............. (122,229)
______
NET ASSETS at value applicable to 586,434 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $7,296,891
======
NET ASSET VALUE, offering and redemption price per share
($7,296,891 / 586,434 shares)........................................... $12.44
===

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, SMALL COMPANY STOCK PORTFOLIO
STATEMENT OF OPERATIONS
FROM APRIL 30, 1996 (COMMENCEMENT OF OPERATIONS) TO JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Interest.............................................................. $ 12,243
Cash dividends (net of $99 foreign taxes withheld at source).......... 10,281
_____
TOTAL INCOME...................................................... $ 22,524
EXPENSES:
Investment advisory fee-Note 4(a)..................................... 8,080
Auditing fees......................................................... 4,000
Custodian fees-Note 4(a).............................................. 2,807
Registration fees..................................................... 2,546
Prospectus and shareholders' reports.................................. 500
Shareholder servicing costs........................................... 83
Legal fees............................................................ 57
Trustees' fees and expenses-Note 4(b)................................. 42
Miscellaneous......................................................... 328
_____
TOTAL EXPENSES.................................................. 18,443
Less-reduction in investment advisory fee
due to undertaking-Note 4(a)...................................... 5,704
_____
NET EXPENSES.................................................... 12,739
____
INVESTMENT INCOME-NET........................................... 9,785
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments-Note 5................................. $ 25,846
Net unrealized (depreciation) on investments............................ (122,229)
_____
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (96,383)
____
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $(86,598)
====

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, SMALL COMPANY STOCK PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
FROM APRIL 30, 1996 (COMMENCEMENT OF OPERATIONS) TO JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................. $ 9,785
Net realized gain on investments....................................... 25,846
Net unrealized (depreciation) on investments for the period............ (122,229)
______
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............... (86,598)
______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.......................................... 9,519,408
Cost of shares redeemed................................................ (2,135,919)
______
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS......... 7,383,489
______
TOTAL INCREASE IN NET ASSETS..................................... 7,296,891
NET ASSETS:
Beginning of period.................................................... -
______
End of period (including undistributed investment income-net;
$9,785 on June 30, 1996)............................................. $ 7,296,891
======

SHARES
______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 759,520
Shares redeemed........................................................ (173,086)
______
NET INCREASE IN SHARES OUTSTANDING................................... 586,434
======

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, SMALL COMPANY STOCK PORTFOLIO
FINANCIAL HIGHLIGHTS (UNAUDITED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for the period from April 30, 1996
(commencement of operations) to June 30, 1996. This information has been
derived from the Series' financial statements.
<S> <C>
PER SHARE DATA:
Net asset value, beginning of period........................................ $12.50
___
INVESTMENT OPERATIONS:
Investment income-net................................................... .02
Net realized and unrealized (loss) on investments....................... (.08)
___
TOTAL FROM INVESTMENT OPERATIONS...................................... (.06)
___
Net asset value, end of period.......................................... $12.44
===
TOTAL INVESTMENT RETURN..................................................... (.48%)*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................. .20%*
Ratio of net investment income to average net assets.................... .15%*
Decrease reflected in above expense ratio due to undertaking
by The Dreyfus Corporation............................................ .09%*
Portfolio Turnover Rate................................................. 13.25%*
Average commission rate paid............................................ $.0500
Net Assets, end of period (000's Omitted)............................... $7,297
* Not annualized.

