DREYFUS VARIABLE INVESTMENT FUND, N-30D, 1998-03-02

DREYFUS VARIABLE INVESTMENT FUND
N-30D, 1998-03-02

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<PAGE>
Dreyfus
Variable
Investment Fund,
Balanced Portfolio
Annual Report

December 31, 1997

<PAGE>
Dreyfus Variable Investment Fund, Balanced Portfolio
- --------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:

We are pleased to provide you with this performance report for the Dreyfus
Variable Investment Fund -- Balanced Portfolio for the eight months ended
December 31, 1997. Since the Fund's inception on May 1, 1997 through the end of
its fiscal year, December 31, 1997, your Portfolio provided returns in excess of
its investment benchmark and produced a total return of 18.48%,* which compares
with a total return of 16.22% for the Hybrid Index (discussed below) over the
same time period.**

Because the Fund is composed of fixed income securities as well as equities,
we measure ourselves against a Hybrid Index composed 60% of the Standard &
Poor's 500 Composite Stock Price Index, measuring only common stocks, and 40% of
the Lehman Brothers Intermediate Government Corporate Bond Index. For the same
eight-month period, the Portfolio's stock component outperformed the market with
a total return of 25.64% compared to the Standard & Poor's 500 Composite Stock
Price Index, which had a total return of 22.55%.** The Portfolio's fixed income
holdings had a total return of 6.95% compared to 6.74% for the Lehman Brothers
Intermediate Government Corporate Bond Index.** The stock component of the
Portfolio varied between more than 60% early in the year to less than 45% later.

ECONOMIC REVIEW

In 1997, the U.S. economy put in its best growth performance of this business
cycle to date. In tandem, the labor market tightened markedly, marginally
boosting wage inflation towards year-end. Yet price inflation decelerated and
bond yields fell. Although corporate profit growth was robust for much of the
year, strains began to appear in the second half in some sectors. The Federal
Reserve Board (the "Fed") tightened credit early in the year, then subsequently
stayed on hold, torn between strong economic reports at home and worsening
financial crises overseas. While the problems overseas may slow the U.S. economy
somewhat in 1998, incoming evidence indicates little adverse impact on economic
activity to date.

Real Gross Domestic Product ("GDP") grew 3.8% in 1997, its best annual growth
since 1988. Almost all the major sectors contributed to growth. Households
enjoyed rising real incomes as wage increases outpaced price inflation. Moderate
interest rates buoyed housing demand. Tightening factory capacity boosted
capital spending, and until late in the year, steady foreign growth kept exports
robust. That all these sectors grew simultaneously in a late phase of the
business cycle was unusual. The year 1997 also saw a dramatic narrowing of the
Federal budget deficit. It is likely that the associated drop in Federal
borrowing boosted the supply of credit available to the private sector.

As mentioned, overall corporate profit growth rebounded in 1997, after
slowing in 1996. Profits from domestic sources generally did well. However,
profits from international sources began to show strains in the second half,
impacted by the rising dollar and by financial stresses overseas. More recently,
profits at some companies have been slowed by price weakness.

Economic data this winter show the economy still quite strong, although some
leading statistics have begun to signal somewhat slower economic growth for
1998. First, recently slowing export orders and rising import orders imply a
widening trade deficit. Second, the number of announced layoffs has begun to
rise, indicating some future easing of labor market pressures. Once these
leading indicators actually show up in a slowing of the economy, market
expectations may shift to anticipate the possibility of a move by the Fed to
ease credit. At the start of 1998, there was uncertainty about both the severity
of Asian stresses and their impact on the U.S. economy.

MARKET OVERVIEW

By virtually every measurement, 1997 was a historically favorable year for
stocks. The 12-month gains, despite setbacks along the way, were impressive.
However, the year ended on a note of uncertainty with no assurance that the
gains of 1997 could be repeated in 1998.

<PAGE>
Index figures (price changes only, without including income) tell the story:
For the 12 months ended December 31, 1997, the Dow Jones Industrial Average
(DJIA) rose by 22.64%, the broader Standard & Poor's 500 Stock Index was up
31.01%, the Nasdaq Composite up 21.64% and the Russell 2000, representing small
capitalization stocks, gained 20.52%.

