DREYFUS DISCIPLINED EQUITY INCOME FUND, N-30D, 1997-07-01

DREYFUS DISCIPLINED EQUITY INCOME FUND
N-30D, 1997-07-01

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DREYFUS BOND MARKET INDEX FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of Dreyfus Bond Market Index
Fund for its six-month reporting period ended April 30, 1997, as shown in the
following table:
<TABLE>
<CAPTION>
Income Dividends Annualized
Total Return* (Approximate Per Share) Distribution Rate***
______________ ________________________ ______________________
<S> <C> <C> <C>
Investment Shares 1.17% $.283 5.94%
Class R Shares 1.16% $.293 6.14%
Lehman Brothers Government/
Corporate Bond** 1.30%
</TABLE>
THE ECONOMY
The U.S. economic juggernaut just kept rolling ahead over the reporting
period. Inflation remained subdued. The unemployment
rate fell to its lowest level in 24 years, and a surge in tax revenues meant
good news for the Administration's budget reduction program. Overall, the
economic news has been stellar.
The economy grew at a robust 5.6% annual rate during the first quarter,
the best quarter in nine years. Aided by falling energy prices and with no
sign of shortages of raw materials, inflation remained in check. The Commerce
Department's Implicit Price Deflator, a broad measure of inflation, rose for
the same period at a 2.2% pace. On the consumer level, the Consumer Price
Index (CPI) remained below 3%. Excluding volatile food and energy prices, the
CPI is actually trending downward, so far this year running at an annual rate
of 2.5%. Inflation has been further restrained by the strong dollar which has
moderated the price of imports and eased potential strains on domestic
production capacity.
The strong economy has put increasing numbers of people to work. This
tightening of the labor market has been a key factor in the implementation of
monetary policy by the Federal Reserve Board's Open Market Committee (FOMC) .
The unemployment rate has been less than 5.5% since June 1996, the lowest
sustained rate since the late 1980s. The rate fell to 4.9% in April of this
year, its lowest level in 24 years. So far, neither strong economic growth
nor wage increases have resulted in any price pressure at the consumer level.
Through the first quarter (the latest available data), total employment costs
(including wages and benefits) rose at about the same rate as inflation.
Renewed confidence, spurred by increasing job security and low inflation,
has resulted in a surge in consumer spending. In the first quarter of the
year, spending rose 6.4%, almost double the rate of the fourth quarter. The
combined six-month performance was the largest increase in consumer spending
over the past ten years. Retail sales have spurted in the early part of this
year as well; first quarter results were sharply higher than the last quarter
of 1996. Not surprisingly, industrial production has been building momentum
over the reporting period. The latest report on capacity utilization
indicated the highest level in two years. So far, while the potential exists
for production bottlenecks, raw materials prices and worker wage demands have
remained modest.
Continued economic growth and the resulting rise in tax revenues have
further slashed the Federal budget deficit. Recent estimates by economists
suggest that the deficit is at its lowest level in twenty-three years. Such
good news on the deficit could make it easier to obtain passage of the
Administration's bipartisan plan to balance the budget by 2002.
While we seem to be enjoying the best of all possible economic worlds,
the potential for future inflation is what concerns the Fed. Such concern
resulted in the March decision by the FOMC, the policy-making arm of the
Federal Reserve Board, to raise the Federal Funds rate one-quarter of a
percentage point to 5.50%. (The Federal Funds rate is the rate of interest
banks charge each other for overnight loans.) The traditional assumption that
strong economic growth and low unemployment will eventually result in rising
inflation still drives the Fed's monetary policy initiatives. Although there
was little reported evidence of incipient inflation, the Fed executed a
preemptive move of moderate monetary restraint in March, perhaps to avoid
being forced to act more harshly later. There is little reason to suspect
that the Fed will soon change this policy.
THE MARKET AND THE PORTFOLIO
Fixed-income investors were concerned during the reporting period about
the pace of economic growth and the outlook for inflation, given the
tightening in the labor market. As a result, long-term interest rates rose
modestly. On April 30, 1997, the 30-year U.S. Treasury bond yielded 6.95%, an
increase of 31 basis points from six months earlier.
The Fund's investment objective is to replicate the total return of the
Lehman Brothers Government/Corporate Bond Index. Unlike an index fund, we
cannot buy all securities in the Index proportionately to their weight; they
are too numerous. Instead, the Fund seeks to match the Index regarding
duration, sector weightings and the pattern of reinvested cash flow. Because
of this, the Fund's performance relative to its benchmark was little effected
by the changes in the yield curve and the widening in sector spreads caused
by the monetary policy change of the Fed in late March of this 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
and in The Dreyfus Corporation.
Very truly yours,

[Laurie Carroll signature logo]

Laurie Carroll
Portfolio Manager
May 15, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
** SOURCE: LEHMAN BROTHERS _ The Lehman Brothers 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.
***Distribution rate per share is based upon dividends per share paid from
net investment income during the period (annualized), divided by the net
asset value per share at the end of the period, adjusted for capital gain
distributions.
<TABLE>
<CAPTION>
DREYFUS BOND MARKET INDEX FUND
STATEMENT OF INVESTMENTS APRIL 30, 1997 (UNAUDITED)
Principal
Bonds and Notes_96.9% Amount Value
_____________ _____________
<S> <C> <C>
Aerospace and Aviation_.5%..... Boeing, Deb.:
8.10%, 2006.......................... $ 25,000 $ 26,742
8 5/8%, 2031......................... 10,000 11,254
Lockheed,
Notes, 6 3/4%, 2003.................. 25,000 24,603
Lockheed Martin,
Unsecured Deb.(Gtd. by Lockheed Martin
Tactical Systems), 7.65%, 2016....... 40,000 39,742
Raytheon,
Notes, 6 1/2%, 2005.................. 25,000 23,763
Rockwell International:
Deb., 8 7/8%, 1999................... 15,000 15,741
Notes, 6 3/4%, 2002.................. 30,000 29,740
___________
171,585
___________
Automotive_.5%..................Chrysler,
Deb., 7.45%, 2027.................... 50,000 48,518
Ford Motor,
Deb., 8 7/8%, 2022................... 20,000 22,262
General Motors:
Deb:
9 1/8%, 2001 15,000 16,185
.. 8 7/8%, 2003 25,000 27,158
...7.40%, 2025 10,000 9,563
Notes, 7%, 2003...................... 40,000 39,854
___________
163,540
___________
Banking_3.5%.................. BNY Capital I,
Gtd. Capital Securities, Ser. B, 7.97%, 2026 100,000 98,200
Banc One,
Sub. Notes, 9 7/8%, 2009............. 5,000 5,940
BankAmerica, Sub. Notes:
7 3/4%, 2002......................... 25,000 25,736
6 3/4%, 2005......................... 15,000 14,514
6.20%, 2006.......................... 15,000 13,920
BankAmerica Capital II,
Gtd. Capital Securities, Ser. 2, 8%, 2026 55,000 54,317
Bankers Trust New York,
Sub. Notes, 7 1/2%, 2015............. 75,000 73,217
Capital One Bank,
Sr. Notes, 6.83%, 1999............... 150,000 150,129
Chase Manhattan:
Sub. Deb.:
....7 1/8%, 2005 35,000 34,750
... 6 1/2%, 2009 10,000 9,302
Sub. Notes, 7 3/4%, 1999............. 40,000 41,041
Chemical,
Sub. Notes, 6 1/8%, 2008............. 15,000 13,569

DREYFUS BOND MARKET INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
__________ ___________
Banking (continued).............Citicorp,
Sub. Notes, 7 1/8%, 2003............. $ 20,000 $ 20,034
FBS Capital I,
Gtd. Capital Securities, 8.09%, 2026. 100,000 99,884
First Bank System,
Sub. Notes, 7 5/8%, 2005............. 55,000 56,170
First Chicago,
Sub. Notes, 9 7/8%, 2000............. 20,000 21,752
First Union, Sub. Notes:
8%, 2002............................. 15,000 15,616
7%, 2006............................. 75,000 73,306
Fleet Financial Group,
Sr. Notes, 7 1/8%, 2000.............. 40,000 40,454
Morgan (J.P.),
Sub. Notes, 6 1/4%, 2009............. 20,000 18,301
NCNB,
Deb., 9 3/8%, 2009................... 20,000 23,067
NationsBank:
Sr. Notes, 6 5/8%, 1998.............. 25,000 25,075
Sub Notes:
.... 6 7/8%, 2005 10,000 9,765
.....7 5/8%, 2005 30,000 30,692
Norwest Corp.,
Sub. Deb., 6.65%, 2023............... 15,000 13,150
Republic New York Corp., Sub. Notes:
7 1/4%, 2002......................... 100,000 101,048
5 7/8%, 2008......................... 25,000 22,265
Wachovia,
Sub. Notes, 6 3/8%, 2003............. 15,000 14,542
Wells Fargo Capital,
Gtd. Capital Securities, 7.96%, 2026. 30,000 29,102
___________
1,148,858
___________
Chemicals_.3%....... Air Products & Chemical,
Deb., 8 3/4%, 2021................... 5,000 5,585
duPont, Deb,
6%, 2001............................. 15,000 14,495
duPont (E.I.) de Nemours,
Notes, 6 3/4%, 2002.................. 40,000 39,680
Eastman Chemical,
Notes, 6 3/8%, 2004.................. 30,000 28,747
Monsanto,
Deb., 8.20%, 2025.................... 20,000 20,060
Morton International,
Deb., 9 1/4%, 2020................... 5,000 5,899
___________
114,466
___________

DREYFUS BOND MARKET INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
_____________ ___________
Consumer_1.1%...................Clorox,
Deb., 8.80%, 2001.................... $ 10,000 $ 10,685
IBM:
Deb., 7%, 2025....................... 20,000 18,350
Notes, 6 3/8%, 2000.................. 150,000 148,571
Kimberly-Clark,
Deb., 6 7/8%, 2014................... 5,000 4,636
Maytag,
Deb., 9 3/4%, 2002................... 5,000 5,545
Nike,
Notes, 6 3/8%, 2003.................. 100,000 97,255
Procter & Gamble, Deb.:
8.70%, 2001.......................... 30,000 32,051
6.45%, 2026.......................... 15,000 13,165
The Employee Stock
Ownership Trust of the Procter & Gamble
Profit Sharing Trust and Employee Stock
Ownership Plan, Deb.
(Gtd. by Procter & Gamble),
9.36%, 2021.......................... 10,000 11,826
Whirlpool,
Deb., 9%, 2003....................... 10,000 10,868
___________
352,952
___________
Entertainment/Media_1.1%. Cox Communications,
Notes, 6 3/8%, 2000.................. 100,000 98,652
Disney (Walt):
Global Bonds, 6 3/4%, 2006........... 20,000 19,477
Medium-Term Notes, 5.80%, 2008....... 15,000 13,454
News America Holdings (Gtd. by The News):
Deb., 7 3/4%, 2024................... 15,000 14,212
Sr. Notes, 9 1/8%, 1999.............. 200,000 210,467
___________
356,262
___________
Financial Services_4.3%...... Aetna Services,
Notes (Gtd. by Aetna), 7 5/8%, 2026.. 50,000 48,564
American Express Credit,
Sr. Notes, 6 1/8%, 2001.............. 40,000 38,828
American General Finance, Sr. Notes:
6 5/8%, 1997......................... 20,000 20,009
8 1/8%, 2009......................... 10,000 10,461
Associates Corp. of North America:
Deb., 7.95%, 1998.................... 10,000 (a) 10,670
Sr. Notes:
.....7 1/2%, 1999 50,000 50,834
.....9 1/8%, 2000 15,000 15,917
.....6 5/8%, 2005 10,000 9,628

DREYFUS BOND MARKET INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
___________ __________
Financial Services (continued) Bear Stearns, Sr. Notes:
8 3/4%, 2004......................... $ 10,000 $ 10,782
7 1/4%, 2006......................... 75,000 74,040
Beneficial:
Deb., 8.40%, 1996.................... 5,000 (b) 5,519
Medium-Term Notes, 9 1/8%, 2001...... 5,000 5,391
CIT Group Holdings,
Medium-Term Sr. Notes, 6 1/8%, 1998.. 40,000 39,940
Chrysler Financial, Notes:
5 3/8%, 1998......................... 50,000 49,340
6 1/2%, 1998......................... 20,000 20,049
Commercial Credit Group, Notes:
6.70%, 1999.......................... 25,000 25,024
6 3/8%, 2002......................... 45,000 43,665
10%, 2008............................ 5,000 6,009
Dean Witter Discovery,
Notes, 6 1/4%, 2000.................. 30,000 29,675
FINOVA Capital,
Notes, 9 1/8%, 2002.................. 20,000 21,646
Ford Capital B.V.,
Deb., 9 7/8%, 2002................... 25,000 27,936
Ford Motor Credit:
Deb., 9 1/4%, 1998................... 5,000 5,156
Notes:
.. 8%, 2002 65,000 67,510
... 6 3/4%, 2008 20,000 19,013
GMAC:
Deb.:
... 8.40%, 1999 30,000 31,152
. 6%, 2011 70,000 60,259
Notes, 6 5/8%, 2005.................. 20,000 19,142
General Electric Capital:
Deb., 8.30%, 1998.................... 15,000 (c) 16,516
Medium-Term Notes, 7 3/8%, 2004...... 130,000 133,145
General Electric Credit,
Deb., 5 1/2%, 2001................... 10,000 9,482
Household Finance,
Notes, 8%, 2004...................... 15,000 15,598
Integra Financial,
Sub. Notes, 6 1/2%, 2000............. 15,000 14,883
International Lease Finance,
Medium-Term Notes, 6 1/4%, 2000...... 40,000 39,414
Lehman Brothers Holdings,
Sr. Notes, 6 5/8%, 2000.............. 200,000 197,907
Merrill Lynch,
Notes, 8.30%, 2002................... 15,000 15,901
Norwest Financial, Sr. Notes:
5 1/2%, 1998......................... 25,000 24,837

DREYFUS BOND MARKET INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
___________ ___________
Financial Services (continued) Norwest Financial, Sr. Notes (continued):
7%, 2003............................. $ 15,000 $ 14,961
Pitney Bowes Credit,
Deb., 9 1/4%, 1998................... 15,000 (d) 17,223
Salomon Brothers,
Sr. Notes, 7 1/4%, 2000.............. 10,000 10,086
Sears, Roebuck Acceptance,
Notes, 6 1/8%, 2006.................. 35,000 32,270
Transamerica Financial,
Deb., 6 1/2%, 2011................... 5,000 4,475
Travelers/Aetna Property & Casualty,
Notes, 6 3/4%, 2001.................. 60,000 59,540
U.S. Leasing International,
Sr. Notes, 6 5/8%, 2003.............. 30,000 29,257
U.S. West Capital Funding,
Notes (Gtd. by U.S. West), 6.31%, 2000 10,000 (e) 9,823
Xerox Credit,
Deb., 10%, 1999...................... 10,000 10,608
___________
1,422,085
___________
Food and Beverages_1.3%. Anheuser-Busch, Deb:
8 3/4%, 1999......................... 5,000 5,230
9%, 2009............................. 5,000 5,705
Archer-Daniels-Midland, Deb.:
Zero Coupon, 2002.................... 5,000 3,549
8 1/8%, 2012......................... 40,000 43,149
Campbell Soup,
Deb., 8 7/8%, 2021................... 5,000 5,696
Coca-Cola,
Deb., 6 5/8%, 2002................... 35,000 34,528
Coca-Cola Enterprises:
Deb., 8 1/2%, 2022................... 10,000 10,808
Notes, 7 7/8%, 2002.................. 15,000 15,594
Dole Food,
Notes, 6 3/4%, 2000.................. 15,000 14,933
Hershey Foods,
Deb., 8.80%, 2021.................... 30,000 33,554
McDonald's,
Notes, 6 3/4%, 2003.................. 20,000 19,891
Nabisco,
Deb., 7.55%, 2015.................... 40,000 38,665
PepsiCo,
Deb., 7 5/8%, 1998................... 40,000 40,742
Pet,
Notes (Gtd. by Grand Metropolitan plc),
5 3/4%, 1998......................... 20,000 19,878
Ralston-Purina Group,
Deb., 8 5/8%, 2022................... 90,000 96,731

DREYFUS BOND MARKET INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
___________ ___________
Food and Beverages (continued)..Seagram,
Deb., 8.35%, 2022.................... $ 10,000 $ 10,473
Supervalu,
Notes, 7.80%, 2002................... 15,000 15,452
Sysco,
Sr. Notes, 7%, 2006.................. 25,000 24,787
___________
439,365
___________
Health Care_.4%........ Baxter International,
Deb., 9 1/4%, 1999................... 15,000 15,898
Bristol-Myers Squibb,
Deb., 7.15%, 2023.................... 15,000 14,507
Columbia/HCA Healthcare
Notes, 7 1/4%, 2008.................. 75,000 74,824
Lilly (Eli), Notes:
6 3/4%, 1999......................... 15,000 15,064
6.57%, 2016.......................... 30,000 27,426
___________
147,719
___________
Industrial_2.5%..... Aluminum Co. of America,
Notes, 5 3/4%, 2001.................. 50,000 48,342
American Home Products,
Notes, 7.70%, 2000................... 50,000 51,333
Bass America,
Notes, 8 1/8%, 2002.................. 15,000 15,720
Bowater,
Deb., 9 3/8%, 2021................... 10,000 11,509
Browning-Ferris,
Deb., 7.40%, 2035.................... 10,000 9,425
Burlington Resources,
Deb., 6 7/8%, 2026................... 70,000 62,854
Carnival,
Notes, 7.05%, 2005................... 15,000 14,818
Caterpillar, Deb:
9 3/8%, 2000......................... 5,000 5,340
9 3/8%, 2011......................... 10,000 11,786
Comdisco,
Notes, 6 3/8%, 2001.................. 155,000 151,040
Crown Cork & Seal,
Bonds, 7 3/8%, 2026.................. 75,000 70,939
Eaton,
Deb., 8.10%, 2022.................... 10,000 10,468
Emerson Electric,
Notes, 6.30%, 2005................... 35,000 33,378
Illinois Tool Works,
Notes, 5 7/8%, 2000.................. 20,000 19,591
Motorola,
Notes, 7.60%, 2007................... 100,000 103,123

DREYFUS BOND MARKET INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
_____________ ___________
Industrial (continued)....... PPG Industries,
Notes, 7 3/8%, 2016.................. $ 45,000 $ 44,159
Seagate Technology,
Sr. Notes, 7.37%, 2007............... 100,000 99,223
Tenneco,
Deb., 10.20%, 1998................... 15,000 (f) 18,057
United Technologies,
Deb., 8 7/8%, 2019................... 5,000 5,643
WMX Technologies,
Notes, 6 3/8%, 2003.................. 30,000 28,779
Xerox,
Notes, 7.15%, 2004................... 15,000 14,991
___________
830,518
___________
Oil and Gas_.4%.......... Atlantic Richfield,
Deb., 9%, 2021....................... 15,000 17,167
Mobil,
Deb., 8 5/8%, 2021................... 15,000 16,839
Occidental Petroleum,
Sr. Notes, 10 1/8%, 2001............. 15,000 16,751
Pennzoil, Deb.:
9 5/8%, 1999......................... 10,000 10,613
10 1/8%, 2009........................ 5,000 6,018
Phillips Petroleum,
Notes, 6.65%, 2003................... 20,000 19,637
Texaco Capital (Gtd. by Texaco):
Deb.:
.. 9%, 1997 15,000 15,234
...6 7/8%, 2023 25,000 22,587
Notes, 9%, 1999...................... 15,000 15,835
___________
140,681
___________
Paper Products_.5%.......... Georgia-Pacific,
Deb., 9 5/8%, 2022................... 25,000 26,989
Harnischfeger Industries,
Deb., 6 7/8%, 2007................... 50,000 (g) 48,729
International Paper,
Notes, 7 5/8%, 2007.................. 10,000 10,266
James River,
Deb., 9 1/4%, 2021................... 50,000 56,496
Weyerhaeuser,
Deb., 7.95%, 2025.................... 20,000 20,384
___________
162,864
___________
Publishing_.2%............... Gannett, Notes:
5 1/4%, 1998......................... 25,000 24,815
5.85%, 2000.......................... 55,000 53,748
___________
78,563
___________