See notes to financial statements.
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND, SMALL COMPANY STOCK PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-GENERAL:
Dreyfus Variable Investment Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as an open-end management investment
company, operating as a series company currently offering eleven series,
including the Small Company Stock Portfolio (the "Series") and is intended to
be a funding vehicle for variable annuity contracts and variable life
insurance policies to be offered by the separate accounts of life insurance
companies. The Series is a diversified portfolio. The Series' investment
objective is to provide investment results that are greater than the total
return performance of publicly-traded common stocks in the aggregate, as
represented by the Russell 2500 Index. The Dreyfus Corporation ("Dreyfus")
serves as the Series' investment adviser. Dreyfus is a direct subsidiary of
Mellon Bank, N.A. ("Mellon"). Effective May 24, 1996, Laurel Capital
Advisors, an affiliate of Mellon, no longer serves as the Series'
sub-investment adviser. Premier Mutual Fund Services, Inc. acts as the
distributor of the Series' shares, which are sold without a sales charge.
As of June 30, 1996, Allomon Corporation, a subsidiary of Mellon Bank
Investments Corporation, the parent company of which is Mellon, held 237,530
shares of the Series.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(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 Trustees.
Investments denominated in foreign currencies are translated to U.S. dollars
at the prevailing rates of exchange.
(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.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Series may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the
policy of the Series not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Series 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
Internal Revenue Code, and to make distributions of taxable income sufficient
to relieve it from substantially all Federal income and excise taxes.

DREYFUS VARIABLE INVESTMENT FUND, SMALL COMPANY STOCK PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

NOTE 3-BANK LINE OF CREDIT
The Series participates in a $100 million unsecured line of credit
provided by The Bank of New York, primarily for temporary or emergency
purposes, including the meeting of redemption requests that otherwise might
require the untimely disposition of securities. Interest is payable at the
Federal Funds rate plus .50% on an annualized basis. During the period from
April 30, 1996 through June 30, 1996, the Series did not borrow under the
line of credit.
NOTE 4-INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to an Investment Advisory Agreement ("Agreement") with
Dreyfus, the investment advisory fee is computed at the annual rate of .75 of
1% of the value of the Series' average daily net assets and is payable
monthly. The Agreement provides that if in any full year the aggregate
expenses of the Series, exclusive of taxes, brokerage, interest on borrowings
and extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series, the Series may deduct from the payments to be
made to Dreyfus, or Dreyfus will bear the amount of such excess to the extent
required by state law.
However, Dreyfus has undertaken, from April 30, 1996 through December 31,
1996 to reduce the management fee paid by or reimburse such excess expenses
of the Series, to the extent that the Series' aggregate annual expenses
(exclusive of certain expenses as described above) exceed an annual rate of
1.25% of the value of the Series' average daily net assets. The reduction in
investment advisory fee, pursuant to the undertaking, amounted to $5,704
during the period from April 30, 1996 through June 30, 1996.
The Series compensates Dreyfus Transfer, Inc., a wholly owned subsidiary
of Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Series.
Pursuant to the custody agreement with Mellon, the Series paid $2,807 for
custodial services during the period ended June 30, 1996.
(B) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 5-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended June 30, 1996,
amounted to $6,395,190 and $549,735, respectively.
At June 30, 1996, 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).

[Dreyfus lion "d" logo]
DREYFUS VARIABLE INVESTMENT FUND,
SMALL COMPANY STOCK PORTFOLIO
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
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. 151SA966
[Dreyfus logo]
Variable
Investment Fund,
SMALL COMPANY
STOCK PORTFOLIO
Semi-Annual Report
June 30, 1996

