DREYFUS DISCIPLINED EQUITY INCOME FUND, N-30D, 1996-01-12

DREYFUS DISCIPLINED EQUITY INCOME FUND
N-30D, 1996-01-12

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<PAGE>

Dreyfus International
Equity Allocation
Fund

Annual Report

October 31, 1995

<PAGE>

Dreyfus International Equity Allocation Fund
- -----------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:

For the twelve-month period ending October 31, 1995, the Dreyfus
International Equity Allocation Fund's Class R shares and Investor shares
posted total returns of .81% and .67%, respectively.* The Morgan Stanley
Capital International Europe, Australasia, Far East (EAFE ) Index, the Fund's
benchmark index, had a loss of .37% for that same period.**

ECONOMIC REVIEW

Over the past 12 months, European economies have rebounded from
their previously recessionary condition. Real economic growth in the European
Union was above 3% in 1994 and we believe that it will show an increase of
about 2.5% for 1995. Signs of a cyclical slowdown were apparent in the third
quarter of this year, yet we expect growth to remain solidly above 2% in
1996.

The forthcoming European Monetary Union and its prospects for a
wider economic unification with Eastern Europe play a major role in
formulating the political agenda for many European governments. Reducing
budget deficits and increasing the competitiveness of business are universal
priorities. The large privatization programs underway all over Europe bear
witness to this. While there are difficulties in gaining a political
consensus on these issues -- as evidenced by the civil service strikes in
France and the political instability in Italy -- the wave of economic reform
seems unstoppable. The European Commission is fostering an aggressive
campaign of deregulation. Local monopolies of telephone companies and
utilities are primary targets. Even the sacred cow of the wasteful Common
Agricultural policy is undergoing substantial reform. We believe these
reforms, combined with continuing low inflation, should result in significant
reductions in interest rates in most European countries, particularly in the
south where real interest rates are very high.

The Japanese economy suffered a series of dramatic events during
the year. The recession was worsened by the Kobe earthquake, the strong yen
and the troubled financial sector. During the summer, the Japanese Government
and the Bank of Japan, aided by the Fed and the Bundesbank, intervened
heavily to halt the yen's rise. The Bank of Japan lowered its discount rate
to an all-time low (0.5% per annum). At the same time, the Japanese
Government announced an unprecedented 14 trillion yen package designed to
stimulate the economy. Although some uncertainty persists regarding the fate
of smaller financial institutions, we believe it appears likely that the
Japanese economy will recover to an above 2% growth rate in the coming year.

THE PORTFOLIO AND THE MARKET

As of October 31, 1995, the Fund's portfolio was invested in 235
stocks spread over 20 countries. Countries are weighted using proprietary
asset allocation models that examine the risk associated with each individual
market in relation to its expected returns. Additional models seek to
identify stocks that have attractive valuations relative to peer companies
and possess above-average growth potential. The Fund carries some exposure to
Malaysia, Hong Kong and Singapore (aggregating to 6.2% of total Fund assets
as of October 31, 1995) resulting in access to the southeastern Asia
high-growth zone. Because of size and liquidity concerns, the Fund has so far
refrained from investing in emerging economies.

The Fund was most heavily weighted in Japan (42.1%), the United
Kingdom (11.8%), France (9.2%), and Germany (7.6%) as of October 31, 1995.
We believe that fundamentals are currently rather attractive for equity
investment in Europe given low and possibly declining interest rates and the
continuation of healthy corporate profit growth.

In Germany and the United Kingdom the earlier export-driven
recovery has become more domestically oriented and relies heavily on
corporate restructuring. The stock markets of Germany and the United Kingdom
managed 12-month gains of 9.0% and 8.5%, respectively, as of October 31,
1995. The Fund's overweighting in Germany (7.6%) compared to the EAFE Index
(6.9%) helped performance. The Fund's U.K. holdings also helped performance.
France was hampered by political uncertainty earlier in the year. Yet social
security reforms paved the way for much-needed interest rate reductions which
could enhance the environment for equity investors. Overweighting in France
(9.2% vs. the EAFE Index's 6.5%) also benefitted the portfolio's performance
as the French stock market rose 3.5% over the past year. In Italy (an
underweighted sector compared to the EAFE Index - 1.9% for the Fund, 2.3% for
the Index), the market was hurt by a weak lira and political worries. Despite
some significant progress on the reform front, the Italian stock market
declined 8.5% for the twelve months ending October 31, 1995, and the Fund's
holdings hindered portfolio performance.

The Japanese stock market's performance reflected the difficulties
outlined above and declined 11.4% for the 12-month period ended October 31,
1995. The Fund's large position and slight overweighting (42.1%) in Japan
compared to that of the EAFE Index (39.6%) retarded investment performance.
We believe, however, that very low interest rates and extensive corporate
restructuring (including massive investments in the low-cost areas of Asia)
should help propel corporate profits higher next year.