DREYFUS BOND MARKET INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
___________ ___________
Retail_1.3%............. Dayton Hudson, Deb.:
9 3/4%, 1998......................... $ 5,000 $ 5,217
9 1/2%, 2016......................... 2,000 2,048
8 1/2%, 2022......................... 20,000 20,264
Dillard Department Stores,
Deb., 8 3/4%, 1998................... 10,000 10,266
Limited,
Deb., 7 1/2%, 2023................... 10,000 8,647
Lowes,
Medium-Term Notes, 8.19%, 2022....... 50,000 52,244
May Department Stores,
Deb., 9 7/8%, 2002................... 15,000 16,928
Penney (J.C.):
Deb.:
9.05%, 2001 50,000 53,547
...8 1/4%, 2022 15,000 15,424
.. 7 1/8%, 2023 15,000 13,737
Note, 7 1/4%, 2002................... 150,000 151,680
Sears, Roebuck,
Deb., 6%, 2000....................... 5,000 4,890
Wal-Mart Stores:
Deb., 9.10%, 2000.................... 10,000 10,685
Notes:
5 1/2%, 1998 50,000 49,938
...5 7/8%, 2005 25,000 23,114
___________
438,629
___________
Telephone & Telegraph_3.5%......AT&T:
Deb.:
.. 5 1/8%, 2001 50,000 47,119
...8.35%, 2025 5,000 5,136
Notes, 7%, 2005...................... 15,000 14,907
Airtouch Communications,
Notes, 7 1/8%, 2001.................. 100,000 100,634
Bellsouth Telecommunications,
Deb., 7%, 2025....................... 50,000 47,279
GTE,
Deb., 9.10%, 2003.................... 35,000 38,458
Lucent Technologies,
Notes, 6.90%, 2001................... 130,000 130,391
MCI Communications,
Sr. Notes, 6 1/4%, 1999.............. 75,000 74,654
Michigan Bell Telephone,
Deb., 6 3/8%, 2005................... 25,000 24,049
New England Telephone & Telegraph,
Deb., 7 3/8%, 2007................... 10,000 9,967
New Jersey Bell Telephone, Deb.:
6 5/8%, 2008......................... 30,000 28,877

DREYFUS BOND MARKET INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
___________ ___________
Telephone & Telegraph (continued) New Jersey Bell Telephone, Deb. (continued):
8%, 2022............................. $ 25,000 $ 26,472
New York Telephone:
Deb., 8 5/8%, 2010................... 5,000 5,541
Mortgage, 7 3/4%, 2006............... 20,000 20,402
Notes, 6 1/4%, 2004.................. 125,000 119,768
Northern Telecom,
Deb., 8 3/4%, 2001................... 200,000 213,298
Pacific Bell Telephone, Deb.:
7 3/8%, 2025......................... 75,000 70,109
7 1/8%, 2026......................... 10,000 9,475
Pacific Telephone & Telegraph,
Deb., 4 5/8%, 1999................... 70,000 67,527
Southwestern Bell Telephone, Deb.:
4 1/2%, 1997......................... 50,000 49,827
7 3/4%, 2009......................... 10,000 10,032
7 5/8%, 2013......................... 10,000 9,825
U.S. West Communications,
Deb., 6 7/8%, 2033................... 25,000 21,781
___________
1,145,528
___________
Tobacco_.2%................. American Brands,
Deb., 8 5/8%, 2021................... 5,000 5,446
Philip Morris, Deb.:
9 1/4%, 2000......................... 40,000 42,267
6%, 2001............................. 20,000 19,088
8 3/8%, 2017......................... 15,000 15,076
___________
81,877
___________
Transportation_.2%.......... Federal Express,
Notes, 9 7/8%, 2002.................. 15,000 16,743
Norfolk Southern,
Deb., 9%, 2021....................... 10,000 11,169
Ryder System,
Deb., 8 3/4%, 2017................... 10,000 10,099
Seariver Maritime,
Deb. (Gtd. by Exxon), Zero Coupon, 2012 5,000 1,692
United Parcel Service,
Deb., 8 3/8%, 2020................... 10,000 10,953
___________
50,656
___________
Utilites_2.6%................. Alabama Power,
First Mortgage, 6%, 2000............. 50,000 49,065
Baltimore Gas & Electric,
First and Refunding Mortgage:
...7 1/2%, 2007 10,000 10,208
...7 1/2%, 2023 40,000 38,279

DREYFUS BOND MARKET INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
___________ _____________
Utilities (continued) Carolina Power & Light, First Mortgage:
5 3/8%, 1998......................... $ 50,000 $ 49,470
8.20%, 2022.......................... 15,000 15,173
Commonwealth Edison,
Mortgage, 8 1/8%, 2007............... 10,000 9,922
Consolidated Edison Co. of New York,
Deb., 6 1/4%, 1998................... 25,000 24,985
Consolidated Natural Gas,
Deb., 5 7/8%, 1998................... 40,000 39,742
Duke Power, First and Refunding Mortgage:
7 1/2%, 1999......................... 50,000 50,794
7 3/8%, 2023......................... 15,000 14,136
Florida Power & Light, First Mortgage:
6 5/8%, 2003......................... 30,000 29,318
7 3/4%, 2023......................... 25,000 24,241
Gulf State Utilities,
First Mortgage, 6.41%, 2001.......... 45,000 43,553
Illinois Power,
First Mortgage, 8 3/4%, 2021......... 15,000 15,399
New York State Electric & Gas,
First Mortgage, 9 7/8%, 2020......... 10,000 10,780
Pacific Gas & Electric:
First and Refunding Mortgage, 8.80%, 2024 100,000 113,590
Notes, 7.45%, 1998................... 40,000 40,590
Pennsylvania Power & Light, First Mortgage:
6 1/2%, 2005......................... 20,000 19,057
6.55%, 2006.......................... 25,000 23,739
Potomac Electric & Power,
First Mortgage, 5 7/8%, 2002......... 10,000 9,505
Public Service Electric & Gas,
First and Refunding Mortgage:
8 3/4%, 1999 25,000 25,991
... 6 1/8%, 2002 20,000 19,238
....6 1/2%, 2004 25,000 24,017
South Carolina Electric & Gas,
Mortgage, 9%, 2006................... 20,000 22,130
Southern California Gas,
First Mortgage, 7 3/8%, 2023......... 20,000 18,959
Texas Utilities,
First Mortgage, 8 3/4%, 2023......... 35,000 36,570
Union Electric, First Mortgage,
6 3/4%, 2008......................... 25,000 24,205
Virginia Electric & Power,
First Mortgage, 7 5/8%, 2007......... 25,000 25,694
Wisconsin Electric & Power,
First Mortgage, 7.70%, 2027.......... 20,000 19,660
___________
848,010
___________

DREYFUS BOND MARKET INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
__________ ___________
Other_.1%............ Private Export Funding:
Deb., 9.45%, 12/31/1999.............. $ 5,000 $ 5,359
Secured Notes (Gtd. by the Export Import
.Bank of the U.S.), 8.40%, 7/31/2001 30,000 31,920
___________
37,279
___________
Foreign_5.2% African Development Bank, Sub. Notes:
7 3/4%, 2001......................... 15,000 15,489
6 7/8%, 2015......................... 85,000 80,543
Daimler-Benz of North America,
Medium-Term Notes (Gtd. by Daimler-Benz AG),
7 3/8%, 2006......................... 120,000 121,234
Deutsche Bank Financial,
Unsecured Sub. Notes (Gtd. by Deutsche Bank AG)
6.70%, 2006.......................... 100,000 95,790
Dresdner Bank-New York,
Sub. Deb., 7 1/4%, 2015.............. 40,000 38,519
European Investment Bank,
Deb., 10 1/8%, 2000.................. 20,000 22,059
Hydro-Quebec, Bonds,
(Gtd. by the Province of Quebec):
. 8 1/2%, 2029 10,000 10,660
.....9 3/8%, 2030 20,000 23,342
.....9 1/2%, 2030 10,000 11,817
KFW International Finance, Deb.:
(Gtd. by the Federal Republic of Germany),
. 9 1/8%, 2001 10,000 10,807
(Gtd. by KFW),
.. 8%, 2010 35,000 37,490
(Gtd. by Kreditansalt Fuer Wiederaufbau),
.....9 3/8%, 1998 5,000 5,162
InterAmerican Development Bank,
Deb., 9 1/2%, 1997................... 15,000 15,233
International Bank for Reconstruction &
Development, Deb., 9 7/8%, 1997...... 15,000 15,236
Italy Government Bonds,
6 7/8%, 2023......................... 70,000 64,247
Korea Development Bank,
Notes, 7%, 1999...................... 300,000 301,404
Province of Alberta,
Notes, 9.20%, 1997................... 20,000 20,373
Province of British Columbia:
Bonds, 6 1/2%, 2026.................. 25,000 22,353
Deb., 7%, 2003....................... 20,000 20,173
Province of Manitoba, Bonds:
9 1/2%, 1998......................... 5,000 5,211
8.80%, 2020.......................... 10,000 11,358

DREYFUS BOND MARKET INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
___________ ___________
Foreign (continued) Province of New Brunswick,
Deb., 6 3/4%, 2013................... $ 30,000 $ 28,213
Province of Ontario:
Sr. Deb., 7%, 2005................... 40,000 39,870
Sr. Unsub. Deb., 7 3/8%, 2003........ 30,000 30,716
Province of Quebec:
Bonds, 9 1/8%, 2000.................. 30,000 31,869
Deb., 7 1/2%, 2023................... 50,000 47,992
Republic of Finland,
Bonds, 6.95%, 2026................... 25,000 23,551
Republic of Ireland,
Notes, 7 7/8%, 2001.................. 150,000 155,225
Republic of Portugal,
Unsub. Notes, 5 3/4%, 2003........... 100,000 94,106
Royal Bank of Scotland,
Sub. Notes, 6 3/8%, 2011............. 60,000 54,075
Santander Finance Issuances,
Unsecured Sub. Notes
(Gtd. by Banco Santander, S.A.),
7 1/4%, 2006......................... 100,000 98,673
Saskatchewan C.D.A.,
Bonds, 9 1/8%, 2021.................. 10,000 11,614
Swiss Bank-New York,
Sub. Deb., 7%, 2015.................. 70,000 65,851
Union Bank of Switzerland-New York,
Sub. Notes, 7 1/4%, 2006............. 80,000 79,913
___________
1,710,168
___________
U.S. Government_58.2%... U.S. Treasury Bonds:
11 3/4%, 2/15/2001................... 155,000 181,931
15 3/4%, 11/15/2001.................. 15,000 20,346
14 1/4%, 2/15/2002................... 70,000 91,875
10 3/4%, 2/15/2003................... 30,000 35,892
10 3/4%, 5/15/2003................... 115,000 138,305
11 1/8%, 8/15/2003................... 135,000 165,649
11 7/8%, 11/15/2003.................. 10,000 12,731
12 3/8%, 5/15/2004................... 135,000 177,462
10 3/4%, 8/15/2005................... 465,000 581,613
7 5/8%, 2/15/2007.................... 60,000 61,950
8 3/4%, 11/15/2008................... 225,000 247,605
12 3/4%, 11/15/2010.................. 75,000 103,383
14%, 11/15/2011...................... 30,000 44,888
12%, 8/15/2013....................... 45,000 62,733
12 1/2%, 8/15/2014................... 40,000 58,163
11 1/4%, 2/15/2015................... 25,000 35,711
7 1/4%, 5/15/2016.................... 110,000 112,561
8 3/4%, 5/15/2017.................... 300,000 354,422
8 7/8%, 8/15/2017.................... 215,000 256,992
8 7/8%, 2/15/2019.................... 140,000 168,088

DREYFUS BOND MARKET INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
___________ ___________
U.S. Government (continued) U.S. Treasury Bonds (continued):
8 1/8%, 8/15/2019.................... $ 175,000 $ 195,754
8 1/2%, 2/15/2020.................... 225,000 261,387
8 3/4%, 5/15/2020.................... 630,000 750,094
8 3/4%, 8/15/2020.................... 290,000 345,417
7 7/8%, 2/15/2021.................... 130,000 142,066
8%, 11/15/2021....................... 180,000 199,491
7 1/8%, 2/15/2023.................... 1,650,000 1,664,438
6 1/4%, 8/15/2023.................... 315,000 285,321
U.S. Treasury Notes:
5 3/8%, 5/31/1998.................... 410,000 407,245
4 3/4%, 8/31/1998.................... 180,000 176,934
8 7/8%, 11/15/1998................... 1,410,000 1,465,959
5 1/8%, 11/30/1998................... 200,000 196,938
5 1/8%, 12/31/1998................... 285,000 280,458
6 3/8%, 1/15/1999.................... 100,000 100,359
5 7/8%, 1/31/1999.................... 1,280,000 1,273,000
5 1/2%, 2/28/1999.................... 30,000 29,625
5 7/8%, 3/31/1999.................... 205,000 203,655
7%, 4/15/1999........................ 200,000 202,688
6 3/8%, 5/15/1999.................... 500,000 500,781
6 3/4%, 5/31/1999.................... 20,000 20,169
6 7/8%, 7/31/1999.................... 80,000 80,913
8%, 8/15/1999........................ 30,000 31,050
7 1/8%, 9/30/1999.................... 520,000 529,100
7 1/2%, 10/31/1999................... 270,000 276,877
7 7/8%, 11/15/1999................... 50,000 51,719
7 3/4%, 12/31/1999................... 20,000 20,659
6 3/8%, 1/15/2000.................... 100,000 100,063
7 3/4%, 1/31/2000.................... 410,000 423,645
6 7/8%, 3/31/2000.................... 305,000 308,670
5 1/2%, 4/15/2000.................... 20,000 19,519
6 1/8%, 7/31/2000.................... 455,000 450,734
8 3/4%, 8/15/2000.................... 80,000 85,325
6 1/4%, 8/31/2000.................... 410,000 407,373
8 1/2%, 11/15/2000................... 5,000 5,314
6 1/4%, 4/30/2001.................... 500,000 495,391
8%, 5/15/2001........................ 160,000 168,325
6 1/2%, 5/31/2001.................... 300,000 299,672
7 7/8%, 8/15/2001.................... 590,000 619,131
7 1/2%, 11/15/2001................... 1,350,000 1,399,149
7 1/2%, 5/15/2002.................... 350,000 364,055
6 1/4%, 2/15/2003.................... 30,000 29,489
5 3/4%, 8/15/2003.................... 280,000 267,444
7 1/4%, 5/15/2004.................... 225,000 232,102
7 7/8%, 11/15/2004................... 400,000 427,250
6 1/2%, 8/15/2005.................... 130,000 128,100
6 7/8%, 5/15/2006.................... 100,000 100,875

DREYFUS BOND MARKET INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
____________ ____________
U.S. Government (continued) U.S. Treasury Notes (continued):
7%, 7/15/2006........................ $ 300,000 $ 305,203
___________
19,241,226
___________
U.S. Government
Agencies_9.0% Federal Farm Credit Banks,
11.90%, 10/20/1997................... 10,000 10,271
Federal Home Loan Banks:
5.85%, 9/13/1999..................... 700,000 690,703
8.60%, 1/25/2000..................... 15,000 15,783
Federal Home Loan Mortgage Corp.:
6.09%, 3/1/2000...................... 40,000 39,502
5.90%, 2/14/2006..................... 600,000 558,496
Federal National Mortgage Association:
8.20%, 3/10/1998..................... 30,000 30,523
5.23%, 11/25/1998.................... 205,000 202,101
5.30%, 12/10/1998.................... 200,000 197,010
9.55%, 3/10/1999..................... 30,000 31,658
8.70%, 6/10/1999..................... 15,000 15,671
8.45%, 7/12/1999..................... 15,000 15,618
8.35%, 11/10/1999.................... 25,000 26,090
6.20%, 7/10/2003..................... 90,000 86,768
6.85%, 4/5/2004...................... 145,000 145,112
7.40%, 7/1/2004...................... 450,000 463,642
5.875%, 2/2/2006..................... 125,000 116,180
Financing Corp., Bonds:
9.65%, 11/2/2018..................... 10,000 12,559
8.60%, 9/26/2019..................... 40,000 45,506
Resolution Funding, Bonds:
8 1/8%, 10/15/2019................... 75,000 82,645
8 7/8%, 7/15/2020.................... 75,000 88,519
8 5/8%, 1/15/2030.................... 15,000 17,302
Tennessee Valley Authority:
Deb.:
8 3/8%, 10/1/1999 15,000 15,640
.. 7.85%, 6/15/2044 10,000 10,004
Global Bonds, 6 3/4%, 11/1/2025...... 60,000 55,861
___________
2,973,164
___________
TOTAL BONDS AND NOTES
(cost $32,037,828)................... $32,055,995
==============

DREYFUS BOND MARKET INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Principal
Short-Term Investments_1.6% Amount Value
___________ ___________
Repurchase Agreement: Goldman, Sachs & Co. Tri-Party
Repurchase Agreement, 5 3/8%
dated 4/30/1997, due 5/1/1997 in the amount of
$515,598 (fully collateralized by
$531,000 U.S. Treasury Inflation Indexed Notes,
3 3/8%, 1/15/2007, value $531,413)
(cost $515,521)...................... $ 515,521 $ 515,521
==============
TOTAL INVESTMENTS (cost $32,553,349)........................................ 98.5% $32,571,516
======== ==============
CASH AND RECIEVABLES (NET).................................................. 1.5% $ 505,930
======== ==============
NET ASSETS.................................................................. 100.0% $33,077,446
======== ==============
Notes to Statement of Investments:
(a) Reflects date security can be redeemed at holders' option; the
stated maturity date is 2/15/2010.
(b) Reflects date security can be redeemed at holders' option; the
stated maturity date is 5/15/2008.
(c) Reflects date security can be redeemed at holders' option; the
stated maturity date is 9/20/2009.
(d) Reflects date security can be redeemed at holders' option; the
stated maturity date is 6/15/2008.
(e) Reflects date security can be redeemed at holders' option; the
stated maturity date is 11/1/2005.
(f) Reflects date security can be redeemed at holders' option; the
stated maturity date is 3/15/2008.
(g) Reflects date security can be redeemed at holders' option; the
stated maturity date is 2/15/2027.

SEE NOTES TO FINANCIAL STATMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BOND MARKET INDEX FUND
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1997 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $32,553,349 $32,571,516
Cash....................................... 30,498
Interest receivable........................ 658,205
_____________
33,260,219
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 10,761
Due to Distributor......................... 14
Payable for investment securities purchased 103,390
Payable for shares of Capital Stock redeemed 68,608
_____________
182,773
_____________
NET ASSETS.................................................................. $33,077,446
==============
REPRESENTED BY: Paid-in capital............................ $33,069,185
Accumulated net realized gain (loss) on investments (9,906)
Accumulated net unrealized appreciation (depreciation)
..... on investments_Note 3 18,167
_____________
NET ASSETS ................................................................. $33,077,446
==============
NET ASSET VALUE PER SHARE
_______________________________
Institutional Retail
Shares Shares
_____________ ____________
Net Assets.................................................................. $68,658 $33,008,788
Shares Outstanding.......................................................... 7,145 3,430,230
NET ASSET VALUE PER SHARE................................................... $9.61 $9.62
======= =======

SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BOND MARKET INDEX FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income............................ $1,055,074
EXPENSES: Management fee_Note 2(a)................... $ 65,003
Directors' fees and expenses_Note 2(c)..... 275
Distribution fees (Institutional shares)_Note 2(b) 87
___________
Total Expenses......................... 65,365
______________
INVESTMENT INCOME_NET....................................................... 989,709
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 3:
Net realized gain (loss) on investments.... $ 12,178
Net unrealized appreciation (depreciation)
on investments (620,404)
___________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (608,226)
______________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 381,483
===============

SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BOND MARKET INDEX FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996*
____________ __________________
<S> <C> <C>
OPERATIONS:
Investment income_net.............................................. $ 989,709 $ 1,044,007
Net realized gain (loss) on investments............................ 12,178 61,620
Net unrealized appreciation (depreciation) on investments.......... (620,404) 403,761
____________ ______________
Net Increase (Decrease) in Net Assets Resulting from Operations 381,483 1,509,388
____________ ______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Institutional shares............................................. (2,035) (10,116)
Retail shares.................................................... (987,674) (1,033,891)
____________ ______________
Total Dividends.............................................. (989,709) (1,044,007)
____________ ______________
CAPITAL STOCK TRANSACTIONS_Note 5:
Net proceeds from shares sold:
Institutional shares............................................. 2,400 124,870
Retail shares.................................................... 9,550,165 30,960,062
Dividends reinvested:
Institutional shares............................................. 1,795 8,203
Retail shares.................................................... 943,103 966,638
Cost of shares redeemed:
Institutional shares............................................. (14,579) (253,704)
Retail shares.................................................... (9,863,875) (6,235,512)
____________ ______________
Increase (Decrease) in Net Assets from Capital Stock Transactions 619,009 25,570,557
____________ ______________
Total Increase (Decrease) in Net Assets.................... 10,783 26,035,938
NET ASSETS:
Beginning of Period................................................ 33,066,663 7,030,725
____________ ______________
End of Period...................................................... $33,077,446 $33,066,663
============ ===============
Shares Shares
____________ ______________
CAPITAL SHARE TRANSACTIONS_Note 5:
Institutional Shares
___________
Shares sold........................................................ 246 12,838
Shares issued for dividends reinvested............................. 185 837
Shares redeemed.................................................... (1,491) (26,266)
____________ ______________
Net Increase (Decrease) in Shares Outstanding................ (1,060) (12,591)
============ ===============
Retail Shares
_______
Shares sold........................................................ 982,947 3,224,629
Shares issued for dividends reinvested............................. 97,110 99,840
Shares redeemed.................................................... (1,016,212) (644,895)
____________ ______________
Net Increase (Decrease) in Shares Outstanding................ 63,845 2,679,574
============ ===============
*Effective July 15, 1996, Investor Class shares were redesignated as
Institutional shares and Class R shares were redesignated as Retail
shares.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BOND MARKET INDEX FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating 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.