DREYFUS VARIABLE INVESTMENT FUND, ZERO COUPON 2000 PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus Variable
Investment Fund, Zero Coupon 2000 Portfolio. For its semi-annual reporting
period ended June 30, 1996, your Portfolio produced a total return of -1.35%
per share.* Income dividends of $.333 per share were declared during the
period which is equivalent to an annualized distribution rate per share of
5.45%.** The Fund also paid a long-term capital gain of $.01275 per share and
a short-term capital gain of $.00825 per share for a total capital gain of
$.0210 per share.
THE ECONOMY
So far this year, the economic story has been upbeat: solid growth,
strong gains in employment and low inflation. Yet along with this good news
has come the fear that the Federal Reserve Board ("Fed") will tighten
monetary policy lest the continued economic expansion bring a resurgence in
inflation. The growth in the economy has resulted in strong gains in
employment. Over recent months, these reports of new jobs have been
accompanied by rises in long-term interest rates, a reflection of the
market's concern that inflation perceptions by the Fed would result in its
acting to cool down an economy that risks overheating. To date, the Fed has
refrained from any overt tightening moves. The Fed has cut rates three times
between last July and January, and has since held steady the Federal Funds
rate at 5.25%, even as long-term rates in the bond market have risen more
than a full percentage point.
The interplay between job growth and economic growth has become the
dominant force affecting the outlook of investors for inflation and the
possibility that the Fed will raise short-term interest rates. Along with
handsome increases in new jobs have come solid gains in retail sales,
although many economists feel that heavy consumer debt burdens will act as a
constraint against any acceleration in growth. Automobile sales remain
strong, the third year in a row of steady growth for auto manufacturers. Yet,
what investors focus on and what concerns the Fed may be two different
things. On June 19, the Fed's Beige Book, a survey of business conditions in
the 12 districts of the Federal Reserve, reported that the economy was
growing at a moderate pace and that despite the tightening labor markets
"indications of rising wages remain scattered." Recent statements by
officials of the Federal Reserve Board have suggested that "sustained
moderate growth" is the most likely path for the economy and that labor
markets, while tightening, do not yet indicate significant inflationary
pressures.
There seem to be few signs of inflation. Commodity and producer prices
remain subdued. Anecdotal reports from companies continue to attest to their
lack of ability to raise prices. Another measure of potential inflation,
delivery lead times - one of Chairman Greenspan's favorite indicators - has
been little changed for months. Furthermore, some of the inflationary
consequences of running large budget deficits have eased due to the growth
in the economy. Higher than expected tax payments - a result of economic
growth - have reduced the Federal budget deficit to the $130 billion level,
the lowest since the early 1980s.
Nevertheless, there are limits to non-inflationary economic expansion. As
always, we remain watchful for signs of price pressures that could lead to a
resurgence of inflation. For now, there are few indications of that. In fact,
there also appears to be a growing consensus that the rate of economic growth
could taper off in the second half of the year due to the effect of higher
long-term interest rates on certain key sectors of the economy like housing
and consumer spending.

THE PORTFOLIO
The turnover rate in the Portfolio continues to be low due to the fact
that the Portfolio's final maturity is December 31, 2000. As we receive cash
flows, we attempt to find value by purchasing securities as close to the
final maturity date as possible. During the last six months, we have sold
approximately two thirds of our holdings in FICO coupon strips. These strips
represented $1,500,000 in face value at maturity. The reason for the sale was
that Congress had not yet passed legislation authorizing the funds to pay off
these securities at maturity. We believe this legislation will ultimately be
passed. With the proceeds from this sale and with cash flow we continue to
add zero coupon securities to the Portfolio that are government guaranteed.
Included in this report is a series of detailed statements about your
Portfolio's holdings and its financial condition. We hope they are
informative. Please know that we greatly appreciate your continued confidence
in the Portfolio and in The Dreyfus Corporation.
Very truly yours,

[Garitt A. Kono signature logo]

Garitt A. Kono
Portfolio Manager
July 15, 1996
New York, N.Y.

