DREYFUS VARIABLE INVESTMENT FUND, N-30D, 1996-03-08

DREYFUS VARIABLE INVESTMENT FUND
N-30D, 1996-03-08

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DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
LETTER TO SHAREHOLDERS
Dear Shareholder:
For the fiscal year ended December 31, 1995, the Managed Assets Portfolio
of Dreyfus Variable Investment Fund posted a total return of -.26% per
share,* while the Standard & Poor's 500 Composite Stock Price Index rose
37.53%.**
During this past year, the Portfolio was positioned to benefit from a
declining stock market and a rising price in gold shares. However, the stock
market experienced extraordinary returns, while gold stocks remained
essentially unchanged.
THE EQUITY MARKET
The Portfolio holds index put options and short positions intended to
benefit from declines in the equity markets. The value of the options has
declined, but the loss has been limited to the premiums paid. The Portfolio
has also lost value by selling both stocks and S&P 500 Futures short. Through
a discipline of "limiting losses" the Portfolio has exited these positions
during certain periods. The bulk of the Portfolio's losses during the last
fiscal year can be attributed to these positions.
The general stock market has risen sharply during the past year in
parallel with long-term Treasury bonds and strong earnings. The stock market
remains at what has in the past proven to be very expensive valuation levels,
particularly as measured by dividend yields on both an absolute basis and
relative to Treasury bill yields. The future direction of the market becomes
more complex when one considers that inflation remains tame, earnings
continue to be strong, and interest rates are declining. The correction of
the overvaluation of financial assets will ultimately be triggered by a
change in the direction of any one of these bullish supports for stock
prices.
GOLD MINING SHARES
The Portfolio's gold share position stands at approximately 25% of the
total Portfolio. Gold bullion has failed to penetrate the $400 per ounce
level significantly for the past 5 years. Each rally approaching $400 per
ounce is met by supply from either central banks or gold mining companies
selling their production forward. At some point this supply could shift
sharply into demand. Forward selling is essentially a short position that
producers may scramble to reverse in a rising gold market, while the
complacency of central banks may be altered should there be a shift in the
public's current positive attitude toward financial assets. The gold shares have
done little to alter the performance of the Portfolio in the last year with the
exception of some net trading profits. We still believe that should the gold
market penetrate the $400 per ounce level, the following rise will be quick
and sharp, warranting our core position.
SPECIAL SITUATIONS
We have maintained a 20% position in debt securities denominated in
Deutsche Marks, Swiss Francs, and South African Rands. The currency profits
have been locked in through hedging after the dollar dropped to 1.42 DM/$. We
will continue to monitor this position in the hope that the Portfolio can
take advantage of another dollar slide. The Portfolio has purchased
securities in a number of emerging markets. These include Venezuelan and
Argentine debt securities along with closed-end investment funds that invest
in Vietnam and Russia. In total, this asset class has proven to be very
profitable for the Portfolio.
The Portfolio purchased put options that would benefit if either the
Japanese bond market or the Japanese yen declined. Japan, a land mass the
size of California, has a Gross Domestic Product in dollars roughly equal to
the U.S. This high level, along with recent trade figures, real estate
problems and other valuation techniques points to a lower yen and higher
interest rates. This position was recently sold at a profit as the yen/$
foreign exchange rate moved from 85 to above 102.
The Portfolio has purchased Japanese equities while hedging the currency
exposure. The Japanese stock market appears to offer value after declining
over 50% from its peak in 1989. Even though Japan is facing a
difficult real estate problem, and the stock market still appears expensive
relative to earnings, there seem to be some signs of a change. The market is
cheap relative to book value and short-term interest rates. Technical
indicators such as volatility and volume patterns point to an end to the
six-year bear market. Most importantly, earnings are due to rebound as the
government provides liquidity to the economy due to its real estate problems,
a situation similar to the U.S. in 1991. Additionally, a weaker yen will
markedly improve the health of export-oriented Japan by making the price of
its goods more competitive.
The Portfolio holds Interest Only securities (IOs). After they dropped
almost 50% due to lower interest rates, the Fund began purchasing the IOs
again. The IO securities are one of the cheapest and most liquid means of
benefiting from rising interest rates. Even though rates have continued to
decline, the Portfolio is roughly break-even on the IO investment.
The Portfolio continues to search for value in the stock market and a few
names have surfaced such as Castle & Cooke, Hartmarx, Horsham, PT TriPolyta
Indonesia, A.D.R., Duty Free International, and Teledyne. While profits have
been realized on a number of equities as they have reached what we feel is a
fair valuation, the remaining companies continue to trade substantially below
our estimates of their market values.
THE OUTLOOK
In summary, the Portfolio's positions will generally benefit from stock
market declines, interest rate increases, rising gold shares, and a number of
special situations both in the U.S. and abroad. In addition, it will continue
to hold a significant U.S. Treasury Bill position in anticipation of buying
stocks at much cheaper levels.
The performance of the Portfolio has been poor over the last fiscal year.
While many themes that the Portfolio invested in have worked out well, the
primary one, profiting during a bear stock market, has proven to be a
disaster of late. The investment committee has always realized the price for
being bearish too early is poor performance, both absolute and relative. In
an attempt to limit the losses during a rising market and minimize weak
absolute returns, the Portfolio has adhered to a policy of buying put options
along with a strict discipline of exiting short positions. The markets have
surely tested our conviction over the last few years, but we feel more
strongly than ever that at present investors should take a cautious and
conservative stance toward financial assets.
Sincerely,

Comstock Partners, Inc.
Investment Policy Committee
January 15, 1996
Jersey City, New Jersey

AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED FROM INCEPTION (8/31/90)
DECEMBER 31, 1995 DECEMBER 31, 1995 TO DECEMBER 31, 1995
------------------ ----------------- -----------------------
<S> <C> <C>
(0.26)% 7.14% 7.05%
</TABLE>
Past performance is not predictive of future performance.
THE PORTFOLIO'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ADDITIONAL
CHARGES APPLICABLE TO SEPARATE ACCOUNTS OF PARTICIPATING INSURANCE COMPANIES
USING THE PORTFOLIO AS AN UNDERLYING INVESTMENT.
The above graph compares a $10,000 investment made in Dreyfus Variable
Investment Fund, Managed Assets Portfolio on 8/31/90 (Inception Date) to a
$10,000 investment made in the Standard & Poor's 500 Composite Stock Price
Index and the Dow Jones Industrial Average on that date. All dividends and
capital gain distributions are reinvested.
The Portfolio's performance shown in the line graph takes into account all
applicable fees and expenses. The Standard & Poor's 500 Composite Stock Price
Index and the Dow Jones Industrial Average are widely accepted, unmanaged
indices of overall stock market performance, which do not take into account
charges, fees and other expenses. Further information relating to Portfolio
performance, including expense reimbursements, if applicable, is contained in
the Financial Highlights section of the Prospectus and elsewhere in this
report.
<TABLE>
<CAPTION>

DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
COMMON STOCKS-35.4% SHARES VALUE
_______ ______
<S> <C> <C>
BROADCASTING-1.2% P.T. Telekomunikasi Indonesia, A.D.R.........(a) 6,900 $ 174,225
Tele-Communications Liberty Media, Cl. A.....(a) 1,250 33,594
Tele-Communications - TCI, Cl. A.............(a) 5,000 99,375
______
307,194
______
CHEMICALS-.7% P.T. Tri Polyta Indonesia, A.D.R............... 12,500 171,875
______
CONGLOMERATES-.5% Teledyne....................................... 5,300 135,813
______
CONSUMER GROWTH
STAPLES-.6% Paragon Trade Brands.........................(a) 6,000 140,250
______
ELECTRICAL EQUIPMENT-.3% Hitachi, A.D.R................................... 800 80,400
______
ENERGY-.7% Baker Hughes..................................... 5,500 134,062
Basin Exploration............................(a) 10,500 51,844
______ ______
185,906
______
FINANCE-.3% Pioneer Group.................................... 2,800 76,300
______
FOODS & BEVERAGES-.6% Castle & Cooke................................... 1,133 18,983
Dole Food....................................... 3,400 119,000
_____ ______
137,983
______
GOLD MINING-21.1% Amax Gold....................................(a) 30,000 217,500
Ashanti Goldfields, G.D.R. ..................(b) 14,000 281,750
Bema Gold....................................(a) 87,000 174,000
Buffelsfontein Gold Mining, A.D.R. ..........(a) 13,000 37,375
Canyon Resources.............................(a) 68,000 165,750
Crystallex International.....................(a) 16,000 27,429
Dakota Mining................................(a) 25,000 37,500
Driefontein Consolidated, A.D.R. ............... 16,300 201,713
East Rand Gold & Uranium, A.D.R. ............... 30,000 81,000
El Callao Mining.............................(a) 8,000 3,516
Elandsrand Gold Mining, A.D.R. ................. 25,000 121,875
Firstmiss Gold...............................(a) 11,200 249,200
Free State Consolidated Gold Mines, A.D.R. ..... 9,800 71,050
Goldcorp, Cl. A................................. 15,040 177,670
Golden Shamrock Mines........................(a) 60,000 36,977
Greenstone Resources.........................(a) 58,200 168,418
Homestake Mining................................ 3,200 50,000
International Gold Resources.................(a) 80,000 210,989
Kinross Mines, A.D.R. .......................... 9,000 84,375
Kloof Gold Mining, A.D.R. ...................... 6,300 59,456
MK Gold......................................(a) 99,000 247,500
Menzies Gold.................................(a) 250,000 83,531
Newmont Mining.................................. 5,771 261,138
Pegasus Gold.................................(a) 37,500 520,313
Prime Resource Group.........................(a) 26,000 178,571
Randfontein Estates Gold Mining, A.D.R. ........ 7,200 46,420

DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ ______

GOLD MINING (CONTINUED) Rio Amarillo Mining........................(a,b) 80,000 $ 32,234
Royal Oak Mines..............................(a) 118,000 420,375
Santa Fe Pacific Gold........................... 16,000 194,000
Southwestern Gold............................(a) 18,000 102,198
TVX Gold.....................................(a) 59,200 419,647
Vaal Reefs Exploration & Mining, A.D.R.......... 28,000 178,500
Vengold......................................(a) 82,000 66,359
Winkelhaak Mines, A.D.R. ....................... 18,000 126,000
_____
5,334,329
_____
HEALTH CARE-.7% Tenet Healthcare.............................(a) 8,500 176,375
_____
HOLDING COMPANIES-.5% Horsham........................................ 10,000 135,000
_____
INDUSTRIAL-1.3% Anglovaal...................................... 5,000 213,991
ISCOR.......................................... 103,400 93,046
Johnnies Industrial............................ 1,414 21,336
_____
328,373
_____
METALS-1.1% Freeport-McMoRan Copper & Gold, Cl. A........... 3,800 106,400
Silver Standard Resources (Warrants).........(a,b) 40,000 164,835
_____
271,235
_____
MINING-1.3% Eldorado.....................................(a,b) 57,000 177,473
JCI, A.D.R. ................................... 1,400 11,042
Triton Mining................................(a,b) 40,000 146,520
_____
335,035
_____
MISCELLANEOUS-.8% Fleming Russia Securities Fund...............(a) 15,000 86,250
Lazard Vietnam Fund..........................(a) 10,000 106,250
_____
192,500
_____
OIL-1.5% Amerada Hess 2,600 137,800
HS Resources.................................(a) 7,700 99,138
Total S.A., A.D.R. ............................. 4,000 136,000
_____
372,938
_____
OIL & GAS EXPLORATION-.5% Petro-Canada.................................... 11,500 132,692
_____
RETAIL TRADE-1.0% Duty Free International......................... 8,200 131,200
Hartmarx.....................................(a) 30,000 131,250
_____
262,450
_____
SEMICONDUCTORS-.7% Fujitsu......................................... 3,000 33,333
NEC, A.D.R. .................................... 1,600 97,600
OKI Electric Industry........................(a) 3,000 26,899
Toshiba......................................... 3,000 23,449
_____
181,281
_____
TOTAL COMMON STOCKS
(cost $9,164,105)............................. $ 8,957,929
=======

DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PREFERRED STOCKS-.6% SHARES VALUE
--------- -------
CONGLOMERATES;............ Teledyne, Series E 160 $ 2,300
METALS; Freeport-McMoRan Copper & Gold, Cl. A. 4,500 136,688
______
TOTAL PREFERRED STOCKS
(cost $177,297)...................... $ 138,988
======

CONTRACTS
SUBJECT
PUT OPTIONS-3.2% TO PUT
-------
AMEX Security Broker/Dealer Index;
January `96 @ $355................... 2,600 $ 55,900
Standard & Poor's 500 Index Flex Options;
December `96 @ $525.................. 1,300 7,231
Standard & Poor's 500 Index:
March `96 @ $453................... (k) 4,546 0
March `96 @ $500..................... 7,500 2,813
March `96 @ $525..................... 7,000 4,375
March `96 @ $625..................... 6,000 97,500
June `96 @ $450...................... 1,600 500
June `96 @ $475...................... 7,600 5,700
June `96 @ $500...................... 5,000 6,250
June `96 @ $550...................... 2,100 8,137
September `96 @ $550................. 12,700 84,138
September `96 @ $575................. 7,500 76,875
December `96 @ $525.................. 1,300 7,962
December `96 @ $550.................. 21,500 190,813
December `96 @ $600.................. 6,000 116,250
June `97 @ $550...................... 6,000 76,125
June `97 @ $600...................... 3,000 69,750

PRINCIPAL
AMOUNT
SUBJECT
TO PUT
-------
U.S. Treasury Bond;
7.625%, 2/15/2025;
April `96 @ $103.078................(k) $ 1,950,000 19
-------
TOTAL PUT OPTIONS
(cost $1,608,836).................... $ 810,338
======

DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
BONDS & NOTES-22.6% AMOUNT VALUE
---------- -------
BONDS-21.8% Argentinian Securities;
Republic of Argentina,
5%, 3/31/2023................(c,d,e) $ 250,000 $ 142,656
Austrian Securities;
Republic of Austria,
4.50%, 2/12/2000................(f) 1,993,068 2,108,666
German Securities;
Bundesrepublik Deutschland,
9%, 10/20/2000.................(g) 1,740,341 2,027,497
South African Securities;
Eskom,
11%, 6/1/2008...................(h) 987,654 804,444
Venezuelan Securities;
Republic of Venezuela,
6.75%, 3/31/2020..............(c,d) 750,000 429,844
_____
5,513,107
_____
NOTES-.8% Federal National Mortgage Association,
Non-Callable Strips, (collateralized by
FNMA Strip, 10/1/2024) Cl. 267-2,
8.50%, 10/25/2024 (Interest Only Obligation)... 951,427(i) 195,043
_____
TOTAL BONDS AND NOTES
(cost $5,028,183).................... $ 5,708,150
======
SHORT-TERM INVESTMENTS-32.0%
U.S. TREASURY BILLS: 5.26%, 1/11/96.............................(j) $ 574,000 $ 573,099
5.26%, 2/29/96......................... 126,000 124,999
4.89%, 3/7/96.......................... 5,434,000 5,384,007
4.85%, 3/14/96......................... 2,036,000 2,015,131
_____
TOTAL SHORT-TERM INVESTMENTS
(cost $8,099,336).................... $ 8,097,236
======
TOTAL INVESTMENTS (cost $24,077,757)........................................ 93.8% $23,712,641
===== ======
CASH AND RECEIVABLES (NET).................................................. 6.2% $ 1,559,160
===== ======
NET ASSETS.................................................................. 100.0% $25,271,801
===== ======
</TABLE>

DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio

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 December 31,1995, these securities amounted to $802,812 or 3.2% of
net assets.
(c) Denominated in U.S. Dollars.
(d) Secured by U.S. Treasury Securities.
(e) Scheduled variable interest rate.
(f) Denominated in Swiss Francs.
(g) Denominated in German Marks.
(h) Denominated in South African Rand.
(i) Notional face amount.
(j) Partially held by the custodian in a segregated account as
collateral for open financial futures positions.
(k) Securities restricted as to public resale. Investments in restricted
securities, with an aggregate market value of $19 represents
approximately 0.00% of net assets:
<TABLE>
<CAPTION>

ACQUISITION PURCHASE PERCENTAGE OF
PUT OPTIONS: DATE PRICE NET ASSETS VALUATION*
- ----------- ---------- ------ --------- --------
<S> <C> <C> <C> <C>
Standard & Poor's 500 Index
March `96 @ $453 ........................ 12/14/94 $21.99 0.00 fair value
U.S. Treasury Bond;
7.625%, 2/15/2025, April `96 @ $103.078.. 4/12/95 $4.72 0.00 fair value
*The valuation of these securities has been determined in good faith
under the direction of the Board of Trustees.