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.

Very truly yours,

Patrice Conxicoeur
Portfolio Manager
S.A.M. Finance, S.A.

November 15, 1995
Paris, France

* Total return includes reinvestment of dividends and any capital gains
paid.

** SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- The Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE ) 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.

<PAGE>

Dreyfus International Equity Allocation Fund October 31, 1995
- -----------------------------------------------------------------------------

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS INTERNATIONAL
EQUITY ALLOCATION FUND INVESTOR SHARES AND CLASS R SHARES AND THE MORGAN
STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST
(EAFE(R)) INDEX

Morgan Stanley
Capital
International International International
Equity Equity Europe,
Allocation Allocation Australasia,
Fund (Investor Fund Far East
Class Shares) (Class R Shares) (EAFE(R)) Index*

9/15/94 10,000 10,000 10,000
10/31/94 10,050 10,050 10,008
1/31/95 9,386 9,390 9,218
4/30/95 10,027 10,032 10,133
7/31/95 10,338 10,342 10,449
10/31/95 10,128 10,142 9,970

*Source: Lipper Analytical Services, Inc.

Average Annual Total Returns
- -----------------------------------------------------------------------------

Investor Class Shares Class R Shares
-------------------------------- -------------------------------
Period ended 10/31/95 Period ended 10/31/95
-------------------------------- -------------------------------
1 Year 0.67% 1 Year 0.81%
From Inception (9/15/94) 1.13 From Inception (9/15/94) 1.26

Past performance is not predictive of future performance.

The above graph compares a $10,000 investment made in each of the Investor
Class shares and Class R shares of Dreyfus International Equity Allocation
Fund on 9/15/94 (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 8/31/94 is used as the beginning value on 9/15/94. All dividends and
capital gain distributions are reinvested.

The Fund's objective is to exceed the total return of the Morgan Stanley
Capital International Europe, Australasia, Far East (EAFERegistration Mark)
Index through active stock selection, country allocation and currency
allocation. The Fund's performance shown in the line graph takes into
account all applicable fees and expenses. The 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 Fund performance, including expense reimbursements,
if applicable, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.

<PAGE>

Dreyfus International Equity Allocation Fund
- -----------------------------------------------------------------------------
Statement of Investments October 31, 1995

<TABLE>
<CAPTION>
Common Stocks--98.7% Shares Value
- ------------------------------------------------------------------------------ -------- -----------
<S> <C> <C> <C>
Australia--2.6% Amcor ......................................... 24,000 $ 179,603
Broken Hill Proprietary ....................... 3,009 40,686
Coca Cola Amatil .............................. 18,750 144,875
ICI Australia ................................. 1,000 6,844
Pacific Dunlop ................................ 5,912 14,297
Westpac Banking ............................... 17,000 69,684
-----------
455,989
-----------
Austria--.3% Oesterreichische El Wirtsch ................... 300 18,311
Strabag Oesterreich AG ........................ 300 29,963
-----------
48,274
-----------
Belgium--1.4% Electrabell VVPR .............................. 50 11,205
Fortis AG ..................................... 100 10,721
Fortis VVPR AG ................................ 2 216
Petrofina SA .................................. 600 186,051
Solvay Et Cie, Series A, NPV .................. 50 25,207
-----------
233,400
-----------
Denmark--1.1% Danisco ....................................... 4,000 182,350
-----------
Finland--.4% Kone B ........................................ 400 36,488
Nokia AB, Class K ............................. 200 11,691
Pohjola Insurance Co., Class B ................ 1,000 14,614
-----------
62,793
-----------
France--9.2% Accor ......................................... 102 12,137
Banque Nationale de Paris ..................... 1,012 41,723
CPR Cie Parisienne De Reescompte .............. 800 61,607
Cap Gemini Sogeti ............................. 3,000 (a) 82,949
CarnaudMetalbox ............................... 1,400 58,781
Carrefour ..................................... 150 88,233
Casino Guichard Perrachon Et Cie .............. 200 5,734
Chargeurs ..................................... 10 2,060
Compagnie Bancaire SA ......................... 1,533 159,187
Compagnie De St. Gobain ....................... 419 50,031
Compagnie Financiale (Paribas)................. 1,555 85,672
Credit Foncier de France ...................... 351 6,505
L'Oreal ....................................... 50 12,237
</TABLE>

<PAGE>

Dreyfus International Equity Allocation Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995