* Total return includes reinvestment of dividends and any capital gains
paid. The Portfolio's performance does not reflect the deduction of
additional charges imposed in connection with investing in variable insurance
contracts.
**Annualized distribution rate per share is based upon dividends per share
declared from net investment income during the period, divided by the net
asset value per share at the end of the period, adjusted for capital gain
distributions.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, ZERO COUPON 2000 PORTFOLIO
STATEMENT OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES-92.0% AMOUNT VALUE
_______ ______
<S> <C> <C>
BANKING-1.3% CoreStates Capital,
Sub. Notes, 9 5/8%, 2001.................. $ 200,000 $ 221,042
J.P. Morgan and Co.,
Sub. Notes, Zero Coupon, 1998............. 160,000 143,179
______
364,221
______
CONSUMER-.5% News America Holdings (Gtd. by News),
Sr. Notes, 7 1/2%, 2000................... 150,000 152,640
______
FINANCE-8.8% American Express,
Gtd. Euro-Bond, Zero Coupon, 2000......... 3,400,000 2,507,840
______
INSURANCE-.5% SunAmerica,
Notes, 9%, 1999........................... 130,000 136,489
______
FOREIGN-3.1% Deutsche Bank AG,
Medium-Term Notes, Zero Coupon, 2000...... 1,000,000 788,859
Kingdom of Sweden,
Bonds, Ser. A, Zero Coupon, 1997.......... 40,000 38,256
Montreal Urban Community,
Deb., 9 1/8%, 2001........................ 40,000 43,345
______
870,460
______
OTHER-2.1% FICO Coupon Strips:
Zero Coupon, 10/6/2000.................... 478,000 361,092
Ser. 1, Zero Coupon, 11/11/2000........... 150,000 112,578
Ser.10, Zero Coupon, 11/30/2000........... 152,000 113,674
______
587,344
______
U.S. GOVERNMENT
AND AGENCIES-75.7% Chattanooga Valley,
Secured First Mortgage, Zero Coupon, 1/1/2000 176,000 139,435
Federal National Mortgage Association,
Callable Principal Strips, Ser. 1:
Zero Coupon, 8/21/1996.................(a) 145,000 143,855
Zero Coupon, 10/10/2001................... 400,000 392,656
Resolution Funding, Coupon Strips:
Ser. A, Zero Coupon, 7/15/1999............ 1,500,000 1,238,503
Zero Coupon, 7/15/2000.................... 260,000 200,937
Zero Coupon, 10/15/2000................... 7,460,000 5,654,578
Tennessee Valley Authority,
Coupon Strips, Zero Coupon, 11/1/2000..... 2,500,000 1,886,583
U.S. Treasury Coupon Receipts:
Zero Coupon, 8/15/2000.................... 1,000,037 766,911
Zero Coupon, 11/15/2000................... 430,355 324,620
U.S. Treasury Notes,
7 3/4%, 12/31/1999........................ 1,000,000 1,042,188

DREYFUS VARIABLE INVESTMENT FUND, ZERO COUPON 2000 PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
_______ ______
U.S. GOVERNMENT
AND AGENCIES (CONTINUED) U.S. Treasury Principal Strips:
Zero Coupon, 8/15/2000.................... $ 500,000 $ 384,688
Zero Coupon, 11/15/2000................... 12,250,000 9,272,127
______
21,447,081
______
TOTAL BONDS AND NOTES
(cost $26,361,171)........................ $26,066,075
======
SHORT-TERM INVESTMENTS-8.0%
AGENCY DISCOUNT NOTE; Federal Home Loan Mortgage Corp.,
5.48%, 7/1/1996
(cost $2,280,000)......................... $ 2,280,000 $ 2,280,000
======
TOTAL INVESTMENTS (cost $28,641,171) ......................................... 100.0% $28,346,075
====== ======
LIABILITES, LESS CASH AND RECEIVABLES .......................................... 0.0% $ (7,031)
====== ======
NET ASSETS....................................................................... 100.0% $28,339,044
====== ======
NOTE TO STATEMENT OF INVESTMENTS;
(a) Zero coupon until 8/21/1996, date on which a stated coupon rate of
8.40% becomes effective; the stated maturity date is 2001.