STATEMENT OF FINANCIAL FUTURES DECEMBER 31, 1995
UNREALIZED
MARKET VALUE APPRECIATION
NUMBER OF COVERED (DEPRECIATION)
FINANCIAL FUTURES PURCHASED; CONTRACTS BY CONTRACTS EXPIRATION AT 12/31/95
-------- ---------- --------- --------
Nikkei 225................................... 2 $ 200,600 March `96 $ 300
FINANCIAL FUTURES SOLD SHORT:
Hang Seng.................................... 10 $ (655,633) January `96 (4,204)
Japanese Yen................................. 2 $ (244,325) March `96 20,600
Standard & Poor's 500........................ 13 $ (4,019,925) March `96 (24,600)
_____
$ (7,904)
======

</TABLE>

See notes to financial statements.
<TABLE>
<CAPTION>

DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $24,077,757)-see statement...................................... $23,712,641
Cash.................................................................... 1,522,261
Dividends and interest receivable....................................... 148,197
Net unrealized appreciation on forward currency
exchange contracts-Note 4(a).......................................... 88,822
Receivable for investment securities sold............................... 73,303
Prepaid expenses........................................................ 143
_____
25,545,367
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 8,040
Due to Comstock Partners, Inc. ......................................... 8,040
Payable for investment securities purchased............................. 223,860
Payable for futures variation margin-Note 4(a).......................... 5,341
Accrued expenses........................................................ 28,285 273,566
____ _____
NET ASSETS.................................................................. $25,271,801
======
REPRESENTED BY:
Paid-in capital......................................................... $26,973,355
Accumulated distributions in excess of
investment income-net................................................. (9,863)
Accumulated net realized (loss) on investments.......................... (1,407,423)
Accumulated net unrealized (depreciation) on investments and
foreign currency transactions [including ($7,904) net unrealized
(depreciation) on financial futures-Note 4(b)].............................. (284,268)
_____
NET ASSETS at value applicable to 2,159,141 shares outstanding
(unlimited number of $.001 par value shares of Beneficial Interest
authorized)............................................................. $25,271,801
======
NET ASSET VALUE, offering and redemption price per share
($25,271,801 / 2,159,141 shares)........................................ $11.70
======

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
INVESTMENT INCOME:
INCOME:
Interest.............................................................. $1,207,565
Cash dividends (net of $4,177 foreign taxes withheld at source)....... 98,715
_____
TOTAL INCOME.................................................... $ 1,306,280
EXPENSES:
Investment advisory fee-Note 3(a)..................................... 108,913
Sub-investment advisory fee-Note 3(a)................................. 108,913
Professional fees..................................................... 18,419
Custodian fees........................................................ 15,533
Prospectus and shareholders' reports.................................. 10,499
Trustees' fees and expenses-Note 3(b)................................. 2,158
Shareholder servicing costs........................................... 422
Registration fees..................................................... 100
Miscellaneous......................................................... 6,832
_____
TOTAL EXPENSES.................................................. 271,789
_____
INVESTMENT INCOME-NET........................................... 1,034,491
_____
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments, options and foreign currency
transactions-Note 4(a)................................................ $ (153,738)
Net realized gain (loss) on forward currency exchange contracts-Note
4(a):
Long transactions..................................................... (357,372)
Short transactions.................................................... 7,883
Net realized gain (loss) on financial futures-Note 4(a):
Long transactions..................................................... 15,924
Short transactions.................................................... (767,400)
_____
NET REALIZED (LOSS)............................................. (1,254,703)
Net unrealized appreciation on investments and foreign currency
transactions [including $26,197 net unrealized appreciation on
financial futures].................................................... 162,896
_____
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (1,091,807)
_____
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (57,316)
=====
</TABLE>
See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
--------------------------------
1994 1995
------- -------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 745,232 $ 1,034,491
Net realized gain (loss) on investments................................. 146,575 (1,254,703)
Net unrealized appreciation (depreciation) on investments for the year.. (1,091,304) 162,896
______ ______
NET (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS........................................................ (199,497) (57,316)
______ ______
DIVIDENDS TO SHAREHOLDERS:
From investment income-net.............................................. (769,916) (1,307,692)
In excess of investment income-net...................................... (48,981) (9,863)
______ ______
TOTAL DIVIDENDS....................................................... (818,897) (1,317,555)
______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 26,699,972 8,040,165
Dividends reinvested.................................................... 818,897 1,317,555
Cost of shares redeemed................................................. (3,947,678) (13,220,570)
______ ______
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST
TRANSACTIONS...................................................... 23,571,191 (3,862,850)
______ ______
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... 22,552,797 (5,237,721)
NET ASSETS:
Beginning of year....................................................... 7,956,725 30,509,522
______ ______
End of year [including distributions in excess of investment
income-net: $(48,981) in 1994 and $(9,863) in 1995]................... $ 30,509,522 $ 25,271,801
====== ======

SHARES SHARES
______ ______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 2,094,088 654,797
Shares issued for dividends reinvested.................................. 67,318 112,098
Shares redeemed......................................................... (310,779) (1,074,101)
______ ______
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... 1,850,627 (307,206)
====== ======
</TABLE>

See notes to financial statements.
<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 year indicated. This
information has been derived from the Series' financial statements.
-------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $10.11 $10.76 $10.14 $12.92 $12.37
---- ---- ---- ---- ----
INVESTMENT OPERATIONS:
Investment income-net........................ .41 .22 .20 .35 .51
Net realized and unrealized gain (loss) on investments .66 (.11) 2.71 (.56) (.54)
---- ---- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS........... 1.07 .11 2.91 (.21) (.03)
---- ---- ---- ---- ----
DISTRIBUTIONS:
Dividends from investment income-net......... (.42) (.31) (.13) (.32) (.64)
Dividends in excess of investment income-net. - - - (.02) -
Dividends from net realized gain on investments - (.42) - - -
---- ---- ---- ---- ----
TOTAL DISTRIBUTIONS........................ (.42) (.73) (.13) (.34) (.64)
---- ---- ---- ---- ----
Net asset value, end of year................. $10.76 $10.14 $12.92 $12.37 $11.70
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 10.60% 1.07% 28.59% (1.56%) (.26%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... 1.00% .97% .27% .25% .94%
Ratio of net investment income to average net assets 4.46% 1.88% 1.87% 3.54% 3.56%
Decrease reflected in above expense ratios due to
undertakings by The Dreyfus Corporation
and Comstock Partners, Inc. ............... 2.83% 1.70% 2.25% .88% -
Portfolio Turnover Rate...................... 91.97% 118.78% 99.08% 25.96% 53.88%
Net Assets, end of year (000's Omitted)...... $2,179 $1,865 $7,957 $30,510 $25,272

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
NOTES TO FINANCIAL STATEMENTS
NOTE 1-GENERAL:
The 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 eight 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 Dreyfus Corporation ("Dreyfus")
serves as the Fund's 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. (the
"Distributor") acts as the distributor of the Fund's shares, which are sold
without a sales charge. The Distributor, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution
Services, Inc., a provider of mutual fund administration services, which in
turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company
of which is Boston Institutional Group, Inc.
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 (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.
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.
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.
(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. 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.
The Series had dividends in excess of investment income-net for financial
statement purposes resulting from Federal income tax distribution
requirements.
During the year ended December 31, 1995, the Series reclassified $27,993
charged to undistributed income-net in prior years to paid-in capital. In
addition, the Series reclassified $350,175 charged to net realized gains to
undistributed income-net.

DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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.
For Federal income tax purposes, each series is treated as a single entity for
the purpose of determining such qualification.
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 FEES AND OTHER TRANSAC
TIONS 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 .375 of 1% of the average daily value of the Series' net
assets and is payable monthly. Pursuant to a Sub-Investment Advisory
Agreement with Comstock Partners, the sub-investment advisory fee is computed
at an annual rate of .375 of 1% of the average daily value of the Series' net
assets and is payable monthly.
The agreements further 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 year ended December 31, 1995.
Effective December 1, 1995, the Fund entered into a transfer agency
agreement with Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, to provide 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.
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 year ended December 31, 1995 amounted to $8,587,045 and
$8,299,160, respectively.

DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The following summarizes open forward currency exchange contracts at
December 31, 1995:
<TABLE>
<CAPTION>

FOREIGN UNREALIZED
CURRENCY U.S. DOLLAR APPRECIATION
FORWARD CURRENCY CONTRACTS AMOUNTS PROCEEDS VALUE (DEPRECIATION)
________________ -------- -------- --------- ------------
<S> <C> <C> <C> <C>
SALES:
German Deutschemarks, expiring 2/20/96... 2,700,000 $1,935,484 $1,886,133 $49,351
Swiss Francs, expiring 2/20/96........... 2,140,000 1,903,914 1,864,436 39,478

COST
-------
PURCHASES;
Hong Kong Dollars, expiring 1/2/96....... 180,951 $ 23,408 23,401 (7)
___
TOTAL.................................. $88,822
====
</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 counter party
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 December
31, 1995, 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 December 31, 1995, accumulated net unrealized depreciation on
investments and forward currency exchange contracts was $284,198, consisting
of $1,818,850 gross unrealized appreciation and $2,103,048 gross unrealized
depreciation.
At December 31, 1995, 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
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND
We have audited 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 December 31, 1995,
and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period
then ended, and financial highlights for each of the years indicated therein.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Variable Investment Fund, Managed Assets Portfolio at
December 31, 1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and the financial highlights for each of the indicated years, in conformity
with generally accepted accounting principles.

[Ernst and Young LLP signature logo]

New York, New York
February 9, 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.
One American Express Plaza
Providence, RI 02903

Further information is contained
in the Prospectus, which must
precede or accompany this report.

Printed in U.S.A. 118AR9512
[Dreyfus logo]
Variable
Investment Fund,
MANAGED ASSETS
PORTFOLIO
Annual Report
December 31, 1995

DREYFUS VARIABLE INVESTMENT FUND, Money Market Portfolio
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus Variable
Investment Fund, Money Market Portfolio. For its annual reporting period
ended December 31, 1995, your Fund provided an annualized yield of 5.54%. The
annualized effective yield after compounding was 5.68%.*
THE ECONOMY
Additional evidence that economic activity remained sluggish and that
inflation continued to be under control moved the Federal Reserve to further
reduce the Federal Funds rate in December. The Federal Funds rate is the rate
at which the nation's banks borrow money from each other and is a benchmark
for other short-term rates. This was the second reduction for this important
short-term rate in 1995, the first occurring in July. The latest
25-basis-point reduction in December put the rate at 5.50%. Major incentives
for this additional decrease were the favorable inflation report in November
and the generally slow rate of economic growth. As it did in July, the
Federal Reserve left unchanged the discount rate _ the rate at which the
Federal Reserve lends to member banks. The discount rate remained at 5.25%
throughout 1995.
Signs of economic slowdown increased during the latter half of the year.
Weakening retail sales and very modest industrial production lent credence to
fears about the possibility of recession. Consumer spending was inhibited
last year by the sluggish growth in wages and salaries and the continued
trend of corporate downsizing. The lethargic pace of consumer spending last
year culminated in one of the worst holiday sales periods since the business
slump in 1990-1991, despite steep price markdowns by retailers.
By November, the capacity utilization rate of the nation's factories
declined for the third consecutive month. This was a reflection of weakening
demand and further evidence of the diminishing pressure to raise prices.
Furthermore, inventories built up by year-end, another sign of slackening
demand.
The political stalemate in Washington over the balanced budget adds
additional uncertainty to the economy; ultimately an accord will be reached
and fiscal policy will likely be a restraining force on the economy. As we go
forward without a budget agreement, reductions in annually appropriated
spending will tend to inhibit the economy. With an agreement, the combination
of cuts in appropriations and other spending reductions should have the same
effect.
There are strong indications that inflation is under control. Until
mid-year 1995, fear of inflation was the overriding concern of the Federal
Reserve. Now, the focus seems to have shifted to actions designed to avoid
recession. In an election year, few things are less desirable for political
incumbents than recession.
MONEY MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
In the past twelve months, strong fundamental and positive technical
factors influenced interest rate performance. Statistical data consistently
revealed weak to modest economic growth with a favorable inflation outlook,
prompting interest rates to gradually trend lower.
For example, three-month Certificates of Deposit had an average yield of
6.29% for the month of December 1994, compared to 5.62% for the month of
December 1995.**
In response your Portfolio's average maturity has been extended in an
attempt to fully maximize yield potential in a declining interest rate
environment.

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,
[Patricia A. Larkin signature logo]

Patricia A. Larkin
Portfolio Manager
January 15, 1996
New York, N.Y.

* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
**Source: Federal Reserve Statistical Release.

DREYFUS VARIABLE INVESTMENT FUND, Money Market Portfolio
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT-15.5% AMOUNT VALUE
_______ ______
<S> <C> <C>
Bank of Tokyo, Ltd. (Yankee)
6.06%, 2/5/96........................................................... $ 2,000,000 $2,000,000
Bayerische Vereinsbank AG (Yankee)
5.88%-6.02%, 7/17/96-12/6/96............................................ 2,000,000 2,000,000
Deutsche Bank AG (London)
5.78%, 2/1/96........................................................... 1,000,000 1,000,016
Mitsubishi Bank, Ltd. (Yankee)
6%, 1/10/96............................................................. 1,000,000 1,000,000
Sumitomo Bank, Ltd. (Yankee)
6.12%, 1/29/96.......................................................... 1,000,000 1,000,000
______
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $7,000,016)....................................................... $ 7,000,016
======
BANKERS' ACCEPTANCES-8.8%
Dai-Ichi Kangyo Bank Ltd. (Yankee)
5.80%-5.92%, 2/15/96-3/8/96............................................. $ 2,000,000 $ 1,982,136
Sanwa Bank Ltd. (Yankee)
5.79%-5.90%, 2/26/96-3/13/96............................................ 2,000,000 1,979,647
______
TOTAL BANKERS' ACCEPTANCES
(cost $3,961,783)....................................................... $ 3,961,783
======
COMMERCIAL PAPER-49.2%
AT&T Corp.
5.69%, 3/13/96.......................................................... $ 2,000,000 $1,977,680
Bankers Trust New York Corp.
5.81%, 3/15/96.......................................................... 1,000,000 988,407
Bear Stearns Companies Inc.
5.80%, 7/22/96.......................................................... 1,000,000 968,648
Ciesco L.P.
5.84%, 1/18/96.......................................................... 700,000 698,132
Ford Motor Credit Co.
5.78%-6.33%, 1/9/96-2/28/96............................................. 2,000,000 1,989,521
General Electric Capital Corp.
5.61%, 5/1/96........................................................... 1,500,000 1,472,372
General Electric Capital Services Inc.
5.61%-5.64%, 4/25/96-5/1/96............................................. 2,000,000 1,963,980
General Motors Acceptance Corp.
5.70%, 5/1/96........................................................... 2,000,000 1,962,692
Lehman Brothers Holdings Inc.
5.90%, 1/19/96.......................................................... 2,000,000 1,994,170

DREYFUS VARIABLE INVESTMENT FUND, Money Market Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
COMMERCIAL PAPER (CONTINUED) AMOUNT VALUE
_______ ______
Merrill Lynch & Co. Inc.
5.57%-5.83%, 1/31/96-3/29/96............................................ $ 2,000,000 $ 1,981,813
Nations Bank Corp
5.61%, 5/28/96.......................................................... 1,000,000 977,553
Sears Roebuck Acceptance Corp.
5.86%, 1/18/96.......................................................... 1,500,000 1,495,948
Spintab AB
5.77%, 1/25/96.......................................................... 1,800,000 1,793,220
Toronto-Dominion Holdings U.S.A. Inc.
5.76%, 1/17/96.......................................................... 1,000,000 997,511
UBS Finance (DE) Inc.
5.90%, 1/2/96........................................................... 1,000,000 999,836
______
TOTAL COMMERCIAL PAPER
(cost $22,261,483)...................................................... $22,261,483
======
CORPORATE NOTES-1.1%
General Electric Capital Corp.
5.85%, 2/9/96
(cost $500,000)....................................................... (a) $ 500,000 $ 500,000
======
SHORT-TERM BANK NOTES-11.0%
Comerica Bank
5.65%, 9/18/96........................................................ (a) $ 2,000,000 $1,999,125
First National Bank of Boston
5.71%, 7/10/96........................................................ (a) 1,000,000 1,000,000
Fleet Bank of New York N.A.
5.80%, 1/8/96........................................................... 1,000,000 1,000,000
Morgan Guaranty Trust Co.
6%, 10/30/96............................................................ 1,000,000 1,000,000
______
TOTAL SHORT-TERM BANK NOTES
(cost $4,999,125)....................................................... $ 4,999,125
======
U.S. GOVERNMENT AGENCIES-15.4%
Federal Farm Credit Banks, Floating Rate Notes
5.58%, 11/7/96........................................................ (a) $ 3,000,000 $ 2,997,541
Federal Home Loan Mortgage Corp., Discount Note
5.50%, 1/2/96........................................................... 1,962,000 1,961,700
Federal National Mortgage Association, Floating Rate Notes
5.86%, 12/16/96....................................................... (a) 2,000,000 1,998,142
______
TOTAL U.S. GOVERNMENT AGENCIES
(cost $6,957,383)....................................................... $ 6,957,383
======

DREYFUS VARIABLE INVESTMENT FUND, Money Market Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995

VALUE
--------
TOTAL INVESTMENTS
(cost $45,679,790)............................................ 101.0% $45,679,790
==== ======
LIABILITIES, LESS CASH AND RECEIVABLES............................ (1.0%) $ (430,939)
==== ======
NET ASSETS ................................................. 100.0% $45,248,851
==== ======

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

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Money Market Portfolio
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 2(a)........................... $45,679,790
Interest receivable..................................................... 183,374
Prepaid expenses and other assets....................................... 707
______
45,863,871
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 18,543
Due to Custodian........................................................ 560,303
Accrued expenses........................................................ 36,174 615,020
_____ ______
NET ASSETS ................................................................ $45,248,851
======
REPRESENTED BY:
Paid-in capital......................................................... $45,237,051
Accumulated undistributed investment income-net......................... 12,579
Accumulated net realized (loss) on investments.......................... (779)
______
NET ASSETS at value applicable to 45,237,051 shares outstanding (unlimited
number of $.001 par value shares of Beneficial Interest authorized)..... $45,248,851
======
NET ASSET VALUE, offering and redemption price per share
($45,248,851 / 45,237,051 shares)....................................... $1.00
======
See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Money Market Portfolio
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
INVESTMENT INCOME:
INTEREST INCOME......................................................... $2,299,161
EXPENSES:
Investment advisory fee-Note 3(a)..................................... $187,396
Custodian fees........................................................ 17,735
Prospectus and shareholders' reports.................................. 16,696
Professional fees..................................................... 11,163
Registration fees..................................................... 3,592
Trustees' fees and expenses-Note 3(b)................................. 2,658
Shareholder servicing costs........................................... 549
Miscellaneous......................................................... 3,837
_____
TOTAL EXPENSES.................................................... 243,626
Less-reduction in investment advisory fee due to undertakings-Note 3(a) 10,251
_____
NET EXPENSES...................................................... 233,375
_____
INVESTMENT INCOME-NET....................................................... 2,065,786
NET REALIZED (LOSS) ON INVESTMENTS-Note 2(b)................................ (848)
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $2,064,938
======

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Money Market Portfolio
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
-----------------------------------
1994 1995
_______ ______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 1,006,418 $ 2,065,786
Net realized gain (loss) on investments................................. 40 (848)
_______ ______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 1,006,458 2,064,938
_______ ______
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................... (1,000,523) (2,059,102)
_______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 141,994,565 132,951,838
Dividends reinvested.................................................... 1,000,523 2,059,103
Cost of shares redeemed................................................. (115,923,303) (124,496,329)
_______ ______

INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.......... 27,071,785 10,514,612
_______ ______
TOTAL INCREASE IN NET ASSETS...................................... 27,077,720 10,520,448
NET ASSETS:
Beginning of year....................................................... 7,650,683 34,728,403
_______ ______
End of year (including undistributed investment income-net:
$5,895 in 1994 and $12,579 in 1995)................................... $ 34,728,403 $ 45,248,851
======= ======

</TABLE>

See notes to financial statements.

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 return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Series' financial statements.