Institutional Shares
_______________________________________________________
Six Months Ended
April 30, 1997 Year Ended October 31,
_________________________________
PER SHARE DATA: (Unaudited) 1996(1) 1995 1994(2,3)
____________ ______ ______ ______
<S> <C> <C> <C> <C>
Net asset value, beginning of period................. $ 9.78 $ 9.93 $ 9.15 $ 9.44
_________ ________ ________ ________
Investment Operations:
Investment income_net................................ .28 .57 .55 .24
Net realized and unrealized gain (loss)
on investments..................................... (.17) (.15) .78 (.28)
_________ ________ ________ ________
Total from Investment Operations..................... .11 .42 1.33 (.04)
_________ ________ ________ ________
Distributions:
Dividends from investment income_net................. (.28) (.57) (.55) (.25)
_________ ________ ________ ________
Net asset value, end of period....................... $ 9.61 $ 9.78 $ 9.93 $ 9.15
========== ======== ======== ========
TOTAL INVESTMENT RETURN.................................. 2.36%(4) 4.36% 15.01% (.46%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. .65%(4) .65% .65% .65%(4)
Ratio of net investment income
to average net assets.............................. 5.85%(4) 5.80% 5.77% 4.81%(4)
Portfolio Turnover Rate.............................. 21.47%(5) 42.65% 40.16% 188.00%
Net Assets, end of period (000's Omitted)............ $68 $80 $207 $38
(1) Effective July 15, 1996, Investor Class shares were redesignated as
Institutional shares.
(2) The Fund commenced selling Investor shares on April 28, 1994.
(3) 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 Fund's investment manager.
(4) Annualized.
(5) Not annualized.

SEE NOTES TO FINANCIAL STATEMENTS.

DREYFUS BOND MARKET INDEX FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating 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.

Retail Shares
_______________________________________________________
Six Months Ended
April 30, 1997 Year Ended October 31,
_________________________________
PER SHARE DATA: (Unaudited) 1996(1) 1995 1994(2,3)
____________ ______ ______ ______
Net asset value, beginning of period................. $ 9.80 $ 9.94 $ 9.15 $10.00
_________ ________ ________ ________
Investment Operations:
Investment income_net................................ .29 .59 .58 .49(4)
Net realized and unrealized gain (loss)
on investments..................................... (.18) (.14) .79 (.85)
_________ ________ ________ ________
Total from Investment Operations..................... .11 .45 1.37 (.36)
_________ ________ ________ ________
Distributions:
Dividends from investment income_net................. (.29) (.59) (.58) (.49)
_________ ________ ________ ________
Net asset value, end of period....................... $ 9.62 $ 9.80 $ 9.94 $ 9.15
========== ======== ======== ========
TOTAL INVESTMENT RETURN.................................. 2.34%(5) 4.69% 15.41% (3.68%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. .40%(5) .40% .40% .40%(5,6)
Ratio of net investment income
to average net assets.............................. 6.07%(5) 6.02% 6.10% 5.05%(5)
Portfolio Turnover Rate.............................. 21.47%(7) 42.65% 40.16% 188.00%
Net Assets, end of period (000's Omitted)............ $33,009 $32,986 $6,824 $ 4,464
(1) Effective July 15, 1996, Class R shares were redesignated as Retail shares.
(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 Fund's investment manager.
(3) The Fund commenced operations on November 30, 1993. On April 28,
1994 the Fund began selling Investor shares and the
shares existing prior to April 28, 1994 were designated Trust shares.
Effective October 17, 1994 the Fund's Trust shares were redesignated
Class R shares.
(4) Net investment income before reimbursement of expenses by the
investment adviser for the period ended October 31, 1994
was $.39 per share.
(5) Annualized.
(6) Annualized expense ratio before reimbursement of expenses by
investment adviser for the period ended October 31, 1994
was 1.41%.
(7) Not annualized.

SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS BOND MARKET INDEX FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1_ SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Bond Market Index Fund (the "Fund") is a series of The Dreyfus/
Laurel Funds, Inc. (the "Company") which 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 Fund. The Fund's investment objective is to seek to replicate
the total return of the Lehman Brothers Government/Corporate Bond Index. 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") is the distributor
of the Fund's shares. The Fund is authorized to issue 150 million of $.001
par value Capital Stock. The Fund is currently authorized to issue two
classes of shares: Institutional (50 million shares authorized) and Retail
(100 million shares authorized). Institutional shares are offered only to
clients of banks, securities brokers or dealers and other financial
institutions (collectively, Service Agents) that have entered into selling
agreements with the Fund's distributor and Retail shares are offered to any
investor. Other differences between the two classes include the services
offered to and the expenses borne by each class.
Investment income, net of expenses (other than class specific expenses),
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.
The Fund's 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.
(A) PORTFOLIO VALUATION: Investments in securities (excluding short-term
investments and U.S. Government obligations) are valued each business day by
an independent pricing service ("Service") approved by the Board of
Directors. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the
Service are valued at the mean between the quoted bid prices (as obtained by
the Service from dealers in such securities) and asked prices (as calculated
by the Service based upon its evaluation of the market for such securities).
Other investments (which constitute a majority of the portfolio securities)
are carried at fair value as determined by the Service, based on methods
which include consideration of: yields or prices of securities of comparable
quality, coupon, maturity and type; indications as to values from dealers;
and general market conditions. 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 in U.S. Government
obligations are valued at the mean between quoted bid and asked prices.
Short-term investments are carried at amortized cost, which approximates
value.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and discounts on investments,
is recognized on the accrual basis. Cost of investments represents amortized
cost.
(C) REPURCHASE AGREEMENTS: The Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Fund,
through its custodian and sub-custodian, takes possession of an underlying
debt obligation subject to an obligation of the seller to repurchase, and the
Fund to resell, the obligation at an agreed-upon price and time, thereby
determining the yield during the Fund's holding period. This arrangement
results in a fixed rate of return that is not subject to market fluctuations
during the Fund's holding period. The value of the collateral is at least
equal, at all times, to the total amount of the repurchase obligation,
including interest. In the event of a counterparty default, the Fund has the
right to use the collateral to offset losses incurred. There is potential
loss to the Fund in the event the Fund is delayed or prevented from
exercising its rights to dispose of the collateral securities, including the
risk of a possible decline in the value
DREYFUS BOND MARKET INDEX FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
of the underlying securities during the period while the Fund seeks to assert
its rights. The Manager, acting under the supervision of the Board of
Directors, reviews the value of the collateral and the creditworthiness of
those banks and dealers with which the Fund enters into repurchase agreements
to evaluate potential risks.
(D) DISTRIBUTIONS TO SHAREHOLDERS: It is the policy of the Fund to
declare dividends daily from investment income-net; such dividends are paid
monthly. Dividends from net realized capital gain are normally declared and
paid annually, but the Fund may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(E) 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.
The Fund has an unused capital loss carryover of approximately $22,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1996. If not
applied, $7,000 of the carryover expires in fiscal 2002 and $15,000 expires
in fiscal 2003.
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 and/or affiliates 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 .40% 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, commitment fees,
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) DISTRIBUTION PLAN: The Fund has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the Act relating to its Institutional
shares. Under the Plan, the Fund may pay annually up to .25% of the value of
the average daily net assets attributable to its Institutional 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 Institutional shares.
The Retail shares bear no distribution fee. During the period ended April 30,
1997, the distribution fee for the Institutional shares was $87.
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.
(C) DIRECTORS' FEES: Each director who is not an "interest 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 Fund, Inc., The Dreyfus/Laurel Tax-Free
Municipal Funds, and The Dreyfus/Laurel Funds Trust. The Chairman of the
Board receives an additional annual fee of $25,000 per year. These fees and
expenses are charged and allocated to each series based on net assets.

DREYFUS BOND MARKET INDEX FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended April 30, 1997
amounted to $7,535,507 and $6,777,188, respectively.
At April 30, 1997, accumulated net unrealized appreciation on investments
was $18,167, consisting of $173,861 gross unrealized appreciation and
$155,694 gross unrealized depreciation.
At April 30, 1997, 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_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. For the period ended April
30, 1997, the Fund did not borrow under the Facility.
NOTE 5_ACQUISITION OF COMMON TRUST ASSETS:
On May 10, 1996, the Fund acquired a portion of the assets of the EB MBA
Government and Corporate Bond Index Fund, a trust advised by a subsidiary of
Mellon Bank, N.A. The acquisition was accomplished by an exchange of
1,788,594 Retail shares of the Fund's Capital Stock for cash, securities and
assumption of liabilities of the trust totaling $17,134,730 which is included
in net proceeds from shares sold on the Statement of Changes in Net Assets.
[Dreyfus lion "d" logo]
Registration Mark
DREYFUS BOND MARKET
INDEX FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 310/710SA974
[Dreyfus logo]
Bond Market
Index Fund
Semi-Annual
Report
April 30, 1997

DREYFUS DISCIPLINED EQUITY INCOME FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus Disciplined Equity
Income Fund for its six-month reporting period ended April 30, 1997, as shown
in the following table:
<TABLE>
<CAPTION>
<S> <C>
Total Return*
__________________
Institutional Shares 14.18%
Retail Shares 14.34%
Standard and Poor's 500 Composite Stock Price Index** 14.71%
</TABLE>
Economic Review
The Federal Reserve Board (the "Fed") decision in March to tighten credit
already has been vindicated by the reported 5.6% rise in first quarter real
Gross Domestic Product and by the drop to 4.9% in April's unemployment rate.
The economic debate is now divided between 1) those who believe that softer
incoming economic data for the second quarter can keep Fed policy on hold,
and 2) those who believe the economy is fundamentally too strong, warranting
higher rates irrespective of short-term economic fluctuations. Views on the
risk of inflation clearly distinguish these camps. Current market interest
rates are fluctuating in a narrow range until the policy outlook becomes
clearer. We believe that some tightening is likely in coming months and this
should temper overall growth to sustain a long business cycle.
First quarter real GDP grew an annualized 5.6% in the quarter and by 4.0%
since the end of the first quarter of 1996, both growth rates unseen since
1987/88. Virtually every major economic sector contributed positively to
growth. In the early evidence for the second quarter, rising new orders
portend continued strength in exports and capital spending. By contrast,
retail spending weakened in April and the housing sector slowed. However,
real disposable income grew 3.8% in the last year, a pace which, if
sustained, should support the upward cycle in consumer spending, while
mortgage rates have not yet risen substantially.
Alongside the recent evidence of slowing consumer demand is the report of
the drop in unemployment in April. With this, the labor market is becoming
extremely tight. This is raising fears of future inflation even though actual
inflation remains modest and despite signs of a slower second quarter
economy. Hence, bond yields remain near their recent highs, largely ignoring
the bullish news of a Washington agreement to balance the Federal budget.
Short-term rates likewise contain built-in expectations for another Fed rate
hike in coming weeks.
If inflation should stay subdued, then the larger risk from the
combination of slower economic growth and a tightening labor market is to
corporate profits. Through the first quarter, however, profits continued to
surprise on the upside, and we expect overall profits to post modest gains in
1997.
The economy has embarked on the seventh year for this business cycle.
Economic growth is proving stronger than seen since the late 1980s while
inflation is still subdued. More Fed tightening would indicate a willingness
to err on the side of caution and would thus help sustain the expansion.
Market Overview
The six-month fiscal period ended April 30, 1997 was one of the most
volatile in recent stock market history. While the underlying U.S. economy
continued to grow with little inflation, investor concerns over the outlook
for interest rates and for corporate profits caused major shifts in market
sentiment, and hence in stock prices.
Early in the half-year period, the dominant market trend was strong,
despite nervousness about the solidity of economic growth and the possible
reactions of the Fed. The trend picked up steam during the winter, with the
Dow Jones Industrial Average breaking the 7000 mark in mid-February, and then
hitting a new high of 7085.16 in mid-March. However, when the Fed on March
25, in a widely anticipated move, increased its overnight lending rate by one
quarter of

a percentage point to cool off the economy and "irrational exuberance" in the
equity markets, the markets promptly obliged. Between mid-March and mid-April
the DJIA dropped 9.8%.
By then, however, major corporations had begun issuing a stream of strong
quarterly profit reports and the latest Government numbers on inflation
appeared reassuring. Moreover, underlying economic expansion continued, but
at a pace that appeared sustainable.
The market's reaction was to resume the upward trend of earlier in the
year, breaking the 7000 level once again on April 30.
Clearly one of the engines driving the market is the profit outlook.
According to two companies that monitor profit reports, I.B.E.S. and First
Call, overall first-quarter corporate profits ran about 3.7% above forecasts.
This reflects reports from most of the companies in the Standard & Poor's 500
index. At the same time, increases in wages and compensation during that same
period were modest.
Big, heavily capitalized and well-established companies were the chief
beneficiaries. For the six months under review, the blue chip DJIA gained
17.42%, the Standard & Poor's 500 Index rose 14.71%, the Nasdaq was up only
3.23% and the Russell 2000 Index of small-cap stocks only 1.61%. The mid- and
small-cap stocks enjoyed a revival along with the general market in late
April and the first few days of May.
The latest trend could, of course, be affected by a Fed decision to raise
interest rates once again. However, there is no denying the resilience
displayed by the equity markets, especially the larger issues, in the closing
days of the Fund's latest fiscal period.
Portfolio Focus
The Disciplined Equity Income Fund has continued to be one of the best
performing equity income funds in the country. For the six-month, one- and
two-year periods ending April 30, 1997, the Fund was ranked at the 4th, 3rd,
and 3rd percentiles, respectively, in the Lipper Equity Income Fund universe.
We continue to emphasize higher-yielding stocks that are undervalued and/or
have improving earnings momentum.***
The five best performing stocks in the six-month period were Texas
Instruments (+86%), Guidant (+49%), Coca-Cola Enterprises (+42%), Intel
(+39%), and Bear Stearns Cos. (+37%).
Sincerely,
[Bert J. Mullins signature logo]
Bert J. Mullins
Portfolio Manager
May 14, 1997
New York, N.Y.

* Total return includes reinvestment of dividends and any capital gains
paid.
**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.
*** SOURCE:: LIPPER ANALYTICAL SERVICES, INC. _ The Fund ranked seventh
amoung 186 funds for the six months, third among 167 for the year and third
among 140 for the two years ended April 30. Past performance is no guarantee
of future results. Share price and investment return fluctuates so that an
investor's shares may be worth more or less than their original cost upon
redemption.
<TABLE>
<CAPTION>
DREYFUS DISCIPLINED EQUITY INCOME FUND
STATEMENT OF INVESTMENTS APRIL 30, 1997 (UNAUDITED)
Common Stocks_96.5% Shares Value
_______ ______
<S> <C> <C> <C>
Basic Industries_4.0% Dow Chemical........................... 2,900 $ 246,138
duPont (EI) de Nemours................. 1,300 138,285
Goodrich (B.F.)........................ 2,000 79,750
Kimberly-Clark......................... 3,300 169,125
Lubrizol............................... 2,450 80,237
Mead................................... 1,400 78,575
Rohm & Haas............................ 900 74,925
Weyerhaeuser........................... 1,450 66,338
_______
933,373
_______
Capital Spending_17.9% Avnet..................... 1,000 60,875
BCE........................................ 4,100 191,162
Boeing...................................... 1,444 142,415
Caterpillar............................ 1,900 169,100
Cooper Industries...................... 2,700 124,200
Deere & Co............................. 1,700 78,200
Eaton....................................... 1,250 93,594
Emerson Electric....................... 1,600 81,200
General Electric....................... 5,950 658,799
General Motors, Cl. H.................. 2,800 150,500
General Signal......................... 2,200 86,350
Harnischfeger Industries............... 1,700 70,762
Hewlett-Packard........................ 2,900 152,250
Illinois Tool Works.................... 900 82,238
Ingersoll-Rand......................... 2,200 108,075
Intel....................................... 3,050 467,031
International Business Machines........ 2,450 393,838
Lockheed Martin........................ 856 76,612
Omnicom Group.......................... 1,150 60,950
PPG Industries......................... 2,400 130,500
Pitney Bowes........................... 2,400 153,600
Reynolds & Reynolds, Cl. A............. 4,300 89,225
Rockwell International................. 1,250 83,125
Texas Instruments...................... 600 53,550
United Technologies.................... 2,000 151,250
Xerox.................................. 4,750 292,125
_______
4,201,526
_______
Consumer Cyclical_8.8% American Greetings, Cl. A.... 2,700 86,400
American Stores........................ 1,400 63,700
Dayton Hudson.......................... 3,150 141,750
Disney (Walt).......................... 1,600 131,200
Ford Motor............................. 8,600 298,850
Gannett................................ 500 43,625
Gap.......................... 2,650 84,469
General Motors......................... 750 43,406
Goodyear Tire & Rubber................. 800 42,100
Liz Claiborne.......................... 2,000 90,500
Marriott International................. 2,650 146,412
May Department Stores.................. 3,050 141,063

DREYFUS DISCIPLINED EQUITY INCOME FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ ______
Consumer Cyclical (continued) McGraw-Hill Cos. 1,750 $ 89,031
NIKE, Cl. B............................ 1,600 90,000
New York Times, Cl. A.................. 1,700 73,525
Penney (J.C.).......................... 2,000 95,500
Sears, Roebuck......................... 3,350 160,800
Tandy............................ 1,500 78,563
Wal-Mart Stores........................ 5,700 161,025
_______
2,061,919
_______
Consumer Staples_14.8% Anheuser-Busch Cos........... 3,400 145,775
Avon Products.......................... 3,300 203,363
Campbell Soup.......................... 2,800 143,150
Coca-Cola.............................. 9,250 588,531
Coca-Cola Enterprises.................. 1,200 72,450
Colgate-Palmolive...................... 1,200 133,200
ConAgra................................ 2,400 138,300
Dole Food.............................. 1,350 55,013
Eastman Kodak.......................... 2,250 187,881
First Brands........................... 1,350 34,256
Gillette.......................... 2,850 242,250
Hershey Foods.......................... 1,500 81,375
Johnson & Johnson...................... 5,000 306,250
PepsiCo................................ 1,100 37,879
Philip Morris Cos. .................... 10,350 407,531
Procter & Gamble....................... 2,500 314,375
Ralston-Purina Group................... 550 45,306
Sara Lee............................... 2,450 102,900
Seagram................................ 1,100 42,081
Unilever N.V........................... 1000 196,250
_______
3,478,116
_______
Energy_10.9% Amoco........................... 2,250 188,156
Atlantic Richfield..................... 1,200 163,350
British Petroleum, ADS................. 550 75,694
Chevron................................ 3,500 239,750
Columbia Gas System.................... 800 49,500
Exxon.................... 11,100 628,538
Kerr-McGee............................. 1,300 78,487
Mobil.................... 1,350 175,500
Pacific Enterprises.................... 2,800 85,750
Phillips Petroleum..................... 3,500 137,813
Royal Dutch Petroleum.................. 2,100 378,525
Sonat 1,350 77,119
Texaco..................... 1,950 205,725
Williams Cos. ......................... 1,900 83,362
_______
2,567,269
_______
Health Care_9.9% American Home Products...... 2,200 145,750
Baxter International................... 1,000 47,875
Becton, Dickinson...................... 700 32,200