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, ZERO COUPON 2000 PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $28,641,171)-see statement...................................... $28,346,075
Cash.................................................................... 24,226
Interest receivable..................................................... 56,407
Prepaid expenses........................................................ 14,054
______
28,440,762
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 11,424
Payable for shares of Beneficial Interest redeemed...................... 65,999
Accrued expenses........................................................ 24,295 101,718
______ ______
NET ASSETS ................................................................ $28,339,044
=======
REPRESENTED BY:
Paid-in capital......................................................... $28,478,943
Accumulated undistributed investment income-net......................... 129,399
Accumulated undistributed net realized gain on investments.............. 25,798
Accumulated net unrealized (depreciation) on investments-Note 5......... (295,096)
______
NET ASSETS at value, applicable to 2,317,975 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $28,339,044
=======
NET ASSET VALUE, offering and redemption price per share
($28,339,044 / 2,317,975 shares)........................................ $12.23
=======
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 806,648
EXPENSES:
Investment advisory fee-Note 4(a)..................................... $ 58,719
Auditing fees......................................................... 9,745
Prospectus and shareholders' reports.................................. 6,840
Custodian fees-Note 4(a).............................................. 6,100
Registration fees..................................................... 2,434
Legal fees............................................................ 988
Trustees' fees and expenses-Note 4(b)................................. 516
Shareholder servicing costs........................................... 304
Miscellaneous......................................................... 2,236
______
TOTAL EXPENSES.................................................... 87,882
______
INVESTMENT INCOME-NET............................................. 718,766
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments-Note 5................................. $ 26,217
Net unrealized (depreciation) on investments............................ (1,117,720)
______
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (1,091,503)
______
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (372,737)
=======

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, ZERO COUPON 2000 PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1996
1995 (UNAUDITED)
________ __________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 903,552 $ 718,766
Net realized gain on investments.................................... 48,259 26,217
Net unrealized appreciation (depreciation) on investments
for the period.................................................... 1,503,991 (1,117,720)
_______ _______
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS............................................... 2,455,802 (372,737)
_______ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................... (905,009) (590,696)
Net realized gain on investments.................................... - (48,259)
_______ _______
TOTAL DIVIDENDS................................................... (905,009) (638,955)
_______ _______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold....................................... 13,035,937 9,202,179
Dividends reinvested................................................ 905,009 638,955
Cost of shares redeemed............................................. (4,113,922) (2,781,664)
_______ _______
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS...... 9,827,024 7,059,470
_______ _______
TOTAL INCREASE IN NET ASSETS.................................. 11,377,817 6,047,778
NET ASSETS:
Beginning of period................................................. 10,913,449 22,291,266
_______ _______
End of period (including undistributed investment income-net:
$1,329 in 1995 and $129,399 in 1996).............................. $22,291,266 $28,339,044
=========== ===========

SHARES SHARES
_______ _______
CAPITAL SHARE TRANSACTIONS:
Shares sold......................................................... 1,061,630 736,239
Shares issued for dividends reinvested.............................. 73,730 51,697
Shares redeemed..................................................... (337,613) (225,530)
_______ _______
NET INCREASE IN SHARES OUTSTANDING................................ 797,747 562,406
======= =======

See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, ZERO COUPON 2000 PORTFOLIO
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Series' financial statements.

SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1996
____________________________________________________
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
____ ____ ____ ____ ____ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $10.45 $11.64 $11.77 $12.57 $11.39 $12.70
____ ____ ____ ____ ____ ____
INVESTMENT OPERATIONS:
Investment income-net................. .76 .83 .79 .69 .69 .33
Net realized and unrealized gain (loss)
on investments...................... 1.25 .15 .96 (1.18) 1.31 (.50)
____ ____ ____ ____ ____ ____
TOTAL FROM INVESTMENT OPERATIONS.... 2.01 .98 1.75 (.49) 2.00 (.17)
____ ____ ____ ____ ____ ____
DISTRIBUTIONS:
Dividends from investment income-net.. (.76) (.84) (.78) (.68) (.69) (.28)
Dividends from net realized gain
on investments...................... (.06) (.01) (.17) (.01) - (.02)
____ ____ ____ ____ ____ ____
TOTAL DISTRIBUTIONS................. (.82) (.85) (.95) (.69) (.69) (.30)
____ ____ ____ ____ ____ ____
Net asset value, end of period........ $11.64 $11.77 $12.57 $11.39 $12.70 $12.23
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................... 20.09% 8.87% 15.19% (3.91%) 17.95% (2.71%)(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .72% .64% - - .68% .67%(1)
Ratio of net investment income to average
net assets.......................... 7.41% 7.15% 6.21% 6.04% 5.73% 5.49%(1)
Decrease reflected in above expense ratios due
to undertakings by
The Dreyfus Corporation............. 5.04% 2.28% 2.43% 1.05% .03% -
Portfolio Turnover Rate............... 42.82% 3.08% 106.35% - 49.43% 13.39%(2)
Net Assets, end of period (000's Omitted) $1,296 $1,362 $5,696 $10,913 $22,291 $28,339
(1) Annualized.
(2) Not annualized.

See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND, ZERO COUPON 2000 PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-GENERAL:
Dreyfus Variable Investment Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as an open-end management investment
company, operating as a series company currently offering eleven series,
including the Zero Coupon 2000 Portfolio (the "Series") and is intended to be
a funding vehicle for variable annuity contracts and variable life insurance
policies to be offered by the separate accounts of life insurance companies.
The Series is a diversified portfolio. The Series' investment objective is to
provide as high an investment return as is consistent with the preservation
of capital. The Dreyfus Corporation ("Dreyfus") serves as the Series'
investment adviser. Dreyfus is a direct subsidiary of Mellon Bank, N.A.
("Mellon"). Premier Mutual Fund Services, Inc. acts as the distributor of the
Series' shares, which are sold without a sales charge.
The Fund currently functions as the funding vehicle for the Dreyfus
Series 2000 Variable Annuity Contract (the "Account") issued by Mutual
Benefit Life Insurance Company ("Mutual Benefit Life"). On July 16, 1991, the
Superior Court of New Jersey entered an Order (the "Order") appointing the
New Jersey Insurance Commissioner as Rehabilitator of Mutual Benefit Life.
The Commissioner was granted immediate exclusive possession and control of,
and title to, the business and assets of Mutual Benefit Life, including the
assets and liabilities of the Account.
The Commissioner was empowered by the Order to take such steps as he
deemed appropriate toward removing the cause and conditions that made
rehabilitation necessary. On January 15, 1993, the Commissioner filed the
First Amended Plan of Rehabilitation ("Plan") with the Court. The Plan
stipulated that the assets and liabilities of the Account would be
transferred to a separate account of MBL Life Assurance Corporation
("MBLLAC"), a wholly-owned subsidiary of Mutual Benefit Life. The Plan also
provided for the transfer of the ownership of the stock of MBLLAC to a Trust.
The Commissioner was designated as the sole Trustee of the Trust. On August
12, 1993, the Court rendered an opinion approving the Plan with certain
modifications. Two subsequent amendments to the Plan were filed and approved
by the Court. None of the modifications or amendments affected the status of
the Account. On November 10, 1993, the Court issued an Order of Confirmation
permitting the implementation of the Plan.
An order was also issued by the Court on January 28, 1994 approving the
form of the Third Amended Plan of Rehabilitation, the Election Materials and
related documents. On April 29, 1994, the Plan was implemented. Substantially
all of the assets of Mutual Benefit Life were transferred to MBLLAC which
assumed and reinsured Mutual Benefit Life's restructured insurance
liabilities. The stock of MBLLAC was assigned to the Stock Trust and the
Commissioner was designated as Trustee.
In view of the terms and conditions of both the Order and the Plan,
applications for new contracts and additional purchase payments under
existing contracts are currently not being accepted by the Account. The terms
of the Order and the Plan permit redemptions from the Account to continue as
requested.
The proceedings of the New Jersey Insurance Commissioner with respect to
Mutual Benefit Life or the Account do not apply to the separate accounts of
other life insurance companies that may use the Fund as a funding vehicle for
contracts or policies issued by them.