<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------ -------- -----------
<S> <C> <C> <C>
France (continued) Pechiney International ........................ 600 $ 13,689
Peugeot ....................................... 200 26,093
Pinault-Printemps Redante ..................... 550 119,406
Rhone-Poulenc ................................. 3,068 66,983
SAGEM ......................................... 200 111,418
Saint Louis Bouchon ........................... 100 28,796
Salomon ....................................... 400 231,209
Sanofi ........................................ 1,600 102,209
Sefimeg Ste Francaise ......................... 100 6,635
Simco-Union Pout L'Habitation ................. 104 8,413
Societe National Elf Aquitaine ................ 1,857 126,652
Sommer-Allibert ............................... 100 26,482
Thomson CSF ................................... 1,044 21,788
Total B ....................................... 12 742
Unibail ....................................... 200 18,453
Union Immobiliere De France ................... 150 12,589
-----------
1,588,413
-----------
Germany--7.6% Agiv AG ....................................... 6,500 136,647
BASF AG ....................................... 1,800 395,036
Bayer AG ...................................... 300 79,772
Bilfinger & Berger Bau AG ..................... 50 18,394
Brau Und Brunnen .............................. 50 8,487
Ckag Colonia Koncern .......................... 7 (a) 5,468
Continental AG ................................ 1,000 14,133
Daimler-Benz AG ............................... 200 96,377
Dresdner Bank ................................. 5,000 133,522
Dyckeroff AG .................................. 200 88,068
Linde AG....................................... 100 61,434
RWE Aktiengesellschaft ........................ 300 106,747
Schering AG .................................. 1,000 69,744
Siemen AG ..................................... 200 104,829
-----------
1,318,658
-----------
Hong Kong--3.1% Cheung Kong (Holdings) ........................ 25,000 140,994
China Light & Power ........................... 8,740 46,577
HSBC Holdings PLC ............................. 3,756 54,656

</TABLE>

<PAGE>

Dreyfus International Equity Allocation Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995

<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------ -------- -----------
<S> <C> <C> <C>
Hong Kong (continued) Hong Kong & China Gas.......................... 57,600 $ 93,504
Hong Kong Telecommunications................... 22,700 39,639
Shangri-La Asia................................ 100,000 110,593
South China Morning Post....................... 90,000 52,386
Sun Hung Kai Properties........................ 220 1,757
-----------
540,106
-----------
Italy--1.9% Aedes Spa-Ligure Lombard....................... 5,000 28,284
Assicurazioni Generali......................... 1,200 28,020
Fiat SPA....................................... 20,000 65,241
Italgas........................................ 30,000 79,951
Mediobanca..................................... 10,000 66,939
Telecom Italia Mobile.......................... 30,680 51,583
Telecom Italia Mobile SPA...................... 5,680 (a) 8,639
-----------
328,657
-----------
Japan--42.1% Ajinomoto...................................... 20,800 205,658
Asahi Chemical Industry........................ 70,900 498,399
Asahi Glass.................................... 800 7,831
Bank of Tokyo.................................. 13,000 189,623
Bridgestone.................................... 400 5,560
Canon.......................................... 2,100 35,976
Chugai Pharmaceutical.......................... 400 3,657
Dai-Ichi Kango Bank............................ 4,210 71,300
Dai Nippon Printing............................ 800 12,765
Dai-Tokoy Fire & Marine Insurance.............. 11,000 70,748
Daido Steel.................................... 200 890
Daiichi Pharmaceutical......................... 5,000 69,995
Daikyo Kanko................................... 2,000 13,372
Daishowa Paper Manufacturing................... 400 (a) 2,940
Daiwa House Industry........................... 8,400 125,814
Denki Kagaku Kougyo............................ 600 (a) 2,020
Fuji Bank...................................... 4,900 91,140
Fuji Photo Film................................ 200 4,953
Fujita......................................... 17,000 77,386
Fujitsu........................................ 800 9,554
Furukawa Electric.............................. 13,000 58,414
Haseko......................................... 12,000 42,760

</TABLE>

<PAGE>

Dreyfus International Equity Allocation Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995

<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------ -------- -----------
<S> <C> <C> <C>
Japan (continued) Hitachi........................................ 13,900 $ 142,878
Honda Motor.................................... 400 6,970
House Food Industrial.......................... 220 4,005
Industrial Bank of Japan....................... 2,200 60,088
Ito-Yokado..................................... 1,000 54,723
Itochu......................................... 1,500 8,898
Japan Air Lines................................ 3,600 (a) 21,674
Japan Energy................................... 600 1,721
Joyo Bank...................................... 420 3,017
Kajima......................................... 800 7,393
Kamigumi....................................... 400 3,622
Kandenko....................................... 96 1,184
Kansai Electric Power.......................... 5,999 140,955
Kawasaki Steel................................. 16,600 55,252
Kinki Nippon Railway........................... 966 7,470
Kirin Brewery.................................. 7,000 70,582
Komatsu........................................ 600 4,698
Konica......................................... 25,000 167,645
Kumagai-Gumi................................... 27,000 103,612
Kyocera........................................ 200 16,407
Kyushu Electric Power.......................... 101 2,392
Mabuchi Motor.................................. 1,000 60,597
Maeda Road Construction........................ 200 3,582
Marubeni....................................... 74,000 360,763
Marudai Food................................... 200 1,350
Maruha......................................... 400 (a) 1,174
Marui.......................................... 3,000 51,982
Matsushita Electric Works...................... 10,400 147,626
Mitsubishi..................................... 31,000 342,927
Mitsubishi Bank................................ 210 4,111
Mitsubishi Chemical............................ 900 4,088
Mitsubishi Heavy Industries.................... 44,700 345,259
Mitsubishi Trust & Banking..................... 200 2,799
Mitsui & Company............................... 400 3,187
Mitsui Marine & Fire Insurance................. 600 3,612
Mitsui Trust & Banking......................... 600 4,804
NEC............................................ 800 10,572
</TABLE>