The economic background, at least until October when Asia's troubles
surfaced, was clearly favorable. So much so that economic commentators talked of
the "Goldilocks economy" -- not too hot and not too cold. Unemployment was low,
industrial production and other output measures continued to grow, yet price and
wage inflation were not problems. By the end of the year, there was even talk
that the next economic problem might be a touch of deflation.

The market began the year by rebounding from earlier weakness. The signs in
the market and the economy were so bullish that Chairman Alan Greenspan of the
Fed warned against "irrational exuberance," then followed that up on March 25
with an increase in short-term interest rates. That cooled off the stock market
temporarily, but not for long. By early August, major stock market averages
reached all-time record highs.

As summer turned into autumn, however, doubts began to appear. There were
worries about the profit outlook and worries that inflation might resume. The
biggest negative influences, however, were the financial setbacks in Asia,
starting with Thailand, Malaysia, the Philippines, Hong Kong and Indonesia, then
spreading to South Korea and Japan. This raised questions for American investors
about how our export orders might be affected, how the profits of U.S.
multinationals would fare, and whether devaluation of Asian currencies would
cause a flood of cheaper imported goods into the U.S.

In view of these unsettling questions, it was impressive that the damage to
U.S. stocks by year-end was comparatively limited. On October 27, the DJIA sank
to 7161.15, a one-day loss of 7.18%, the worst since the big market sinking
spell of ten years earlier. Yet by the end of the year, the Dow had bounced back
to 7908.25, with other major indexes and averages following suit.

For much of the year, large capitalization companies were in favor, though
small caps staged an impressive rally in midyear. Among the best-performing
industry groups were banks and other financial stocks, broadcasting,
advertising, airlines, home construction and trucking. Consumer software,
precious metals (particularly gold) and heavy industrial materials were among
the laggards.

During the year, mergers and acquisitions were the driving force for some key
stocks, particularly in the communications, finance and broadcasting industries.
The merger pace was such that it seemed likely to carry over into 1998.

The boom of 1997 gave rise to such terms as "new era" and "new paradigm" to
describe the phenomenon of a stock market making new highs for three years in a
row. Yet the clouds that appeared on the horizon late in the year place the
burden of proof for 1998 on the "new era" advocates.

PORTFOLIO FOCUS -- STOCKS

In line with its "balanced" investment goals, the Portfolio makes strategic
asset shifts based upon analysis of the relative value of stocks compared to
bonds as well as the active management of both the stocks and bonds within the
Portfolio. The Portfolio's allocation to stocks was higher than the normal 60%
target through late June 1997. At that point in time, equity exposure was
reduced to normal due primarily to a significant increase in stock market
valuation. As of August 13, 1997, we reduced the Portfolio's equity exposure a
second time to approximately 45%, with the resulting allocation tilted toward
bonds.

The Portfolio construction techniques that are utilized ensure broad
diversification with exposure to all economic sectors. Stocks are selected based
upon favorable earnings profiles in conjunction with attractive price-based
characteristics. The largest contribution to the equity performance was provided
by security selection within the interest-

<PAGE>
sensitive and capital spending sectors. The highest absolute return came from
the utility, interest-sensitive and consumer-cyclical sectors, with total
returns of 39.87%, 37.71%, and 28.68%, respectively.

PORTFOLIO FOCUS -- FIXED INCOME

The fixed income market had a rough start in 1997, but moved into positive
territory as the year progressed. Long-term interest rates peaked in April with
the benchmark 30-year bond reaching a yield of 7.17% in response to late-March
Fed tightening of the Federal Funds rate, intended to preempt any inflationary
threats.

Low inflation numbers helped to drop the yield on the 30-year bond below 6%
in early December. The rally was aided by the "flight to quality" by investors
who parked money in U.S. Treasury securities as concerns increased over the
Asian crisis. The favorable fundamental U.S. economic data will take a back seat
to the growing global problems. We expect the Fed to remain cautious until more
data becomes available.

For the reporting period, the fixed income portion of the Portfolio held a
neutral duration relative to its fixed income benchmark, the Lehman Brothers
Intermediate Government/Corporate Bond Index. The fixed income portion of the
Portfolio benefited from being invested 100% in U.S. Treasury securities. U.S.
Treasury bonds and notes outperformed corporate and mortgage-backed securities
during the second half of 1997.