DREYFUS DISCIPLINED EQUITY INCOME FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ ______
Health Care (continued) Bristol-Myers Squibb 4,400 $ 294,750
Guidant................................ 1,500 102,375
Lilly (Eli)............................ 4,000 351,500
Medtronic.............................. 1,300 90,025
Merck & Co............................. 5,700 515,850
Pfizer.......................... 4,050 388,800
Schering-Plough........................ 2,500 200,000
SmithKline Beecham, ADS................ 1,900 153,188
_______
2,322,313
_______
Interest Sensitive_17.1% Ahmanson (HF) & Co............. 1,100 41,937
Allstate............................... 3,251 212,941
American National Insurance............ 2,100 162,750
Banc One............................... 4,600 194,925
BankAmerica............................ 2,250 262,969
BankBoston............................. 960 69,840
Bankers Trust New York................. 1,600 130,200
Barnett Banks.......................... 2,374 116,029
Bear Stearns Cos....................... 4,458 135,969
Block (H&R)............................ 3,250 104,812
CIGNA.................................. 2,100 315,788
Chase Manhattan........................ 2,340 216,742
CoreStates Financial................... 4,050 205,031
Fannie Mae............................. 4,350 178,894
First Chicago NBD...................... 4,317 242,831
General Re............................. 400 66,900
ITT Hartford Group..................... 1,750 130,375
Merrill Lynch.......................... 2,600 247,650
PNC Bank............................... 5,850 240,581
Providian.............................. 1,450 83,737
SAFECO................................. 2,550 102,000
Salomon................................ 1,000 50,000
SouthTrust............................. 2,200 82,225
Summit Bancorp......................... 2,000 93,000
Travelers Group........................ 3,993 221,112
Union Planters......................... 2,600 116,025
_______
4,025,263
_______
Mining And Metals_1.6% Aluminum Co. of America 950 66,381
Freeport-McMoRan Copper & Gold, Cl. B.. 1,200 34,950
Potash Corp. Saskatchewan.............. 1,550 119,156
Reynolds Metals........................ 1,100 74,663
USX-U.S. Steel......................... 2,800 81,900
_______
377,050
_______
Transportation_1.5% Canadian Pacific......... 4,600 112,125
Delta Air Lines........................ 1,108 102,075
Illinois Central....................... 4,200 139,650
.......... 353,850
_______
Utilities_10.0% Allegheny Power System....... 1,200 31,500

DREYFUS DISCIPLINED EQUITY INCOME FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ ______
Utilities (continued) Ameritech.............. 4,300 $ 262,837
Bell Atlantic.......................... 3,100 210,025
BellSouth.............................. 5,850 260,325
CINergy....................... 4,800 159,600
Entergy....................... 4,750 111,031
GPU....................... 2,900 93,525
GTE....................... 8,550 392,231
NYNEX....................... 5,050 261,338
SBC Communications..................... 4,700 260,850
Southern............................... 4,450 90,669
Texas Utilities........................ 3,650 123,187
US West Communications Group........... 2,700 94,838
_______
2,351,956
_______
TOTAL COMMON STOCKS
(cost $18,552,354)................... $22,672,635
=======
Convertible Preferred Stocks_1.2%
Consumer Cyclical_.5% Kmart Financing, Cum., 7.75% 700 $ 40,338
TJX Cos., Ser. E, Cum., 7%............. 300 77,550
_______
117,888
_______
Consumer Staples_.4% Case, Ser. A, Cum.,$4.50 600 80,100
RJR Nabisco Holdings, Ser. C, Cum., 9.25% 4,600 27,025
_______
107,125
_______
Interest Sensitive_.3% First U.S.A., Ser. A, Cum., 6.25% 800 64,800
_______
TOTAL CONVERTIBLE PREFERRED STOCKS
(cost $224,917)...................... $ 289,813
=======
Principal
Convertible Corporate Bonds_.5% Amount
_______
Federated Department Stores, Sub. Deb.,
5%, 10/1/2003........................ $ 55,000 $ 64,762
Hospitality Franchise, Sub. Deb.,
4.75%, 3/1/2003...................... 40,000 45,250
_______
TOTAL CONVERTIBLE CORPORATE BONDS
(cost $108,948)...................... $ 110,012
=======
Short-Term Investments_2.3%
Repurchase Agreements:Goldman Sachs & Company Tri-Party Repurchase
Agreement, 5.375% dated 4/30/97 to be
repurchased at $555,618 on 5/1/97, collateralized
by $572,000 U.S. Treasury Inflation Index Notes,
3.375% due 1/15/2007 (cost $555,535). $ 555,535 $ 555,535
=======
TOTAL INVESTMENTS (cost $19,441,754)........................................ 100.5% $23,627,995
==== =======
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (.5%) $ (126,636)
==== =======
NET ASSETS.................................................................. 100.0% $23,501,359
==== =======
SEE NOTES TO FINANCIAL STATEMENTS.

DREYFUS DISCIPLINED EQUITY INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1997 (UNAUDITED)
Cost Value
_______ ______
ASSETS: Investments in securities_See Statement of Investments $19,441,754 $23,627,995
Receivable for investment securities sold.. 145,628
Dividends and interest receivable.......... 39,575
Receivable for shares of Capital Stock subscribed 3,500
_______

23,816,698
_______
LIABILITIES: Due to The Dreyfus Corporation and affiliates 17,164
Due to Distributor......................... 108
Cash overdraft due to Custodian............ 11,966
Payable for investment securities purchased 286,062
Directors' fees payable.................... 39
_______

315,339
_______
NET ASSETS.................................................................. $23,501,359
=======
REPRESENTED BY: Paid-in capital............................ $18,646,685
Accumulated undistributed investment income-net95,069
Accumulated net realized gain (loss) on investments 573,364
Accumulated net unrealized appreciation (depreciation)
....................... on investments_Note 3 4,186,241
_______
NET ASSETS.................................................................. $23,501,359
=======
NET ASSET VALUE PER SHARE
__________________________________
Institutional Retail
Shares Shares
_______ ______
Net Assets.................................................................. $ 5,179,413 $18,321,946
Shares Outstanding.......................................................... 326,710 1,155,773
NET ASSET VALUE PER SHARE................................................... $15.85 $15.85
==== ====

SEE NOTES TO FINANCIAL STATEMENTS.

DREYFUS DISCIPLINED EQUITY INCOME FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
INVESTMENT INCOME
INCOME: Cash dividends (net of $1,367 foreign taxes
withheld at source).................... $ 248,116
Interest................................... 14,301
______
Total Income........................... $ 262,417
EXPENSES: Management fee_Note 2(a)................... 93,615
Distribution fees (Institutional shares)_Note 2(b) 5,902
Directors' fees and expenses_Note 2(c)..... 234
______
Total Expenses......................... 99,751
______
INVESTMENT INCOME_NET....................................................... 162,666
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 3:
Net realized gain (loss) on investments.... $ 579,871
Net unrealized appreciation (depreciation) on investments 1,928,468
______
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 2,508,339
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $2,671,005
======

SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS DISCIPLINED EQUITY INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996*
_________ __________
<S> <C> <C>
OPERATIONS:
Investment income_net............................................. $ 162,666 $ 202,762
Net realized gain (loss) on investments........................... 579,871 651,540
Net unrealized appreciation (depreciation) on investments......... 1,928,468 1,346,152
_______ _______
Net Increase (Decrease) in Net Assets Resulting from Operations 2,671,005 2,200,454
_______ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Institutional shares............................................ (33,735) (85,357)
Retail shares................................................... (122,628) (64,198)
Net realized gain on investments:
Institutional shares............................................ (156,988) (24,849)
Retail shares................................................... (500,733) (38,584)
_______ _______
Total Dividends............................................. (814,084) (212,988)
_______ _______
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Institutional shares............................................ 897,660 11,592,746
Retail shares................................................... 6,180,948 14,631,001
Dividends reinvested:
Institutional shares............................................ 179,684 97,466
Retail shares................................................... 527,827 31,502
Cost of shares redeemed:
Institutional shares............................................ (922,497) (9,633,438)
Retail shares................................................... (3,205,034) (6,943,843)
_______ _______
Increase (Decrease) in Net Assets from Capital Stock Transactions 3,658,588 9,775,434
_______ _______
Total Increase (Decrease) in Net Assets................... 5,515,509 11,762,900
NET ASSETS:
Beginning of Period............................................... 17,985,850 6,222,950
_______ _______
End of Period..................................................... $23,501,359 $17,985,850
======= =======
UNDISTRIBUTED INVESTMENT INCOME_NET................................... $ 95,069 $ 88,766
_______ _______

SEE NOTES TO FINANCIAL STATEMENTS.

DREYFUS DISCIPLINED EQUITY INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
________________________________________
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996*
_________ _________
CAPITAL SHARE TRANSACTIONS:
Institutional Shares
___________
Shares sold........................................................... 57,842 879,064
Shares issued for dividends reinvested................................ 12,539 7,545
Shares redeemed....................................................... (61,059) (712,063)
_______ _______
Net Increase (Decrease) in Shares Outstanding 9,322 174,546
======= =======
Retail Shares
_______
Shares sold........................................................... 406,083 1,073,130
Shares issued for dividends reinvested................................ 36,879 2,461
Shares redeemed....................................................... (210,882) (527,503)
_______ _______
Net Increase (Decrease) in Shares Outstanding 232,080 548,088
======= =======
*Effective July 15, 1996, Investor Class shares were redesignated as
Institutional shares and Class R shares were redesignated as Retail
shares.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS DISCIPLINED EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating 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.

Institutional Shares
______________________________________________________
Six Months Ended
April 30, 1997 Year Ended October 31,
___________________________________
PER SHARE DATA: (Unaudited) 1996(1) 1995 1994(2,3)
__________________ ____ ____ ____
<S> <C> <C> <C> <C>
Net asset value, beginning of period................. $14.49 $12.00 $ 9.95 $10.00
____ ____ ____ ____
Investment Operations:
Investment income_net................................ .10 .27 .22 .03
Net realized and unrealized gain (loss)
on investments..................................... 1.89 2.54 2.05 (.08)
____ ____ ____ ____
Total from Investment Operations..................... 1.99 2.81 2.27 (.05)
____ ____ ____ ____
Distributions:
Dividends from investment income_net................. (.11) (.20) (.22) _
Dividends from net realized gain on investments...... (.52) (.12) _ _
____ ____ ____ ____
Total Distributions.................................. (.63) (.32) (.22) _
____ ____ ____ ____
Net asset value, end of period....................... $15.85 $14.49 $12.00 $ 9.95
==== ==== ==== ====
TOTAL INVESTMENT RETURN.................................. 14.18%(4) 23.87% 23.20% (.50%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. .57%(4) 1.15% 1.15% .19%(4)
Ratio of net investment income
to average net assets.............................. .69%(4) 1.81% 2.32% .44%(4)
Portfolio Turnover Rate.............................. 15.72%(4) 44.33% 37.57% 5.00%(4)
Average commission rate paid(5)...................... $.0562 $.0555 _ _
Net Assets, end of period (000's Omitted)............ $5,179 $4,599 $1,714 $1
(1) Effective July 15, 1996, Investor Class shares were redesignated as Institutional shares.
(2) The Fund commenced operations on September 2, 1994.
(3) 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 Fund's investment manager.
(4) Not annualized.
(5) For fiscal years beginning November 1, 1995, the Fund is required to disclose its average commission rate paid per share
for purchases and sales of investment securities.

SEE NOTES TO FINANCIAL STATEMENTS.

DREYFUS DISCIPLINED EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating 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.
Retail Shares
______________________________________________________
Six Months Ended
April 30, 1997 Year Ended October 31,
____________________________________
PER SHARE DATA: (Unaudited) 1996(1) 1995 1994(2,3,4)
__________________ ____ ____ _____
Net asset value, beginning of period................. $14.49 $12.00 $ 9.95 $10.00
____ ____ ____ ____
Investment Operations:
Investment income_net................................ .12 .21 .28 .05
Net realized and unrealized gain (loss)
on investments..................................... 1.89 2.63 2.02 (.10)
____ ____ ____ ____
Total from Investment Operations..................... 2.01 2.84 2.30 (.05)
____ ____ ____ ____
Distributions:
Dividends from investment income_net................. (.13) (.23) (.25) _
Dividends from net realized gain on investments...... (.52) (.12) _ _
____ ____ ____ ____
Total Distributions.................................. (.65) (.35) (.25) _
____ ____ ____ ____
Net asset value, end of period....................... $15.85 $14.49 $12.00 $ 9.95
==== ==== ==== ====
TOTAL INVESTMENT RETURN.................................. 14.34%(5) 24.18% 23.48% (.50%)(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. .45%(5) .90% .90% .15%(5)
Ratio of net investment income
to average net assets.............................. .80%(5) 2.06% 2.57% .48%(5)
Portfolio Turnover Rate.............................. 15.72%(5) 44.33% 37.57% 5.00%(5)
Average commission rate paid (6)..................... $.0562 $.0555 _ _
Net Assets, end of period (000's Omitted)............ $18,322 $13,387 $4,509 $5,005
(1) Effective July 15, 1996, Class R shares were redesignated as Retail shares.
(2) The Fund commenced operations on September 2, 1994.
(3) 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 Fund's investment manager.
(4) Effective October 17, 1994, the Fund's Trust shares were redesignated Class R shares.
(5) Not annualized.
(6) For fiscal years beginning November 1, 1995, the Fund is required to disclose its average commission rate paid per share
for purchases and sales of investment securities.

SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>

DREYFUS DISCIPLINED EQUITY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1_ SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Disciplined Equity Income Fund (the "Fund") is a series of The
Dreyfus/ Laurel Funds, Inc. (the "Company") which 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 Fund. The Funds investment objective is to seek
an above-average level of income along with moderate long-term growth of
income and principal by investing in a diversified list of securities,
resulting in a portfolio with a moderate level of risk. 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") is the distributor
of the Fund's shares. The Fund is authorized to issue 50 million of $.001 par
value Capital Stock. The Fund currently offers two classes of shares:
Institutional (20 million shares authorized) and Retail (30 million shares
authorized). Institutional shares are offered only to clients of banks,
securities brokers or dealers and other financial institutions (collectively,
Service Agents) that have entered into selling agreements with the
Distributor and Retail shares are offered to any investor. Other differences
between the two classes include the services offered to and the expenses
borne by each class.
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.
The Fund's 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.
(A) PORTFOLIO VALUATION: Investments in securities are valued at the last
sales price on the securities exchange on which such securities are primarily
traded or at the last sales price on the national securities market.
Securities not listed on an exchange or the national securities market, or
securities for which there were no transactions, are valued at the average of
the most recent bid and asked prices. 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.
(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) REPURCHASE AGREEMENTS: The Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Fund,
through its custodian and sub-custodian, takes possession of an underlying
debt obligation subject to an obligation of the seller to repurchase, and the
Fund to resell, the obligation at an agreed-upon price and time, thereby
determining the yield during the Fund's holding period. This arrangement
results in a fixed rate of return that is not subject to market fluctuations
during the Fund's holding period. The value of the collateral is at least
equal, at all times, to the total amount of the repurchase obligation,
including interest. In the event of a counterparty default, the Fund has the
right to use the collateral to offset losses incurred. There is potential
loss to the Fund in the event the Fund is delayed or prevented from
exercising its rights to dispose of the collateral securities, including the
risk of a possible decline in the value of the underlying securities during
the period while the Fund seeks to assert its rights. The Manager, acting
under the supervision of the Board of Directors, reviews the value of the
collateral and the creditworthiness of those banks and dealers with which the
Fund enters into repurchase agreements to evaluate potential risks.

DREYFUS DISCIPLINED EQUITY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(D) DISTRIBUTIONS TO SHAREHOLDERS: Dividends are recorded on the
ex-dividend date. Dividends from investment income-net are
declared and paid on a quarterly basis. 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 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 Fund not to distribute such gain.
On May 5, 1997, the Board of Directors declared dividends from net
investment income for the Institutional shares and Retail shares in the
amount of $.047 per share and $.057 per share, respectively, payable on May
6, 1997 to shareholders of record on May 5, 1997.
(E) 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.
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 and/or affiliates 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 .90% 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, commitment fees,
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) DISTRIBUTION PLAN: The Fund has adopted a distribution plan (the
"Plan") pursuant to Rule 12b-1 under the Act relating to its Institutional
shares. Under the Plan, the Fund may pay annually up to .25% of the value of
the average daily net assets attributable to its Institutional 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 Institutional shares.
The Retail shares bear no distribution fee. During the period ended April 30,
1997, the distribution fee for the Institutional shares was $5,902.
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 Company and who have no
direct or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan.
(C) 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/Laural Tax-Free
Municipal Funds, and the Dreyfus/Laurel Funds Trust. The Chairman of the
Board receives an additional annual fee of $25,000 per year. These fees and
expenses are charged and allocated to each series based on net assets.
(D) BROKERAGE COMMISSIONS: During the period ended April 30, 1997, the
Fund incurred total brokerage commissions of $10,031, of which $2,790 was
paid to Dreyfus Investment Services Corporation, a subsidiary of Mellon Bank.

DREYFUS DISCIPLINED EQUITY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3_ SECURITIES TRANSACTIONS:
The aggregate amount of purchase and sales of investment securities,
excluding short-term securities, during the period ended April 30, 1997,
amounted to $6,535,359 and $3,240,257, respectively.
At April 30, 1997, accumulated net unrealized appreciation on investments
was $4,186,241, consisting of $4,321,806 gross unrealized appreciation and
$135,565 gross unrealized depreciation.
At April 30, 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).
NOTE 4_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. For the period ended April
30, 1997, the Fund did not borrow under the Facility.

Registration Mark
[Dreyfus lion "d" logo]
DREYFUS DISCIPLINED EQUITY INCOME FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 718/318SA974
Registration Mark
[Dreyfus logo]
Disciplined Equity
Income Fund
Semi-Annual
Report
April 30, 1997

<PAGE>
[LOGO]

Dreyfus
Disciplined
Intermediate
Bond Fund
Semi-Annual
Report

April 30, 1997

<PAGE>
Dreyfus Disciplined Intermediate Bond Fund
- --------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:
We are pleased to report the performance of the Dreyfus Disciplined
Intermediate Bond Fund for its six-month reporting period ended April 30, 1997
as shown in the following table:

<TABLE>
<CAPTION>
Income Dividends Annualized
Total Return* (Approximate Per Share) Distribution Rate Per Share***
--------------- ------------------------- ------------------------------
<S> <C> <C> <C>
Institutional Shares 1.39% $.369 6.16%
Retail Shares 1.60% $.385 6.41%
Lehman Brothers
Aggregate Bond Index** 1.70%

</TABLE>

THE ECONOMY
The U.S. economic juggernaut just kept rolling ahead over the
reporting period. Inflation remained subdued. The unemployment rate fell to
its lowest level in 24 years, and a surge in tax revenues meant good
news for the Administration's budget reduction program. Overall, the
economic news has been stellar.

The economy grew at a robust 5.6% annual rate during the first quarter,
the best quarter in nine years. Aided by falling energy prices and with no
sign of shortages of raw materials, inflation remained in check. On the
consumer level, the Consumer Price Index (CPI) remained below 3%. Excluding
volatile food and energy prices, the CPI is actually trending downward, so
far this year running at an annual rate of 2.5%. Inflation has been further
restrained by the strong dollar which has moderated the price of imports and
eased potential strains on domestic production capacity.

The strong economy has put increasing numbers of people to work.
This tightening of the labor market has been a key factor in the
implementation of monetary policy by the Federal Reserve Board's Open Market
Committee (FOMC). The unemployment rate has been less than 5.5% since
June 1996, the lowest sustained rate since the late 1980s. The rate
fell to 4.9% in April of this year, its lowest level in 24 years. So far,
neither strong economic growth nor wage increases have resulted in any price
pressure at the consumer level.

Renewed confidence, spurred by increasing job security and low inflation,
has resulted in a surge in consumer spending. In the first quarter of the
year, spending rose 6.4%, almost double the rate of last year's fourth
quarter. The combined six-month performance was the largest increase in
consumer spending over the past ten years. Retail sales have spurted in
the early part of this year as well; first quarter results were sharply higher
than the last quarter of 1996. Not surprisingly, industrial production has
been building momentum over the reporting period. The latest report on
capacity utilization indicated the highest level in two years. So far,
while the potential exists for production bottlenecks, raw materials prices
and worker wage demands have remained modest.

Continued economic growth and the resulting rise in tax revenues have
further slashed the Federal budget deficit. Administration officials estimate
that this year's deficit will be about $75 billion, its lowest level in 23
years. Such good news on the deficit could make it easier to negotiate the
Administration's bipartisan plan to balance the budget by 2002.