<PAGE>

Dreyfus International Equity Allocation Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995

<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------ -------- -----------
<S> <C> <C> <C>
Japan (continued) Nikon.......................................... 600 $ 8,575
Nippon Express................................. 8,000 65,002
Nippon Fire & Marine Insurance................. 38,000 204,601
Nippon Light Metal............................. 400 2,169
Nippon Oil..................................... 800 4,252
Nippon Steel................................... 5,100 16,925
Nippon Yusen Kaisha............................ 800 4,283
Nomura Securities.............................. 4,000 73,225
Oji Paper...................................... 30,000 275,770
Orient......................................... 26,000 118,100
Orix........................................... 2,000 70,484
Sakura Bank.................................... 8,600 83,348
Sanwa Shutter.................................. 200 1,360
Sekisui House.................................. 12,000 138,619
Seven-Eleven Japan NPV......................... 108 7,210
Sharp.......................................... 8,000 111,209
Shimachu....................................... 4,000 105,726
Shizuoka Bank.................................. 400 4,738
Snow Brand Milk Products....................... 500 3,279
Sony........................................... 940 42,329
Sumitomo Bank.................................. 14,307 253,506
Sumitomo Coal Mining........................... 22,000 93,039
Sumitomo Electric Industries................... 800 9,241
Sumitomo Marine & Fire......................... 6,000 42,878
Sumitomo Metal Industries...................... 40,000 (a) 108,467
Sumitomo Trust & Banking....................... 850 9,818
Takeda Chemical Industries..................... 1,000 14,096
Tokai Bank..................................... 6,800 71,228
Tokio Marine & Fire Insurance.................. 800 8,223
Tokyo Broadcasting System...................... 12,000 176,211
Tokyo Electric Power........................... 1,272 33,387
Tokyo Tatemono................................. 11,000 44,366
Tokyu.......................................... 11,820 75,328
Toppan Printing................................ 12,000 158,590
Toray Industries............................... 21,000 131,365
Toshiba........................................ 10,000 72,540
Toyo Engineering............................... 5,000 27,410
Toyobo......................................... 1,200 3,947

</TABLE>

<PAGE>

Dreyfus International Equity Allocation Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995

<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------ -------- -----------
<S> <C> <C> <C>
Japan (continued) Toyota Motor................................... 25,014 $ 465,262
Ube Industries................................. 600 1,985
Yakult Honsha.................................. 200 2,545
Yamatake Honeywell............................. 5,000 68,037
Yamato Transport............................... 400 4,307
Yasuda Trust & Banking......................... 43,000 192,373
Yokogawa Electric.............................. 2,900 22,143
-----------
7,265,870
-----------
Malaysia--2.0% Malayan Banking Berhad......................... 7,000 56,518
Perusahaan Otomobil............................ 9,000 32,256
Renong Berhad.................................. 14,000 21,394
Resorts World Berhad........................... 23,000 112,327
Tanjong........................................ 45,000 113,432
-----------
335,927
-----------
Netherlands--3.7% Akzo Nobel..................................... 800 91,044
Elsevier....................................... 15,000 193,797
Ihc Caland..................................... 3,000 85,307
Internationale Nederlanden Groep............... 1,025 61,084
Philips Electronics............................ 3,000 115,896
Royal Dutch Petroleum.......................... 100 12,406
Stad Rotterdam................................. 3,040 83,749
-----------
643,283
-----------
New Zealand--.4% Fisher & Paykel................................ 23,446 76,296
-----------
Norway--.6% Aker........................................... 8,500 107,223
-----------
Singapore--1.1% Keppel......................................... 10,000 82,094
Singapore Airlines............................. 11,000 101,982
-----------
184,076
-----------
Spain--1.6% Banco Bilbao Vizcaya........................... 1,800 55,032
Empresa Nacional De Electricidad............... 1,400 69,655

</TABLE>

<PAGE>

Dreyfus International Equity Allocation Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995

