December 23, 1996
DREYFUS VARIABLE
INVESTMENT FUND
SUPPLEMENT TO PROSPECTUS
DATED NOVEMBER 1,1996
THE FOLLOWING INFORMATION SUPPLEMENTS AND SUPERSEDES ANY CONTRARY
INFORMATION CONTAINED IN THE FUND'S PROSPECTUS WITH RESPECT TO THE MANAGED
ASSETS PORTFOLIO.
MANAGED ASSETS PORTFOLIO ONLY
Effective as of the close of business on December 31, 1996, Comstock
Partners, Inc. ("Comstock") will cease to serve as sub-investment adviser to
the Managed Assets Portfolio. Thereafter, The Dreyfus Corporation will be
responsible for the day-to-day management of the Series' portfolio and will
provide the Series with portfolio managers. In connection therewith, the
Series' primary portfolio manager will be Timothy M. Ghriskey. Mr. Ghriskey
has been employed by The Dreyfus Corporation since July 1995. For more than
five years prior thereto, he was Vice President and Associate Managing
Partner of Loomis, Sayles & Company. The Series will be managed as a
"contrary value" portfolio and its investments will include (i) securities
which are out-of-favor and whose price to earnings ratios are lower than the
rest of the market or industry, (ii) securities which are temporarily
depressed but for which a turnaround is expected and (iii) special
situations, such as corporate restructurings, gold stocks and high yield
bonds. In addition, The Dreyfus Corporation intends to utilize certain
investment techniques, such as short-selling and leveraging, in connection
with its management of the Series' portfolio.
In connection with The Dreyfus Corporation agreeing to provide the
day-to-day management of the Series' portfolio, at a meeting held on December
9, 1996, the Fund's Board, including a majority of the Board members who are
not "interested persons" of the Fund (as defined in the 1940 Act), approved
amending the Investment Advisory Agreement (the "Amended Advisory Agreement")
with respect to the Series, to, among other things,
(CONTINUED ON REVERSE SIDE)
increase the advisory fee payable to The Dreyfus Corporation so that it equals
the aggregate annual rate payable to The Dreyfus Corporation and Comstock for
advisory services under the existing Investment Advisory Agreement and Sub-
Investment Advisory Agreement, respectively. The Board also directed that the
Amended Advisory Agreement be submitted to Series shareholders of record as of
December 31, 1996 at a meeting scheduled to be held January 31, 1997. Under
the Amended Advisory Agreement, The Dreyfus Corporation will continue to
provide the services it provides under the existing Investment Advisory
Agreement and will provide the day-to-day management of the Series' portfolio,
which was provided by Comstock under the Sub-Investment Advisory Agreement,
for a monthly fee at the annual rate of .75 of 1% of the value of the Series'
average daily net assets. This proposed fee is equal to the aggregate annual
rate of fee payable by the Series to The Dreyfus Corporation and Comstock.
THE FOLLOWING INFORMATION SUPPLEMENTS AND SUPERSEDES ANY CONTRARY
INFORMATION CONTAINED IN THE SECTION OF THE FUND'S PROSPECTUS ENTITLED
"DESCRIPTION OF THE FUND -- INVESTMENT OBJECTIVES AND MANAGEMENT POLICIES --
SMALL CAP PORTFOLIO."
SMALL CAP PORTFOLIO ONLY
Under normal market conditions, the Small Cap Portfolio will invest
at least 65% of its total assets in companies with market capitalizations of
less than $1.5 billion at the time of purchase, both domestic and foreign,
which the Small Cap Portfolio believes to be characterized by new or
innovative products or services which should enhance prospects for growth in
future earnings.
VIFs122396