While we seem to be enjoying the best of all possible economic worlds,
the potential for future inflation is what concerns the Fed. Such concern
resulted in the March decision by the Open Market Committee, the policy-making
arm of the Federal Reserve, to raise the Federal Funds rate one-quarter of
a percentage point to 5.50%. (The Federal Funds rate is the rate of interest
banks charge each other for overnight loans.) The traditional assumption that
strong economic growth and low unemployment will eventually result in rising
inflation still drives the Fed's monetary policy initiatives. Although there
was little reported evidence of incipient inflation, the Fed executed a
preemptive move of moderate monetary restraint in March, perhaps to avoid
being forced to act more harshly later. There is little reason to suspect
that the Fed will soon change this policy.

<PAGE>
THE MARKET AND THE PORTFOLIO
Over the past six months, the bellwether 30-year U.S. Treasury bond
has traded in an interest rate range between 7.17% and 6.36%; by the end
of the reporting period, the bond yielded 6.96%. Except for a brief extension
to 108% during the fourth quarter of 1996, the Fund's duration, a
measure of the portfolio's sensitivity to interest rate changes, remained
primarily in a range of 95% to 105% of the average duration of the Lehman
Brothers Aggregate Bond Index, the Fund's benchmark index. The decision
to increase duration in the fourth quarter aided portfolio performance
since long-term interest rates declined to 6.64% from 6.92%. At the close
of the reporting period, we were cautious regarding the direction of
interest rates and maintained a duration slightly below the benchmark index.

Over the reporting period, the portfolio's sector allocation
remained underweighted in Treasury securities and agency issues compared to
the Lehman Brothers Aggregate Bond Index. Because of their higher yields
and favorable supply-and-demand characteristics, mortgage-backed and corporate
securities were overweighted in the portfolio compared to the benchmark
index. The decision to overweight mortgage-backed securities helped the
portfolio's performance over the reporting period. Corporate bonds
underperformed over the past four months as yield spreads widened relative
to Treasury securities. We reduced our exposure to corporate bonds by
approximately 5% in March due to concerns about the corporate market.
Despite this action, as of April 30, 1997, we remained overweighted in the
corporate sector relative to the benchmark index (33% vs. 19%). By the end
of the reporting period, we had reduced the portfolio's mortgage
exposure to 28% from a high of 35%. Though this sector continued to exhibit
strong performance, we were concerned that it might be particularly
vulnerable to a market correction.

We believe that interest rates on 30-year Treasury bonds will most
likely remain in a trading range of 7.25% to 6.50% over the next six months.
Slower economic growth combined with continued low inflation could settle
interest rates toward the lower end of this trading range. A viable budget
agreement coupled with continued strong foreign demand for U.S. debt securities
could push interest rates toward the 6% level. We are alert to these
potential economic developments and currently expect that we would
increase the portfolio's duration and reduce its mortgage exposure if we
felt the risk of "preemptive" monetary tightening by the Federal Reserve was
no longer present.

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

Ridgway Powell
Portfolio Manager
May 15, 1997
New York, N.Y.

*Total return includes reinvestment of dividends and any capital gains paid.
**SOURCE: LEHMAN BROTHERS -- The Lehman Brothers Aggregate Bond Index is a
widely accepted unmanaged index of corporate, government and government
agency debt instruments. Reflects reinvestment of dividends and capital
gains.
***Distribution rate per share is based upon dividends per share paid from
net investment income during the period (annualized), divided by the net
asset value per share at the end of the period.

<PAGE>
<TABLE>
<CAPTION>
Dreyfus Disciplined Intermediate Bond Fund
- --------------------------------------------------------------------------------
Statement of Investments April 30, 1997 (Unaudited)

Principal
Bonds and Notes--89.8% Amount Value
- -------------------------------------------------------------------------------- ---------------- ------------
<S> <C> <C> <C>
Banking--5.3% BankAmerica,
Sub. Notes, 6-7/8%, 2003................ $ 1,500,000 $ 1,485,603
First Union National Bank of North Carolina,
Sub. Notes, 6.18%, 2006................ 1,250,000(a) 1,164,849
NB Capital Trust IV,
Gtd. CapitalSecurities, 8-1/4%, 2027.... 1,280,000 1,289,856
-----------
3,940,308
-----------
Collateralized
Mortgage Obligaions--.7% Countrywide Funding,
Mortgage Pass-Through Ctfs.,
Ser. 1994-10, Cl. A-5, 6%, 2009........ 161,401 156,401
Residential Funding Mortgage Securities I,
Mortgage Pass-Through Ctfs.,
Ser. 1994-S10, Cl. A-6, 6-1/2%, 2009.... 389,824 372,508
-----------
528,909
-----------
Commercial Mortgage
Obligations--.9% Asset Securitization,
Commercial Mortgage Pass-Through Ctfs.,
Ser. 1995-MD IV, Cl. A-1, 7.10%, 2029.. 710,558 708,005
-----------
Consumer--2.3% News America Holdings,
Gtd. Sr. Deb., 8%, 2016................ 1,750,000 1,704,114
-----------
Entertainment--1.7% Walt Disney,
Sr. Notes, 6-3/8%, 2001................ 1,250,000 1,233,167
-----------

Finance--9.4% ERP Operating L.P.,
Notes, 7.57%, 2006..................... 1,000,000(b) 1,010,429
Ford Motor Credit,
Notes, 6-5/8%, 2003.................... 1,500,000 1,465,476
GMAC,
Sr. Floating Rate Notes, 5.98%, 2002... 2,000,000(c) 1,995,000
NYNEX Capital Funding,
Gtd. Medium-Term Notes, 7.63%, 1999.... 1,100,000(d) 1,172,782
Salomon:
Medium-Term Floating-Rate Notes,
Ser. D, 6.34%, 1999.................. 1,230,000(c) 1,225,590
Sr. Notes, 7-1/8%, 1999................ 140,000 141,037
-----------
7,010,314
-----------
Finance/Asset Backed--8.4% American Airlines Pass-Through Trusts,
Pass Through Ctfs., Ser. 1991-A, 9.71%, 2007 1,123,292 1,240,553
Citibank Credit Card Master Trust I,
Credit Card Participation Ctfs.,
Ser. 1997-3, Cl. A, 6.84%, 2004........ 1,500,000 1,486,875
Green Tree Financial,
Manufactured Housing Contract
Pass-Through Ctfs.,
Ser. 1996-10, Cl. A5, 6.83%, 2028...... 1,000,000 978,125

<PAGE>
Dreyfus Disciplined Intermediate Bond Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Principal
Bonds and Notes (continued) Amount Value
- -------------------------------------------------------------------------------- ---------------- ------------
Finance/Asset Backed (continued) NationsBank Auto Grantor Trust 1995-A,
Asset Backed Ctfs., Cl. A, 5.85%, 2002. $ 67,554 $ 67,389
Premier Auto Trust 1996-2,
Asset Backed Notes, Cl. A-4, 6.575%, 2000 1,000,000 998,700
WFS Financial Owner Trust,
Auto Receivable Backed Notes,
Ser. 1996-D, Cl. A3, 6.05%, 2001....... 1,500,000 1,491,094
-----------
6,262,736
-----------
Foreign/Yankee--6.4% Hanson Overseas B.V.,
Gtd. Sr. Notes, 7-3/8%, 2003........... 1,500,000 1,514,636
Midland Bank plc,
Sub. Notes, 7-5/8%, 2006............... 1,500,000 1,530,704
Province of Quebec,
Deb., 7.295%, 2006..................... 1,000,000(e) 1,025,770
Smurfit Capital Funding plc,
(Gtd. by Jefferson Smurfit Group plc),
Deb., 7-1/2%, 2025..................... 750,000 716,958
-----------
4,788,068
-----------
Industrial--3.4% Columbia/HCA Healthcare,
Notes, 6.91%, 2005..................... 1,500,000 1,474,835
Hoechst Celanese,
Notes, 6-1/8%, 2004.................... 100,000 94,858
WMX Technologies, Notes,
6.70%, 2001............................ 1,000,000 990,717
-----------
2,560,410
-----------
U.S. Government
Agencies--27.6% Federal Home Loan Mortgage Corp.:
6.42%, 12/1/2005....................... 177,509 172,295
Multiclass Mortgage Participation Ctfs.,
REMIC:
Ser. 1453, Cl. S, 6.71%, 2000...... 574,683(f) 543,884
Ser. 1929, Cl. NH, 7-1/2%, 2011.... 1,500,000 1,492,969
Ser. 1279, Cl. PH, 7-1/4%, 2020.... 400,000 394,492
Federal National Mortgage Association:
6-1/2%, 11/1/2025...................... 987,213 933,835
7%, 7/1/2000-5/1/2027.................. 4,719,765(g) 4,645,066
REMIC Trust, Pass-Through Ctfs.
(collateralized by FNMA Pass-Through Ctfs.),
Ser. 1997-30, Cl. VG, 7%, 2012....... 2,000,000 1,936,875
Government National Mortgage Association I:
6%, 12/15/2008-5/15/2009............... 891,897 861,234
7%,11/15/2023.......................... 2,115,514 2,057,338
7-1/2%, 6/15/2024-12/15/2026........... 3,759,817 3,742,149
8%, 2/15/2008-12/15/2022............... 1,841,724 1,895,649
8-1/2%, 4/15/2025-8/15/2025............ 1,407,879 1,458,187
9-1/2%, 4/15/2018...................... 48,458 52,562
Government National Mortgage Association II:
6-1/2%, 1/20/2024...................... 151,756 154,981
6-7/8%, 11/20/2025..................... 219,109 223,491
-----------
20,565,007
-----------

<PAGE>
Dreyfus Disciplined Intermediate Bond Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Principal
Bonds and Notes (continued) Amount Value
- -------------------------------------------------------------------------------- ---------------- ------------
U.S. Government--23.7% U.S. Treasury Bonds,
7-1/8%, 5/15/2016...................... $ 800,000 $ 818,625
U.S. Treasury Notes:
5-3/4%, 8/15/2003...................... 2,650,000 2,531,164
5-5/8%, 11/30/1998..................... 5,500,000 5,456,172
5-7/8%, 11/30/2001..................... 2,000,000 1,946,563
7%, 7/15/2006.......................... 4,500,000 4,578,047
8%, 8/15/1999.......................... 2,250,000 2,328,750
-----------
17,659,321
-----------
TOTAL BONDS AND NOTES
(cost $67,466,863)..................... $66,960,359
===========

Short-Term Investments--11.3%
- -------------------------------------------------------------------------------
Commercial Paper--2.7% American Express,
5.45%, 5/13/1997....................... $ 2,000,000 $ 2,000,000
Repurchase Agreement--8.6% J.P. Morgan Securities, 5.40%
Dated 4/30/1997, due 5/1/1997 in the
amount of $6,382,957 (fully collateralized by
$6,518,000 U.S. Treasury Notes, 65/8%,
4/30/2002 value $6,510,178)............ 6,382,000 6,382,000
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $8,382,000)...................... $ 8,382,000
===========

TOTAL INVESTMENTS (cost $75,848,863)............................................ 101.1% $75,342,359
======= ===========
LIABILITIES, LESS CASH AND RECEIVABLES.......................................... (1.1%) $ (809,197)
======= ===========
NETASSETS....................................................................... 100.0% $74,533,162
======= ===========
<FN>
Notes to Statement of Investments:
- --------------------------------------------------------------------------------
(a) Reflects date security can be redeemed at holders' option;
the stated maturity date is 2/15/2036.
(b) Reflects date security can be redeemed at holders' option;
the stated maturity date is 8/15/2026.
(c) Variable rate security--interest rate subject to periodic change.
(d) Reflects date security can be redeemed at holders' option;
the stated maturity date is 10/15/2009.
(e) Reflects first date security can be redeemed at holders' option;
the stated maturity is 7/22/2026.
(f) Inverse floater security--interest rate subject to periodic change.
(g) Partially purchased on a forward commitment basis.

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus Disciplined Intermediate Bond Fund
- ------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1997 (Unaudited)

Cost Value
------------ ------------
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $75,848,863 $75,342,359
Cash............................................. 262,599
Interest receivable.............................. 888,563
-----------
76,493,521
-----------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 32,567
Payable for investment securities purchased...... 1,927,792
-----------
1,960,359
-----------
NET ASSETS..................................................................... $74,533,162
===========
REPRESENTED BY: Paid-in capital.................................. $75,710,444
Accumulated distributions in excess of
investment income--net......................... (560)
Accumulated net realized gain (loss) on investments (670,218)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3.......................... (506,504)
-----------
NET ASSETS..................................................................... $74,533,162
===========
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
-------------------------
Institutional Retail
Shares Shares
------------ ------------
<S> <C> <C>
Net Assets..................................................................... $ 105,478 $74,427,684
Shares Outstanding............................................................. 8,722 6,149,457
NET ASSET VALUE PER SHARE...................................................... $12.09 $12.10
====== ======

See notes to financial statements.

</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus Disciplined Intermediate Bond Fund
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended April 30, 1997 (Unaudited)

INVESTMENT INCOME

<S> <C> <C> <C>
INCOME Interest Income.................................. $2,296,318

EXPENSES: Management fee--Note 2(a)......................... $ 182,158
Distribution fees (Institutional shares)--Note 2(b) 134
Directors' fees and expenses--Note 2(c)........... 798
----------
Total Expenses.............................. 183,090
----------

INVESTMENT INCOME--NET.......................................................... 2,113,228

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments.......... $ (25,715)
Net unrealized appreciation (depreciation) on investments (1,086,515)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... (1,112,230)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $1,000,998
==========

Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996*
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................ $ 2,113,228 $ 1,947,306
Net realized gain (loss) on investments.............................. (25,715) (644,503)
Net unrealized appreciation (depreciation) on investments............ (1,086,515) 580,011
----------- -----------
Net Increase (Decrease) in Net Assets Resulting from Operations.. 1,000,998 1,882,814
----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional shares............................................... (3,255) (65,938)
Retail shares...................................................... (2,112,219) (1,879,682)
----------- -----------
Total Dividends.................................................. (2,115,474) (1,945,620)
----------- -----------
CAPITAL STOCK TRANSACTIONS--Note 5:
Net proceeds from shares sold:
Institutional shares............................................... 5,180 1,871,917
Retail shares...................................................... 19,109,315 62,800,824
Dividends reinvested:
Institutional shares............................................... 2,443 54,374
Retail shares...................................................... 889,474 966,635
Cost of shares redeemed:
Institutional shares............................................... (27,010) (1,739,591)
Retail shares...................................................... (2,924,086) (5,299,031)
----------- -----------
Increase (Decrease) in Net Assets from Capital Stock Transactions 17,055,316 58,655,128
----------- -----------
Total Increase (Decrease) in Net Assets........................ 15,940,840 58,592,322
NET ASSETS:
Beginning of Period.................................................. 58,592,322 --
----------- -----------
End of Period........................................................ $74,533,162 $58,592,322
----------- -----------
----------- -----------
Undistributed investment income (distributions in excess of investment income)--net $ (560) $ 1,686
----------- -----------

CAPITAL SHARE TRANSACTIONS--Note 5: Shares Shares
----------- -----------
Institutional shares
--------------------
Shares sold.......................................................... 432 149,686
Shares issued for dividends reinvested............................... 200 4,407
Shares redeemed...................................................... (2,202) (143,801)
----------- -----------
Net Increase (Decrease) in Shares Outstanding.................... (1,570) 10,292
----------- -----------
----------- -----------

Retail Shares
-------------
Shares sold.......................................................... 1,561,227 5,108,674
Shares issued for dividends reinvested............................... 72,921 79,631
Shares redeemed...................................................... (240,115) (432,881)
----------- -----------
Net Increase (Decrease) in Shares Outstanding.................... 1,394,033 4,755,424
----------- -----------
----------- -----------
<FN>
- --------------------
*Effective July 15, 1996, Investor Class shares were redesignated as
Institutional shares and Class R shares were redesignated as Retail shares.

Institutional Shares Retail Shares
---------------------------- ----------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 1997 October 31, April 30, 1997 October 31,
PER SHARE DATA: (Unaudited) 1996(1,2) (Unaudited) 1996(1,2)
----------- --------- ----------- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period........... $12.29 $12.50 $12.29 $12.50
------ ------ ------ ------
Investment Operations:
Investment income--net.......................... .38 .71 .38 .74
Net realized and unrealized gain (loss)
on investments.............................. (.21) (.21) (.19) (.21)
------ ------ ------ ------
Total from Investment Operations............... .17 .50 .19 .53
------ ------ ------ ------
Distributions:
Dividends from investment income--net........... (.37) (.71) (.38) (.74)
------ ------ ------ ------
Net asset value, end of period................. $12.09 $12.29 $12.10 $12.29
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN........................... 2.80%(3) 4.18% 3.23%(3) 4.45%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........ .80%(3) .79% .55%(3) .55%
Ratio of net investment income
to average net assets....................... 6.20%(3) 5.61% 6.35%(3) 6.29%
Portfolio Turnover Rate........................ 82.35%(4) 198.16% 82.35%(4) 198.16%
Net Assets, end of period (000's Omitted)...... $105 $126 $74,428 $58,466

<FN>
- -------------------
(1) From November 1, 1995 (commencement of operations) to October 31, 1996.
(2) Effective July 15, 1996, Investor Class shares were redesignated as
Institutional shares and Class R shares were redesignated as Retail shares.
(3) Annualized.
(4) Not annualized

See notes to financial statements.
</TABLE>

<PAGE>
Dreyfus Disciplined Intermediate Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Dreyfus Disciplined Intermediate Bond Fund (the "Fund") is a series of
The Dreyfus/Laurel Funds, Inc. (the "Company") which 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 Fund. The Fund's investment objective is to
outperform the Lehman Brothers Aggregate Bond Index, while maintaining a
similar level of risk, by investing primarily in domestic and foreign
investment-grade debt securities and by actively managing bond market and
maturity exposure. The Dreyfus Corporation ("Manager") serves as the Fund's
investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.

Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor
of the Fund's shares, which are sold to the public without a sales charge. The
Fund is authorized to issue 100 million of $.001 par value Capital Stock in each
of the following classes of shares: Institutional and Retail. Institutional
shares are offered only to the clients of banks, securities brokers or dealers
and other financial institutions (collectively, Service Agents) that have
entered into selling agreements with the Fund's distributor. Retail shares are
offered to any investor. Other differences between the two classes include the
services offered to and the expenses borne by each class.

Investment income, net of expenses (other than class specific expenses),
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.

The Fund's 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.

(a) Portfolio valuation: Investments in securities (excluding short-term
investments and U.S. Government obligations) are valued each business day by an
independent pricing service ("Service") approved by the Board of Directors.
Investments for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service are
valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of securities of comparable quality, coupon, maturity and
type; indications as to values from dealers; and general market conditions.
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 in U.S. Government obligations are valued at the mean between quoted
bid and asked prices. Short-term investments are carried at amortized cost,
which approximates value.

(b) Securities transactions and investment income: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, including, where applicable, amortization of discount on investments,
is recognized on the accrual basis.

<PAGE>
Dreyfus Disciplined Intermediate Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(d) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, it is
the policy of the Fund not to distribute such gain.

(e) 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.

The Fund has an unused capital loss carryover of approximately $645,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1996. If not
applied, the carryover expires in fiscal 2004.

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 and/or affiliates 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 .55% 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, commitment fees, 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) Distribution plan: The Fund has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the 1940 Act relating to its
Institutional shares. Under the Plan, the Fund may pay annually up to .25% of
the value of the average daily net assets attributable to its Institutional
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 Institutional shares. The Retail shares bear no distribution fee.
During the period ended April 30, 1997, the distribution fee for the
Institutional shares was $134.

<PAGE>
Dreyfus Disciplined Intermediate Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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 Company and who have no direct
or indirect financial interest in the operation of the Plan or in any agreement
related to the Plan.

(c) 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 meeting 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. The Chairman of the Board
receives an additional annual fee of $25,000 per year. These fees and expenses
are charged and allocated to each series based on net assets.

NOTE 3--Securities Transactions:
The aggregate amount of purchase and sales (including paydowns) of
investment securities, excluding short-term securities, during the period ended
April 30, 1997, amounted to $62,849,716 and $51,574,658, respectively.

At April 30, 1997, accumulated net unrealized depreciation on
investments was $506,504, consisting of $177,524 gross unrealized
appreciation and $684,028 gross unrealized depreciation.

At April 30, 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).