<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------ -------- -----------
<S> <C> <C> <C>
Spain (continued) Fomento de Construcciones y Contratas.......... 700 $ 49,459
Repsol......................................... 1,100 32,864
Telefonica de Espana........................... 6,000 75,740
-----------
282,750
-----------
Sweden--2.0% Asea........................................... 2,000 197,543
Astra.......................................... 2,000 72,381
Esselte........................................ 4,000 58,810
Stora Kopparbergs.............................. 1,000 12,139
-----------
340,873
-----------
Switzerland--5.8% BBC Brown Boveri & Cie, Series A............... 63 73,070
CS Holding (Regd Shrs)......................... 1,000 102,157
Ciba Geigy..................................... 100 86,305
Ciba Geigy (Regd Shrs)......................... 45 38,956
Jelmoli Holdings............................... 200 95,992
Nestle......................................... 103 107,943
Roche Holding.................................. 39 283,360
Sandoz......................................... 50 41,611
Sandoz (Regd Shrs)............................. 55 45,385
Schweizerische Bankgesellschaft................ 121 131,070
-----------
1,005,849
-----------
United Kingdom--11.8% Allied Irish Banks............................. 26,036 131,753
Barclays....................................... 14,496 170,275
British Petroleum.............................. 8,134 59,900
British Telecommunications..................... 21,000 125,080
Grand Metropolitan............................. 739 5,120
Hanson......................................... 33,434 102,479
Marks & Spencer................................ 12,000 80,492
Meyer International............................ 12,274 67,961
National Westminster Bank...................... 12,351 123,390
Northumbrian Water............................. 10,000 156,934
Redland........................................ 29,000 159,884
Reed International............................. 3,000 45,656
Scapa Group.................................... 28,241 104,544
Smithkline Beecham Cl A........................ 20,295 212,064

</TABLE>

<PAGE>

Dreyfus International Equity Allocation Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995

Preferred Stocks--.4%
- ------------------------------------------------------------------------------
Germany; Friedrich Grohe
(cost $84,265)............................... 300 $ 72,017
-----------

TOTAL INVESTMENTS (cost $17,067,177).......................................... 99.1% $17,102,002
------ -----------
CASH AND RECEIVABLES (NET).................................................... 0.9% $ 159,985
------ -----------
NET ASSETS.................................................................... 100.0% $17,261,987
------ -----------
-----------
<FN>
Note to Statement of Investments;
- ------------------------------------------------------------------------------
(a) Non-income producing.
</TABLE>
See notes to financial statements.

<PAGE>
Dreyfus International Equity Allocation Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities October 31, 1995

<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $17,067,177)--See Statement of Investments...................... $17,102,002
Receivable for investment securities sold............................... 155,979
Dividends receivable.................................................... 62,961
Net unrealized appreciation on forward currency exchange
contracts--Note 1(d).................................................. 61,139
-----------
17,382,081
LIABILITIES:
Due to The Dreyfus Corporation-Note 2(a)................................ $ 1,428
Cash overdraft due to Custodian......................................... 116,258
Directors' fee payable.................................................. 2,408 120,094
--------- -----------
NET ASSETS.................................................................. $17,261,987
-----------
-----------
REPRESENTED BY:
Paid-in capital......................................................... $16,672,149
Accumulated undistributed investment income--net........................ 76,362
Accumulated undistributed net realized gain on investments.............. 414,513
Accumulated net unrealized appreciation on investments and
foreign currency transactions......................................... 98,963
-----------
NET ASSETS at value......................................................... $17,261,987
-----------
-----------

NET ASSET VALUE, offering and redemption price per share:
Investor Shares
(24 million shares of $.001 par value Capital Stock authorized)
($4,088,358 / 404,465 shares of capital stock outstanding)............ $10.11
------
------
Class R Shares
(36 million shares of $.001 par value Capital Stock authorized)
($13,173,629 / 1,302,133 shares of capital stock outstanding)......... $10.12
------
------

</TABLE>
See notes to financial statements.

<PAGE>

Dreyfus International Equity Allocation Fund
- -------------------------------------------------------------------------------
Statement of Operations Year ended October 31, 1995

<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Cash dividends (net of $38,500 withheld at source)...................... $314,253
Interest................................................................ 18,163
--------
Total Income.......................................................... $332,416
Expenses:
Investment management fee--Note 2(a,b)................................ 249,080
Distribution fee (Investor shares)-Note 2(c).......................... 5,612
Directors' fees and expenses--Note 2(d)............................... 1,273
--------
Total Expenses.................................................... 255,965
--------
INVESTMENT INCOME--NET............................................ 76,451
--------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments and foreign currency
transactions--Note 1(c)............................................... $ 218,728
Net realized gain on forward currency exchange contracts--Note 1(d)..... 195,785
--------
Net Realized Gain..................................................... 414,513
Net unrealized appreciation on investments and foreign currency
transactions-Note 1(c)................................................ 60,242
--------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS.................... 474,755
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $551,206
--------

</TABLE>
See notes to financial statements.