We appreciate your investment in this Portfolio and will continue our best
efforts to attempt to bring you rewarding returns from a balance of stocks and
bonds.
Sincerely,

/s/ Ronald P. Gala /s/ Laurie A. Carroll

Ronald P. Gala Laurie A. Carroll
Portfolio Managers

January 19, 1998
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 and expenses imposed in connection with investing in variable
insurance contracts, which will reduce returns.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of U.S. stock market performance. The Lehman Brothers
Intermediate Government/Corporate Bond Index is a widely accepted unmanaged
index of government and corporate bond market performance composed of U.S.
Government, Treasury and agency securities, fixed income securities and
nonconvertible investment-grade corporate debt, with an average maturity of
1-10 years.

<PAGE>
Dreyfus Variable Investment Fund, Balanced Portfolio December 31, 1997
- --------------------------------------------------------------------------------

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS VARIABLE
INVESTMENT FUND, BALANCED PORTFOLIO WITH THE STANDARD & POOR'S 500 COMPOSITE
STOCK PRICE INDEX, THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE
BOND INDEX AND A HYBRID INDEX

Dollars

$12,255
Standard & Poor's 500
Composite Stock
Price Index*

$11,848
Dreyfus Variable
Investment Fund,
Balanced Portfolio

$11,622
Hybrid Index***

$10,674
Lehman Brothers
Intermediate Government/Corporate
Bond Index**

* Source: Lipper Analytical Services, Inc.
** Source: Lehman Brothers
*** Source: Lipper Analytical Services, Inc., and Lehman Brothers

Actual Aggregate Total Return
- --------------------------------------------------------------------------------

From Inception (5/1/97)
to December 31, 1997
-----------------------
18.48%

- ------------
Past performance is not predictive of future performance.

The Portfolio's performance does not reflect the deduction of additional
charges and expenses imposed in connection with investing in variable insurance
contracts which will reduce returns.

The above graph compares a $10,000 investment made in Dreyfus Variable
Investment Fund, Balanced Portfolio on 5/1/97 (Inception Date) to a $10,000
investment made on that date in each of the Standard & Poor's 500 Composite
Stock Price Index, the Lehman Brothers Intermediate Government/Corporate Bond
Index and a Hybrid Index, which are described below. All dividends and capital
gain distributions are reinvested.

The Portfolio's performance shown in the graph takes into account all
applicable fees and expenses of the Portfolio. The Standard & Poor's 500
Composite Stock Price Index is a widely accepted, unmanaged index of overall
stock market performance. The Lehman Brothers Intermediate Government/Corporate
Bond Index is a widely accepted, unmanaged index of Government and corporate
bond market performance composed of U.S. Government, Treasury and agency
securities, fixed-income securities and nonconvertible investment grade
corporate debt, with an average maturity of 1-10 years. The Indices do not take
into account charges, fees and other expenses. The Hybrid Index is composed of
60% Standard & Poor's 500 Composite Stock Price Index and 40% Lehman Brothers
Intermediate Government/Corporate Bond Index. Under normal circumstances, the
Portfolio's total assets are allocated approximately 60% to common stocks and
40% to bonds; however, the Portfolio is permitted to invest up to 75%, and as
little as 40%, of its total assets in common stocks and up to 60%, and as
little as 25%, of its total assets in bonds, as deemed advisable by The Dreyfus
Corporation. 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, Balanced Portfolio
- --------------------------------------------------------------------------------
Statement of Investments December 31, 1997

Common Stocks--46.2% Shares Value
- ------------------------------------------------------------------------------- -------------- -------------
<S> <C> <C> <C>
Basic Industries--1.8% Dow Chemical.................................. 1,100 $ 111,650
duPont (E.I.) deNemours & Co.................. 3,900 234,244
Fort James.................................... 4,000 153,000
Millennium Chemicals.......................... 1,700 40,056
Morton International.......................... 1,900 65,313
Owens-Illinois.............................(a) 1,600 60,700
Rohm & Haas................................... 800 76,600
-----------
741,563
-----------