NOTE 4--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. For the period ended April 30,
1997, the Fund did not borrow under the Facility.

NOTE 5--Acquisition of Common Trust Asset:
On March 22, 1996, the Fund acquired all of the assets of the TBC Pooled
Employee Fixed Income Fund, a trust advised by a subsidiary of Mellon Bank, N.A.
The acquisition was accomplished by an exchange of 773,272 Retail shares of the
Fund's Capital Stock for cash, securities and assumption of liabilities of the
trust totaling $9,472,581 which is included in net proceeds from shares sold on
the Statement of Changes in Net Assets.

<PAGE>
Dreyfus Disciplined Intermediate
Bond Fund
200 Park Avenue
New York, NY 10166

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

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

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

Printed in U.S.A. 302/702SA974

DREYFUS DISCIPLINED MIDCAP STOCK FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of Dreyfus Disciplined Midcap
Stock Fund for its six-month reporting period ended April 30, 1997 as shown
in the following table:
<TABLE>
<CAPTION>
Total Return*
____________
<S> <C>
Institutional Shares 6.89%
Retail Shares 7.08%
Standard & Poor's 400 MidCap Stock Index** 6.88%
</TABLE>
Economic Review
The Federal Reserve Board (the "Fed") action to raise interest rates in
March already has been vindicated by the reported 5.6% rise in first quarter
real Gross Domestic Product and by the drop to 4.9% in April's unemployment
rate. The economic debate is now divided between 1) those who believe that
softer incoming economic data for the second quarter can keep Fed policy on
hold, and 2) those who believe the economy is fundamentally too strong,
warranting higher rates irrespective of short-term economic fluctuations.
Views on the risk of inflation clearly distinguish these camps. To date, a
strong dollar has helped mute price inflation, preventing a follow-through
from rising wages. Market interest rates are likewise keeping steady until
the policy outlook becomes clearer. We believe that some tightening is likely
in coming months and this should temper overall growth to sustain a long
business cycle.
First quarter real GDP grew an annualized 5.6% in the quarter and by 4.0%
since the first quarter of 1996, both growth rates unseen since 1987/88.
Virtually every major economic sector contributed positively to growth. In
the early evidence for the second quarter, rising new orders portend
continued strength in exports and capital spending. By contrast, retail
spending weakened in April and the housing sector slowed. However, real
disposable income grew 3.8% in the last year, a pace which, if sustained,
should support the upward cycle in consumer spending, while mortgage rates
have not yet risen substantially.
Alongside the recent evidence of slowing consumer demand is the report of
the drop in unemployment in April. With this, the labor market is becoming
extremely tight. This is raising fears of future inflation even though actual
inflation remains modest and despite signs of a slower second quarter
economy. Hence, bond yields remain near their recent highs, largely ignoring
the bullish news of a Washington agreement to balance the Federal budget.
Short-term rates likewise contain built-in expectations for another Fed rate
hike in coming weeks.
If inflation should stay subdued, then the larger risk from the
combination of slower economic growth and a tightening labor market is to
corporate profits. Through the first quarter, however, profits continued to
surprise on the upside, and we expect overall profits to post modest gains in
1997.
The economy is now embarked on the seventh year for this business cycle.
Economic growth is proving stronger than seen since the late 1980s while
inflation is still subdued. More Fed tightening would indicate a willingness
to err on the side of caution and would thus help sustain the expansion.
Market Overview
The six-month fiscal period ended April 30, 1997 was one of the most
volatile in recent stock market history. While the underlying U.S. economy
continued to grow with little inflation, investor concerns over the outlook
for interest rates and for corporate profits caused major shifts in market
sentiment, and hence in prices.
Early in the half-year period, the dominant market trend was strong,
despite nervousness about the solidity of economic growth and the possible
reactions of the Fed. The trend picked up steam during the winter, with the
Dow Jones Industrial Average ("DJIA") breaking the 7000 mark in mid-February,
and then hitting a new high of 7085.16 in mid-
March. However, when the Fed on March 25, in a widely anticipated move,
increased its overnight lending rate by one quarter of a percentage point to
cool off the economy and "irrational exuberance" in the equity markets, the
markets promptly obliged. Between mid-March and mid-April the DJIA dropped
9.8%.
By then, however, a stream of strong quarterly profit reports were
released by major corporations, and the latest Government numbers on
inflation appeared reassuring. Moreover, underlying economic expansion
continued, but at a pace that appeared sustainable. The market's reaction was
to resume the upward trend of earlier in the year, breaking the 7000 level
once again on April 30.
Clearly one of the engines currently driving the market is the profit
outlook. According to two companies that monitor profit reports, I.B.E.S. and
First Call, overall first-quarter corporate profits ran about 3.7% above
forecasts. This reflects the figures from the profit reports of most of the
companies in the Standard & Poor's 500 Composite Stock Price ("S&P 500")
Index. At the same time, increases in wages and compensation during that same
period were modest.
Big, heavily capitalized and well-established companies were the chief
beneficiaries. For the six months under review, the blue chip DJIA gained
17.42%, the S&P 500 rose 14.71%, the Nasdaq was up only 3.23% and the Russell
2000 Index of small-cap stocks rose only 1.61%. The mid- and small-cap stocks
enjoyed a revival along with the general market in late April and the first
few days of May.
The latest trend could, of course, be affected by a Fed decision to raise
interest rates once again. However, there is no denying the resilience
displayed by the equity markets, especially the larger issues, in the closing
days of the Fund's latest fiscal period.
Porfolio Focus
In accordance with our customary investing discipline, we managed the
portfolio during the past six months in a manner to stay very close to the
industry sector allocations represented in the S&P 400 MidCap Index. This
entailed a modest exposure to higher growth stocks that, as it turned out,
did not perform as well as issues with lower growth characteristics. A case
in point was the networking group of stocks, which performed poorly. Holdings
in 3COM Corp., in particular, penalized the Fund's six-month results.
On the other hand, positive results were provided by such holdings as
Fort Howard Corp., Applied Materials, DeKalb Genetics Corp., City National
Corp. and AES Corp.
In recent weeks, mid-cap and smaller cap companies appear to have come
back into favor among investors. We will continue applying our investment
disciplines to attempt to take advantage of such trends as they occur.
Sincerely,
[John R. O'Toole, C.F.A. signature logo]
John R. O'Toole, C.F.A.
Portfolio Manager
May 16, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. _ Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's MidCap 400 Index is a broad-based index of 400 companies
and is a widely accepted, unmanaged index of medium-cap stock market
performance.
<TABLE>
<CAPTION>
DREYFUS DISCIPLINED MIDCAP STOCK FUND
STATEMENT OF INVESTMENTS APRIL 30, 1997 (UNAUDITED)
Common Stocks_97.0% Shares Value
_______ ______
<S> <C> <C> <C>
Basic Industries_7.1% ABT Building Products.. 4,800 (a) $ 103,200
Centex Construction Products........... 2,800 51,800
Cytec Industries....................... 7,900 (a) 297,237
Fort Howard............................ 6,200 (a) 213,512
International Specialty Products....... 15,900 (a) 206,700
Lennar..................................... 5,300 142,437
Lubrizol............................... 5,700 186,675
Owens-Illinois......................... 7,900 (a) 213,300
Rohm & Haas............................ 3,200 266,400
Sigma-Aldrich.......................... 8,500 255,000
_______
1,936,261
_______
Business Services_8.5% BISYS Group..................................... 3,200 (a) 102,400
BMC Software........................... 6,900 (a) 298,425
Cadence Design System.................. 8,300 (a) 265,600
Carbiner............................... 1,900 (a) 100,700
Cort Business Services................. 7,200 (a) 184,500
Equifax................................ 6,700 192,625
Gartner Group, Cl. A................... 5,900 (a) 154,875
HealthCare COMPARE..................... 4,500 (a) 195,187
Norrell................................ 6,100 (a) 160,887
Reynolds & Reynolds, Cl. A............. 5,300 109,975
Sapient................................ 2,600 93,275
Sterling Commerce...................... 8,600 222,525
Sykes Enterprises...................... 3,200 (a) 91,200
Veritas Software....................... 5,000 (a) 168,125
_______
2,340,299
_______
Capital Spending_15.3% AVX........ 10,200 228,225
Altera...................... 4,000 (a) 198,250
Applied Materials...................... 4,600 (a) 252,425
Case.. 3,500 193,812
Cummins Engine......................... 2,700 151,538
Danaher................................ 5,600 252,700
Dell Computer.......................... 8,200 (a) 686,238
Global Industrial Technologies......... 11,600 (a) 211,700
Komag.................................. 5,700 (a) 161,025
Linear Technology...................... 5,100 256,275
Maxim Integrated Products.............. 5,400 (a) 285,525
Novellus Systems....................... 2,700 (a) 155,925
Sun Microsystems....................... 5,000 (a) 144,063
3Com ..................................... 2,500 (a) 72,500
Tellabs ..................................... 7,600 (a) 303,050
Timken ..................................... 4,100 238,313
United Waste Systems................... 4,900 (a) 165,375
Waters ..................................... 8,400 (a) 248,850
_______
4,205,789
_______
Consumer Cyclical_14.2% Applebee's International...... 4,200 98,175
Bowne & Co............................. 7,800 206,700

DREYFUS DISCIPLINED MIDCAP STOCK FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ ______
Consumer Cyclical (continued) Callaway Golf...... 7,900 $ 236,013
Carson Pirie Scott..................... 4,400 (a) 130,900
Furniture Brands International......... 10,200 (a) 150,450
Great Atlantic & Pacific Tea........... 8,900 221,387
HFS ..................................... 4,700 (a) 278,475
Harley-Davidson........................ 3,700 146,150
IHOP ..................................... 4,800 (a) 126,000
King World Productions................. 2,000 (a) 73,000
Lear ..................................... 1,000 (a) 35,750
Leggett & Platt........................ 8,000 278,000
Longs Drug Stores...................... 8,100 204,525
McClatchy Newspapers, Cl. A............ 1,800 45,225
Mercantile Stores...................... 3,500 172,375
Morton International................... 4,000 167,500
Nautica Enterprises.................... 5,700 (a) 126,113
PACCAR................................. 900 62,887
Pulitzer Publishing.................... 3,100 139,112
Ross Stores............................ 10,100 284,063
Saks Holdings.......................... 9,800 (a) 187,425
TJX Cos..................................... 5,500 259,875
V.F..................................... 2,100 151,463
Washington Post, Cl. B................. 300 107,775
_______
3,889,338
_______
Consumer Staples_4.8% Alberto-Culver, Cl. B..................................... 5,500 160,188
DEKALB Genetics, Cl. B................. 4,800 302,400
First Brands........................... 7,200 182,700
Hormel Foods........................... 8,700 213,150
IBP..................................... 4,400 104,500
Interstate Bakeries.................... 4,900 254,188
Lancaster Colony....................... 2,500 102,813
_______
1,319,939
_______
Energy_8.5% Brooklyn Union Gas............... 5,500 150,562
Chesapeake Energy...................... 10,000 (a) 151,250
Cliffs Drilling........................ 2,400 (a) 146,400
Helmerich & Payne...................... 4,100 195,775
MAPCO...................... 4,400 130,350
National Fuel Gas...................... 6,200 258,075
Noble Drilling......................... 10,700 (a) 185,913
Parker & Parsley Petroleum............. 3,700 122,100
Reading & Bates........................ 10,900 (a) 243,888
Rowan Cos.............................. 8,900 (a) 160,200
Tosco...................... 7,800 231,075
Williams Cos........................... 8,000 351,000
_______
2,326,588
_______
Finance_16.5% American Bankers Insurance Group 5,600 296,100
American National Insurance............ 2,100 162,750
Barnett Banks.......................... 7,100 347,013

DREYFUS DISCIPLINED MIDCAP STOCK FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ ______
Finance (continued) Bear Stearns Cos......... 8,500 $ 259,250
City National.......................... 15,800 361,425
Commercial Federal..................... 6,100 204,350
Cullen Frost Bankers................... 6,700 234,500
Donaldson, Lufkin & Jenrette........... 4,600 198,375
FIRSTPLUS Financial Group.............. 2,400 (a) 53,100
First Virginia Banks................... 6,000 310,500
Lehman Brothers Holdings............... 6,600 223,575
Old Republic International............. 6,800 192,100
PMI Group.............................. 4,400 224,950
Pacific Century Financial.............. 6,200 265,050
ReliaStar Financial.................... 4,000 242,000
SouthTrust............................. 8,400 313,950
State Street........................... 3,100 244,125
T. Rowe Price Associates............... 4,600 212,750
Torchmark.............................. 2,800 173,950
_______
4,519,813
_______
Health Care_7.4% Ballard Medical Products.... 11,300 214,700
Biogen........................... 5,800 (a) 185,600
Biomet........................... 6,800 (a) 103,275
DePuy........................... 7,500 (a) 157,500
Dura Pharmaceuticals................... 4,600 (a) 133,400
Elan A.D.S............................. 7,400 (a) 251,600
Guidant................................ 2,900 197,925
Jones Medical Industries............... 3,100 109,275
Medtronic.............................. 2,600 180,050
Oxford Health Plans.................... 2,300 (a) 151,512
Serologicals........................... 5,200 (a) 83,850
Watson Pharmaceuticals................. 7,000 (a) 250,250
_______
2,018,937
_______
Mining and Metals_1.6% Alumax................ 1,500 (a) 54,750
Ashland Coal........................... 1,500 39,937
Belden......................... 8,000 246,000
Cleveland-Cliffs....................... 1,500 63,562
Cyprus Amax Minerals................... 1,600 35,800
_______
440,049
_______
Transportation_1.4% Comair Holdings.......... 7,900 166,887
Illinois Central....................... 6,600 219,450
_______
386,337
_______
Utilities_11.7% AES.......................... 8,600 (a) 561,150
Baltimore Gas & Electric............... 10,000 255,000
Boston Edison.......................... 12,000 306,000
Century Telephone Enterprises.......... 7,300 218,088
Commonwealth Energy Systems............ 15,400 336,875
DQE.......................... 7,600 209,950
GPU.......................... 10,500 338,625

DREYFUS DISCIPLINED MIDCAP STOCK FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ ______
Utilities (continued) Illinova............... 10,500 $ 236,250
PECO Energy............................ 6,900 136,275
Pinnacle West Capital.................. 9,700 276,450
Tel-Save Holdings...................... 2,800 39,200
TheraTech.............................. 5,100 47,175
United States Cellular................. 9,700 (a) 242,500
_______
3,203,538
_______
TOTAL COMMON STOCKS
(cost $ 23,243,997).................. $26,586,888
=======
Principal
Short-Term Investments_3.0% Amount
_______
Repurchase Agreements: Goldman, Sachs & Company, Tri-Party Repurchase
Agreement, 5.375% dated 4/30/1997 to be
repurchased at $835,269 on 5/1/1997,
collateralized by $859,000 U.S. Treasury Index
Inflation Notes, 3.375% due 1/15/2007
(cost $835,144) $ 835,144 $ 835,144
=======
TOTAL INVESTMENTS (cost $24,079,141)........................................ 100.0% $27,422,032
==== =======
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (.0%) $ (4,994)
==== =======
NET ASSETS.................................................................. 100.0% $27,417,038
==== =======
Notes to Statement of Investments:
(a) Non-income producing.
SEE NOTES TO FINANCIAL STATEMENTS.

DREYFUS DISCIPLINED MIDCAP STOCK FUND
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1997 (UNAUDITED)
Cost Value
_______ _______
ASSETS: Investments in securities_See Statement of Investments $24,079,141 $27,422,032
Cash....................................... 1,238
Receivable for investment securities sold.. 161,171
Dividends and interest receivable.......... 35,238
Receivable for shares of Capital Stock subscribed 10,000
_______
27,629,679
_______
LIABILITIES: Due to The Dreyfus Corporation and affiliates 24,313
Due to Distributor......................... 84
Payable for investment securities purchased 165,372
Payable for shares of Capital Stock redeemed 22,828
Directors' fees payable.................... 44
_______
212,641
_______
NET ASSETS.................................................................. $27,417,038
=======
REPRESENTED BY: Paid-in capital............................ $23,290,025
Accumulated undistributed investment income_net 37,328
Accumulated net realized gain (loss) on investments 746,794
Accumulated net unrealized appreciation (depreciation)
on investments_Note 3....................... 3,342,891
_______
NET ASSETS.................................................................. $27,417,038
=======
NET ASSET VALUE PER SHARE
__________________________________
Institutional Retail
Shares Shares
______________ ______________
Net Assets.................................................................. $3,303,893 $24,113,145
Shares Outstanding.......................................................... 251,425 1,834,044
NET ASSET VALUE PER SHARE................................................... $13.14 $13.15
==== ====
SEE NOTES TO FINANCIAL STATEMENTS.

DREYFUS DISCIPLINED MIDCAP STOCK FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
INVESTMENT INCOME
INCOME: Cash dividends............................. $ 148,181
Interest................................... 22,792
______
Total Income......................... $ 170,973
EXPENSES: Management fee_Note 2(a)................... 125,670
Distribution fees (Institutional Shares)_Note 2(b) 4,274
Directors' fees and expenses_Note 2(c)..... 265
______
Total Expenses....................... 130,209
______
INVESTMENT INCOME_NET....................................................... 40,764
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 3:
Net realized gain (loss) on investments.... $ 747,790
Net unrealized appreciation (depreciation) on investments 453,357
______
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 1,201,147
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,241,911
======
SEE NOTES TO FINANCIAL STATEMENTS.

DREYFUS DISCIPLINED MIDCAP STOCK FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996*
_________ _________
OPERATIONS:
Investment income_net................................................. $ 40,764 $ 71,325
Net realized gain (loss) on investments............................... 747,790 2,762,632
Net unrealized appreciation (depreciation) on investments............. 453,357 580,279
_______ _______
Net Increase (Decrease) in Net Assets Resulting from Operations. 1,241,911 3,414,236
_______ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Institutional shares................................................ (888) (13,773)
Retail shares....................................................... (18,442) (71,135)
Net realized gain on investments:
Institutional shares................................................ (493,147) (82,775)
Retail shares....................................................... (2,268,268) (513,426)
_______ _______
Total Dividends................................................. (2,780,745) (681,109)
_______ _______
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Institutional shares................................................ 704,937 10,484,621
Retail shares....................................................... 12,157,062 14,547,685
Dividends reinvested:
Institutional shares................................................ 477,146 94,778
Retail shares....................................................... 2,067,914 560,917
Cost of shares redeemed:
Institutional shares................................................ (810,951) (9,412,409)
Retail shares....................................................... (4,488,908) (13,705,922)
_______ _______
Increase (Decrease) in Net Assets from Capital Stock Transactions 10,107,200 2,569,670
_______ _______
Total Increase (Decrease) in Net Assets....................... 8,568,366 5,302,797
NET ASSETS:
Beginning of Period................................................... 18,848,672 13,545,875
_______ _______
End of Period......................................................... $ 27,417,038 $ 18,848,672
======= =======
Undistributed investment income_net....................................... $ 37,328 $ 15,894
_______ _______
CAPITAL SHARE TRANSACTIONS: Shares Shares
_______ _______
Institutional Shares
___________
Shares sold........................................................... 51,280 790,094
Shares issued for dividends reinvested................................ 37,504 7,750
Shares redeemed....................................................... (60,571) (693,523)
_______ _______
Net Increase (Decrease) in Shares Outstanding................... 28,213 104,321
======= =======
Retail Shares
_______
Shares sold........................................................... 902,400 1,093,321
Shares issued for dividends reinvested................................ 162,591 46,164
Shares redeemed....................................................... (320,250) (1,068,009)
_______ _______
Net Increase (Decrease) in Shares Outstanding................... 744,741 71,476
======= =======
*Effective July 15, 1996, Investor Class shares were redesignated as
Institutional shares and Class R shares were redesignated as Retail shares.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS DISCIPLINED MIDCAP STOCK FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating 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.
Institutional Shares
___________________________________________________
Six Months Ended
April 30, 1997 Year Ended October 31,
________________________________
PER SHARE DATA: (Unaudited) 1996(1) 1995 1994(2,3)
____________ ____ ____ ____
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $14.36 $11.92 $ 9.75 $10.00
____ ____ ____ ____
Investment Operations:
Investment income_net............................. .01 .04 .09 .05
Net realized and unrealized gain (loss)
on investments.................................. .91 2.98 2.17 (.26)
____ ____ ____ ____
Total from Investment Operations.................. .92 3.02 2.26 (.21)
____ ____ ____ ____
Distributions:
Dividends from investment income_net.............. _ (.05) (.09) (.04)
Dividends from net realized gain on investments... (2.14) (.53) _ _
____ ____ ____ ____
Total Distributions............................... (2.14) (.58) (.09) (.04)
____ ____ ____ ____
Net asset value, end of period.................... $13.14 $14.36 $11.92 $ 9.75
==== ==== ==== ====
TOTAL INVESTMENT RETURN............................... 6.89%(4) 26.29% 23.39% (2.06%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... .67%(4) 1.35% 1.35% .80%(4,5)
Ratio of net investment income
to average net assets........................... .06%(4) .28% .86% .42%(4,5)
Portfolio Turnover Rate........................... 26.05%(4) 90.93% 71.00% 83.00%(4)
Average commission rate paid (6).................. $.0394 $.0390 _ _
Net Assets, end of period (000's Omitted)......... $3,304 $3,205 $1,417 $54
(1) Effective July 15, 1996, Investor Class shares were redesignated as Institutional
shares.
(2) The Fund commenced selling Investor shares on April 6,
1994.
(3) 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 Fund's
investment manager.
(4) Not annualized.
(5) These ratios have been restated to reflect current year's
presentation.
(6) For fiscal years beginning on November 1, 1995, the Fund is required to disclose its average commission rate paid per share
for purchases and sales of investment securities.
SEE NOTES TO FINANCIAL STATEMENTS.