<PAGE>

Dreyfus International Equity Allocation Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets

<TABLE>
<CAPTION>
Year Ended October 31,
------------------------------
1995 1994*
----------- -----------
<S> <C> <C>
Investment income--net............................................... $ 76,451 $ 43,960
Net realized gain (loss) on investments.............................. 414,513 (16,876)
Net unrealized appreciation on investments for the year.............. 60,242 38,721
----------- -----------
Net Increase In Net Assets Resulting From Operations............... 551,206 65,805
----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Investor Shares.................................................... (180) --
Class R Shares..................................................... (26,993) --
----------- -----------
Total Dividends.................................................. (27,173) --
----------- -----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Investor Shares.................................................... 671,731 69,682
Class R Shares..................................................... 7,539,619 11,819,150
Issued in exchange for shares of Dreyfus/Laurel International Fund;
Investor Shares.................................................... 6,499,140 --
Dividends reinvested:
Investor Shares.................................................... 70 --
Class R Shares..................................................... 12,651 --
Cost of shares redeemed:
Investor Shares.................................................... (3,340,391) (100)
Class R Shares..................................................... (6,559,623) (39,780)
----------- -----------
Increase In Net Assets From Capital Stock Transactions........... 4,823,197 11,848,952
----------- -----------
Total Increase In Net Assets................................... 5,347,230 11,914,757
NET ASSETS:
Beginning of year.................................................... 11,914,757 --
----------- -----------
End of year (including undistributed investment income--net of
$76,362 in 1995 and $27,084 in 1994)............................... $17,261,987 $11,914,757
----------- -----------
----------- -----------
</TABLE>

<TABLE>
<CAPTION>
Investor Shares Class R Shares
------------------------ -------------------------
Year Ended October 31, Year Ended October 31,
------------------------ -------------------------
1995 1994* 1995 1994*
-------- -------- ------- --------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold..................................... 266,245 7,045 773,150 1,181,714
Shares issued in connection with the acquisition
of Dreyfus/Laurel International Fund 470,442 -- -- --
Shares issued for dividends reinvested 7 -- 1,314 --
Shares redeemed................................. (339,264) (10) (650,043) (4,002)
-------- ------ -------- ---------
Net Increase In Shares Outstanding............ 397,430 7,035 124,421 1,177,712
-------- ------ -------- ---------
-------- ------ -------- ---------
<FN>
- --------------
* The Fund commenced operations on August 12, 1994.
</TABLE>

See notes to financial statements.

<PAGE>

Dreyfus International Equity Allocation Fund
- -------------------------------------------------------------------------------
Financial Highlights

Contained below is per share performance data for a share of Capital Stock
outstanding, total investment return, ratios to average net assets and other
supplemental data for each period indicated. This information has been
derived from the Fund's financial statements.

<TABLE>
<CAPTION>
Investor Shares Class R Shares
-------------------------- ----------------------------
Year Ended October 31, Year Ended October 31,
-------------------------- ----------------------------
PER SHARE DATA: 1995 1994(1)(2) 1995 1994(1)(2)(3)
------ ---------- ------ -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year......... $10.06 $10.00 $10.06 $10.00
------ ------ ------ ------
Investment Operations:
Investment income--net..................... .01 .01 .06 .02
Net realized and unrealized gain on
investments.............................. .06 .05 .02 .04
------ ------ ------ ------
Total from Investment Operations......... .07 .06 .08 .06
------ ------ ------ ------

Distributions;
Dividends from investment income--net...... (.02) -- (.02) --
------ ------ ------ ------
Net asset value, end of year............... $10.11 $10.06 $10.12 $10.06
------ ------ ------ ------
------ ------ ------ ------

TOTAL INVESTMENT RETURN........................ .67% .60%(5) .81% .60%(5)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets... 1.75% 1.74%(4) 1.50% 1.50%(4)
Ratio of net investment income to average
net assets.............................. .04% 1.98%(4) .52% 2.22%(4)
Portfolio Turnover Rate................... 64.85% -- 64.85% --
Net Assets, end of year (000's Omitted)... $4,088 $71 $13,174 $11,844
------ ------ ------ ------
<FN>
- ----------------
(1) The Fund commenced operations on August 12,1994.
(2) Effective October 17, 1994, The Dreyfus Corporation serves as the Fund's
investment manager. Prior to October 17, 1994, Mellon Bank, N.A. served as
the investment manager.
(3) Effective October 17, 1994, the Fund's Trust shares were redesignated as
Class R shares.
(4) Annualized.
(5) Not annualized.
</TABLE>

See notes to financial statments.