Capital Spending--10.4% Adaptec....................................(a) 2,200 81,675
American Power Conversion..................(a) 1,100 25,988
Applied Materials..........................(a) 4,400 132,550
BMC Software...............................(a) 1,200 78,750
Caterpillar................................... 5,200 252,525
Cendant....................................(a) 2,162 74,319
Cisco Systems..............................(a) 6,600 367,950
Compaq Computer............................... 4,200 237,038
Computer Associates International............. 5,400 285,525
Cummins Engine................................ 900 53,156
Deere & Co.................................... 3,000 174,937
General Dynamics.............................. 900 77,794
General Electric.............................. 3,800 278,825
HealthCare COMPARE.........................(a) 1,100 56,237
Ingersoll-Rand................................ 3,800 153,900
Intel......................................... 4,200 295,050
International Business Machines............... 3,000 313,688
Lexmark International Group, Cl. A.........(a) 1,700 64,600
Microsoft..................................(a) 3,000 387,750
PairGain Technologies......................(a) 2,100 40,687
Parker-Hannifin............................... 3,600 165,150
Philips Electronics, N.V...................... 1,900 114,950
Raychem....................................... 1,200 51,675
Raytheon, Cl. A............................... 204 10,063
Republic Industries........................(a) 4,500 104,906
Sun Microsystems...........................(a) 2,000 79,750
Tellabs....................................(a) 3,600 190,350
Thiokol....................................... 600 48,750
United Technologies........................... 1,400 101,937
-----------
4,300,475
-----------

Consumer Cyclical--5.5% American Greetings, Cl. A..................... 1,300 50,863
Callaway Golf................................. 1,600 45,700
Chrysler...................................... 3,300 116,119
Dayton Hudson................................. 3,200 216,000
Federated Department Stores................(a) 4,600 198,087
Ford Motor.................................... 3,600 175,275
Gannett....................................... 900 55,631
Gap........................................... 2,850 100,997

</TABLE>

Dreyfus Variable Investment Fund, Balanced Portfolio
- --------------------------------------------------------------------------------
Statement of Investments (continued) December 31, 1997

Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------- -------------- -------------
<S> <C> <C> <C>
Consumer Cyclical (continued) General Motors................................ 3,200 $ 194,000
Goodyear Tire & Rubber........................ 500 31,813
MGM Grand..................................(a) 1,100 39,669
Magna International, Cl. A.................... 600 37,687
Miller (Herman)............................... 800 43,650
New York Times, Cl. A......................... 2,800 185,150
Payless ShoeSource.........................(a) 500 33,562
Reynolds & Reynolds, Cl. A.................... 1,700 31,344
Safeway....................................(a) 2,400 151,800
TJX........................................... 4,200 144,375
Tommy Hilfiger.............................(a) 1,000 35,125
Tribune....................................... 1,000 62,250
V.F........................................... 2,000 91,875
Wal-Mart Stores............................... 5,700 224,794
-----------
2,265,766
-----------

Consumer Staples--5.5% Anheuser-Busch................................ 1,900 83,600
Avon Products................................. 1,700 104,338
Campbell Soup................................. 2,000 116,250
Clorox........................................ 1,300 102,781
Coca-Cola..................................... 3,200 213,200
Colgate-Palmolive............................. 1,200 88,200
Dial.......................................... 2,200 45,788
General Mills................................. 2,100 150,412
Heinz (H.J.).................................. 1,100 55,894
Interstate Bakeries........................... 1,400 52,325
Kellogg....................................... 2,200 109,175
Newell........................................ 1,900 80,750
PepsiCo....................................... 2,000 72,875
Philip Morris................................. 6,900 312,656
Procter & Gamble.............................. 2,600 207,512
Quaker Oats................................... 3,100 163,525
Sara Lee...................................... 2,400 135,150
Unilever, N.V. (New York Shares).............. 2,500 156,094
-----------
2,250,525
-----------

Energy--4.3% Atlantic Richfield............................ 3,400 272,425
British Petroleum, A.D.R. .................... 1,000 79,688
Burlington Resources.......................... 1,700 76,181
Chevron....................................... 3,800 292,600
Coastal....................................... 1,300 80,519
Columbia Gas System........................... 800 62,850
Diamond Offshore Drilling..................... 1,900 91,438
Exxon......................................... 3,800 232,512
Phillips Petroleum............................ 2,900 141,012
Reading & Bates............................(a) 2,200 92,125
Sun .......................................... 900 37,856

</TABLE>

Dreyfus Variable Investment Fund, Balanced Portfolio
- --------------------------------------------------------------------------------
Statement of Investments (continued) December 31, 1997