YEAR ENDED DECEMBER 31,
______________________________________________________________
PER SHARE DATA: 1991 1992 1993 1994 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---- ---- ---- ---- ----
INVESTMENT OPERATIONS;
Investment income-net........................ .058 .041 .032 .043 .055
---- ---- ---- ---- ----
DISTRIBUTIONS;
Dividends from investment income-net......... (.058) (.041) (.032) (.043) (.055)
---- ---- ---- ---- ----
Net asset value, end of year................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 5.99% 4.14% 3.29% 4.37% 5.66%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... -- -- -- -- .62%
Ratio of net investment income to average
net assets................................. 5.78% 4.10% 3.23% 4.62% 5.51%
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 year (000's Omitted)...... $ 1,619 $790 $ 7,651 $34,728 $45,249

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Money Market Portfolio
NOTES TO FINANCIAL STATEMENTS
NOTE 1-GENERAL:
The 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 eight 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 Dreyfus Corporation ("Dreyfus")
serves as the Fund's investment adviser. Dreyfus is a direct subsidiary of
Mellon Bank, N.A. Premier Mutual Fund Services, Inc. (the "Distributor") acts
as the distributor of the Fund's shares, which are sold without a sales
charge. The Distributor, located at One Exchange Place, Boston, Massachusetts
02109, is a wholly-owned subsidiary of FDI Distribution Services, Inc., a
provider of mutual fund administration services, which in turn is a
wholly-owned subsidiary of FDI Holdings, Inc., the parent company of which is
the Boston Institutional Group, Inc.
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.

DREYFUS VARIABLE INVESTMENT FUND, Money Market Portfolio
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
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.
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.
(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 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 January 2, 1996, the Fund declared a cash dividend of approximately
$.0004 per share from undistributed investment income-net which includes
investment income-net for Saturday, December 30, 1995 and Sunday, December
31, 1995.
(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. For Federal income tax purposes, each series is treated as a
single entity for the purpose of determining such qualification.
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 average daily value of the Series' net assets
and is payable monthly. The Agreement further 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.

DREYFUS VARIABLE INVESTMENT FUND, Money Market Portfolio
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
However, Dreyfus had undertaken, from January 1, 1995 through February 1,
1995, to reduce the investment advisory fee paid by the Series, to the extent
that the Series' aggregate expenses (exclusive of certain expenses as described
above) exceeded specified annual percentages of the Series' average daily net
assets. The reduction in investment advisory fee, pursuant to the undertakings,
amounted to $10,251 for the year ended December 31, 1995.
Effective December 1, 1995, the Fund entered into a transfer agency
agreement with Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, to provide 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
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, MONEY MARKET PORTFOLIO
We have audited 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 December 31, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Variable Investment Fund, Money Market Portfolio at
December 31, 1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and the financial highlights for each of the indicated years, in conformity
with generally accepted accounting principles.

[Ernst and Young LLP signature logo]
New York, New York
February 9, 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.
One American Express Plaza
Providence, RI 02903

Further information is contained
in the Prospectus, which must
precede or accompany this report.

Printed in U.S.A. 117AR9512
[Dreyfus logo]
Variable
Investment Fund,
MONEY MARKET
PORTFOLIO
Annual Report
December 31, 1995

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 annual reporting period
ended December 31, 1995, your Fund produced a total return of 20.42% per
share,* compared to 18.35% for the Merrill Lynch Domestic Master Index
(subindex D010).** Income dividends of $.686 per share were paid during the
period representing a distribution rate of 5.75% per share based on the
closing net asset value, adjusted for capital gain distributions.
THE ECONOMY
Additional evidence that economic activity remained sluggish and that
inflation continued to be under control moved the Federal Reserve Board to
further ease the Federal Funds rate in December. (The Federal Funds rate is
the rate at which the nation's banks borrow money from each other and all
other short-term rates are based on it.) This was the second reduction for
this important short-term rate in 1995, the first occurring in July. The
latest 25-basis-point reduction in December put the rate at 5.50%. Major
incentives for this additional reduction were the inflation report in
November - the increase in the Consumer Price Index was flat for the first
time in 4 1/2 years - and the generally slow rate of economic growth. As it
did in July, the Federal Reserve left unchanged the discount rate - the rate
at which the Federal Reserve lends to member banks. The discount rate
remained at 5.25% throughout 1995.
Signs of economic slowdown increased during the latter half of the year.
Weakening retail sales and very modest industrial production lent credence to
fears about the possibility of recession. Consumer spending was inhibited
last year by the slow rate of new job creation, sluggish growth in wages and
salaries, and the continued trend of corporate cost-related layoffs. The
lethargic pace of consumer spending last year culminated in one of the worst
holiday sales periods since the business slump in 1990-1991, despite steep
price markdowns by retailers.
Industrial production climbed modestly during the year. By November, the
nation's factories operated at only 83.1% of capacity, down for the third
consecutive month. This was a reflection of weakening demand and further
evidence of the diminishing pressure to raise prices. Furthermore,
inventories built up by year-end, another sign of slackening demand.
The political stalemate in Washington over the balanced budget adds
additional uncertainty to the economy; ultimately an accord will be reached
and fiscal policy will likely be a restraining force on the economy. As we go
forward without a budget agreement, reductions in annually appropriated
spending will tend to retard the economy. With an agreement, the combination
of cuts in appropriations and other spending reductions should have the same
effect.
There are strong indications that inflation is under control. Until
mid-year 1995, fear of inflation was the overriding concern of the Federal
Reserve. Now, the focus seems to have shifted to actions designed to avoid
recession. In an election year, few things are less desirable for political
incumbents than recession.
PORTFOLIO OVERVIEW
During the course of the year, the Fund's average duration was between
5 3/4 years and 6 years. Among funds of this type, these durations were somewhat
longer than the average fund. As a result of our maintaining these longer
durations, our Fund was ranked in the top 1/3 of 116 portfolios in the
Corporate Debt A Rated category by Lipper for one year and ranked 1 out of 71
funds for its five-year return***. We have eliminated holdings of USF&G
Corp., Rite Aid Corp. and Heller Financial. We have added Commercial Credit,
Dresdner Banks, Emerson Electric, and General Motors Acceptance Corp. to
the Portfolio. These changes occurred as a result of our attempt at
increasing the quality of the Portfolio. The Fund has received a four star
overall rating from Morningstar, Inc. out of 258 portfolios in the Fixed
Income category.****
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,

[Garitt Kono signature logo]

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

DREYFUS VARIABLE INVESTMENT FUND,
Quality Bond Portfolio DECEMBER 31, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS VARIABLE
INVESTMENT FUND, QUALITY BOND PORTFOLIO AND THE MERRILL LYNCH DOMESTIC MASTER
INDEX (SUBINDEX D010)

$17,357
Dreyfus Variable
Investment Fund,
Quality Bond Portfolio

$16,713
Merrill Lynch Domestic Master Index
(Subindex D010)*
*Source: Merrill Lynch, Pierce, Fenner and Smith Inc.]
<TABLE>
<CAPTION>

AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED FROM INCEPTION (8/31/90)
DECEMBER 31, 1995 DECEMBER 31, 1995 TO DECEMBER 31, 1995
----------------- ----------------- -----------------------
<S> <C> <C>
20.42% 11.11% 10.88%
</TABLE>
Past performance is not predictive of future performance.
THE PORTFOLIO'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ADDITIONAL CHARG
ES APPLICABLE TO SEPARATE ACCOUNTS OF PARTICIPATING INSURANCE COMPANIES USING
THE PORTFOLIO AS AN UNDERLYING INVESTMENT.
The above graph compares a $10,000 investment made in Dreyfus Variable
Investment Fund, Quality Bond Portfolio on 8/31/90 (Inception Date) to a
$10,000 investment made in the Merrill Lynch Domestic Master Index (Subindex
D010) on that date. All dividends and capital gain distributions are
reinvested.
The Portfolio's performance shown in the line graph takes into account all
applicable fees and expenses. The Merrill Lynch Domestic Master Index
(Subindex D010) is an unmanaged performance benchmark for portfolios that
include U.S. Government, mortgage and investment-grade corporate securities
rated A and better. The Index does not take into account charges, fees and
other expenses. Further information relating to Portfolio performance,
including expense reimbursements, if applicable, is contained in the
Financial Highlights section of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>

DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
PRINCIPAL
BONDS AND NOTES-76.2% AMOUNT VALUE
---------- -----------
<S> <C> <C>
AEROSPACE-1.2%..................Boeing,
Deb., 7 1/4%, 2025................... $ 200,000 $ 216,940
McDonnell Douglas,
Notes, 8 1/4%, 2000.................. 200,000 216,815
_____
433,755
_____
BANKING-3.6%.................... BankAmerica,
Sub. Notes, 6 3/4%, 2005............. 1,000,000 1,033,750
First Chicago, Sub. Notes:
8 1/4%, 2002......................... 15,000 16,742
6 7/8%, 2003......................... 100,000 104,313
NationsBank,
Sub. Notes, 6 1/2%, 2003............. 175,000 178,141
_____
1,332,946
_____
CONSUMER-.7% News America Holdings (Gtd. by News):
Sr. Deb., 8 1/4%, 2018............... 100,000 109,378
Sr. Notes, 9 1/8%, 1999.............. 25,000 27,564
Time Warner,
Deb., 9.15%, 2023.................... 125,000 142,539
_____
279,481
_____
FINANCE-19.9%....... American Express Credit,
Sr. Notes, 6 1/8%, 2001.............. 1,000,000 1,012,940
Avco Financial Services,
Sr. Notes, 6.35%, 2000............... 1,000,000 1,020,368
Commercial Credit,
Notes, 7 3/4%, 2005.................. 1,000,000 1,106,038
Dresdner Bank AG,
Sub. Notes, 6 5/8%, 2005............. 2,000,000 2,071,292
Ford Motor Credit,
Notes, 7 1/2%, 2004.................. 1,000,000 1,082,303
General Motors Acceptance,
Notes, 8 3/4%, 1997.................. 1,000,000 (a) 1,175,100
_____
7,468,041
_____
INDUSTRIAL-8.3%............. American Brands,
Deb., 8 5/8%, 2021................... 400,000 487,180
Archer-Daniels-Midland,
Deb., 10 1/4%, 2006.................. 400,000 523,667
Eastman Kodak,
Deb., 9.95%, 2018.................... 400,000 548,778
Emerson Electric,
Notes, 6.30%, 2005................... 1,000,000 1,028,404

DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
---------- ---------

INDUSTRIAL (CONTINUED)....Ford Motor,
Deb., 8 7/8%, 2022................... $ 400,000 $ 499,648
_____
3,087,677
_____
INSURANCE-.4%................ SunAmerica:
Deb., 9.95%, 2012.................... 13,000 16,801
Notes, 9%, 1999...................... 130,000 140,728
_____
157,529
_____
FOREIGN-5.5%....... Generalitat de Catalunya,
Notes, 6 3/8%, 2007.................. 2,000,000 2,017,382
Kingdom of Sweden,
Bonds, Ser. A, Zero Coupon, 1997.............. 60,000 56,057
_____
2,073,439
_____
OTHER-.3%.................. City of New York,
General Obligation Bonds, Ser. D, 10%, 2007 25,000 29,594
FICO Coupon Strips,
Ser. 1, Zero Coupon, 5/11/2000................ 95,000 75,048
_____
104,642
_____
U.S. GOVERNMENT
AND AGENCIES-36.3% Federal National Mortgage Association,
Callable Principal Strips,
Ser. 1, Zero Coupon, 8/21/1996............ 55,000 (b) 52,968
Government National Mortgage Association I:
7 1/2%, 3/15/2008.................... 4,264,086 4,415,974
7 1/2%, 8/15/2008.................... 2,039,383 2,112,026
U.S. Treasury Bonds:
10 3/4%, 8/15/2005................... 100,000 137,500
11 1/4%, 2/15/2015................... 100,000 160,078
7 1/4%, 5/15/2016.................... 1,200,000 1,370,626
U.S. Treasury Notes:
7 1/4%, 8/31/1996.................... 230,000 232,839
7 3/8%, 11/15/1997................... 1,000,000 1,037,969
8 1/2%, 11/15/2000................... 600,000 679,219
7 1/2%, 2/15/2005.................... 3,000,000 3,403,593
_____
13,602,792
_____
TOTAL BONDS AND NOTES
(cost $27,289,775)................... $28,540,302
======

DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
SHORT-TERM INVESTMENTS 22.4% AMOUNT VALUE
-------- ------
AGENCY DISCOUNT NOTE; Federal Home Loan Mortgage Corp.,
5 1/2%, 1/2/1996
(cost $8,385,719).................... $ 8,387,000 $ 8,385,719
======
TOTAL INVESTMENTS (cost $35,675,494)........................................ 98.6% $36,926,021
==== ======
CASH AND RECEIVABLES (NET).................................................. 1.4% $ 520,820
==== ======
NET ASSETS.................................................................. 100.0% $37,446,841
==== ======

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.

</TABLE>

See notes to financial statements.
<TABLE>
<CAPTION>

DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $35,675,494)-see statement...................................... $36,926,021
Cash.................................................................... 139,573
Interest receivable..................................................... 423,842
Prepaid expenses........................................................ 5,883
_____
37,495,319
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $19,674
Payable for shares of Beneficial Interest redeemed...................... 1,329
Accrued expenses........................................................ 27,475 48,478
_____ ______
NET ASSETS.................................................................. $37,446,841
======
REPRESENTED BY:
Paid-in capital......................................................... $36,053,663
Accumulated undistributed investment income-net......................... 2,898
Accumulated undistributed net realized gain on investments.............. 139,753
Accumulated net unrealized appreciation on investments-Note 4........... 1,250,527
_____
NET ASSETS at value applicable to 3,170,647 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $37,446,841
======
NET ASSET VALUE, offering and redemption price per share
($37,446,841 / 3,170,647 shares)........................................ $11.81
======

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
INVESTMENT INCOME:
INTEREST INCOME......................................................... $1,580,221
EXPENSES:
Investment advisory fee-Note 3(a)..................................... $ 147,830
Custodian fees........................................................ 12,957
Auditing fees......................................................... 12,766
Registration fees..................................................... 7,573
Organization expenses................................................. 4,310
Prospectus and shareholders' reports.................................. 2,874
Trustees' fees and expenses-Note 3(b)................................. 1,463
Legal fees............................................................ 608
Shareholder servicing costs........................................... 396
Miscellaneous......................................................... 4,520
_____
TOTAL EXPENSES.................................................... 195,297
Less-reduction in investment advisory fee due to undertakings-Note 3(a) 10,017
_____
NET EXPENSES...................................................... 185,280
_____
INVESTMENT INCOME-NET............................................. 1,394,941
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 4................................. $ 628,024
Net unrealized appreciation on investments.............................. 2,002,134
_____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 2,630,158
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $4,025,099
======

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
--------------------------------
1994 1995
_______ ______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 649,784 $ 1,394,941
Net realized gain (loss) on investments................................. (101,063) 628,024
Net unrealized appreciation (depreciation) on investments for the year.. (776,871) 2,002,134
_____ _____
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS........................................................ (228,150) 4,025,099
_____ _____
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (645,868) (1,396,840)
Net realized gain on investments........................................ (11,191) (387,055)
_____ _____
TOTAL DIVIDENDS....................................................... (657,059) (1,783,895)
_____ _____
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 10,900,540 25,461,134
Dividends reinvested.................................................... 657,134 1,783,895
Cost of shares redeemed................................................. (2,134,797) (5,283,531)
_____ _____
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST
TRANSACTIONS...................................................... 9,422,877 21,961,498
_____ _____
TOTAL INCREASE IN NET ASSETS...................................... 8,537,668 24,202,702
NET ASSETS:
Beginning of year....................................................... 4,706,471 13,244,139
_____ _____
End of year (including undistributed investment income-net:
$4,797 in 1994 and $2,898 in 1995).................................... $13,244,139 $37,446,841
====== ======

SHARES SHARES
_____ _____
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 991,178 2,224,658
Shares issued for dividends reinvested.................................. 61,022 155,421
Shares redeemed......................................................... (193,286) (466,867)
_____ _____
NET INCREASE IN SHARES OUTSTANDING.................................... 858,914 1,913,212
====== ======

</TABLE>

See notes to financial statements.
<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 year indicated. This
information has been derived from the Series' financial statements.

YEAR ENDED DECEMBER 31,
-----------------------------------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995
---- ---- ---- ----- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $10.01 $10.67 $10.94 $11.81 $10.53
---- ---- ---- ----- ----
INVESTMENT OPERATIONS:
Investment income-net........................ .70 .92 .76 .73 .68
Net realized and unrealized gain (loss) on investments .66 .30 .88 (1.27) 1.42
---- ---- ---- ----- ----
TOTAL FROM INVESTMENT OPERATIONS........... 1.36 1.22 1.64 (.54) 2.10
---- ---- ---- ----- ----
DISTRIBUTIONS:
Dividends from investment income-net......... (.70) (.92) (.76) (.73) (.69)
Dividends from net realized gain on investments - (.03) (.01) (.01) (.13)
---- ---- ---- ----- ----
TOTAL DISTRIBUTIONS........................ (.70) (.95) (.77) (.74) (.82)
---- ---- ---- ----- ----
Net asset value, end of year................. $10.67 $10.94 $11.81 $10.53 $11.81
==== ===== ===== ===== =====
TOTAL INVESTMENT RETURN.......................... 14.12% 12.09% 15.33% (4.59%) 20.42%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... - - - - .81%
Ratio of net investment income to average net assets 7.52% 8.54% 6.51% 7.03% 6.13%
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%
Net Assets, end of year (000's Omitted)...... $ 410 $ 405 $4,706 $13,244 $37,447

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
NOTES TO FINANCIAL STATEMENTS
NOTE 1-GENERAL:
The 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 eight series,
including the Quality Bond Portfolio series (the "Series") which 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 Dreyfus Corporation
("Dreyfus") serves as the Fund's investment adviser. Dreyfus is a direct
subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. (the
"Distributor") acts as the distributor of the Fund's shares, which are sold
without a sales charge. The Distributor, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution
Services, Inc., a provider of mutual fund administration services, which in
turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company
of which is Boston Institutional Group, Inc.
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's 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 (CONTINUED)

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 judgement 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.
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.
(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. For Federal income tax purposes, each series is treated as a
single entity for the purpose of determining such qualification.
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 .65 of 1% of the average daily value of the Series' net assets
and is payable monthly.
The Agreement further 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.

DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
However, Dreyfus had undertaken, from January 1, 1995 through July 5, 1995,
to reduce the investment advisory fee paid by the
Series, to the extent that the Series' aggregate expenses (exclusive of
certain expenses as described above) exceeded specified annual percentages of
the Series' average daily net assets. The reduction in investment advisory
fee, pursuant to the undertakings amounted to $10,017 for the year ended
December 31, 1995.
Effective December 1, 1995, the Fund entered into a transfer agency
agreement with Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus,
to provide 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:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the year ended December 31, 1995,
amounted to $61,453,426 and $47,766,543, respectively.
At December 31, 1995, accumulated net unrealized appreciation on
investments was $1,250,527, consisting of $1,300,586 gross unrealized
appreciation and $50,059 gross unrealized depreciation.
At December 31, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see Statement of Investments).

DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, QUALITY BOND PORTFOLIO
We have audited 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 December 31, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Variable Investment Fund, Quality Bond Portfolio at
December 31, 1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and the financial highlights for each of the indicated years, in conformity
with generally accepted accounting principles.

[Ernst and Young LLP signature logo]

New York, New York
February 9, 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
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903

Further information is contained
in the Prospectus, which must
precede or accompany this report.

Printed in U.S.A. 120AR9512
[Dreyfus logo]
Variable
Investment Fund,
QUALITY BOND
PORTFOLIO
Annual Report
December 31, 1995

DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance results for Dreyfus Variable
Investment Fund, Small Cap Portfolio for the fiscal year ended December 31,
1995, as shown in the following table:
<TABLE>
<CAPTION>

SMALL
CAP RUSSELL S&P
YEAR-TO-DATE TOTAL RETURN** PORTFOLIO 2000* 500*
- ---------------------------- ---------- --------- ------
<S> <C> <C> <C>
12/31/94-12/31/95....................................... 29.38% 28.44% 37.53%
INCEPTION-TO-DATE TOTAL RETURN**
- --------------------------------
8/31/90-12/31/95........................................ 965.81% 148.28% 123.06%
</TABLE>
The Fund's average annual total returns were 29.38% for the one-year
period, 59.71% for the five-year period and 55.76% for
the period since inception, each ended December 31, 1995. On the basis of
this record, the Portfolio was awarded Morningstar's Five Star Overall
ranking among 702 annuity portfolios in the equity category.***
The year can only be characterized as a terrific year in the equity
market. Small capitalization stocks, which are of course the feature of the
Small Cap Portfolio, had dramatic returns as well. It should not be
surprising, however, that in this environment, the small company universe
represented by the Russell 2000 Index underperformed the more widely followed
S&P 500. This represented the second year in a row of underperformance for
small stocks. The fundamentals of smaller companies are sound in the U.S.;
however, investors in a hurry to deploy huge sums of money quickly in a bull
market are using larger capitalization stocks as that investment vehicle.
These companies are generally the large U.S.-based multinationals that
benefit from the weakened dollar. The valuation gap is intriguingly wide
between the firms in which we like to invest and the so-called "nifty-fifty"
stocks that have been leading the market. This valuation gap has produced a
fertile climate in which to seek out relative and real values among small
caps.
Your Portfolio participates in the global investment theme by seeking out
small companies with large foreign sales, whose products hold a dominant
worldwide position. In this vein, we continue to hold OM Group, a cobalt
refiner and metallurgist; and Bush Boake Allen, a multinational specialized
flavors and fragrance company. We have accumulated positions in Keystone
International, a manufacturer of valves; Stewart & Stevenson Services, a
packager of industrial gas turbine systems; Titan Wheel International, a
producer of agricultural equipment wheels; and Cambrex, which sells bulk
actives to the pharmaceutical industry worldwide. With an eye towards 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 continues to own Rohr industries and Precision Castparts, and
has recently added Thiokol and Crane.
Capital goods stocks have outperformed consumer stocks for the past two
years. Your Portfolio has benefitted from this development. The low value of
the U.S. dollar coupled with increases in American productivity should extend
this trend. Although we continued to underweight the consumer sector, there
are some notable exceptions. We have substantial positions in Tiffany & Co,
Tootsie Roll Industries, Canandaigua Wine, Cl. A. and Meredith, which is a
less recognized but powerful publisher and broadcaster. We have high
confidence in the fundamentals and management of these firms.

As was widely reported, the technology sector propelled the market for
the first three quarters of 1995. You may remember we indicated in our last
shareholder letter that if this sector continued its unsustainable advance,
we would reduce our weighting. We did just that. The remaining technology
holdings, in our opinion, represent niche companies at what we believe to be
bargain prices. These include Security Dynamics Technologies, a maker of
security identification cards for remote access, Aspect Telecommunications, a
producer of call processing equipment, and Auspex Systems, a manufacturer of
network file servers for the movement and storage of data. We deployed the
proceeds from our technology sales into the health care industry. We view
health care as exhibiting many of the same exciting growth characteristics as
technology stocks, but with more compelling valuations. The two largest
holdings in the Fund are Mentor, a plastic surgery products company, and
Guidant, a manufacturer of cardiology equipment.
As we peer into 1996, we want to assure our shareholders that we will
only invest their funds in stocks of companies we believe in and management
we trust.
We again thank you for your interest and loyalty.
Sincerely,

[Thomas A. Frank signature logo]

Thomas A. Frank
Portfolio Manager
January 16, 1996
New York, N.Y.
* Sources: The Russell Company; Lipper Analytical Services, Inc. All
performance figures assume the reinvestment of dividends. The Russell 2000
Index and The Standard & Poor's 500 Composite Stock Price Index are widely
accepted unmanaged indices of stock market performance.
**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: Morningstar, Inc. Morningstar proprietary ratings reflect
historical risk-adjusted performance as of 12//31/95. The ratings are subject
to change every month. Past performance is no guarantee of future results.
Morningstar ratings are calculated from the Portfolio's three-year, five- and
ten-year average annual returns (as applicable) with appropriate fee
adjustments and a risk factor that reflects portfolio performance relative to
three-month Treasury bill monthly returns. Ten percent of the portfolios in
an investment category receive 5 stars. For three years, the portfolio
received 5 stars out of 702 portfolios and for five years, 5 stars out of 548
portfolios in the equity category.

DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio DECEMBER 31, 1995
[Exhibit A]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS VARIABLE
INVESTMENT FUND,
SMALL CAP PORTFOLIO AND THE RUSSELL 2000 INDEX

Dollars
$106,579
Dreyfus Variable
Investment Fund,
Small Cap Portfolio
$24,828
Russell 2000 Index*
*Source: Lipper Analytical Services, Inc.
[Exhibit A]
<TABLE>
<CAPTION>

AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED FROM INCEPTION (8/31/90)
DECEMBER 31, 1995 DECEMBER 31, 1995 TO DECEMBER 31, 1995
----------------- ----------------- -------------------------
<S> <C> <C>
29.38% 59.71% 55.76%
</TABLE>
Past performance is not predictive of future performance.
THE PORTFOLIO'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ADDITIONAL
CHARGES APPLICABLE TO SEPARATE ACCOUNTS OF PARTICIPATING INSURANCE COMPANIES
USING THE PORTFOLIO AS AN UNDERLYING INVESTMENT.
The above graph compares a $10,000 investment made in Dreyfus Variable
Investment Fund, Small Cap Portfolio on 8/31/90 (Inception Date) to a $10,000
investment made in the Russell 2000 Index on that date. All dividends and
capital gain distributions are reinvested.
The Portfolio's performance shown in the line graph takes into account all
applicable fees and expenses. The Russell 2000 Index is an unmanaged index
and is composed of the 2,000 smallest companies in the Russell 3000 Index.
The Russell 3000 Index is composed of 3,000 of the largest U.S. companies by
market capitalization. The Index does not take into account charges, fees and
other expenses. Further information relating to Portfolio performance,
including expense reimbursements, if applicable, is contained in the
Financial Highlights section of the Prospectus and elsewhere in this report.

DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
COMMON STOCKS-90.1% SHARES VALUE
_________ ___________
<S> <C> <C>
CONSUMER- 16.4% Boise Cascade Office Products 130,000 $ 5,557,500
Bush Boake Allen...........................(a) 122,500 3,353,437
Canandaigua Wine, Cl. A....................(a) 190,000 6,198,750
Central Tractor Farm & Country.............(a) 127,000 1,301,750
Eskimo Pie............................. 58,500 1,067,625
Genovese Drug Stores, Cl. A............ 77,000 866,250
MSC Industrial Direct.................. 100,000 2,750,000
Mentor................................. 550,000 12,650,000
Meredith............................... 150,000 6,281,250
Metromedia International Group.............(a) 228,900 3,204,600
Norton McNaughton..........................(a) 225,000 2,503,125
Pepsi-Cola Puerto Rico Bottling, Cl. B. 105,000 1,207,500
Pete's Brewing......................... 90,100 1,261,400
Spelling Entertainment Group...............(a) 150,000 1,875,000
Station Casinos...................... (a) 370,000 5,411,250
Stein Mart........................... (a) 175,000 1,925,000
TCA Cable TV........................... 190,000 5,248,750
Talbots................................ 190,000 5,462,500
Thermedics........................... (a) 190,000 5,272,500
Thomas Nelson.......................... 300,000 3,900,000
Tiffany & Co........................... 110,000 5,541,250
Tootsie Roll Industries................ 153,000 6,062,625
_________
88,902,062
_________
ENERGY-7.4% Abacan Resource 750,000 2,015,625
Benton Oil & Gas..................... (a) 340,000 5,100,000
Cairn Energy USA..................... (a) 350,000 4,900,000
Coda Energy.......................... (a) 350,000 2,603,125
Core Laboratories, N.V.................. 400,000 4,800,000
Devon Energy........................... 235,000 5,992,500
Falcon Drilling........................ 45,000 675,000
Global Industries.................... (a) 142,500 4,275,000
Parker & Parsley Petroleum............. 170,000 3,740,000
Stewart & Stevenson Services........... 110,000 2,777,500
Tide West Oil........................ (a) 190,000 2,541,250
Unit.................................. (a) 237,500 1,128,125
__________
40,548,125
__________
FINANCIAL SERVICES-16.8% ACE.................................... 250,000 9,937,500
Amerin................................. 150,000 4,012,500
Center Financial....................... 205,000 3,587,500
Charter One Financial.................. 170,000 5,206,250
Commerce Group......................... 150,000 3,093,750
Dime Bancorp......................... (a) 200,000 2,325,000
Duff & Phelps Credit Rating................(b) 317,500 4,564,063
Executive Risk......................... 175,000 5,075,000

DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ _______
FINANCIAL SERVICES (CONTINUED) FINOVA Group........................... 125,000 $6,031,250
Frontier Insurance Group............... 150,000 4,800,000
GCR Holdings........................... 150,000 3,375,000
Hibernia, Cl. A........................ 475,000 5,106,250
National Re............................ 147,500 5,605,000
Presidential Life...................... 375,000 3,703,125
Reliance Group Holdings................ 762,500 6,576,562
Standard Federal Bancorporation........ 185,000 7,284,375
USLIFE................................. 150,000 4,481,250
Western National....................... 425,000 6,853,125
_________
91,617,500
_________
HEALTH CARE-9.0% ARV Assisted Living.................... 125,000 1,468,750
AmeriSource Health, Cl. A.............. 135,000 4,455,000
Apria Healthcare Group.....................(a) 75,000 2,118,750
Ballard Medical Products............... 190,000 3,396,250
Circon................................. (a) 225,000 4,556,250
CorVel................................. (a) 145,000 5,528,125
DepoTech............................... 80,000 1,540,000
Guidant................................ 260,000 10,985,000
ICU Medical............................ (a) 125,000 2,125,000
ONCOR.................................. (a) 560,200 2,520,900
Quantum Health Resources...................(a) 200,000 1,962,500
Staff Builders, Cl. A......................(a) 485,000 1,424,688
Universal Health Services, Cl. B...........(a) 150,000 6,656,250
_________
48,737,463
_________
MATERIALS & PROCESSING-12.3% Amax Gold.............................. (a) 500,000 3,625,000
BJ Services............................ (a) 125,000 3,625,000
Cambrex................................ 174,900 7,236,488
Crane.................................. 125,000 4,609,375
Culligan Water Technologies............ 164,200 3,981,850
Ferro.................................. 180,000 4,185,000
Freeport McMoRan....................... 119,998 4,439,926
IMCO Recycling......................... 130,500 3,197,250
International Specialty Products...........(a) 300,000 3,262,500
Jacobs Engineering Group...................(a) 110,000 2,750,000
Longview Fibre......................... 225,000 3,656,250
Minerals Technologies.................. 150,000 5,475,000
OM Group............................... 165,000 5,465,625
Reliance Steel & Aluminum.............. 90,000 1,867,500
Santa Fe Pacific Gold.................. 350,000 4,243,750
Sterling Chemicals................... (a) 245,000 1,990,625
USA Waste Services................... (a) 74,000 1,396,750
Uniroyal Chemical...................... 205,000 1,691,250
_________
66,699,139
_________

DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ _______

PRODUCER DURABLES-8.5% Albany International, Cl. A............ 275,000 $ 4,984,375
Applied Power, Cl. A................... 75,000 2,250,000
Huntco, Cl. A.......................... 250,000 3,843,750
Keystone International.................. 215,000 4,300,000
Manitowoc.............................. 95,000 2,909,375
Precision Castparts.................... 150,000 5,962,500
Rohr Industries...................... (a) 375,000 5,390,625
Roper Industries....................... 90,000 3,307,500
Titan Wheel International............... 225,000 3,656,250
Watts Industries, Cl. A................. 175,000 4,068,750
Wolverine Tube....................... (a) 149,500 5,606,250
_________
46,279,375
_________
TECHNOLOGY-19.0%.... Aspect Telecommunication............. (a) 170,000 5,695,000
Auspex Systems....................... (a) 350,000 6,387,500
Celeritek............................ 220,000 2,337,500
Cheyenne Software.................... (a) 110,000 2,873,750
Cooper & Chyan Technology.............. 190,000 2,992,500
C.P. Clare............................. 40,000 820,000
DST Systems............................ 175,000 4,987,500
Elcom International.................... 370,000 5,642,500
FSI International...................... 230,000 4,657,500
FTP Software......................... (a) 150,000 4,350,000
Franklin Electronic Publishing.............(a) 90,000 2,655,000
GT Interactive Software................. 225,000 3,150,000
Glenayre Technologies......................(a) 25,000 1,556,250
IDX Systems............................ 177,500 6,168,125
IMNET Systems.......................... 127,000 3,048,000
Intergraph........................... (a) 210,000 3,307,500
International Rectifier....................(a) 50,000 1,250,000
Learning Tree International............ 185,000 2,890,625
Madge Networks, N.V. ................ (a) 130,000 5,817,500
Micrografx........................... (a) 150,000 1,987,500
P-COM.................................. 190,000 3,800,000
Renaissance Solutions................... 75,000 1,068,750
Security Dynamics Technologies.............(a) 115,000 6,267,500
Sierra On-Line....................... (a) 190,000 5,462,500
Softkey International......................(a) 65,000 1,503,125
Software Artistry...................... 10,000 150,000
StrataCom............................ (a) 45,000 3,307,500
Thiokol................................ 150,000 5,081,250
Veeco Instruments.................... (a) 167,500 2,428,750
VideoServer............................ 50,000 1,575,000
_________
103,218,625
_________

DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ _______
TRANSPORT & AUTOS-.7% Kansas City Southern Industries.......... 85,000 $3,888,750
_________
TOTAL COMMON STOCKS
(cost $413,396,621).................. $489,891,039
===========
PRINCIPAL
BOND-.2% AMOUNT
_______
TECHNOLOGY; Individual, 12%, 11/29/2000, Conv.
(cost $1,000,000)........................(c,d) $1,000,000 $1,000,000
===========
SHORT-TERM INVESTMENTS- 9.5%
U.S. TREASURY BILLS: 5.28%, 1/11/96......................... $9,418,000 $9,403,213
5.31%, 1/25/96......................... 13,183,000 13,140,551
5.34%, 2/8/96.......................... 10,801,000 10,744,295
5.09%, 3/7/96.......................... 15,859,000 15,713,097
4.84%, 3/28/96......................... 2,529,000 2,498,121
__________
TOTAL SHORT-TERM INVESTMENTS
(cost $51,491,154). $51,499,277
============
TOTAL INVESTMENTS (cost $465,887,775)....................................... 99.8% $542,390,316
====== ============
CASH AND RECEIVABLES (NET).................................................. .2% $ 890,848
====== ============
NET ASSETS.................................................................. 100.0% $543,281,164
====== ============
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Investment in non-controlled affiliates (cost $3,882,726)-see Note
2(d).
(c) With 16,000 warrants to purchase Common Stock.
(d) Security restricted as to public resale. Investment in restricted
security, with a market value of $1,000,000, represents approximately
.18% of net assets.
</TABLE>

ACQUISITION PURCHASE PERCENTAGE OF
ISSUER DATE PRICE NET ASSETS VALUATION*
- ------ ----------- -------- ------------- ------------
<S> <C> <C> <C>
Individual, 12%, 11/29/2000, Conv..... 11/29/95 $100 .18% Cost
*The valuation of this security has been determined in good faith under
the direction of the Board of Trustees.

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $465,887,775)-see statement..................................... $542,390,316
Cash.................................................................... 2,342,311
Receivable for investment securities sold............................... 12,533,278
Dividends and interest receivable....................................... 314,907
Prepaid expenses........................................................ 291
________
557,581,103
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $329,835
Payable for investment securities purchased............................. 13,794,995
Accrued expenses........................................................ 175,109 14,299,939
__________ _________
NET ASSETS.................................................................. $543,281,164
===========
REPRESENTED BY:
Paid-in capital......................................................... $463,117,504
Accumulated distributions in excess of investment income-net............ (33,132)
Accumulated undistributed net realized gain
on investments and foreign currency transactions...................... 3,694,251
Accumulated net unrealized appreciation on investments-Note 4(b)........ 76,502,541
_________
NET ASSETS at value applicable to 11,778,323 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized)........................................................ $543,281,164
============
NET ASSET VALUE, offering and redemption price per share
($543,281,164 / 11,778,323 shares)...................................... $46.13
======

</TABLE>
See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends:
Unaffiliated issuers.............................................. $ 2,082,377
Affiliated issuers................................................ 27,975 $2,110,352
Interest.............................................................. 2,678,433
__________
TOTAL INCOME.................................................... 4,788,785
EXPENSES:
Investment advisory fee-Note 3(a)..................................... 2,610,562
Registration fees..................................................... 101,542
Custodian fees........................................................ 71,358
Prospectus and shareholders' reports.................................. 47,113
Trustees' fees and expenses-Note 3(b)................................. 24,672
Professional fees..................................................... 23,523
Dividends on securities sold short.................................... 10,800
Shareholder servicing costs........................................... 761
Miscellaneous......................................................... 7,508
_______
TOTAL EXPENSES.................................................. 2,897,839
__________
INVESTMENT INCOME-NET........................................... 1,890,946
__________
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain (loss) on investments-Note 4(a):
Long transactions (including foreign currency transactions):
Unaffiliated issuers.............................................. $15,845,305
Affiliated issuers................................................ (299,018)
Short sale transactions............................................... (192,297)
_______
NET REALIZED GAIN..................................................... 15,353,990
__________
Net unrealized appreciation on investments:
Unaffiliated issuers.............................................. 70,078,430
Affiliated issuers................................................ 681,337 70,759,767
----------- __________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 86,113,757
__________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $88,004,703
__________

</TABLE>
See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
-----------------------------------
1994 1995
------------ ----------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $765,642 $1,890,946
Net realized gain (loss) on investments................................. (812,026) 15,353,990
Net unrealized appreciation on investments for the year................. 3,743,892 70,759,767
_________ __________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 3,697,508 88,004,703
_________ __________
DIVIDENDS TO SHAREHOLDERS:
From investment income-net.............................................. (727,613) (1,926,351)
In excess of investment income-net...................................... -- (33,132)
From net realized gain on investments................................... (720,564) (10,361,085)
In excess of net realized gain on investments........................... (481,344) --
__________ __________
TOTAL DIVIDENDS....................................................... (1,929,521) (12,320,568)
__________ __________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 158,015,337 299,512,811
Dividends reinvested.................................................... 1,929,521 12,320,568
Cost of shares redeemed................................................. (6,835,267) (17,451,351)
__________ __________
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.......... 153,109,591 294,382,028
__________ __________
TOTAL INCREASE IN NET ASSETS...................................... 154,877,578 370,066,163
NET ASSETS:
Beginning of year....................................................... 18,337,423 173,215,001
__________ __________
End of year [including undistributed investment income-net; $35,405
in 1994 and distributions in excess of investment income-net;
$(33,132) in 1995].......................................................... $173,215,001 $543,281,164
============ ============

SHARES SHARES
-------- -------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 4,347,955 7,174,006
Shares issued for dividends reinvested.................................. 52,997 274,387
Shares redeemed......................................................... (190,260) (413,128)
_________ _________
NET INCREASE IN SHARES OUTSTANDING.................................... 4,210,692 7,035,265
=========== ===========

</TABLE>
See notes to financial statements.