<PAGE>

Dreyfus International Equity Allocation Fund
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS

NOTE 1--Significant Accounting Policies:

The Dreyfus/Laurel Funds, Inc. (the "Company") is registered under
the Investment Company Act of 1940 ("Act") as a diversified open-end
management investment company and operates as a series company currently
offering sixteen Series including the Dreyfus International Equity Allocation
Fund (the "Fund"). The Dreyfus Corporation ("Manager") serves as the Fund's
investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
("Mellon Bank").
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. 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 is currently authorized to issue two classes of shares:
Investor shares and Class R shares. Investor shares are sold primarily to
retail investors and bear a distribution fee. Class R shares are sold
primarily to bank trust departments and other financial service providers
(including Mellon Bank, N.A. and its affiliates) acting on behalf of
customers having a qualified trust or investment account or relationship at
such institution, and bear no distribution fee. Each class of shares has
identical rights and privileges, except with respect to the distribution fee
and voting rights on matters affecting a single class. The Company has the
authority to issue 25 billion shares of capital stock with a par value of
$.001.
Investment income, net of expenses (other than class specific
expenses) and realized and unrealized gains and losses are allocated daily to
each class of shares based upon the relative proportion of net assets of each
class.
(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 priced 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 Directors.
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 offsetting 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) Foreign Currency Transactions: The Fund does not isolate that
portion of the results of the operations resulting from changes in foreign
exchange rates on investment from the fluctuations arising from changes in
the market prices of securities held. Such fluctuations are included with the
net realized and unrealized gain or loss from investments.

<PAGE>

Dreyfus International Equity Allocation Fund
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)

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 amount of dividends, interest, and foreign withholding taxes recorded on
the Fund's books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and 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.

(d) Forward Currency Exchange Contracts: The Fund 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 Fund 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
Fund 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 Fund realizes a gain if the value of the contract decreases
between those dates. With respect to purchases of forward currency exchange
contracts, the Fund 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 Fund realizes a gain if the value of the contract
increases between those dates. The Fund 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. At
October 31, 1995, the following summarizes open forward currency exchange
contracts:

<TABLE>
<CAPTION>
Foreign U.S. Dollar Unrealized
Currency Value at Appreciation
Forward Currency Sale Contracts, Amount Proceeds 10/31/95 (Depreciation)
________________________________ ___________ __________ ___________ _____________
<S> <C> <C> <C> <C>
Danish Krone, expiring 11/1/95............. 18,480 $ 3,378 $ 3,383 $ (5)
German Deutschmarks, expiring 11/24/95..... 1,000,000 709,522 710,985 (1,463)
Japanese Yen, expiring 11/21/95............ 120,000,000 1,240,695 1,178,088 62,607
-------
$61,139
-------
-------
</TABLE>

(e) Distributions 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 Fund
may make distributions on a more frequent basis to comply with the distributio
n 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 Fund not to distribute such gain.

(f) Federal Income Taxes: It is the policy of the Fund 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.

<PAGE>

Dreyfus International Equity Allocation Fund
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)

The Fund has an unused capital loss carryover of approximately
$1,563,000 available for Federal income tax purposes to be applied against
future net securities profits, if any, realized subsequent to October 31,
1995. The amount of this loss which can be utilized in subsequent years is
subject to an annual limitation due to the Fund's merger with Dreyfus Laurel
International Funds. If not applied, $1,536,000 of the carryover expires in
fiscal 2000 and $27,000 expires in fiscal 2002.

NOTE 2 -- Investment Management Fee and Other Transactions with Affiliates:

(a) Investment Management Fee: Pursuant to an Investment Management
agreement with the Manager, the Manager provides or arranges for one or more
third parties to provide investment advisory, administrative, custody, fund
accounting and transfer agency services to the Fund. The Manager also directs
the investments of the Fund in accordance with its investment objective,
policies and limitations. For these services, the Fund is contractually
obligated to pay the Manager a fee, calculated daily and paid monthly, at the
annual rate of 1.50% of the value of the Fund's average daily net assets. Out
of its fee, the Manager pays all of the expenses of the Fund except brokerage
fees, taxes, interest, Rule 12b-1 distribution fees and expenses, fees and
expenses of non-interested Directors (including counsel fees) and
extraordinary expenses. In addition, the Manager is required to reduce its
fee in an amount equal to the Fund's allocable portion of fees and expenses
of the non-interested Directors (including counsel).

(b) Sub-Advisory Agreement: S.A.M. Finance, S.A. (the
"Sub-Advisor"), a wholly-owned subsidiary of Credit Commercial de France,
serves as the Fund's Sub-Advisor pursuant to a sub-advisory agreement among
the Fund, the Sub-Advisor and the Manager. For its services, the Sub-Advisor
is paid an annual fee of .25% of the value of the Fund's average daily net
assets and is paid by the Manager out of its fee.