Health Care--5.2% Abbott Laboratories........................... 4,800 314,700
Amgen......................................(a) 3,100 167,788
Becton, Dickinson & Co........................ 1,100 55,000
Biomet........................................ 2,000 51,250
Bristol-Myers Squibb.......................... 3,400 321,725
Dura Pharmaceuticals.......................(a) 800 36,700
Health Management Association..............(a) 2,300 58,075
HEALTHSOUTH................................(a) 5,700 158,175
Johnson & Johnson............................. 4,500 296,437
Merck & Co.................................... 3,000 318,750
Schering-Plough............................... 5,400 335,475
Wellpoint Health Networks..................(a) 1,100 46,475
-----------
2,160,550
-----------

Interest Sensitive--7.8% Ahmanson (H.F.) & Co.......................... 1,000 66,938
Allstate...................................... 2,400 218,100
Ambac Financial Group......................... 2,400 110,400
BankAmerica................................... 3,300 240,900
Bankers Trust New York........................ 1,100 123,681
Bear Stearns ................................. 3,500 166,250
Chase Manhattan............................... 1,800 197,100
Citicorp...................................... 1,500 189,656
Comerica...................................... 1,300 117,325
Conseco....................................... 2,800 127,225
EXEL.......................................... 3,100 196,462
Federal National Mortgage Association......... 3,000 171,187
First Chicago NBD............................. 3,000 250,500
First of America Bank......................... 700 53,988
First Union................................... 3,200 164,000
Green Tree Financial.......................... 2,100 54,994
MGIC Investment............................... 1,700 113,050
NationsBank................................... 2,400 145,950
SLM Holding................................... 1,400 194,775
SouthTrust.................................... 800 50,750
SunAmerica.................................... 1,000 42,750
Travelers Group............................... 3,600 193,950
-----------
3,189,931
-----------

Mining & Metals--.4% Aluminum Company of America................... 800 56,300
Phelps Dodge.................................. 700 43,575
USX-U.S. Steel Group.......................... 2,200 68,750
-----------
168,625
-----------

</TABLE>

Dreyfus Variable Investment Fund, Balanced Portfolio
- --------------------------------------------------------------------------------
Statement of Investments (continued) December 31, 1997

Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------- -------------- -------------
<S> <C> <C> <C>
Transportation--.7% AMR........................................(a) 300 $ 38,550
Burlington Northern Santa Fe.................. 1,600 148,700
Delta Air Lines............................... 800 95,200
-----------
282,450
-----------

Utilities--4.6% AT&T.......................................... 7,000 428,750
AirTouch Communications....................(a) 4,700 195,344
Ameritech..................................... 5,200 418,600
BellSouth..................................... 4,600 259,037
Consolidated Edison........................... 3,100 127,100
DQE........................................... 1,500 52,687
FPL Group..................................... 1,700 100,619
LCI International..........................(a) 2,100 64,575
PacifiCorp.................................... 3,500 95,594
Pinnacle West Capital......................... 2,200 93,225
Southern...................................... 1,800 46,575
-----------
1,882,106
-----------
TOTAL COMMON STOCKS
(cost $16,546,007)......................... $19,002,885
===========

Principal
Bonds & Notes--39.3% Amount
- ------------------------------------------------------------------------------- ---------------
U.S.Government: U.S. Treasury Notes:
5.125%, 12/31/1998......................... $ 900,000 $ 896,063
6.25%, 3/31/1999........................... 620,000 624,553
7%, 4/15/1999.............................. 650,000 660,766
6.375%, 5/15/1999.......................... 1,575,000 1,589,766
6%, 6/30/1999.............................. 975,000 980,027
7.875%, 11/15/1999......................... 900,000 934,734
8.875%, 5/15/2000.......................... 600,000 642,469
6.25%, 8/31/2000........................... 975,000 988,406
8%, 5/15/2001.............................. 700,000 748,563
6.125%, 12/31/2001......................... 1,125,000 1,140,820
7.5%, 5/15/2002............................ 1,000,000 1,067,500
6.25%, 6/30/2002........................... 975,000 994,500
6.25%, 2/15/2003........................... 700,000 715,859
5.875%, 2/15/2004.......................... 200,000 201,719
7.25%, 5/15/2004........................... 600,000 647,437
6.5%, 8/15/2005............................ 820,000 855,747
7%, 7/15/2006.............................. 1,350,000 1,457,789
6.5%, 10/15/2006........................... 1,000,000 1,047,500
-----------
TOTAL BONDS & NOTES
(cost $15,937,778)......................... $16,194,218
===========