DREYFUS DISCIPLINED MIDCAP STOCK FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating 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.
Retail Shares
__________________________________________________
Six Months Ended
April 30, 1997 Year Ended October 31,
________________________________
PER SHARE DATA: (Unaudited) 1996(1) 1995 1994(2,3)
_________ ____ ____ ____
Net asset value, beginning of period.............. $14.36 $11.92 $ 9.76 $10.00
____ ____ ____ ____
Investment Operations:
Investment income_net............................. .02 .07 .12 .09(4)
Net realized and unrealized gain (loss)
on investments.................................. .93 2.98 2.16 (.27)
____ ____ ____ ____
Total from Investment Operations.................. .95 3.05 2.28 (.18)
____ ____ ____ ____
Distributions:
Dividends from investment income_net.............. (.02) (.08) (.12) (.06)
Dividends from net realized gain on investments... (2.14) (.53) _ _
____ ____ ____ ____
Total Distributions............................... (2.16) (.61) (.12) (.06)
____ ____ ____ ____
Net asset value, end of period.................... $13.15 $14.36 $11.92 $ 9.76
==== ==== ==== ====
TOTAL INVESTMENT RETURN............................... 7.08%(5) 26.61% 23.57% (1.77%)(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... .55%(5) 1.10% 1.10% 1.13%(5,6,7)
Ratio of net investment income
to average net assets........................... .20%(5) .57% 1.11% .95%(5,6)
Portfolio Turnover Rate........................... 26.05%(5) 90.93% 71.00% 83.00%(5)
Average commission rate paid(8)................... $.0394 $.0390 ._ ._
Net Assets, end of period (000's Omitted)......... $24,113 $15,644 $12,129 $18,169
(1) Effective July 15, 1996, Class R shares were redesignated as Retail shares.
(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 Fund's investment manager.
(3) The Fund commenced operations on November 12, 1993. Any shares outstanding prior to April 4, 1994 were designated as Trust
shares. Effective October 17, 1994, the Fund's Trust shares were redesignated
as Class R shares.
(4) Net investment income before reimbursement of expenses by investment adviser for the period ended October 31, 1994 was $.06.
(5) Not annualized.
(6) These ratios have been restated to reflect current year's presentation.
(7) Net annualized expense ratio before voluntary reimbursement of expenses by the investment adviser for the period ended
October 31, 1994 was 1.48%.
(8) For fiscal years beginning on November 1, 1995, the Fund is required to disclose its average commission rate paid per share
for purchases and sales of investment securities.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS DISCIPLINED MIDCAP STOCK FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Disciplined Midcap Stock Fund (the "Fund") is a series of The
Dreyfus/Laurel Funds, Inc. (the "Company") which 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 Fund. The Fund's investment objective is to seek
total investment returns (including capital appreciation and income) which
consistently outperform the Standard & Poor's 400 Midcap Index. 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") is the distributor
of the Fund's shares. The Fund is authorized to issue 82 million of $.001 par
value Capital Stock. The Fund currently offers two classes of shares:
Institutional (22 million shares authorized) and Retail (60 million shares
authorized). Institutional shares are offered only to clients of banks,
securities brokers or dealers and other financial institutions (collectively,
Service Agents) that have entered into selling agreements with the
Distributor and Retail shares are offered to any investor. Other differences
between the two classes include the services offered to and the expenses
borne by each class.
Investment income, net of expenses (other than class specific expenses),
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.
The Fund's 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.
(a) Portfolio valuation: Investments in securities (including 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. 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.
(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) Repurchase agreements: The Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Fund,
through its custodian and sub-custodian, takes possession of an underlying
debt obligation subject to an obligation of the seller to repurchase, and the
Fund to resell, the obligation at an agreed-upon price and time, thereby
determining the yield during the Fund's holding period. This arrangement
results in a fixed rate of return that is not subject to market fluctuations
during the Fund's holding period. The value of the collateral is at least
equal, at all times, to the total amount of the repurchase obligation,
including interest. In the event of a counterparty default, the Fund has the
right to use the collateral to offset losses incurred. There is potential
loss to the Fund in the event the Fund is delayed or prevented from
exercising its rights to dispose of the collateral securities, including the
risk of a possible decline in the value of the underlying securities during
the period while the Fund seeks to assert its rights. The Manager, acting
under the supervision of the Board of Directors, reviews the value of the
collateral and the creditworthiness of those banks and dealers with which the
Fund enters into repurchase agreements to evaluate potential risks.

DREYFUS DISCIPLINED MIDCAP STOCK FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(d) Distributions to shareholders: Dividends are recorded on the
ex-dividend date. Dividends from investment income-net are
declared and paid on a quarterly basis. 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 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 Fund not to distribute such gain.
On May 5, 1997, the Board of Directors declared a dividend from net
investment income to the Retail shares in the amount of $.009 per share
payable on May 6, 1997 to shareholders of record on May 5, 1997.
(e) 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.
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 and/or affiliates 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 1.10% 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, commitment fees,
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) Distribution plan: The Fund has adopted a distribution plan (the
"Plan") pursuant to Rule 12b-1 under the 1940 Act relating to its
Institutional shares. Under the Plan, the Fund may pay annually up to .25% of
the value of the average daily net assets attributable to its Institutional
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
Institutional shares. The Retail shares bear no distribution fee. During the
period ended April 30, 1997, the distribution fee for the Institutional
shares was $4,274.
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 Company and who have no
direct or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan.
(c) 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 meeting 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. The Chairman of
the Board receives an additional annual fee of $25,000 per year. These fees an
d expenses are charged and allocated to each series based on net assets.

DREYFUS DISCIPLINED MIDCAP STOCK FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended April 30, 1997,
amounted to $12,524,739 and $5,796,126, respectively.
At April 30, 1997, accumulated net unrealized appreciation on investments
was $3,342,891, consisting of $4,207,561 gross unrealized appreciation and
$864,670 gross unrealized depreciation.
At April 30, 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).
NOTE 4_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. For the period ended April
30, 1997, the Fund did not borrow under the Facility.

Registration Mark
[Dreyfus lion "d" logo]
DREYFUS DISCIPLINED
MIDCAP STOCK FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 330/730SA974
Registration Mark
[Dreyfus logo]
Disciplined Midcap
Stock Fund
Semi-Annual
Report
April 30, 1997

<PAGE>
Dreyfus
Disciplined
Stock Fund
Semi-Annual
Report

April 30, 1997

<PAGE>

Dreyfus Disciplined Stock Fund
- -------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:

We are pleased to report the performance of Dreyfus Disciplined Stock Fund
for its six-month reporting period ended April 30, 1997, as shown in the
following table:

<TABLE>
<CAPTION>
Total Return*
-------------

<S> <C>
Institutional Shares 13.14%
Retail Shares 13.23%
Standard and Poor's 500 Composite Stock Price Index 14.71%

</TABLE>

Economic Review
The Federal Reserve Board (the "Fed") decision in March to tighten credit
already has been vindicated by the reported 5.6% rise in first quarter real
Gross Domestic Product and by the drop to 4.9% in April's unemployment rate. The
economic debate is now splintered into 1) those who believe that softer incoming
economic data for the second quarter can keep Fed policy on hold, and 2) those
who believe the economy is fundamentally too strong, warranting higher rates
irrespective of short-term economic fluctuations. Views on the risk of inflation
clearly distinguish these camps. To date, a strong dollar has helped mute price
inflation, preventing a follow-through from rising wages. Market interest rates
are likewise treading water until the policy outlook becomes clearer. We believe
that some tightening is likely in coming months and this should temper overall
growth to sustain a long business cycle.

First quarter real GDP grew an annualized 5.6% in the quarter and by 4.0%
compared to the first quarter of 1996, both growth rates unseen since 1987/88.
Virtually every major economic sector contributed positively to growth. In the
early evidence for the second quarter, rising new orders portend continued
strength in exports and capital spending. By contrast, retail spending weakened
in April and the housing sector slowed. However, real disposable income grew
3.8% in the last year, a pace which, if sustained, should support the upward
cycle in consumer spending, while mortgage rates have not yet risen
substantially.

Alongside the recent evidence of slowing consumer demand is the report of the
drop in unemployment in April. With this, the labor market is becoming extremely
tight. This is raising fears of future inflation even though actual inflation
remains modest and despite signs of a slower second quarter economy. Hence, bond
yields remain near their recent highs, largely ignoring the bullish news of a
Washington agreement to balance the Federal budget. Short-term rates likewise
contain built-in expectations for another Fed rate hike in coming weeks.

If inflation should stay subdued, then the larger risk from the combination
of slower economic growth and a tightening labor market is to corporate profits.
Through the first quarter, however, profits continued to surprise on the upside,
and we expect overall profits to post modest gains in 1997.

The economy has now embarked on the seventh year for this business cycle.
Economic growth is proving stronger than seen since the late 1980s while
inflation is still subdued. More Fed tightening would indicate a willingness to
err on the side of caution and would thus help sustain the expansion.

<PAGE>

Market Overview
The six-month fiscal period ended April 30, 1997 was one of the most volatile
in recent stock market history. While the underlying U.S. economy continued to
grow with little inflation, investor concerns over the outlook for interest
rates and corporate profits caused major shifts in market sentiment, and hence
in stock prices.

Early in the half-year period, the dominant market trend was strong, despite
nervousness about the solidity of economic growth and the possible reactions of
the Fed. The trend picked up steam during the winter, with the Dow Jones
Industrial Average breaking the 7000 mark in mid-February, and then hitting a
new high of 7085.16 in mid-March. However, when the Fed on March 25, in a widely
anticipated move, increased its overnight lending rate by one quarter of a
percentage point to cool off the economy and "irrational exuberance" in the
equity markets, the markets promptly obliged. Between mid-March and mid-April
the DJIA dropped 9.8%.

By then, however, a stream of strong quarterly profit reports began issuing
from major corporations, and the latest Government numbers on inflation appeared
reassuring. Moreover, underlying economic expansion continued, but at a pace
that appeared sustainable.

The market's reaction was to resume the upward trend of earlier in the year,
breaking the 7000 level once again on April 30.

Clearly one of the engines driving the market is the profit outlook.
According to two companies that monitor profit reports, I.B.E.S. and First Call,
overall first-quarter corporate profits for most companies in The Standard &
Poor's 500 Index ran about 3.7% above forecasts. At the same time, increases in
wages and compensation during that same period were modest.

Big, heavily capitalized and well-established companies were the chief
beneficiaries. For the six months under review, the blue chip DJIA gained
17.42%, the Standard & Poor's 500 Index rose 14.71%, the Nasdaq was up only
3.23% and the Russell 2000 Index of small-cap stocks only 1.61%. The mid- and
small-cap stocks enjoyed a revival along with the general market in late April
and the first few days of May.

The latest trend could, of course, be affected by a Fed decision to raise
interest rates once again. However, there is no denying the resilience displayed
by the equity markets, especially the larger issues, in the closing days of the
Fund's latest fiscal period.

Portfolio Focus
The predictive power of our quantitative valuation model lessened in the
January--March time period; however, we believe it is important to adhere to
our disciplined investment process and to continue to emphasize stocks that are
undervalued and/or have improving earning momentum. Attempting to manage
investment risk, we continue to implement the long-standing policy of being
sector- and industry-neutral and fully invested. At the end of the period, the
Fund's portfolio included 182 names and was highly diversified with the top ten
names accounting for only about 20% of assets.

<PAGE>

The five best performing stocks in the six-month period were Microsoft
(+77%), Tosco (+59%), Guidant (+49%), Oxford Health Plans (+45%), and Coca-Cola
Enterprises (+42%).

We are also pleased to report that the Disciplined Stock Fund's Retail shares
have been awarded a Five Star Overall Rating by Morningstar. The Morningstar
Overall Rating reflects the Fund's historical risk-adjusted performance among
1,929 Domestic Equity Funds covering a five-year track record as of April 30,
1997.***

We appreciate your investment in the Dreyfus Disciplined Stock Fund.

Sincerely,

Bert J. Mullins
Portfolio Manager

May 14, 1997
New York, N.Y.

* Total return includes reinvestment of dividends and any capital gains paid.
** 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.
*** SOURCE: MORNINGSTAR, INC.--Morningstar proprietary ratings reflect
risk-adjusted performance through 4/30/97. The ratings
are subject to change every month. Morningstar ratings are calculated
from the Fund's three-, five-, and ten-year returns (with
fee adjustments) in excess of 90-day Treasury bill returns, and a risk
factor that reflects fund performance below 90-day T-bill
returns. The one-year rating is calculated using the same methodology,
but is not a component of the overall rating. The Dreyfus
Disciplined Stock Fund's Retail shares received 5 stars for both the
5- and 3-year periods. It was rated among 1,101 and 1,929
domestic equity funds for the 5- and 3-year periods, respectively. For
the 1-year period, the Fund received 5 stars and was rated
among 3,081 domestic equity funds. Ten percent of the funds in a rating
category receive five stars. Past performance is no guarantee of
future results and share price and investment return fluctuate.

Dreyfus Disciplined Stock Fund
- -------------------------------------------------------------------------------
Statement of Investments April 30, 1997 (Unaudited)
Common Stocks--94.7% Shares Value
- ------------------------------------------------------------------------------- ------ --------------
<S> <C> <C> <C>
Basic Industries--4.6% Dow Chemical............................. 78,900 $ 6,696,638
du Pont (El) de Nemours.................. 103,700 11,005,162
Fort Howard.............................. 118,100(a) 4,067,069
Goodrich (B.F.).......................... 82,400 3,285,700
Kimberly-Clark........................... 178,300 9,137,875
Lubrizol................................. 64,800 2,122,167
Mead..................................... 63,100 3,541,488
Oakwood Homes............................ 75,800 1,534,950
Praxair.................................. 136,100 7,026,162
Rohm & Haas.............................. 44,500 3,704,625
Sealed Air............................... 41,400(a) 1,914,750
--------------
54,036,586
--------------
Capital Spending--21.4% AGCO..................................... 91,800 2,375,325
Adaptec.................................. 95,900(a) 3,548,300
Applied Materials........................ 33,100(a) 1,816,363
Ascend Communications.................... 6,200(a) 277,063
Atmel.................................... 82,500(a) 2,052,188
Avnet.................................... 43,700 2,660,237
BMC Software............................. 3,300(a) 143,137
Boeing................................... 72,537 7,153,962
Cadence Design System.................... 67,700(a) 2,166,400
Case..................................... 73,600 4,075,600
Caterpillar.............................. 96,800 8,615,200
Cisco Systems............................ 109,600(a) 5,671,800
Compaq Computer.......................... 95,900(a) 8,187,463
Computer Associates International........ 105,400 5,480,800
Dell Computer............................ 44,500(a) 3,724,094
Dover.................................... 51,600 2,734,800
EMC...................................... 84,700(a) 3,080,962
General Electric......................... 230,700 25,578,862
General Motors, Cl. H.................... 97,400 5,235,250
General Signal........................... 85,800 3,367,650
HBO & Co................................. 51,000 2,728,500
Harnischfeger Industries................. 93,500 3,891,938
Hewlett-Packard.......................... 115,100 6,042,750
Illinois Tool Works...................... 53,800 4,915,975
Ingersoll-Rand........................... 78,900 3,875,962
Intel.................................... 163,000 24,959,375
International Business Machines.......... 90,900 14,612,175
KLA Instruments.......................... 15,600(a) 695,760
Lockheed Martin.......................... 43,227 3,868,817
Maxim Integrated Products................ 43,800(a) 2,315,925
Microsoft................................ 245,700(a) 29,852,550
Omnicom Group............................ 60,000 3,180,000
Oracle................................... 164,000(a) 6,519,000
PPG Industries........................... 82,500 4,485,937
Pitney Bowes............................. 73,500 4,704,000

<PAGE>
Dreyfus Disciplined Stock Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------- ------ ------------
Capital Spending (continued) Reynolds & Reynolds, Cl. A............... 125,500 $ 2,604,125
Rockwell International................... 39,300 2,613,450
SGS--THOMSON N.V......................... 24,000(a) 1,881,000
Seagate Technology....................... 67,400(a) 3,091,975
Sterling Commerce........................ 75,900(a) 1,963,912
Stratus Computer......................... 70,300(a) 2,732,913
Sun Microsystems......................... 70,200(a) 2,022,637
Tellabs.................................. 139,600(a) 5,566,550
Thermo Electron.......................... 98,800(a) 3,408,600
United States Filter..................... 70,300(a) 2,135,362
United Technologies...................... 42,200 3,191,375
Xerox.................................... 72,800 4,477,200
--------------
250,283,219
--------------

Consumer Cyclical--11.1% American Greetings, Cl. A................ 130,800 4,185,600
Boston Chicken........................... 90,700(a) 2,165,463
Clear Channel Communications............. 51,000(a) 2,473,500
Cox Communications, Cl. A................ 102,700(a) 2,002,650
Dayton Hudson............................ 85,200 3,834,000
Disney (Walt)............................ 160,571 13,166,822
Federated Department Stores.............. 173,900(a) 5,912,600
Ford Motor............................... 306,600 10,654,350
Gannett.................................. 39,800 3,472,550
Gap...................................... 208,300 6,639,563
General Motors........................... 135,200 7,824,700
Goodyear Tire & Rubber................... 49,300 2,594,412
Lear..................................... 96,300(a) 3,442,725
Liz Claiborne............................ 67,400 3,049,850
Marriott International................... 85,700 4,734,925
NIKE, Cl. B.............................. 94,900 5,338,125
New York Times, Cl. A.................... 164,700 7,123,275
Nokia, ADS............................... 64,400 4,161,850
Outback Steakhouse....................... 80,500(a) 1,579,813
Safeway.................................. 153,000(a) 6,827,625
Sears, Roebuck........................... 172,700 8,289,600
TJX Cos.................................. 147,500 6,969,375
Tandy.................................... 76,900 4,027,637
Wal-Mart Stores.......................... 325,100 9,184,075
--------------
129,655,085
--------------

Consumer Staples--13.5% Avon Products............................ 96,200 5,928,325
Campbell Soup............................ 132,300 6,763,838
Coca-Cola................................ 469,700 29,884,662
Coca-Cola Enterprises.................... 60,000 3,622,500
Colgate-Palmolive........................ 55,300 6,138,300
ConAgra.................................. 125,700 7,243,463
Dole Food................................ 89,000 3,626,750
Eastman Kodak............................ 56,000 4,676,000

<PAGE>
Dreyfus Disciplined Stock Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Common Stocks (continued) Shares Value
- -------------------------------------------------------------------------------- -------- ------------
Consumer Staples (continued) First Brands............................. 84,100 $ 2,134,037
Gillette................................. 125,300 10,650,500
Hershey Foods............................ 68,000 3,689,000
Johnson & Johnson........................ 202,800 12,421,500
PepsiCo.................................. 53,200 1,831,942
Philip Morris Cos........................ 515,500 20,297,813
Procter & Gamble......................... 123,700 15,555,275
Ralston-Purina Group..................... 61,700 5,082,537
Sara Lee................................. 86,200 3,620,400
Seagram.................................. 98,500 3,767,625
Unilever N.V............................. 58,800 11,539,500
------------
158,473,967
------------