(c) Distribution Plan: The Fund has adopted a distribution plan
(the "Plan") pursuant to Rule 12b-1 under the 1940 Act relating to its
Investor shares. Under the Plan, the Fund may pay annually up to .25% of the
value of the average daily net assets attributable to its Investor shares to
compensate the Distributor and Dreyfus Service Corporation, an affiliate of
the Manager, for shareholder servicing activities and the Distributor for
activities primarily intended to result in the sale of Investor shares. The
Class R shares bear no distribution fee. For the year ended October 31, 1995,
the distribution fee for the Investor shares was $5,612.

Under its terms, the Plan shall remain in effect from year to year,
provided such continuance is approved annually by a vote of majority of those
Directors who are not "interested persons" of the Investment Company and who
have no direct or indirect financial interest in the operation of the Plan or
in any agreement related to the Plan.

(d) Directors' Fees: Each director who is not an "interested
person" as defined in the Act receives $27,000 per year, $1,000 for each
Board meeting attended and $750 for each Audit Committee attended and is
reimbursed for travel and out-of-pocket expenses. These expenses are paid in
total by the following funds: the Dreyfus/Laurel Funds, Inc., the
Dreyfus/Laurel Tax-Free Municipal Funds, and the Dreyfus/Laurel Funds Trust.
In addition the Chairman of the Board receives an annual fee of $75,000 per
year. These fees and expenses are charged and allocated to each series based
on net assets.

<PAGE>

Dreyfus International Equity Allocation Fund
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)

NOTE 3 -- Securities Transactions:

The aggregate amount of purchases and sales of investment
securities, excluding short-term securities and forward currency exchange
contracts, during the year ended October 31, 1995 amounted to $11,310,006 and
$10,440,123, respectively.

At October 31, 1995, accumulated net unrealized depreciation on
investments and foreign currency contracts was $95,964, consisting of
$1,368,906 gross unrealized appreciation and $1,272,942 gross unrealized
depreciation, excluding foreign currency transactions.

At October 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).

NOTE 4 -- Reorganization:

On April 19, 1995, the Dreyfus/Laurel International Equity
Allocation Fund, acquired the assets and certain liabilities of the Dreyfus
Laurel International Fund, in exchange for shares of the Dreyfus/Laurel
International Equity Allocation Fund, pursuant to a plan of reorganization
approved by Dreyfus/Laurel International Fund shareholders on May 1, 1995.
Total shares issued by Dreyfus/Laurel International Equity Allocation Fund
and the total net asets of Dreyfus International Fund acquired are set forth
in the Statement of changes in net assets.

<PAGE>

Dreyfus International Equity Allocation Fund
- -----------------------------------------------------------------------------
Independent Auditors' Report

The Board of Directors and Shareholders
The Dreyfus/Laurel Funds, Inc.:

We have audited the accompanying statement of assets and liabilities of
the Dreyfus International Equity Allocation Fund of The Dreyfus/Laurel Funds,
Inc., including the statement of investments, as of October 31, 1995, and the
related statement of operations for the year then ended, the statement of
changes in net assets for the year ended October 31, 1995 and for the period
from August 12, 1994 (commencement of operations) to October 31, 1994, and
the financial highlights for each of the periods indicated herein. 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 October 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 the Dreyfus International Equity Allocation Fund of The
Dreyfus/Laurel Funds, Inc., as of October 31, 1995, and 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 periods indicated herein, in conformity with generally accepted
accounting principles.

KPMG Peat Marwick LLP

Pittsburgh, Pennsylvania
December 15, 1995

<PAGE>

Dreyfus International Equity Allocation Fund
- -----------------------------------------------------------------------------
Important Tax Information (Unaudited)

In accordance with Federal tax law, the Fund elects to provide each
shareholder with their portion of the Fund's foreign taxes and the income
sourced from foreign countries. Accordingly, the Fund hereby makes the
following designations regarding its fiscal year ended October 31, 1995:

* the total amount of taxes paid to foreign countries was $38,500 and

* the total amount of income sourced from foreign countries was $76,451.

As required by Federal tax law rules, shareholders will receive
notification of their proportionate share of foreign taxes paid and foreign
source income for the 1995 calendar year with Form 1099-DIV which will be
mailed by January 31, 1996.

<PAGE>

Dreyfus International Equity
Allocation Fund
200 Park Avenue
New York, NY 10166

Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian
Mellon Bank
One Mellon Bank Center
Pittsburgh, Pennsylvania 15258

Administrator
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Transfer Agent &
Dividend Disbursing Agent
First Data Investor Services Group, Inc.
P.O. Box 9671
Providence, RI 02940

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

Printed in U.S.A. 723/323AR9510