</TABLE>

Dreyfus Variable Investment Fund, Balanced Portfolio
- --------------------------------------------------------------------------------
Statement of Investments (continued) December 31, 1997

Principal
Short-Term Investments--13.3% Amount Value
- ------------------------------------------------------------------------------- -------------- -------------
<S> <C> <C> <C>
Agency Discount Notes--12.8% Federal Home Loan Banks
5.40%, 1/2/1998............................ $5,270,000 $ 5,269,210
-----------

U.S. Treasury Bills--.5% 5.12%, 2/5/1998............................(b) 200,000 199,022
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $5,468,214).......................... $ 5,468,232
===========

TOTAL INVESTMENTS (cost $37,951,999)........................................... 98.8% $40,665,335
====== ===========
CASH AND RECEIVABLES (NET)..................................................... 1.2% $ 479,018
====== ===========
NET ASSETS..................................................................... 100.0% $41,144,353
====== ===========

<FN>
Notes to Statement of Investments:
- --------------------------------------------------------------------------------
(a) Non-income producing.
(b) Partially held by the custodian in a segregated account as collateral for
open Financial Futures positions.

</FN>
</TABLE>
<TABLE>
<CAPTION>

Statement of Financial Futures December 31, 1997
- --------------------------------------------------------------------------------

Unrealized
Market Value Appreciation/
Covered by (Depreciation)
Financial Futures Purchased Contracts Contracts Expiration at 12/31/97
- --------------------------- --------- ------------ ---------- -------------
<S> <C> <C> <C> <C>
U.S. Treasury--5 Year Notes.................... 27 $2,932,875 March '98 $ 8,437

Financial Futures Sold
- ----------------------
Standard & Poor's 500......................... 4 $ (979,100) March '98 (10,300)
--------
$ (1,863)
========

</TABLE>

See notes to financial statements.

Dreyfus Variable Investment Fund, Balanced Portfolio
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities December 31, 1997

Cost Value
----------- -----------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $37,951,999 $40,665,335
Cash............................................. 309,537
Dividends and interest receivable................ 216,934
Receivable for futures variation margin--Note 5(a) 6,528
-----------
41,198,334
-----------

LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 30,999
Accrued expenses................................. 22,982
-----------
53,981
-----------

NET ASSETS..................................................................... $41,144,353
===========

REPRESENTED BY: Paid-in capital.................................. $38,164,546

Accumulated undistributed investment income--net. 3,933

Accumulated net realized gain (loss) on investments 264,401

Accumulated net unrealized appreciation (depreciation)
on investments [including ($1,863) net unrealized
(depreciation) on financial futures]--Note 5(b) 2,711,473
-----------
NET ASSETS..................................................................... $41,144,353
===========
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized). 2,930,123

NET ASSET VALUE, offering and redemption price per share....................... $14.04
======

</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Variable Investment Fund, Balanced Portfolio
- --------------------------------------------------------------------------------
Statement of Operations
from May 1, 1997 (commencement of operations) to December 31, 1997

<TABLE>

INVESTMENT INCOME

<S> <C> <C> <C>
INCOME: Interest................................... $ 646,219
Cash dividends (net of $1,953 foreign taxes
withheld at source)...................... 198,631
----------
Total Income.......................... $ 844,850

EXPENSES: Investment Advisory fee--Note 4(a)......... 164,386
Custodian fees--Note 4(a).................. 14,570
Legal fees................................. 13,877
Registration fees.......................... 11,259
Auditing fees.............................. 9,760
Prospectus and shareholders' reports....... 4,204
Trustees' fees and expenses--Note 4(b)..... 501
Shareholder servicing costs................ 119
Miscellaneous.............................. 948
----------
Total Expenses........................ 219,624
----------

INVESTMENT INCOME--NET................................................... 625,226
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 5:
Net realized gain (loss) on investments.... $1,491,037
Net realized gain (loss) on financial futures 215,634
----------
Net Realized Gain (Loss).............. 1,706,671
Net unrealized appreciation (depreciation) on
investments [including ($1,863) net unrealized
(depreciation) on financial futures]..... 2,711,473
----------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................... 4,418,144
----------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $5,043,370
==========