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 year indicated. This
information has been derived from the Series' financial statements.

YEAR ENDED DECEMBER 31,
__________________________________________________________
PER SHARE DATA: 1991 1992 1993 1994 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $10.21 $20.60 $22.71 $34.45 $36.52
---- ---- ---- ---- ----
INVESTMENT OPERATIONS:
Investment income-net........................ .14* .18* .14 .17 .16
Net realized and unrealized gain on investments 15.85* 13.10* 14.93 2.50 10.54
---- ---- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS........... 15.99* 13.28* 15.07 2.67 10.70
---- ---- ---- ---- ----
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 year................. $20.60 $22.71 $34.45 $36.52 $46.13
====== ====== ======== ====== ========
TOTAL INVESTMENT RETURN.......................... 159.73% 71.28% 68.31% 7.75% 29.38%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... 1.16% .94% .25% .55% .83%
Ratio of net investment income to average net assets .77% .76% .89% 1.18% .54%
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%
Net Assets, end of year (000's Omitted)...... $1,554 $2,679 $18,337 $173,215 $543,281
* Based on average shares outstanding.

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
NOTES TO FINANCIAL STATEMENTS
NOTE 1-GENERAL:
The 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 eight series,
including the Small Cap Portfolio series (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 Dreyfus Corporation ("Dreyfus")
serves as the Fund's investment adviser. Dreyfus is a direct subsidiary of
Mellon Bank, N.A. Premier Mutual Fund Services, Inc. (the "Distributor") acts
as the distributor of the Fund's shares, which are sold without a sales
charge. The Distributor, located at One Exchange Place, Boston, Massachusetts
02109, is a wholly-owned subsidiary of FDI Distribution Services, Inc., a
provider of mutual fund administration services, which in turn is a
wholly-owned subsidiary of FDI Holdings, Inc., the parent company of which is
Boston Institutional Group, Inc.
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 will 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 and
MBLLAC 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, Small Cap Portfolio
NOTES TO FINANCIAL STATEMENTS (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.
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.
(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 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 the 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. For Federal income tax purposes, each series is treated as a
single entity for the purpose of determining such qualification.

DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3-INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to the provisions of an Investment Advisory Agreement (the
"Agreement") with Dreyfus, the investment advisory fee is computed at the
annual rate of .75 of 1% of the average daily value of the Series' net assets
and is payable monthly. There was no expense reimbursement for the year ended
December 31, 1995.
The Agreement further 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), brokerage 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.
Effective December 1, 1995, the Fund entered into a transfer agency
agreement with Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, to provide 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.
NOTE 4-SECURITIES TRANSACTIONS:
(A) The following summarizes the aggregate amount of purchases and sales
of investment securities and securities sold short, excluding short-term
securities, options and forward currency exchange contracts, during the year
ended December 31, 1995:
<TABLE>
<CAPTION>

PURCHASES SALES
____________ ____________
<S> <C> <C>
Long transactions:
Unaffiliated issuers........................................... $583,929,707 $301,384,934
Affiliated issuers............................................. 1,108,725 656,638
Short sale transactions.......................................... 10,745,304 10,553,007
____________ ____________
TOTAL...................................................... $595,783,736 $312,594,579
============== ============
</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 declines 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 December 31, 1995,
there were no securities sold short outstanding.
(B) At December 31, 1995, accumulated net unrealized appreciation on
investments was $76,502,541, consisting of $90,047,870 gross unrealized
appreciation and $13,545,329 gross unrealized depreciation.
At December 31, 1995, 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
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
We have audited 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 December 31, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Variable Investment Fund, Small Cap Portfolio at December
31, 1995, the results of its operations for the year then ended, the changes
in its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.

[Ernst & Young LLP signature logo]

New York, New York
February 9, 1996

IMPORTANT TAX INFORMATION (UNAUDITED)
For Federal tax purposes the Portfolio hereby designates $.22 per share
as a long-term capital gain distribution of the $1.08 per share paid on
December 21, 1995.

[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
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903

Further information is contained
in the Prospectus, which must
precede or accompany this report.

Printed in U.S.A. 121AR9512
[Dreyfus logo]
Variable
Investment Fund,
SMALL CAP PORTFOLIO
Annual Report
December 31, 1995

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 annual reporting period
ended December 31, 1995, your Fund produced a total return of 17.95%*
compared with 18.65% for the Merrill Lynch U.S. Treasury Coupon 5-Year Strips
Index.** Income dividends of $.688 per share were paid, which represents a
distribution rate of 5.42% per share based on the closing net asset value.
THE ECONOMY
Additional evidence that economic activity remained sluggish and that
inflation continued to be under control moved the Federal Reserve Board to
further ease the Federal Funds rate in December. (The Federal Funds rate is
the rate at which the nation's banks borrow money from each other and which
all other short-term rates are based on.) This was the second reduction for
this important short-term rate in 1995, the first occurring in July. The
latest 25-basis-point reduction in December put the rate at 5.50%. Major
incentives for this additional reduction were the inflation report in
November--the increase in the Consumer Price Index was flat for the first
time in 4 1/2 years - and the generally slow rate of economic growth. As it
did in July, the Federal Reserve left unchanged the discount rate - the rate
at which the Federal Reserve lends to member banks. The discount rate
remained at 5.25% throughout 1995.
Signs of economic slowdown increased during the latter half of the year.
Weakening retail sales and very modest industrial production lent credence to
fears about the possibility of recession. Consumer spending was inhibited
last year by the slow rate of new job creation, sluggish growth in wages and
salaries, and the continued trend of corporate cost-related layoffs. The
lethargic pace of consumer spending last year culminated in one of the worst
holiday sales periods since the business slump in 1990-1991, despite steep
price markdowns by retailers.
Industrial production climbed modestly during the year. By November, the
nation's factories operated at only 83.1% of capacity, down for the third
consecutive month. This was a reflection of weakening demand and further
evidence of the diminishing pressure to raise prices. Furthermore,
inventories built up by year-end, another sign of slackening demand.
The political stalemate in Washington over the balanced budget adds
additional uncertainty to the economy; ultimately an accord will be reached
and fiscal policy will likely be a restraining force on the economy. As we go
forward without a budget agreement, reductions in annually appropriated
spending will tend to retard the economy. With an agreement, the combination
of cuts in appropriations and other spending reductions should have the same
effect.
There are strong indications that inflation is under control. Until
midyear 1995, fear of inflation was the overriding concern of the Federal
Reserve. Now, the focus seems to have shifted to actions designed to avoid
recession. In an election year, few things are less desirable for political
incumbents than recession.
PORTFOLIO OVERVIEW
In a fund with a final maturity of December 31, 2000 the turnover rate
tends to be extremely low. This was especially the case for the last year.
Because we had a positive view on the market, as we received cash flow into
the Fund we invested it within our final maturity parameters. We currently
have a small amount of cash and will invest these funds as opportunities
present themselves. During the last year, we added $1,000,000 face amount of
FICO, 0% due 5/30/00, $4,630,000 face amount of Resolution Trust, 0% due
10/15/00, $1,650,000 face amount American Express, 0% due 12/12/00 and
$1,500,000 face amount of Resolution Trust, 0% due 7/15/99.

Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,

[Garitt A. Kono signature logo]

Garitt A. Kono
Portfolio Manager
Jauuary 16, 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 applicable to separate accounts of participating insurance
companies using the Portfolio as an underlying investment.
**Source: Merrill Lynch, Pierce, Fenner and Smith, Inc. Unlike the
Portfolio, the Merrill Lynch U.S. Treasury Coupon 5-Year Strips Index is an
unmanaged Zero Coupon Index.

DREYFUS VARIABLE INVESTMENT FUND,
Zero Coupon 2000 Portfolio DECEMBER 31, 1995

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS VARIABLE
INVESTMENT FUND,
ZERO COUPON 2000 PORTFOLIO WITH THE MERRILL LYNCH U.S. TREASURY COUPON 5-YEAR
STRIPS INDEX
[Exhibit A
$18,223
Dreyfus Variable
Investment Fund,
Zero Coupon 2000
Portfolio

$17,370
Merrill Lynch
U.S. Treasury Coupon
5-Year Strips Index*
*Source: Merrill Lynch, Pierce, Fenner and Smith Inc.
<TABLE>
<CAPTION>

AVERAGE ANNUAL TOTAL RETURNS

ONE YEAR ENDED FIVE YEARS ENDED FROM INCEPTION (8/31/90)
DECEMBER 31, 1995 DECEMBER 31, 1995 TO DECEMBER 31, 1995
----------------- ----------------- -----------------------
<S> <C> <C>
17.95% 11.26% 11.89%
</TABLE>
Past performance is not predictive of future performance.
THE PORTFOLIO'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ADDITIONAL
CHARGES APPLICABLE TO SEPARATE ACCOUNTS OF PARTICIPATING INSURANCE COMPANIES
USING THE PORTFOLIO AS AN UNDERLYING INVESTMENT.
The above graph compares a $10,000 investment made in Dreyfus Variable
Investment Fund, Zero Coupon 2000 Portfolio on 8/31/90 (Inception Date) to a
$10,000 investment made in the Merrill Lynch U.S. Treasury Coupon 5-Year
Strips Index on that date. All dividends and capital gain distributions are
reinvested.
The Portfolio's performance shown in the line graph takes into account all
applicable fees and expenses. The Merrill Lynch U.S. Treasury Coupon 5-Year
Strips Index is an unmanaged zero coupon index with constant maturity and
duration. The Index does not take into account charges, fees and other
expenses. Further information relating to Portfolio performance, including
expense reimbursements, if applicable, is contained in the Financial
Highlights section of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>

DREYFUS VARIABLE INVESTMENT FUND, Zero Coupon 2000 Portfolio
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
PRINCIPAL
BONDS AND NOTES-83.8% AMOUNT VALUE
_______ ______
<S> <C> <C>
BANKING-1.7% CoreStates Capital,
Sub. Notes, 9 5/8%, 2001............. $ 200,000 $ 230,172
J.P. Morgan and Co.,
Sub. Notes, Zero Coupon, 1998........ 160,000 140,937
______
371,109
______
CONSUMER-.7% News America Holdings (Gtd. by News),
Sr. Notes, 7 1/2%, 2000.............. 150,000 157,494
______
FINANCE-5.6% American Express,
Gtd. Euro-Bond, Zero Coupon, 2000.... 1,650,000 1,242,450
______
INSURANCE-.6% .SunAmerica,
Notes, 9%, 1999...................... 130,000 140,728
______
FOREIGN-.4% Kingdom of Sweden,
Bonds, Ser. A, Zero Coupon, 1997..... 40,000 37,371
Montreal Urban Community,
Deb., 9 1/8%, 2001................... 40,000 45,078
______
82,449
______
OTHER-8.0% FICO Coupon Strips:
Ser.17, Zero Coupon, 4/5/2000........ 500,000 395,317
Ser. 3, Zero Coupon, 5/30/2000....... 1,000,000 787,730
Zero Coupon, 10/6/2000............... 478,000 367,243
Ser. 1, Zero Coupon, 11/11/2000...... 150,000 114,612
Ser.10, Zero Coupon, 11/30/2000...... 152,000 115,763
______
1,780,665
______
U.S. GOVERNMENT
AND AGENCIES-66.8% Chattanooga Valley,
Secured First Mortgage, Zero Coupon,
1/1/2000............................. 176,000 140,450
Federal National Mortgage Association,
Callable Principal Strips, Ser. 1:
Zero Coupon, 8/21/1996 (a) 145,000 139,643
Zero Coupon, 10/10/2001 400,000 384,000
Resolution Funding, Coupon Strips:
Ser. A, Zero Coupon, 7/15/1999....... 1,500,000 1,242,669
Zero Coupon, 7/15/2000............... 260,000 204,166
Zero Coupon, 10/15/2000.............. 7,460,000 5,769,243
U.S. Treasury Coupon Receipts,
Zero Coupon, 11/15/2000.............. 430,355 331,102
U.S. Treasury Notes,
7 3/4%, 12/31/1999................... 1,000,000 1,085,625

DREYFUS VARIABLE INVESTMENT FUND, Zero Coupon 2000 Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
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 $ 391,035
Zero Coupon, 11/15/2000.............. 6,750,000 5,208,995
______
14,896,928
______
TOTAL BONDS AND NOTES
(cost $17,849,199)................... $18,671,823
==========

SHORT-TERM INVESTMENTS-15.3%
AGENCY DISCOUNT NOTE; Federal Home Loan Mortgage Corp.,
5 1/2%, 1/2/1996
(cost $3,412,479).................... $ 3,413,000 $ 3,412,479
======
TOTAL INVESTMENTS (cost $21,261,678) ................................ 99.1% $22,084,302
===== ======
CASH AND RECEIVABLES (NET).................................................. .9% $ 206,964
===== ======
NET ASSETS.................................................................. 100.0% $22,291,266
===== ======

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.

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Zero Coupon 2000 Portfolio
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $21,261,678)--see statement...................................... $22,084,302
Cash.................................................................... 202,647
Interest receivable..................................................... 56,492
Prepaid expenses........................................................ 4,043
______
22,347,484
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 8,218
Payable for shares of Beneficial Interest redeemed...................... 26,926
Accrued expenses........................................................ 21,074 56,218
____ ______
NET ASSETS ................................................................ $22,291,266
======
REPRESENTED BY:
Paid-in capital......................................................... $21,419,473
Accumulated undistributed investment income--net......................... 1,329
Accumulated undistributed net realized gain on investments.............. 47,840
Accumulated net unrealized appreciation on investments--Note 4........... 822,624
______
NET ASSETS at value, applicable to 1,755,569 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $22,291,266
======
NET ASSET VALUE, offering and redemption price per share
($22,291,266 / 1,755,569 shares)........................................ $12.70
======

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Zero Coupon 2000 Portfolio
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $1,010,113
EXPENSES:
Investment advisory fee--Note 3(a)..................................... $ 70,948
Auditing fees......................................................... 12,526
Custodian fees........................................................ 10,690
Registration fees..................................................... 3,389
Prospectus and shareholders' reports.................................. 3,290
Trustees' fees and expenses-Note 3(b)................................. 1,226
Legal fees............................................................ 823
Shareholder servicing costs........................................... 441
Miscellaneous......................................................... 7,599
_____
TOTAL EXPENSES.................................................... 110,932
Less--reduction in investment advisory fee due to undertakings--Note 3(a) 4,371
_____
NET EXPENSES...................................................... 106,561
_____
INVESTMENT INCOME-NET............................................. 903,552
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments--Note 4................................. $ 48,259
Net unrealized appreciation on investments.............................. 1,503,991
_____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 1,552,250
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $2,455,802
======

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Zero Coupon 2000 Portfolio
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
----------------------------------
1994 1995
______ ______
<S> <C> <C>
OPERATIONS:
Investment income--net................................................... $ 522,791 $ 903,552
Net realized gain on investments........................................ -- 48,259
Net unrealized appreciation (depreciation) on investments for the year.. (791,423) 1,503,991
______ ______
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................................... (268,632) 2,455,802
______ ______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................... (519,948) (905,009)
Net realized gain on investments........................................ (7,541) --
______ ______
TOTAL DIVIDENDS....................................................... (527,489) (905,009)
______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 8,129,045 13,035,937
Dividends reinvested.................................................... 479,850 905,009
Cost of shares redeemed................................................. (2,595,464) (4,113,922)
______ ______
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.......... 6,013,431 9,827,024
______ ______
TOTAL INCREASE IN NET ASSETS...................................... 5,217,310 11,377,817
NET ASSETS:
Beginning of year....................................................... 5,696,139 10,913,449
______ ______
End of year (including undistributed investment income-net:
$2,786 in 1994 and $1,329 in 1995).................................... $10,913,449 $22,291,266
====== ======
SHARES SHARES
______ ______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 683,960 1,061,630
Shares issued for dividends reinvested.................................. 40,904 73,730
Shares redeemed......................................................... (220,025) (337,613)
______ ______
NET INCREASE IN SHARES OUTSTANDING.................................... 504,839 797,747
====== ======

</TABLE>
See notes to financial statements.

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 year indicated. This
information has been derived from the Series' financial statements.