DREYFUS VARIABLE INVESTMENT FUND, ZERO COUPON 2000 PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Fund accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to
each series are charged to that series' operations; expenses which are
applicable to all series are allocated among them on a pro rata basis.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(A) PORTFOLIO VALUATION: Investments (excluding short-term investments
and U.S. Government obligations) are valued each business day by an
independent pricing service ("Service") approved by the Board of Trustees.
Investments for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the
Service from dealers in such securities) and asked prices (as calculated by
the Service based upon its evaluation of the market for such securities).
Other investments (which constitute a majority of the portfolio's securities)
are carried at fair value as determined by the Service, based on methods
which include consideration of: yields or prices of securities of comparable
quality, coupon, maturity and type; indications as to values from dealers;
and general market conditions. Investments in U.S. Government obligations are
valued at the mean between quoted bid and asked prices. Short-term investments
are carried at amortized cost, which approximates value.
(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. Interest
income, including, where applicable, amortization of discount on investments,
is recognized on the accrual basis.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Series may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Series not to distribute such
gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Series 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 Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 3-BANK LINE OF CREDIT:
The Series participates in a $100 million unsecured line of credit
provided by The Bank of New York, primarily for temporary or emergency
purposes, including the meeting of redemption requests that otherwise might
require the untimely disposition of securities. Interest is payable at the
Federal Funds rate plus .50% on an annualized basis. For the period ended
June 30, 1996, the Series did not borrow under the line of credit.

DREYFUS VARIABLE INVESTMENT FUND, ZERO COUPON 2000 PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 4-INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to an Investment Advisory Agreement ("Agreement") with
Dreyfus, the investment advisory fee is computed at the annual rate of .45 of
1% of the value of the Series' average daily net assets and is payable
monthly. The Agreement provides that if in any full year the aggregate
expenses of the Series, exclusive of taxes, brokerage, interest on borrowings
and extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series, the Series may deduct from the payments to be
made to Dreyfus, or Dreyfus will bear the amount of such excess to the extent
required by state law. There was no expense reimbursement for the six months
ended June 30, 1996.
The Series compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary
of Dreyfus, under a transfer agency agreement, for providing personnel and
facilities to perform transfer agency services for the Series.
Effective May 10, 1996, the Series entered into a custody agreement with
Mellon to provide custodial services for the Series. During the period from
May 10, 1996 through June 30, 1996, $1,038 was paid to Mellon pursuant to the
custody agreement.
(B) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 5-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the six months ended June 30, 1996,
amounted to $10,935,847 and $3,106,229, respectively.
At June 30, 1996, accumulated net unrealized depreciation on investments
was $295,096, consisting of $130,353 gross unrealized appreciation and
$425,449 gross unrealized depreciation.
At June 30, 1996, 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).

DREYFUS VARIABLE INVESTMENT FUND, ZERO COUPON 2000 PORTFOLIO
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, ZERO COUPON 2000 PORTFOLIO
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Variable Investment Fund,
Zero Coupon 2000 Portfolio (one of the series constituting the Dreyfus
Variable Investment Fund), as of June 30, 1996, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended June 30, 1996. These financial statements and financial
highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1995 and financial highlights for each of the five years in the
period ended December 31, 1995 and in our report dated February 9, 1996 we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.

[Ernst and Young LLP signature logo]
New York, New York
July 30, 1996

[Dreyfus lion "d" logo]
DREYFUS VARIABLE INVESTMENT FUND,
ZERO COUPON 2000 PORTFOLIO
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. 119SA966
[Dreyfus logo]
Variable
Investment Fund,
ZERO COUPON
2000 PORTFOLIO
Semi-Annual Report
June 30, 1996