</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Variable Investment Fund, Balanced Portfolio
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
from May 1, 1997 (commencement of operations) to December 31, 1997

<TABLE>

<S> <C>
OPERATIONS:
Investment income--net............................................................... $ 625,226
Net realized gain (loss) on investments.............................................. 1,706,671
Net unrealized appreciation (depreciation) on investments............................ 2,711,473
-----------

Net Increase (Decrease) in Net Assets Resulting from Operations................... 5,043,370
-----------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net............................................................... (621,293)
Net realized gain on investments..................................................... (1,442,270)
-----------

Total Dividends................................................................... (2,063,563)
-----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................................ 36,492,088
Dividends reinvested................................................................. 2,063,563
Cost of shares redeemed.............................................................. (391,105)
-----------

Increase (Decrease) in Net Assets from Beneficial Interest Transactions........... 38,164,546
-----------

Total Increase (Decrease) in Net Assets........................................ 41,144,353

NET ASSETS:
Beginning of Period.................................................................. --
-----------
End of Period........................................................................ $41,144,353
===========

Undistributed investment income--net.................................................... $ 3,933
-----------

Shares
-----------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................................... 2,810,317
Shares issued for dividends reinvested............................................... 146,937
Shares redeemed...................................................................... (27,131)
-----------

Net Increase (Decrease) in Shares Outstanding..................................... 2,930,123
===========

</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Variable Investment Fund, Balanced 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 the period from May 1, 1997 (commencement
of operations) to December 31, 1997. This information has been derived from the
Series' financial statements.

<TABLE>

PER SHARE DATA:

<S> <C>
Net asset value, beginning of period.......................................................... $12.50
------

Investment Operations:
Investment income--net........................................................................ .25
Net realized and unrealized gain (loss) on investments........................................ 2.06
------
Total from Investment Operations.............................................................. 2.31
------

Distributions:
Dividends from investment income--net......................................................... (.25)
Dividends from net realized gain on investments............................................... (.52)
------
Total Distributions........................................................................... (.77)
------
Net asset value, end of period................................................................ $14.04
======

TOTAL INVESTMENT RETURN.......................................................................... 18.48%(1)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets....................................................... .67%(1)
Ratio of net investment income to average net assets.......................................... 1.91%(1)
Portfolio Turnover Rate....................................................................... 45.78%(1)
Average commission rate paid(2)............................................................... $.0504
Net Assets, end of period (000's Omitted)..................................................... $41,144

<FN>
- ------------
(1) Not annualized.
(2) The Series is required to disclose its average commission rate paid per
share for purchases and sales of investment securities.

</FN>
</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Variable Investment Fund, Balanced Portfolio
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS

NOTE 1--General:

Dreyfus Variable Investment Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as an open-end management investment
company, operating as a series company currently offering thirteen series,
including the Balanced Portfolio (the "Series") and is intended to be a funding
vehicle for variable annuity contracts and variable life insurance policies to
be offered by the separate accounts of life insurance companies. The Series is a
diversified portfolio. The Series' investment objective is to provide investment
results that are greater than the total return performance of common stocks and
bonds in the aggregate, as represented by a hybrid index, 60% of which is
composed of the common stocks in the Standard & Poor's 500 Composite Stock Price
Index and 40% of which is composed of the bonds in the Lehman Brothers
Intermediate Government/Corporate Bond Index. The Dreyfus Corporation
("Dreyfus") serves as the Series' investment adviser. Dreyfus is a direct
subsidiary of Mellon Bank, N.A. ("Mellon"), which is a wholly-owned subsidiary
of Mellon Bank Corporation. Premier Mutual Fund Services, Inc. (the
"Distributor") is the distributor of the Fund's shares, which are sold without a
sales charge.

As of December 31, 1997, MBIC Investment Corp., an indirect subsidiary of
Mellon Bank Corporation, held 2,109,573 shares of the Series.

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

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

NOTE 2--Significant Accounting Policies:

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

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

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

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

<PAGE>
Dreyfus Variable Investment Fund, Balanced Portfolio
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)

NOTE 3--Bank Line of Credit:

The Fund participates with other Dreyfus-managed Funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
December 31, 1997, the Fund did not borrow under the Facility.