YEAR ENDED DECEMBER 31,
____________________________________________________________
PER SHARE DATA: 1991 1992 1993 1994 1995
___ ___ ___ ___ ___
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $10.45 $11.64 $11.77 $12.57 $11.39
___ ___ ___ ___ ___
INVESTMENT OPERATIONS:
Investment income-net........................ .76 .83 .79 .69 .69
Net realized and unrealized gain (loss)
on investments............................. 1.25 .15 .96 (1.18) 1.31
___ ___ ___ ___ ___
TOTAL FROM INVESTMENT OPERATIONS........... 2.01 .98 1.75 (.49) 2.00
___ ___ ___ ___ ___
DISTRIBUTIONS:
Dividends from investment income-net......... (.76) (.84) (.78) (.68) (.69)
Dividends from net realized gain on investments (.06) (.01) (.17) (.01) --
___ ___ ___ ___ ___
TOTAL DISTRIBUTIONS........................ (.82) (.85) (.95) (.69) (.69)
___ ___ ___ ___ ___
Net asset value, end of year................. $11.64 $11.77 $12.57 $11.39 $12.70
=== === === === ===
TOTAL INVESTMENT RETURN.......................... 20.09% 8.87% 15.19% (3.91%) 17.95%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .72% .64% -- -- .68%
Ratio of net investment income to average
net assets................................. 7.41% 7.15% 6.21% 6.04% 5.73%
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%
Net Assets, end of year (000's Omitted)...... $1,296 $1,362 $5,696 $10,913 $22,291
</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Zero Coupon 2000 Portfolio
NOTES TO FINANCIAL STATEMENTS
NOTE 1-GENERAL:
The 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 eight series,
including the Zero Coupon 2000 Portfolio (the "Series") which 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 Dreyfus Corporation
("Dreyfus") serves as the Fund's investment adviser. Dreyfus is a direct
subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. (the
"Distributor") acts as the distributor of the Fund's shares, which are sold
without a sales charge. The Distributor, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution
Services, Inc., a provider of mutual fund administration services, which in
turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company
of which is Boston Institutional Group, Inc.
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 (CONTINUED)
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.
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.
(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. For Federal income tax purposes, each series is treated as a
single entity for the purpose of determining such qualification.
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 .45 of 1% of the average daily value of the Series' net assets
and is payable monthly.
The Agreement further 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.

DREYFUS VARIABLE INVESTMENT FUND, Zero Coupon 2000 Portfolio
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
However, Dreyfus had undertaken, from January 1, 1995 through June 30, 1995
to reduce the investment advisory fee paid by the Series', to the extent that
the Series' aggregate expenses (exclusive of certain expenses as described
above) exceeded specified annual percentages of the Series' average daily net
assets. The reduction in investment advisory fee, pursuant to the undertakings
amounted to $4,371 for the year ended December 31, 1995.
Effective December 1, 1995, the Fund entered into a transfer agency
agreement with Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, to provide 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.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the year ended December 31, 1995,
amounted to $13,898,921 and $6,800,625, respectively.
At December 31, 1995, accumulated net unrealized appreciation on
investments was $822,624, consisting of $840,022 gross unrealized
appreciation and $17,398 gross unrealized depreciation.
At December 31, 1995, 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
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, ZERO COUPON 2000 PORTFOLIO
We have audited 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 December 31, 1995, and the related statement
of operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Variable Investment Fund, Zero Coupon 2000 Portfolio at
December 31, 1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and the financial highlights for each of the indicated years, in conformity
with generally accepted accounting principles.
[Ernst and Young LLP signature logo]

New York, New York
February 9, 1996

[Dreyfus lion "d" logo]
DREYFUS VARIABLE INVESTMENT FUND,
ZERO COUPON 2000 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.
One American Express Plaza
Providence, RI 02903

Further information is contained
in the Prospectus, which must
precede or accompany this report.

Printed in U.S.A. 119AR9512
[Dreyfus logo]
Variable
Investment Fund, ZERO COUPON
2000 PORTFOLIO
Annual Report
December 31, 1995

CAPITAL APPRECIATION
PORTFOLIO
Annual Report
December 31, 1995
DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this annual report on the activity of
Dreyfus Variable Investment Fund, Capital Appreciation Portfolio for the
12-month period from January 1, 1995 through December 31, 1995. During that
period, the Fund provided a total return of 33.52%.* During the same period,
the Standard & Poor's 500 Composite Stock Price Index provided a return of
37.53%.**
PORTFOLIO COMPOSITION
At the close of the period, the Portfolio had 5.7% of its net assets in
short-term securities and the balance in equities. In the equity portion of
the Portfolio, industry concentrations were in consumer nondurables and
health care. As market conditions permit, we will reduce the position in
Treasuries and commit these assets to what we believe are high quality
equities.
ECONOMIC OUTLOOK
In our view, 1995 will prove to have been a bridge to a path of moderate
growth, which should extend the economic cycle in an environment of low
inflation and declining interest rates. We expect that the average annual
Gross Domestic Product growth will weaken to a range of 1.5% - 2.0% in 1996,
with inflation near 2.5%, or very likely lower. Long-term interest rates
should decline to 5.5% or below in an environment of fiscal restraint and
little pricing flexibility. If our outlook is incorrect, it is possible that
growth and inflation will fall below our expectations, particularly in the
first half of 1996, although we do not expect a recession to develop. In our
view, consumer demand will remain weak until late in the year, with any
increase in spending continuing to be affected by price sensitivity. The
economy's growth should be supported by a moderate increase in capital
spending and by growth in U.S. exports, which continues to increase as a
percentage of GDP, although from a low base. In spite of weakness among its
principal trading partners, the U.S. continues to gain market share in
developing markets, particularly in the Pacific Rim and Far East. The above
factors, along with cautious but more accommodative monetary policy, should
provide enough liquidity to prevent a contraction in economic growth.
INVESTMENT OUTLOOK AND STRATEGY
In a slowing economy with the prospect of falling corporate profits and
earnings disappointments, we do not expect total return on equities to
approximate that of 1995. However, we continue to expect equities to
outperform fixed income securities and cash equivalents. We believe our
strategy of focusing on large capitalization, multinational industry leaders
will provide the most upside potential with less exposure to risk. These
types of companies will continue to have excess cash available to repurchase
shares near the record levels reached in 1995, in spite of weak economies
among the G-7 leading industrial nations. We also expect industry
consolidations and merger and acquisition activity to be robust, and only
marginally lower than the record set in 1995. If the best of all possible
developments takes place on the political front, investors could be surprised
that equity markets will do better than consensus expectations.
INVESTMENT HIGHLIGHTS
Rising bond prices, low inflation and the prospect of an extended period
of moderate economic growth provided a constructive backdrop for equity
markets in 1995. Optimism about the goal of achieving meaningful deficit
reduction, and a cyclical trend of fiscal accountability and restraint, also
supported equity prices. The rise in the S&P 500 Stock Index was led by
health care issues, as had been the case in 1994. The Fund's 15.1% weighting
in this sector had the most positive impact on performance relative to the
Index. Strong performance in shares of Merck & Co, Pfizer, Johnson & Johnson
and American Home Products led this group. The strategy of concentrating the
Portfolio's assets in shares of the highest quality global companies in
consumer nondurable products also benefitted
results. Shares of Philip Morris Cos, Coca-Cola, PepsiCo, Procter & Gamble,
Gillette, Kellogg and Eastman Kodak led this group. Performance in the
financial services and energy sectors was also quite positive. The
Portfolio's underweighting in the retail sector relative to the S&P Index was
a positive factor, as this was the weakest group in the Index in 1995.
We appreciate your investment in the Capital Appreciation Portfolio and
we will continue to seek rewarding returns on your behalf.
Sincerely,

[Fayez Sarofim signature logo]

Fayez Sarofim
Portfolio Manager
January 16, 1996
New York, N.Y.

DREYFUS VARIABLE INVESTMENT FUND,
Capital Appreciation Portfolio DECEMBER 31, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS VARIABLE
INVESTMENT FUND,
CAPITAL APPRECIATION PORTFOLIO AND THE STANDARD & POOR'S 500 COMPOSITE STOCK
PRICE INDEX
[Exhibit A
$14,694
Standard & Poor's 500 Composite Stock
Price Index*
Dollars
$14,685
Dreyfus Variable
Investment Fund, Capital Appreciation Portfolio
*Source: Lipper Analytical Services, Inc.]
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (4/5/93)
DECEMBER 31, 1995 TO DECEMBER 31, 1995
----------------- --------------------
33.52% 15.05%
Past performance is not predictive of future performance.
THE PORTFOLIO'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ADDITIONAL
CHARGES APPLICABLE TO SEPARATE ACCOUNTS OF PARTICIPATING INSURANCE COMPANIES
USING THE PORTFOLIO AS AN UNDERLYING INVESTMENT.
The above graph compares a $10,000 investment made in Dreyfus Variable
Investment Fund, Capital Appreciation Portfolio on 4/5/93 (Inception Date) to
a $10,000 investment made in the Standard & Poor's 500 Composite Stock Price
Index on that date. For comparative purposes, the value of the Index on
3/31/93 is used as the beginning value on 4/5/93. All dividends and capital
gain distributions are reinvested.
The Portfolio's performance shown in the line graph takes into account all
applicable fees and expenses. The Standard & Poor's 500 Composite Stock Price
Index is a widely accepted, unmanaged index of overall stock market
performance, which does not take into account charges, fees and other
expenses. Further information relating to Portfolio performance, including
expense reimbursements, if applicable, is contained in the Financial
Highlights section of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>

DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
COMMON STOCKS-94.1% SHARES VALUE
______ _______
<S> <C> <C>
AEROSPACE
& ELECTRONICS-10.5%........... Emerson Electric 6,000 $ 490,500
General Electric....................... 27,050 1,947,600
Intel.................................. 12,500 709,375
Motorola............................... 7,050 401,850
Philips Electronics, N.V. A.D.R. ...... 18,000 645,750
Rockwell International................. 11,000 581,625
Texas Instruments...................... 3,200 165,600
______
4,942,300
______
AUTO RELATED-2.5%.................Chrysler 8,000 443,000
Ford Motor............................. 24,694 716,126
______
1,159,126
______
BANKING-6.9%......................Banc One 1,800 67,950
Chemical Banking....................... 16,000 940,000
Citicorp............................... 22,025 1,481,181
HSBC Holdings, A.D.R. ................. 3,500 528,500
HSBC Holdings PLC...................... 2,400 36,349
Keycorp................................ 1,800 65,250
PNC Bank............................... 3,000 96,750
______
3,215,980
______
CAPITAL GOODS-1.5%.............. AlliedSignal 12,000 570,000
Cooper Industries...................... 3,000 110,250
______
680,250
______
CHEMICALS-3.8%.................. Dow Chemical 9,000 633,375
duPont (E.I.) de Nemours............... 13,500 943,313
Rohm & Haas............................ 3,000 193,125
______
1,769,813
______
ENERGY-9.1%.......................Chevron 18,000 945,000
Exxon.................................. 12,025 963,503
Mobil.................................. 8,525 954,800
Royal Dutch Petroleum ................. 10,000 1,411,250
______
4,274,553
______
FINANCE-
MISCELLANEOUS-3.4%.......... American General 22,000 767,250
Federal National Mortgage Association.. 6,500 806,813
______
1,574,063
______
FOOD, BEVERAGE &
TOBACCO-16.9%............. Anheuser-Busch Cos 8,000 535,000
Coca-Cola.............................. 32,000 2,376,000
General Mills.......................... 600 34,650

DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
COMMON STOCKS (CONTINUED) SHARES VALUE
-------- -------
FOOD, BEVERAGE &
TOBACCO (CONTINUED).............Kellogg 12,000 $ 927,000
Nestle, A.D.R. ........................ 12,000 673,500
PepsiCo................................ 25,000 1,396,875
Philip Morris Cos...................... 18,000 1,629,000
Sara Lee............................... 2,500 79,687
Seagram................................ 8,500 294,313
______
7,946,025
______
HEALTH CARE-15.1%........ Abbott Laboratories 20,000 835,000
American Home Products................. 10,000 970,000
Amgen.................................. 5,000 (a) 296,875
Johnson & Johnson...................... 15,050 1,288,656
Merck & Co............................. 27,000 1,775,250
Pfizer................................. 18,000 1,134,000
Roche Holdings, A.D.S.................. 10,000 792,500
______
7,092,281
______
LEISURE TIME-4.1%.............. Disney (Walt) 10,000 590,000
Eastman Kodak.......................... 10,000 670,000
McDonald's............................. 15,000 676,875
______
1,936,875
______
MEDIA/ENTERTAINMENT-1.6%........ McGraw-Hill 5,000 435,625
News Corp, A.D.S....................... 5,000 106,875
Reader's Digest Association, Cl. A..... 4,000 205,000
______
747,500
______
MULTI INDUSTRY-1.9% Minnesota Mining & Manufacturing 13,500 894,375
______
OFFICE &
BUSINESS EQUIPMENT-2.7%............AT&T 12,000 777,000
Ericsson (LM) Telephone, Cl. B, A.D.R. 3,200 62,400
General Motors, Cl. E.................. 8,500 442,000
______
1,281,400
______
PAPER &
FOREST PRODUCTS-1.0%..... International Paper 12,500 473,438
______
PERSONAL CARE-8.4%....... Estee Lauder, Cl. A 10,000 348,750
Gillette............................... 26,000 1,355,250
International Flavors & Fragrances..... 15,000 720,000
Procter & Gamble....................... 17,500 1,452,500
Unilever, N.V.......................... 500 70,375
______
3,946,875
______
RETAIL-3.0%............ May Department Stores 6,000 253,500
Wal-Mart Stores........................ 22,000 492,250

DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ ______
RETAIL (CONTINUED)................Walgreen 22,000 $ 657,250
______
1,403,000
______
TRANSPORTATION-1.7%......... Norfolk Southern 7,000 555,625
Union Pacific.......................... 4,000 264,000
______
819,625
______
TOTAL COMMON STOCKS
(cost $ 36,415,825).................. $44,157,479
======
PREFERRED STOCK-.9%
MEDIA/ENTERTAINMENT News Corp, A.D.S., Cum., $.40
(cost $ 434,773)..................... 22,000 $ 423,500
======
PRINCIPAL
SHORT-TERM INVESTMENTS-5.7% AMOUNT
---------
U.S. TREASURY BILLS:..6.075%, 3/7/96
(cost $ 2,664,646)................... $ 2,689,000 $ 2,664,261
======
TOTAL INVESTMENTS (cost $39,515,244) ............................... 100.7% $47,245,240
===== ======
LIABILITIES, LESS CASH AND RECEIVABLES (.7%) $ (315,140)
===== ======
NET ASSETS.................................................................. 100.0% $46,930,100
===== ======

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

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $39,515,244)-see statement...................................... $47,245,240
Cash.................................................................... 59,482
Dividends and interest receivable....................................... 73,199
Prepaid expenses and other assets....................................... 138
______
47,378,059
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 31,700
Payable for investment securities purchased............................. 390,060
Accrued expenses and other liabilities.................................. 26,199 447,959
_____ ______
NET ASSETS ................................................................ $46,930,100
======
REPRESENTED BY:
Paid-in capital......................................................... $39,208,271
Accumulated undistributed investment income-net......................... 2,491
Accumulated net realized (loss) on investments and
foreign currency transactions......................................... (10,658)
Accumulated net unrealized appreciation on investments-Note 4(b)........ 7,729,996
______
NET ASSETS at value applicable to 2,649,812 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $46,930,100
======
NET ASSET VALUE, offering and redemption price per share
($46,930,100 / 2,649,812 shares)........................................ $17.71
======

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $10,331 foreign taxes withheld at source)...... $ 653,226
Interest.............................................................. 183,873
_____
TOTAL INCOME...................................................... $ 837,099
EXPENSES:
Investment advisory fee-Note 3(a)..................................... 157,346
Sub-investment advisory fee-Note 3(a)................................. 57,217
Auditing fees......................................................... 12,053
Registration fees..................................................... 7,932
Custodian fees........................................................ 6,704
Prospectus and shareholders' reports.................................. 4,462
Trustees' fees and expenses-Note 3(b)................................. 2,150
Legal fees............................................................ 1,600
_____
TOTAL EXPENSES.................................................... 249,464
Less-reduction in investment advisory fee due to
undertakings-Note 3(a)............................................ 6,445
_____
NET EXPENSES...................................................... 243,019
_____
INVESTMENT INCOME-NET............................................. 594,080
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments and foreign currency
transactions-Note 4(a)................................................ $ (11,330)
Net unrealized appreciation on investments.............................. 7,555,530
_____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS....................... 7,544,200
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $8,138,280
======

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
-----------------------------------
1994 1995
______ ______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 269,727 $ 594,080
Net realized gain (loss) on investments................................. 588 (11,330)
Net unrealized appreciation on investments for the year................. 93,162 7,555,530
______ ______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 363,477 8,138,280
______ ______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (269,734) (592,944)
______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 13,455,891 27,535,981
Dividends reinvested.................................................... 269,734 592,943
Cost of shares redeemed................................................. (1,471,097) (4,862,457)
______ ______
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.......... 12,254,528 23,266,467
______ ______
TOTAL INCREASE IN NET ASSETS...................................... 12,348,271 30,811,803
NET ASSETS:
Beginning of year....................................................... 3,770,026 16,118,297
______ ______
End of year (including undistributed investment income-net:
$1,355 in 1994 and $2,491 in 1995).................................... $16,118,297 $46,930,100
====== ======
SHARES SHARES
______ ______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 1,004,793 1,722,064
Shares issued for dividends reinvested.................................. 20,097 34,096
Shares redeemed......................................................... (110,009) (305,274)
______ ______
NET INCREASE IN SHARES OUTSTANDING.................................... 914,881 1,450,886
====== ======

</TABLE>
See notes to financial statements.

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 year indicated. This
information has been derived from the Series' financial statements.

YEAR ENDED DECEMBER 31,
----------------------------------
PER SHARE DATA: 1993(1) 1994 1995
------ ---- ----
<S> <C> <C> <C>
Net asset value, beginning of year.................................... $12.50 $13.27 $13.44
___ ___ ___
INVESTMENT OPERATIONS:
Investment income-net................................................. .08 .23 .23
Net realized and unrealized gain on investments....................... .76 .17 4.27
___ ___ ___
TOTAL FROM INVESTMENT OPERATIONS.................................... .84 .40 4.50
___ ___ ___
DISTRIBUTIONS;
Dividends from investment income-net.................................. (.07) (.23) (.23)
___ ___ ___
Net asset value, end of year.......................................... $13.27 $13.44 $17.71
=== === ===
TOTAL INVESTMENT RETURN................................................... 6.74%(2) 3.04% 33.52%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................... .28%(2) .25% .85%
Ratio of net investment income to average net assets.................. 1.89%(2) 2.99% 2.08%
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%
Net assets, end of year (000's Omitted)............................... $3,770 $16,118 $46,930
(1) From April 5, 1993 (commencement of operations) to December 31, 1993.
(2) Not annualized.

See notes to financial statements.
</TABLE>

DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
NOTES TO FINANCIAL STATEMENTS
NOTE 1-GENERAL:
The 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 eight series,
including the Capital Appreciation Portfolio series (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 Dreyfus
Corporation ("Dreyfus") serves as the Fund's investment adviser. Dreyfus is a
direct subsidiary of Mellon Bank, N.A. Fayez Sarofim & Co. ("Sarofim") serves
as the Series' sub-investment adviser. Premier Mutual Fund Services, Inc.
(the "Distributor") acts as the distributor of the Fund's shares, which are
sold without a sales charge. The Distributor, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution
Services, Inc., a provider of mutual fund administration services, which in
turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company
of which is Boston Institutional Group, Inc.
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.
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.
(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 at fiscal year end, 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 (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, 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. For Federal income tax purposes, each series is treated as a
single entity for the purpose of determining such qualification.
The Fund has an unused capital loss carryover of approximately $11,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1995. If not
applied, the carryover expires in fiscal 2003.
NOTE 3--INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER
TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to the provisions of an Investment Advisory Agreement with
Dreyfus, the investment advisory fee is based on the average daily value of
the Series' 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 average daily value of the Series' net assets and is computed at the
folllowing 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 further 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.
However, Dreyfus had undertaken, from January 1, 1995 through June 30,
1995 to reduce the investment advisory fee paid by the Series, to the extent
that the Series' aggregate expenses (exclusive of certain expenses as
described above) exceeded specified annual percentages of the Series' average
daily net assets. The reduction in investment advisory fee pursuant to the
undertakings amounted to $6,445 for the year ended December 31, 1995.
Effective December 1, 1995, the Fund entered into a transfer agency
agreement with Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, to provide 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, Capital Appreciation Portfolio
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 4-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short term securities, during the year ended December 31, 1995,
amounted to $25,882,151 and $723,554, respectively.
(B) At December 31, 1995, accumulated net unrealized appreciation on
investments was $7,729,996, consisting of $8,138,575 gross unrealized
appreciation and $408,579 gross unrealized depreciation.
At December 31, 1995, 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
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, CAPITAL APPRECIATION PORTFOLIO
We have audited 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 December 31, 1995, and the related statement
of operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Variable Investment Fund, Capital Appreciation Portfolio
at December 31, 1995, the results of its operations for the year then ended,
the changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the indicated years, in
conformity with generally accepted accounting principles.
[Ernst and Young LLP signature logo]

New York, New York
February 9, 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
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903

Further information is contained
in the Prospectus, which must
precede or accompany this report.

Printed in U.S.A. 112AR9512
[Dreyfus logo]
Variable
Investment Fund,

DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
LETTER TO SHAREHOLDERS
Dear Shareholder:
During the year ended December 31, 1995, the Fund's total return for the
International Equity Portfolio amounted to 7.39%,* which can be compared with
the 11.21% return for the Morgan Stanley Capital International Europe,
Australasia, Far East (EAFE(R)) Index.**
In local currency terms, the international regions could not match the
37.53% return from the United States as measured by the Standard & Poor's 500
Composite Stock Price Index.*** Europe returned 18.9%+ and the Pacific Basin
(excluding Japan), 11.1%+. The major disappointment was Japan, with a return
of -1.3%+. European currencies in the main strengthened against the dollar
while the Yen weakened, particularly towards the year-end.
A number of changes were made in the Portfolio's country allocation --
notably an increase in the U.K. content to near 25%. Small and mid-size
stocks have been underperforming in this market though dividends have been
growing at about 10% a year. The Japanese content was maintained at about
27%. We sold out of the emerging markets of Mexico and South Africa and
reduced exposure to Australia. In the Pacific region, the Hong Kong exposure
was maintained and property stocks were purchased as the local market
recovered. Malaysia has been weak lately due to concern at an overheating
economy. We now believe it offers reasonable value.
Falling interest rates provide an encouraging background for markets in
early 1996. Positive returns, however, could be partly offset if the dollar
remains strong.
Sincerely,

[J.C. Whitaker signature logo]

J.C. Whitaker
Portfolio Manager
Dreyfus International Equity Portfolio,
Variable Investment Fund
M & G Investment Management, Ltd.
January 17, 1996
London, U.K.

* 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.
***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.
+ Financial Times, Standard and Poor's Actuaries World Indices.
DREYFUS VARIABLE INVESTMENT FUND,
International Equity Portfolio DECEMBER 31, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS VARIABLE
INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO AND THE MORGAN STANLEY
CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST (EAFERegistration Mark)
INDEX
[Exhibit A
Dollars
$11,110
Morgan Stanley Capital International Europe, Australasia, Far East
(EAFERegistration Mark) Index*
$10,524
Dreyfus Variable
Investment Fund, International Equity
*Source: Lipper Analytical Services, Inc.]
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (5/2/94)
DECEMBER 31, 1995 TO DECEMBER 31, 1995
----------------- -----------------------
7.39% 3.11%
Past performance is not predictive of future performance.
THE PORTFOLIO'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ADDITIONAL CHARG
ES APPLICABLE TO SEPARATE ACCOUNTS OF PARTICIPATING INSURANCE COMPANIES USING
THE PORTFOLIO AS AN UNDERLYING INVESTMENT.
The above graph compares a $10,000 investment in Dreyfus Variable Investment
Fund, International Equity Portfolio on 5/2/94 (Inception Date) to a $10,000
investment made in the Morgan Stanley Capital International Europe,
Australasia, Far East (EAFERegistration Mark) Index on that date. For
comparative purposes, the value of the Index on 4/30/94 is used as the
beginning value on 5/2/94. All dividends and capital gain distributions are
reinvested.
The Portfolio's performance shown in the line graph takes into account all
applicable fees and expenses. The Morgan Stanley Capital International
Europe, Australasia, Far East (EAFERegistration Mark) Index, which is the
property of Morgan Stanley & Co. Incorporated, is an unmanaged index composed
of a sample of companies representative of the market structure of European
and Pacific Basin countries and includes net dividends reinvested. The Index
does not take into account charges, fees and other expenses. Further
information relating to Portfolio performance, including expense
reimbursements, if applicable, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>

DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
COMMON STOCKS-89.6% SHARES VALUE
______ ______
<S> <C> <C>
AUSTRALIA-1.6% Boral................................. 25,000 $ 63,113
Broken Hill Proprietary................ 4,000 56,430
_____
119,543
_____
DENMARK-1.2% ISS International Service System A/S, Cl. B...... 4,000 89,847
_____
FRANCE-4.8% BUT S.A................................ 1,300 70,206
Rhone-Poulenc, Cl.A.................... 5,000 106,888
Roussel-Uclaf.......................... 600 101,488
Sanofi S.A............................. 880 56,293
Vallourec Usines a Tubes de Lorraine Escaut
et Vallourec Reunies.......................(a) 850 30,141
_____
365,016
_____
GERMANY-3.9% Adidas AG....................................(a) 1,825 96,427
BASF AG................................ 250 55,604
Deutsche Bank AG....................... 1,600 75,706
VEBA AG................................ 1,600 67,832
_____
295,569
_____
HONG KONG-6.0% Cheung Kong Holdings................... 12,000 73,094
HKR International...................... 63,200 58,439
HSBC Holdings PLC...................... 3,600 54,472
Hong Kong Land Holdings................ 33,000 61,050
Lamex Holdings......................... 320,000 79,043
Shun Tak Holdings...................... 102,000 71,891
Swire Pacific, Cl. A................... 8,500 65,955
_____
463,944
_____
INDONESIA-.5% PT Telekomunikasi Indonesia, A.D.R...........(a) 1,400 35,350
_____
ITALY-5.7% Bulgari S.P.A................................(a) 20,000 170,592
Edison S.P.A........................... 19,700 84,854
Industria Macchine Automatiche...............(a) 9,900 66,707
Safilo S.P.A........................... 9,000 116,467
_____
438,620
_____
JAPAN-26.4% Amway Japan............................ 3,000 126,377
DDI.................................... 15 115,942
Daiwa House Industry................... 8,000 131,401
East Japan Railway..................... 24 116,406
Hitachi Credit......................... 6,000 108,406
Hokkaido Electric Power................ 2,000 46,377
Kinden................................. 2,000 34,010
Komori................................. 5,000 125,604
Kurimoto............................... 10,000 101,449
Mitsubishi Bank........................ 4,000 93,913
Mitsubishi Chemical.................... 25,000 121,256
Mitsui Fudosan......................... 8,000 98,164
NEC.................................... 12,000 146,087

DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______

JAPAN (CONTINUED) NKK..........................................(a) 38,000 $ 102,067
Nippon Express......................... 12,000 115,246
Nippon Telegraph & Telephone........... 12 96,811
Nissan Chemical Industries............. 16,000 105,894
P.S.................................... 3,000 54,493
Seven Eleven Japan..................... 2,000 140,676
Sumitomo Bank.......................... 2,000 42,319
_____
2,022,898
_____
MALAYSIA-1.7% Hong Leong Credit Berhad................ 3,000 14,887
Leader Universal Holdings Berhad....... 4,666 10,659
Metacorp Berhad........................ 24,000 62,387
Renong Berhad.......................... 30,000 44,427
_____
132,360
_____
NETHERLANDS-2.8% Akzo Nobel N.V......................... 400 46,169
OCE-Van Der Grinten N.V................ 1,225 74,353
Philips Electronics N.V................ 2,700 97,388
_____
217,910
_____
NORWAY-1.0% Hafslund Nycomed A/S, Cl. A............ 3,000 78,014
_____
SINGAPORE-1.0% Oversea-Chinese Banking............... 4,000 50,071
Overseas Union Bank.................... 4,000 27,581
_____
77,652
_____
SPAIN-3.5% Compania Sevillana de Electricidad...... 9,300 72,015
Iberdrola S.A.......................... 7,800 71,171
Repsol S.A............................. 2,725 89,041
Uralita S.A............................ 4,300 38,882
_____
271,109
_____
SWEDEN-1.2% Lindex AB.............................. 7,000 89,501
_____
SWITZERLAND-7.3% Alusuisse-Lonza Holding AG............. 90 71,283
BBC Brown Boveri AG.................... 80 92,894
Compagnie Financiere Michelin................(a) 300 129,983
Elektrowatt AG......................... 325 118,847
Sulzer AG.............................. 100 57,192
Zellweger Luwa AG.................... (a) 95 92,613
_____
562,812
_____
UNITED KINGDOM-21.0% BAT Industries PLC..................... 15,000 132,029
Booker PLC............................. 17,000 95,712
British Steel PLC...................... 50,000 126,213
British Telecommunications PLC......... 25,000 137,263
Concentric PLC......................... 18,000 49,694
Cookson Group PLC...................... 30,000 142,382
Glaxo Wellcome PLC..................... 8,000 113,533

DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______

UNITED KINGDOM (CONTINUED) Hammerson PLC.......................... 17,500 $ 95,677
Harrisons & Crosfield PLC.............. 50,000 124,080
Lloyds TSB Group PLC................... 21,632 111,055
Lucas Industries PLC................... 50,000 140,365
RTZ PLC................................ 7,000 101,622
Royal Doulton PLC...................... 13,000 49,601
Smith.(W.H.) Group PLC 15,000 98,644
Welsh Water PLC........................ 8,000 96,100
_____
1,613,970
_____
TOTAL COMMON STOCKS
(cost $6,582,033).................... $6,874,115
======
PREFERRED STOCKS-1.2%
GERMANY;...................... Fresenius AG
(cost $64,635)....................... 1,000 $ 94,675
======
PRINCIPAL
SHORT-TERM INVESTMENTS-.8% AMOUNT
______
UNITED STATES;.......... U.S. Treasury Bills;
4.84%, 3/28/96
(cost $56,333)....................... $ 57,000 $ 56,304
======
TOTAL INVESTMENTS (cost $6,703,001)......................................... 91.6% $7,025,094
==== ======
CASH AND RECEIVABLES (NET).................................................. 8.4% $ 647,044
==== ======
NET ASSETS.................................................................. 100.0% $7,672,138
==== ======
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $6,703,001)-see statement....................................... $7,025,094
Cash.................................................................... 751,876
Receivable for investment securities sold............................... 121,996
Dividends receivable.................................................... 14,234
Prepaid expenses........................................................ 114
Due from The Dreyfus Corporation........................................ 119
_____
7,913,433
LIABILITIES:
Payable for investment securities purchased............................. $219,948
Accrued expenses........................................................ 21,347 241,295
____ _____
NET ASSETS ................................................................ $7,672,138
======
REPRESENTED BY:
Paid-in capital......................................................... $7,347,744
Accumulated distributions in excess of investment income-net............ (5,480)
Accumulated undistributed net realized gain on investments and
foreign currency transactions......................................... 7,833
Accumulated net unrealized appreciation on investments and
foreign currency transactions......................................... 322,041
_____
NET ASSETS at value applicable to 598,485 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $7,672,138
======
NET ASSET VALUE, offering and redemption price per share
($7,672,138 / 598,485 shares)........................................... $12.82
======

See notes to financial statements.
</TABLE>

DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $9,874 foreign taxes withheld at source)....... $ 69,465
Interest.............................................................. 36,794
____
TOTAL INCOME...................................................... $106,259
EXPENSES:
Investment advisory fee-Note 3(a)..................................... 29,314
Custodian fees........................................................ 24,403
Auditing fees......................................................... 19,809
Prospectus and shareholders' reports.................................. 2,811
Registration fees..................................................... 2,145
Shareholder servicing costs........................................... 225
Trustees' fees and expenses-Note 3(b)................................. 205
Legal fees............................................................ 73
Miscellaneous......................................................... 609
____
TOTAL EXPENSES.................................................... 79,594
Less-reduction in investment advisory fee
due to undertakings-Note 3(a)..................................... 17,393
____
NET EXPENSES...................................................... 62,201
____
INVESTMENT INCOME-NET............................................. 44,058
____
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments and foreign currency
transactions-Note 4(a)................................................ $ 43,734
Net realized (loss) on forward currency exchange contracts.............. (16,802)
____
NET REALIZED GAIN..................................................... 26,932
Net unrealized appreciation on investments and foreign currency
transactions.......................................................... 340,358
____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 367,290
____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $411,348
======

</TABLE>
See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
______________________________
1994* 1995
______ ______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 11,219 $ 44,058
Net realized gain (loss) on investments................................. (12,479) 26,932
Net unrealized appreciation (depreciation) on investments for the year.. (18,317) 340,358
______ ______
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... (19,577) 411,348
______ ______
DIVIDENDS TO SHAREHOLDERS:
From investment income-net.............................................. (11,219) (43,430)
In excess of investment income-net...................................... (7,247) (5,480)
______ ______
TOTAL DIVIDENDS....................................................... (18,466) (48,910)
______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 1,120,503 8,336,454
Dividends reinvested.................................................... 18,466 48,910
Cost of shares redeemed................................................. (12,347) (2,164,243)
______ ______
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST
TRANSACTIONS...................................................... 1,126,622 6,221,121
______ ______
TOTAL INCREASE IN NET ASSETS...................................... 1,088,579 6,583,559
NET ASSETS:
Beginning of year....................................................... -- 1,088,579
______ _____
End of year [including distributions in excess of investment
income-net: $(7,247) in 1994 and $(5,480) in 1995].................... $ 1,088,579 $ 7,672,138
====== ======

SHARES SHARES
______ ______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 90,002 677,022
Shares issued for dividends reinvested.................................. 1,536 3,852
Shares redeemed......................................................... (1,006) (172,921)
______ ______
NET INCREASE IN SHARES OUTSTANDING.................................... 90,532 507,953
====== ======
* From May 2, 1994 (commencement of operations) to December 31, 1994.

</TABLE>
See notes to financial statements.

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 year indicated. This
information has been derived from the Series' financial statements.

YEAR ENDED DECEMBER 31,
____________________________
PER SHARE DATA: 1994(1) 1995
----- -----
<S> <C> <C>
Net asset value, beginning of year.......................................... $12.50 $12.02
____ ____
INVESTMENT OPERATIONS:
Investment income-net....................................................... .15 .15
Net realized and unrealized gain (loss) on investments for the year......... (.40) .74
____ ____
TOTAL FROM INVESTMENT OPERATIONS.......................................... (.25) .89
____ ____
DISTRIBUTIONS:
Dividends from investment income-net........................................ (.14) (.08)
Dividends in excess of investment income-net................................ (.09) (.01)
____ ____
TOTAL DISTRIBUTIONS....................................................... (.23) (.09)
____ ____
Net asset value, end of year................................................ $12.02 $12.82
==== ====
TOTAL INVESTMENT RETURN......................................................... (2.00)%(2) 7.39%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets..................................... .23%(2) 1.59%
Ratio of net investment income to average net assets........................ 1.11%(2) 1.13%
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%
Net Assets, end of year (000's Omitted)..................................... $1,089 $7,672
(1) From May 2, 1994 (commencement of operations) to December 31, 1994.
(2) Not annualized.

See notes to financial statements.
</TABLE>

DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
NOTES TO FINANCIAL STATEMENTS
NOTE 1--GENERAL:
The 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 eight series
including the International Equity Portfolio series (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 Dreyfus
Corporation ("Dreyfus") serves as the Fund's investment adviser. Dreyfus is a
direct subsidiary of Mellon Bank, N.A. M&G Investment Management Limited
("M&G") serves as the Series' sub-investment adviser. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold without a sales charge. The Distributor, located at
One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary
of FDI Distribution Services, Inc., a provider of mutual fund administration
services, which in turn is a wholly-owned subsidiary of FDI Holdings, Inc.,
the parent company of which is Boston Institutional Group, Inc.
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.
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.
(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.
DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 and net realized capital gains 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.
The Series had dividends in excess of investment income-net for financial
statement purposes resulting from Federal income tax distribution
requirements.
During the year ended December 31, 1995, the Series reclassified $6,619
charged to undistributed net realized gain (loss) to undistributed investment
income-net.
(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. For Federal income tax purposes, each series is treated as a
single entity for the purpose of determining such qualification.
NOTE 3--INVESTMENT ADVISORY FEE, SUB-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 .75 of 1% of the average daily value of the Series' net assets
and is payable monthly. Pursuant to a Sub-Investment Advisory Agreement
between Dreyfus and M&G, the sub-investment advisory fee is computed at an
annual rate of .30 of 1% of the average daily value of the Series' net assets
and is payable monthly by Dreyfus.
The agreements further 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 M&G, or Dreyfus and M&G will bear the amount of such
excess to the extent required by state law.
However, Dreyfus had undertaken from January 1, 1995 through September
30, 1995 to reimburse expenses (exclusive of certain expenses as described
above) to the extent that such expenses exceeded specified annual percentages
of the Series' average daily net assets. The reduction in investment advisory
fee, pursuant to the undertakings, amounted to $17,393 for the year ended
December 31, 1995.
Effective December 1, 1995, the Fund entered into a transfer agency
agreement with Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus,
to provide personnel and facilities to perform transfer agency services for
the Series.

DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
NOTES TO FINANCIAL STATEMENTS (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 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 year ended December 31, 1995 amounted to $7,988,241 and
$2,317,981, respectively.
The Series may enter 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' exposure to credit risk associated with counter party
nonperformance on these investments is typically limited to the unrealized
gains in such contracts that are recognized in the Statement of Assets and
Liabilities. There were no forward currency exchange contracts outstanding at
December 31, 1995.
(B) At December 31, 1995, accumulated net unrealized appreciation on
investments was $322,093, consisting of $460,186 gross unrealized
appreciation and $138,093 gross unrealized depreciation.
At December 31, 1995, 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
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO
We have audited 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 December 31, 1995, and the related statement
of operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Variable Investment Fund, International Equity Portfolio
at December 31, 1995, the results of its operations for the year then ended,
the changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the indicated years, in
conformity with generally accepted accounting principles.
[Ernst and Young LLP signature logo]
New York, New York
February 9, 1996
DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Portfolio elects to provide each
shareholder with their portion of the Portfolio's foreign taxes paid and the
income sourced from foreign countries. Accordingly, the Portfolio hereby
makes the following designations regarding its fiscal year ended December 31,
1995.
- the total amount of taxes paid to foreign countries was $9,879.
- the total amount of income sourced from foreign countries was $26,954.

[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
SUB-INVESTMENT ADVISER
M & G Investment Management Limited
Three Quays Tower Hill,
London, EC3R 6BQ, England
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903

Further information is contained
in the Prospectus, which must
precede or accompany this report.

Printed in U.S.A. 109AR9512
[Dreyfus logo]
Variable
Investment Fund,
INTERNATIONAL EQUITY
PORTFOLIO
Annual Report
December 31, 1995

DREYFUS VARIABLE INVESTMENT FUND, Growth and Income Portfolio
LETTER TO SHAREHOLDERS
Dear Shareholder:
For its fiscal year ended December 31, 1995, the total return for the
Growth and Income Portfolio of Dreyfus Variable Investment Fund was 61.89%.*
This compares with a return of 37.53% for the Standard and Poor's 500
Composite Stock Price Index.** 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.
There were several reasons for this 61.89% total return of the Portfolio
in 1995. First, it was a favorable period for the overall stock market.
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.
The Portfolio benefited from several holdings that were subject to
successful takeover bids in 1995, including Midlantic and Cordis. In
addition, several technology stocks held by the Portfolio were bid up sharply
by favorable fundamentals and market enthusiasm. While these were purchased
as long-term investments, the valuations rose to such relaltively high levels
that we felt prudence required that profits on such stocks as UUNET
Technologies and Premisys Communications be realized and they are no longer
held in the Portfolio.
To help achieve the income objective, several convertible bonds and
preferred stocks were included in the Portfolio. The Portfolio's performance
benefited from its position in the convertible bonds of American Travelers,
which sells insurance for long-term care in nursing homes. The convertible
preferred stocks of several REITs provided income, but no significant
contribution to capital appreciation in the Portfolio.
There are several long-term positive forces that have provided a
supportive background for the financial markets. First, the trend of
inflation has remained favorable in the last several years. Second, we are in
the early stages of a key demographic shift as the baby boom generation
begins to focus on the need for a permanent program of saving to provide for
future retirement income. Third, U.S. productivity growth in manufacturing
has been favorable. Finally, a broad consensus has begun to emerge on the
importance of limiting the U.S. budget deficit.
We believe that the period of strongest earnings growth in the U.S.
economy is behind us for the time being. Corporate cost-cutting is very far
advanced in many companies as are the benefits of refinancing high-cost debt.
The rate of growth of the U.S. economy is decelerating. Many multinational
companies have already reaped a significant portion of the profit benefits of
a decline in the dollar. Thus we believe that strong profit growth will
become increasingly scarce over the next year. Many of the largest positions
held by the Portfolio are companies that we believe have a good chance of
sustaining strong earnings growth even in this more challenging environment.
While overall market valuations have risen, we continue to find good
companies available in the stock market at reasonable valuation levels.
The active stock market of 1995 provided favorable opportunities for
capital appreciation. Shareholders should be aware, however, that the
Portfolio's 61.89% total return in 1995 was unusual. We would be surprised if
it were to be repeated even if market conditions are favorable in 1996.

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
January 25, 1996
New York, N.Y.

* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
**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.

DREYFUS VARIABLE INVESTMENT FUND,
Growth and Income Portfolio DECEMBER 31, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS VARIABLE
INVESTMENT FUND, GROWTH AND INCOME PORTFOLIO AND THE STANDARD & POOR'S 500
COMPOSITE STOCK PRICE INDEX
[Exhibit A
Dollars
$15,992
Dreyfus Variable
Investment Fund,
Growth and Income
Portfolio
$14,299
Standard & Poor's 500
Composite Stock Price
Index*
*Source: Lipper Analytical Services, Inc.]
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (5/2/94)
DECEMBER 31, 1995 TO DECEMBER 31, 1995
----------------- --------------------
61.89% 32.46%
Past performance is not predictive of future performance.
THE PORTFOLIO'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ADDITIONAL CHARG
ES APPLICABLE TO SEPARATE ACCOUNTS OF PARTICIPATING INSURANCE COMPANIES USING
THE PORTFOLIO AS AN UNDERLYING INVESTMENT.
The above graph compares a $10,000 investment in Dreyfus Variable Investment
Fund, Growth and Income Portfolio on 5/2/94 (Inception Date) to a $10,000
investment made in the Standard & Poor's 500 Composite Stock Price Index on
that date. For comparative purposes, the value of the Index on 4/30/94 is
used as the beginning value on 5/2/94. All dividends and capital gain
distributions are reinvested.
The Portfolio's performance shown in the line graph takes into account all
applicable fees and expenses. The Standard & Poor's 500 Composite Stock Price
Index is a widely accepted, unmanaged index of overall stock market
performance, which does not take into account charges, fees and other
expenses. Further information relating to Portfolio performance, including
expense reimbursements, if applicable, is contained in the Financial
Highlights section of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>

DREYFUS VARIABLE INVESTMENT FUND, Growth and Income Portfolio
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
COMMON STOCKS-73.4% SHARES VALUE
-------- ------
<S> <C> <C>
BANKING-3.4% BayBanks............................... 25,000 $ 2,456,250
_____
BASIC INDUSTRIES-7.4% Consolidated Papers.................... 15,000 841,875
Crown Cork & Seal...................... 40,000 (a) 1,670,000
Olin 20,000 1,485,000
Rohm & Haas............................ 20,000 1,287,500
_____
5,284,375
_____
CAPITAL GOODS-2.0% Coltec Industries...................... 125,000 (a) 1,453,125
_____
CONSUMER-12.5% Amway Asia Pacific..................... 50,000 1,781,250
Ethan Allen Interiors.................. 81,200 (a) 1,654,450
Harcourt General....................... 20,000 837,500
Lauder (Estee)......................... 45,000 (a) 1,569,375
Lowe's................................. 75,000 2,512,500
West Marine............................ 17,500 (a) 546,875
_____
8,901,950
_____
ENERGY-9.1% Texaco................................. 20,000 1,570,000
Triton Energy.......................... 20,000 1,147,500
Union Pacific Resources Group.......... 100,000 2,537,500
Western Gas Resources.................. 74,400 1,199,700
_____
6,454,700
_____
HEALTH CARE-3.2% Mentor................................. 60,000 1,380,000
ONCOR.................................. 200,000 (a) 900,000
_____
2,280,000
_____
INSURANCE-6.0% Allmerica Financial................... 55,000 (a) 1,485,000
CMAC Investment........................ 20,000 880,000
Prudential Reinsurance Holdings........ 80,000 1,870,000
_____
4,235,000
_____
MEDIA/ENTERTAINMENT-4.1% Disney (Walt).......................... 50,000 2,950,000
_____
MINING & METALS-3.4% Santa Fe Pacific Gold................... 200,000 2,425,000
_____
REAL ESTATE-5.1% Patriot American Hospitality........... 50,000 1,287,500
Simon Property Group................... 30,000 731,250
Sizeler Property Investors............. 180,000 1,597,500
_____
3,616,250
_____
TECHNOLOGY-5.1% FSI International...................... 50,000 (a) 1,012,500
Zoran.................................. 124,500 (a) 2,583,375
_____
3,595,875
_____
TELECOMMUNICATIONS-7.5% GTE.................................... 65,000 2,860,000
IntelCom Group......................... 200,000 (a) 2,475,000
_____
5,335,000
_____
TRANSPORTATION-1.1% American Freightways..................... 75,000 (a) 778,125
_____
UTILITIES-3.5% Texas Utilities.......................... 60,000 2,467,500
_____
TOTAL COMMON STOCKS
(cost $48,824,332)................... $52,233,150
=======

DREYFUS VARIABLE INVESTMENT FUND, Growth and Income Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
CONVERTIBLE PREFERRED STOCKS-4.1% SHARES VALUE
______ _______
BANKING-2.1% Ahmanson (H.F.) Ser D., Cum., $3.00 25,000 $1,478,125
_____
REAL ESTATE-2.0% Merry Land & Investment, Ser. C, Cum., $2.15 15,000 431,250
Oasis Residential, Ser. A, Cum., $2.25. 20,000 515,000
Tanger Factory Outlet Centers, Cum., $1.80 20,000 460,000
_____
1,406,250
_____
TOTAL CONVERTIBLE PREFERRED STOCKS
(cost $2,784,690).................... $ 2,884,375
=======

PRINCIPAL
CONVERTIBLE CORPORATE NOTES & BONDS-15.2% AMOUNT
-------
CONSUMER-3.5% Staples, Sub Deb., 4.50%, 10/1/2000..... $ 2,500,000 (b) $ 2,500,000
_____
ENERGY-3.4% Enron, Notes, 6.25%, 12/13/1998......... 100,000 2,400,000
_____
HEALTH CARE-3.3% Sandoz Capital, Sub. Deb., 2%, 10/6/2002... 2,500,000 (b) 2,375,000
_____
INSURANCE-5.0% American Travellers, Sub. Deb., 6.50%, 10/1/2005.. 2,600,000 3,581,500
_____
TOTAL CONVERTIBLE CORPORATE BONDS
(cost $9,351,583)........................ $10,856,500
=======
SHORT-TERM INVESTMENT-8.2%
U.S. TREASURY BILL;. 6.075%, 3/7/1996
(cost $5,815,953).................... $ 5,870,000 $ 5,815,996
=======
TOTAL INVESTMENTS (cost $66,776,558)....... 100.9% $71,790,021
===== =======
LIABILITIES, LESS CASH AND RECEIVABLES..... (.9%) $ (628,861)
===== =======
NET ASSETS.................................................................. 100.0% $71,161,160
===== =======

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 December 31,
1995, these securities amounted to $4,875,000 or approximately 6.8% of
net assets.

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Growth and Income Portfolio
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
ASSETS:
Investments in securities, at value
(cost $66,776,558)-see statement...................................... $71,790,021
Cash.................................................................... 408,581
Receivable for investment securities sold............................... 3,206,994
Dividends and interest receivable....................................... 154,300
Prepaid expenses........................................................ 199
_____
75,560,095
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 42,336
Payable for investment securities purchased............................. 4,324,665
Accrued expenses and other liabilities.................................. 31,934 4,398,935
_____ _____
NET ASSETS.................................................................. $71,161,160
======
REPRESENTED BY:
Paid-in capital......................................................... $64,667,080
Accumulated undistributed investment income-net......................... 24,857
Accumulated undistributed net realized gain on investments.............. 1,455,760
Accumulated net unrealized appreciation on investments-Note 4(b)........ 5,013,463
_____
NET ASSETS at value applicable to 3,882,738 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $71,161,160
=======
NET ASSET VALUE, offering and redemption price per share
($71,161,160 / 3,882,738 shares)........................................ $18.33
=======

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Growth and Income Portfolio
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $837 foreign taxes withheld at source)......... $ 415,869
Interest.............................................................. 395,795
_____
TOTAL INCOME...................................................... $ 811,664
EXPENSES:
Investment advisory fee-Note 3(a)..................................... 194,344
Registration fees..................................................... 21,928
Auditing fees......................................................... 15,490
Custodian fees........................................................ 7,548
Prospectus and shareholders' reports.................................. 3,587
Trustees' fees and expenses-Note 3(b)................................. 1,946
Legal fees............................................................ 1,569
Shareholder servicing costs-Note 3(a)................................. 421
Miscellaneous......................................................... 753
_____
TOTAL EXPENSES.................................................... 247,586
Less-reduction in investment advisory fee due to undertakings-Note 3(a) 8,743
_____
NET EXPENSES.................................................... 238,843
_____
INVESTMENT INCOME-NET........................................... 572,821
_____
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain (loss) on investments-Note 4(a):
Long transactions..................................................... $ 4,307,148
Short sale transactions............................................... (224,625)
_____
NET REALIZED GAIN................................................. 4,082,523
Net unrealized appreciation on investments.............................. 5,056,480
_____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS....................... 9,139,003
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $9,711,824
=======

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Growth and Income Portfolio
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
________________________________
1994* 1995
_______ _______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 22,787 $ 572,821
Net realized gain on investments........................................ 7,824 4,082,523
Net unrealized appreciation (depreciation) on investments for the year.. (43,017) 5,056,480
______ ______
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS........................................................ (12,406) 9,711,824
______ ______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (22,729) (548,022)
Net realized gain on investments........................................ (7,302) (2,627,285)
______ ______
TOTAL DIVIDENDS....................................................... (30,031) (3,175,307)
______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 1,053,630 71,235,254
Dividends reinvested.................................................... 30,031 3,175,307
Cost of shares redeemed................................................. (1,330) (10,825,812)
______ ______
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST
TRANSACTIONS...................................................... 1,082,331 63,584,749
______ ______
TOTAL INCREASE IN NET ASSETS...................................... 1,039,894 70,121,266
NET ASSETS:
Beginning of year....................................................... -- 1,039,894
______ ______
End of year (including undistributed investment income-net:
$58 in 1994 and $24,857 in 1995)...................................... $ 1,039,894 $ 71,161,160
====== ======

SHARES SHARES
______ ______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 84,474 4,269,435
Shares issued for dividends reinvested.................................. 2,457 179,268
Shares redeemed......................................................... (109) (652,787)
______ ______
NET INCREASE IN SHARES OUTSTANDING.................................... 86,822 3,795,916
====== ======
*From May 2, 1994 (commencement of operations) to December 31, 1994.

</TABLE>
See notes to financial statements.

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 year indicated. This
information has been derived from the Series' financial statements.

YEAR ENDED DECEMBER 31,
----------------------------
PER SHARE DATA: 1994(1) 1995
------ -----
<S> <C> <C>
Net asset value, beginning of year.......................................... $12.50 $11.98
___ ___
INVESTMENT OPERATIONS:
Investment income-net....................................................... .28 .28
Net realized and unrealized gain (loss) on investments...................... (.43) 7.07
___ ___
TOTAL FROM INVESTMENT OPERATIONS.......................................... (.15) 7.35
___ ___
DISTRIBUTIONS:
Dividends from investment income-net........................................ (.28) (.27)
Dividends from net realized gain on investments............................. (.09) (.73)
___ ___
TOTAL DISTRIBUTIONS....................................................... (.37) (1.00)
___ ___
Net asset value, end of year................................................ $11.98 $18.33
___ ___
___ ___
TOTAL INVESTMENT RETURN......................................................... (1.22%)(2) 61.89%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets..................................... .22%(2) .92%
Ratio of net investment income to average net assets........................ 2.25%(2) 2.21%
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%
Net assets, end of year (000's Omitted)..................................... $1,040 $71,161
(1) From May 2, 1994 (commencement of operations) to December 31, 1994.
(2) Not annualized.

</TABLE>

See notes to financial statements.

DREYFUS VARIABLE INVESTMENT FUND, Growth and Income Portfolio
NOTES TO FINANCIAL STATEMENTS
NOTE 1-GENERAL:
The 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 eight series,
including the Growth and Income Portfolio series (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 Dreyfus
Corporation ("Dreyfus") serves as the Fund's investment adviser. Dreyfus is a
direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc.
(the "Distributor") acts as the distributor of the Fund's shares, which are
sold without a sales charge. The Distributor, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution
Services, Inc., a provider of mutual fund administration services, which in
turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company
of which is Boston Institutional Group, Inc.
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.
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.
(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
quarterly. 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 the net realized capital gain can be offset
by capital loss carryovers, 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

DREYFUS VARIABLE INVESTMENT FUND, Growth and Income Portfolio
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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. For Federal income tax purposes, each
series is treated as a single entity for the purpose of determining such
qualification.
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 .75 of 1% of the average daily value of the Series' net assets
and is payable monthly.
The Agreement further 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 had undertaken, from January 1, 1995 through July 5,
1995, to reduce the investment advisory fee paid by the Series, to the extent
that the Series' aggregate expenses (exclusive of certain expenses as
described above) exceeded specified annual percentages of the Series' average
daily net assets. The reduction in investment advisory fee, pursuant to the
undertakings amounted to $8,743 for the year ended December 31, 1995.
Effective December 1, 1995, 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. Such compensation amounted to $36 for the period from
December 1, 1995 through December 31, 1995.
(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 following summarizes the aggregate amount of purchases and sales
of investment securities and securities sold short, excluding short-term
securities during the year ended December 31, 1995:
<TABLE>
<CAPTION>

PURCHASES SALES
---------- --------
<S> <C> <C>
Long transactions............................. $113,942,466 $ 58,087,517
Short sale transactions....................... 1,034,500 809,875
--------- --------
TOTAL................................... $114,976,966 $ 58,897,392
======== ========
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND, Growth and Income Portfolio
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 declines 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 December 31, 1995, there were no
securities sold short outstanding.
(B) At December 31, 1995, accumulated net unrealized appreciation on
investments was $5,013,463, consisting of $6,536,158 gross unrealized
appreciation and $1,522,695 gross unrealized depreciation.
At December 31, 1995, 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
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, GROWTH AND INCOME PORTFOLIO
We have audited 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 December 31, 1995, and the related statement
of operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Variable Investment Fund, Growth and Income Portfolio at
December 31, 1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and the financial highlights for each of the indicated years, in conformity
with generally accepted accounting principles.

[Ernst and Young LLP signature logo]

New York, New York
February 9, 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
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903

Further information is contained
in the Prospectus, which must
precede or accompany this report.

Printed in U.S.A. 108AR9512
[Dreyfus logo]
Variable
Investment Fund,
GROWTH AND INCOME
PORTFOLIO
Annual Report
December 31, 1995