NOTE 4--Investment Advisory Fee and Other Transactions With Affiliates:

(A) Pursuant to an Investment Advisory Agreement with Dreyfus, the investment
advisory fee is computed at the annual rate of .75 of 1% of the value of the
Series' average daily net assets and is payable monthly. Dreyfus had undertaken
from May 1, 1997 (commencement of operations) through December 31, 1997 to
reduce the management fee paid by the Series, exclusive of taxes, brokerage,
interest on borrowings, commitment fees and extraordinary expenses to the extent
that such expenses exceed an annual rate of 1.25% of the value of the Series'
average daily net assets. No expense reimbursement was required for the period
ended December 31, 1997.

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.

The Series compensates Mellon under a custody agreement to provide custodial
services for the Series. During the period ended December 31, 1997 the Series
was charged $14,570 pursuant to the custody agreement.

(B) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.

NOTE 5--Securities Transactions:

(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and financial futures, during the period ended
December 31, 1997, amounted to $44,553,917 and $13,568,306, respectively.

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. 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, 1997, and their related unrealized appreciation/depreciation are
set forth in the Statement of Financial Futures.

(B) At December 31, 1997, accumulated net unrealized appreciation on
investments and financial futures was $2,711,473, consisting of $2,897,886 gross
unrealized appreciation and $186,413 gross unrealized depreciation.

At December 31, 1997, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).

<PAGE>
Dreyfus Variable Investment Fund, Balanced Portfolio
- --------------------------------------------------------------------------------
Report of Ernst & Young LLP, Independent Auditors

SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND, BALANCED PORTFOLIO

We have audited the accompanying statement of assets and liabilities,
including the statements of investments and financial futures, of Dreyfus
Variable Investment Fund, Balanced Portfolio (one of the Series constituting
Dreyfus Variable Investment Fund) as of December 31, 1997, and the related
statements of operations and changes in net assets and financial highlights for
the period from May 1, 1997 (commencement of operations) to December 31, 1997.
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 audit.

We conducted our audit 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 and financial highlights. Our procedures included verification by
examination of securities held by the custodian as of December 31, 1997 and
confirmation of securities not held by the custodian by correspondence with
others. 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 audit provides 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, Balanced Portfolio at December 31, 1997, and
the results of its operations, the changes in its net assets and the financial
highlights for the period from May 1, 1997 to December 31, 1997, in conformity
with generally accepted accounting principles.

Ernst & Young LLP

New York, New York
February 5, 1998

<PAGE>
Dreyfus Variable Investment Fund, Balanced Portfolio
- --------------------------------------------------------------------------------
Important Tax Information (Unaudited)

For Federal tax purposes the Series hereby designates $.055 per share as a
long-term capital gain distribution (of which 100.00% is subject to the 20%
maximum Federal tax rate) of the $.6175 per share paid on December 31, 1997.

Additionally, the Series designates 8.75% of the ordinary dividends paid
during the fiscal year ended December 31, 1997 as qualifying for the corporate
dividends received deduction.

<PAGE>
Dreyfus Variable Investment Fund,
Balanced Portfolio
200 Park Avenue
New York, NY 10166

Investment Adviser
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

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

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

Printed in U.S.A. 154AR9712

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS VARIABLE INVESTMENT FUND, BALANCED PORTFOLIO
WITH THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX,
THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT / CORPORATE
BOND INDEX AND A HYBRID INDEX

EXHIBIT A:

STANDARD LEHMAN
DREYFUS & POOR'S BROTHERS
VARIABLE 500 INTERMEDIATE
INVESTMENT COMPOSITE GOVERNMENT /
FUND, STOCK CORPORATE
PERIOD BALANCED PRICE BOND HYBRID
PORTFOLIO INDEX* INDEX** INDEX***

5/1/97 10,000 10,000 10,000 10,000
5/31/97 10,520 10,611 10,083 10,400
6/30/97 10,864 11,083 10,175 10,754
7/31/97 11,530 11,964 10,382 11,439
8/31/97 11,241 11,294 10,330 11,178
9/30/97 11,558 11,912 10,450 11,746
10/31/97 11,478 11,514 10,566 11,765
11/30/97 11,688 12,047 10,589 12,371
12/31/97 11,847 12,255 10,674 12,842

*Source: Lipper Analytical Services, Inc.
**Source: Lehman Brothers
***Source: Lipper Analytical Services, Inc. and Lehman Brothers