Energy--8.7% British Petroleum, ADS................... 37,035 5,096,942
Chesapeake Energy........................ 187,800(a) 2,840,475
Chevron.................................. 166,100 11,377,850
Coastal.................................. 89,600 4,256,000
Columbia Gas System...................... 65,900 4,077,563
Exxon.................................... 438,900 24,852,712
Halliburton.............................. 47,800 3,375,875
Kerr-McGee............................... 64,200 3,876,075
Noble Drilling........................... 128,300(a) 2,229,213
Phillips Petroleum....................... 160,500 6,319,687
Royal Dutch Petroleum.................... 110,100 19,845,525
Sonat.................................... 49,700 2,839,113
Tosco.................................... 138,100 4,091,212
Union Pacific Resources Group............ 106,900 2,899,663
Williams Cos............................. 91,800 4,027,725
------------
102,005,630
------------

Health Care--9.3% Amgen.................................... 101,600(a) 5,982,534
Becton, Dickinson........................ 111,900 5,147,400
Biogen................................... 41,800(a) 1,337,600
Boston Scientific........................ 47,200(a) 2,277,400
Bristol-Myers Squibb..................... 113,100 7,408,050
Elan, ADS................................ 80,100(a) 2,723,400
Guidant.................................. 38,100 2,600,325
Health Management Association............ 95,800(a) 2,562,650
Lilly (Eli).............................. 150,000 13,181,250
Merck & Co............................... 260,000 23,530,000
Oxford Health Plans...................... 59,300(a) 3,906,387
Pfizer................................... 146,650 14,078,400
PhyCor................................... 72,500(a) 1,930,313
Schering-Plough.......................... 98,200 7,856,000
SmithKline Beecham, ADS.................. 57,300 4,619,812
Tenet Healthcare......................... 167,061(a) 4,343,586
Teva Pharmicuetical Industries, ADR...... 47,800 2,425,850
United Healthcare........................ 71,100 3,457,237
------------
109,368,194
------------

<PAGE>
Dreyfus Disciplined Stock Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Common Stocks (continued) Shares Value
- -------------------------------------------------------------------------------- -------- ------------
Interest Sensitive--14.7% ACE Limited.............................. 60,900 $ 3,654,000
AMBAC.................................... 43,600 2,823,100
Ahmanson (H F) & Co...................... 82,900 3,160,563
Allstate................................. 146,030 9,564,965
Banc One................................. 210,000 8,898,750
BankAmerica.............................. 137,100 16,023,562
BankBoston............................... 85,780 6,240,495
Barnett Banks............................ 78,700 3,846,463
Bear Stearns Cos......................... 189,467 5,778,744
CIGNA.................................... 57,400 8,631,525
Chase Manhattan.......................... 148,040 13,712,205
Fannie Mae............................... 157,100 6,460,737
First Chicago NBD........................ 235,084 13,223,475
General Re............................... 19,100 3,194,475
ITT Hartford Group....................... 61,300 4,566,850
Lehman Brothers Holdings................. 76,000 2,574,500
Merrill Lynch............................ 81,800 7,791,450
Old Republic International............... 85,450 2,413,963
PMI Group................................ 42,700 2,183,037
PNC Bank................................. 250,300 10,293,588
Providian................................ 69,900 4,036,725
Salomon.................................. 133,700 6,685,000
SouthTrust............................... 134,400 5,023,200
Summit Bancorp........................... 96,700 4,496,550
Travelers Group.......................... 223,900 12,398,462
Union Planters........................... 97,300 4,342,012
------------
172,018,396
------------

Mining & Metals--1.4% Alumax................................... 12,700(a) 467,900
Aluminum Co. of America.................. 46,400 3,242,200
Freeport McMoRan Cooper & Gold, Cl. B.... 58,300 1,697,988
Potash Corp. Saskatchewan................ 58,800 4,520,250
Reynolds Metals.......................... 38,600 2,619,975
USX-U.S. Steel Group..................... 145,400 4,252,950
------------
16,801,263
------------

Transportation--1.5% Canadian Pacific......................... 239,900 5,848,420
Continental Airlines, Cl. B.............. 102,300(a) 3,248,025
Delta Air Lines.......................... 32,100 2,957,212
Illinois Central......................... 155,700 5,177,025
------------
17,230,682
------------

Utilities--8.5% Allegheny Power System................... 76,600 2,010,750
Ameritech................................ 219,400 13,410,825
BellSouth................................ 301,900 13,434,550
CMS Energy............................... 44,700 1,419,225
Cable & Wireless, ADS.................... 67,400 1,558,625
Entergy.................................. 166,300 3,887,263

<PAGE>
Dreyfus Disciplined Stock Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Common Stocks (continued) Shares Value
- -------------------------------------------------------------------------------- -------- ------------
Utilities (continued) GPU...................................... 108,200 $ 3,489,450
GTE...................................... 278,900 12,794,537
Illinova................................. 73,000 1,642,500
NYNEX.................................... 195,600 10,122,300
PG & E................................... 189,400 4,545,600
SBC Communications....................... 245,700 13,636,350
Southern................................. 128,700 2,622,263
Telefonos de Mexico, Cl. L, ADR.......... 114,100 4,706,625
Texas Utilities.......................... 201,600 6,804,000
WorldCom................................. 142,700(a) 3,424,800
--------------
99,509,663
--------------
TOTAL COMMON STOCKS
(cost $931,512,907).................... $1,109,382,685
--------------
--------------

Principal
Short-Term Investments--6.0% Amount
- --------------------------------------------------------------------------------- ----------
Repurchase Agreements: Goldman Sachs & Company, Tri-Party Repurchase
Agreement, 5.375% dated 4/30/1997
to be repurchased at $70,651,968 on
5/1/1997, collateralized by $74,710,000
U.S. Treasury Bonds, 6.50% due 11/15/2026
(cost $70,641,421)..................... $70,641,421 $ 70,641,421
--------------
--------------

TOTAL INVESTMENTS (cost $1,002,154,328)......................................... 100.7% $1,180,024,106
------ --------------
------ --------------
LIABILITIES, LESS CASH AND RECEIVABLES.......................................... (.7%) $ (8,343,970)
------ --------------
------ --------------
NET ASSETS...................................................................... 100.0% $1,171,680,136
------ --------------
------ --------------
<FN>
Notes to Statement of Investments:
- -------------------------------------------------------------------------------
(a) Non-income producing.

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus Disciplined Stock Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1997 (Unaudited)

Cost Value
-------------- --------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $1,002,154,328 $1,180,024,106
Cash............................................. 1,589,227
Receivable for investment securities sold........ 15,630,024
Dividends and interest receivable................ 1,319,593
Receivable for shares of Capital Stock subscribed 1,254,050
--------------
1,199,817,000
--------------

LIABILITIES: Due to The Dreyfus Corporation and affiliates.. 792,814
Due to Distributor............................. 1,535
Payable for shares of Capital Stock redeemed... 22,505,137
Payable for investment securities purchased.... 4,835,794
Directors' fees payable........................ 1,584
--------------
28,136,864
--------------

NET ASSETS................................................................... $1,171,680,136
--------------
--------------

REPRESENTED BY: Paid-in capital................................ $ 926,299,277
Accumulated undistributed investment income--net 2,966,014
Accumulated net realized gain (loss) on investments 64,545,067
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3........................ 177,869,778
--------------

NET ASSETS................................................................... $1,171,680,136
--------------
--------------
</TABLE>

NET ASSET VALUE PER SHARE
-------------------------
<TABLE>
<CAPTION>
Institutional Retail
Shares Shares
------------- --------------
<S> <C> <C>
Net Assets................................................................... $67,674,579 $1,104,005,557

Shares Outstanding........................................................... 2,402,803 39,203,379

NET ASSET VALUE PER SHARE.................................................... $28.16 $28.16
------ ------
------ ------
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus Disciplined Stock Fund
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended April 30, 1997 (Unaudited)

INVESTMENT INCOME

<S> <C> <C> <C>
INCOME: Cash dividends (net of $58,683 foreign taxes
withheld at source)............................ $ 8,793,365
Interest......................................... 624,383
-----------
Total Income................................ $ 9,417,748

EXPENSES: Management fee--Note 2(a)......................... 4,467,858
Distribution fees (Institutional shares)--Note 2(b) 42,714
Directors' fees and expenses--Note 2(c).......... 9,500
-----------
Total Expenses.............................. 4,520,072
------------

INVESTMENT INCOME--NET........................................................... 4,897,676

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments.......... $65,079,939
Net unrealized appreciation (depreciation) on investments 49,646,215
-----------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... 114,726,154
------------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $119,623,830
------------
------------
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus Disciplined Stock Fund
- ------------------------------------------------------------------------------
Statement of Changes in Net Assets

Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996*
-------------- -----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................ $ 4,897,676 $ 7,354,549
Net realized gain (loss) on investments.............................. 65,079,939 57,954,936
Net unrealized appreciation (depreciation) on investments............ 49,646,215 67,153,959
-------------- -------------
Net Increase (Decrease) in Net Assets Resulting from Operations.. 119,623,830 132,463,444
-------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional shares............................................... (84,452) (255,975)
Retail shares...................................................... (4,168,241) (6,232,853)
Net realized gain on investments:
Institutional shares............................................... (1,492,485) (515,099)
Retail shares...................................................... (55,278,901) (10,485,121)
-------------- -------------
Total Dividends.................................................. (61,024,079) (17,489,048)
-------------- -------------
CAPITAL STOCK TRANSACTIONS--Note 5:
Net proceeds from shares sold:
Institutional shares............................................... 800,435,170 8,663,919
Retail shares...................................................... 419,672,391 528,257,385
Dividends reinvested:
Institutional shares............................................... 1,504,051 604,405
Retail shares...................................................... 52,589,984 14,311,078
Cost of shares redeemed:
Institutional shares............................................... (760,556,635) (23,996,494)
Retail shares...................................................... (230,027,076) (228,187,217)
-------------- -------------
Increase (Decrease) in Net Assets from Capital Stock Transactions 283,617,885 299,653,076
-------------- -------------
Total Increase (Decrease) in Net Assets........................ 342,217,636 414,627,472
NET ASSETS:
Beginning of Period.................................................. 829,462,500 414,835,028
-------------- -------------
End of Period........................................................ $1,171,680,136 $ 829,462,500
-------------- -------------
-------------- -------------

Undistributed investment income--net.................................... $ 2,966,014 $ 2,321,031
-------------- -------------
CAPITAL SHARE TRANSACTIONS--Note 5:
Institutional Shares Shares Shares
--------------------- -------------- -------------
Shares sold.......................................................... 28,804,142 359,313
Shares issued for dividends reinvested............................... 56,129 26,498
Shares redeemed...................................................... (27,275,262) (1,025,776)
-------------- -------------
Net Increase (Decrease) in Shares Outstanding.................... 1,585,009 (639,965)
-------------- -------------
-------------- -------------
Retail Shares
-------------
Shares sold.......................................................... 15,261,226 21,523,328
Shares issued for dividends reinvested............................... 1,963,350 622,751
Shares redeemed...................................................... (8,327,948) (9,160,744)
-------------- -------------
Net Increase (Decrease) in Shares Outstanding.................... 8,896,628 12,985,335
-------------- -------------
-------------- -------------
<FN>
- ---------------------------
*Effective July 15, 1996, Investor Class shares were redesignated as
Institutional shares and Class R shares were redesignated as Retail
shares.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus Disciplined Stock Fund
- -------------------------------------------------------------------------------
Financial Highlights

Institutional Shares
----------------------------------------------------
Six Months Ended Year Ended October 31,
April 30, 1997 -------------------------------
PER SHARE DATA: (Unaudited) 1996(1) 1995 1994(2)(3)
-----------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period................. $26.64 $22.08 $18.54 $17.86
------ ------ ------ ------
Investment Operations:
Investment income--net................................ .09 .24 .28 .16
Net realized and unrealized gain (loss) on investments 3.31 5.11 3.98 .66
------ ------ ------ ------
Total from Investment Operations..................... 3.40 5.35 4.26 .82
------ ------ ------ ------
Distributions:
Dividends from investment income--net................. (.10) (.23) (.25) (.14)
Dividends from net realized gain on investments...... (1.78) (.56) (.47) --
------ ------ ------ ------
Total Distributions.................................. (1.88) (.79) (.72) (.14)
------ ------ ------ ------
Net asset value, end of period....................... $28.16 $26.64 $22.08 $18.54
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN................................. 13.14%(4) 24.84% 23.96% 4.62%(4)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. .57%(4) 1.15% 1.15% .66%(4,5)
Ratio of net investment income
to average net assets............................. .40%(4) 1.01% 1.36% .74%(4,5)
Portfolio Turnover Rate.............................. 33.40%(4) 64.47% 60.00% 106.00%
Average commission rate paid(6)...................... $.0549 $.0485 -- --
Net Assets, end of period (000's Omitted)............ $67,675 $21,783 $32,189 $19,580

<FN>
- --------------
(1) Effective July 15, 1996, Investor Class shares were redesignated as
Institutional shares.
(2) The Fund commenced selling Investor shares on April 6, 1994.
(3) 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 Fund's investment manager.
(4) Not annualized.
(5) These ratios have been restated to reflect current year's presentation.
(6) For fiscal years beginning on November 1, 1995, the Fund is required to
disclose its average commission rate paid per share for purchases and
sales of investment securities.

Retail Shares
-------------------------------------------------------------------
Six Months Ended Year Ended October 31,
April 30, 1997 -----------------------------------------------
PER SHARE DATA: (Unaudited) 1996(1) 1995 1994(2,3) 1993 1992
---------------- ------ ------ -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $26.65 $22.09 $18.54 $18.69 $17.21 $16.40
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net...................... .13 .28 .30 .26(4) .30(5) .27(5)
Net realized and unrealized gain (loss)
on investments.......................... 3.30 5.13 4.02 .25 2.56 1.33
------ ------ ------ ------ ------ ------
Total from Investment Operations........... 3.43 5.41 4.32 .51 2.86 1.60
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net....... (.14) (.29) (.30) (.26) (.31) (.27)
Dividends from net realized gain on investments (1.78) (.56) (.47) (.40) (1.07) (.52)
------ ------ ------ ------ ------ ------
Total Distributions........................ (1.92) (.85) (.77) (.66) (1.38) (.79)
------ ------ ------ ------ ------ ------
Net asset value, end of period............. $28.16 $26.65 $22.09 $18.54 $18.69 $17.21
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------

TOTAL INVESTMENT RETURN....................... 13.23%(6) 25.14% 24.33% 2.82% 17.46% 10.06%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.... .45%(6) .90% .90% .90%(7) .90% .90%
Ratio of net investment income
to average net assets................... .49%(6) 1.23% 1.61% 1.54% 1.82% 1.73%
Portfolio Turnover Rate.................... 33.40%(6) 64.47% 60.00% 106.00% 64.00% 84.00%
Average commission rate paid(8)............ $.0549 $.0485 -- -- -- --
Net Assets, end of period (000's Omitted).. $1,104,005 $807,680 $382,646 $239,069 $92,955 $43,742
<FN>
- -------------------
(1) Effective July 15, 1996, Class R shares were redesignated as Retail shares.
(2) Effective October 17, 1994, the Fund's Trust shares were redesignated Class
R shares.
(3) 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 Fund's investment manager.
(4) Net investment income per share before reimbursement of expenses by the
investment adviser was $.25 for the year ended October 31, 1994.
(5) Net investment income per share before reimbursement of expenses by the
investment adviser were $.24 and $.17, respectively for the years ended
October 31, 1993 and 1992.
(6) Not annualized.
(7) Expense ratio before reimbursement of expenses by the adviser was .96%
for the year ended October 31, 1994.
(8) For fiscal years beginning on November 1, 1995, the Fund is required to
disclose its average commission rate paid per share for purchases
and sales of investment securities.
</TABLE>
See notes to financial statements.

<PAGE>
Dreyfus Disciplined Stock Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Dreyfus Disciplined Stock Fund (the "Fund") is a series of The
Dreyfus/Laurel Funds, Inc. (the "Company") which 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 Fund. The Fund's investment objective is to seek investment
returns (including capital appreciation and income) consistently superior to the
Standard & Poor's 500 Composite Stock Price Index by investing in a broadly
diversified list of equity securities generated by the application of
quantitative security selection and risk control techniques. 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") is the distributor
of the Fund's shares. The Fund is authorized to issue 245 million of $.001 par
value Capital Stock. The Fund currently offers two classes of shares:
Institutional (80 million shares authorized) and Retail (165 million shares
authorized). Retail shares are offered to any investor and Institutional shares
are offered only to clients of banks, securities brokers or dealers and other
financial institutions (collectively, Service Agents) that have entered into
selling agreements with the Distributor. Other differences between the two
classes include the services offered to and the expenses borne by each class.

(a) Portfolio valuation: Investments in securities are valued at the last
sales price on the securities exchange on which such securities are primarily
traded or at the last sales price on the national securities market. Securities
not listed on an exchange or the national securities market, or securities for
which there were no transactions, are valued at the average of the most recent
bid and asked prices. 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.

(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.

<PAGE>

Dreyfus Disciplined Stock Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

offset losses incurred. There is potential loss to the Fund in the event the
Fund is delayed or prevented from exercising its rights to dispose of the
collateral securities, including the risk of a possible decline in the value of
the underlying securities during the period while the Fund seeks to assert its
rights. The Manager, acting under the supervision of the Board of Directors,
reviews the value of the collateral and the creditworthiness of those banks and
dealers with which the Fund enters into repurchase agreements to evaluate
potential risks.

(d) Distributions to shareholders: Dividends are recorded on the
ex-dividend date. Dividends from investment income-net are declared and paid on
a quarterly basis. 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 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 Fund not to distribute
such gain.

On May 5, 1997, the Board of Directors declared dividends from net
investment income for the Institutional shares and Retail shares in the amount
of $.044 per share and $.062 per share, respectively, payable on May 6, 1997 to
shareholders of record on May 5, 1997.

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 and/or affiliates 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 .90% 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, commitment fees, 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) Distribution plan: The Fund has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the 1940 Act relating to its Institutional
shares. Under the Plan, the Fund may pay annually up to .25% of the value of the
average daily net assets attributable to its Institutional 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 Institutional shares. The Retail
shares bear no distribution fee. During the period ended April 30, 1997, the
distribution fee for the Institutional shares was $42,714.

<PAGE>
Dreyfus Disciplined Stock Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(d) Brokerage commissions: During the period ended April 30, 1997, the Fund
incurred total brokerage commissions of $829,748, of which $134,745 was paid to
Dreyfus Investment Services Corporation, a subsidiary of Mellon Bank.

NOTE 3--Securities Transactions:

The aggregate amount of purchase and sales of investment securities,
excluding short-term securities, during the period ended April 30, 1997 amounted
to $513,204,633 and $326,166,509, respectively.

At April 30, 1997, accumulated net unrealized appreciation on investments
was $177,869,778, consisting of $190,492,100 gross unrealized appreciation and
$12,622,322 gross unrealized depreciation.

At April 30, 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).

NOTE 4--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. For the period ended April 30,
1997, the Fund did not borrow under the Facility.

NOTE 5--Acquisition of Common Trust Assets:

On March 22, 1996, the Fund acquired all of the assets of the TBC Pooled
Employee Equity Fund, a trust advised by a subsidiary of Mellon Bank. The
acquisition was accomplished by an exchange of 538,998 Retail shares of the
Fund's Capital Stock for cash, securities and assumption of liabilities of the
trust totaling $13,097,649 which is included in net proceeds from shares sold on
the Statement of Changes in Net Assets.

<PAGE>

[LOGO]
Dreyfus Disciplined Stock Fund
200 Park Avenue
New York, NY 10166

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

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

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

Printed in U.S.A. 328/728SA974

<PAGE>
[LOGO]
Institutional
Government
Money Market Fund
Semi-Annual
Report
April 30, 1997

<PAGE>
Dreyfus Institutional Government Money Market Fund
- ------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:
We are pleased to report the performance for Dreyfus Institutional Government
Money Market Fund for its six-month reporting period ended April 30, 1997. For
the period, your Fund produced an annualized yield of 5.05% and after taking
into account the effect of compounding, the annualized effective yield was
5.16%.*

THE ECONOMY

The U.S. economy just kept advancing over the reporting
period, while inflation remained subdued. The unemployment rate fell to its
lowest level in 24 years, and a surge in tax revenues meant good news for the
Administration's budget reduction program. Overall, the economic news has been
stellar.

The economy grew at a robust 5.6% annual rate during the first quarter,
the best quarter in nine years. Aided by falling energy prices and with no sign
of shortages of raw materials, inflation remained in check. The Commerce
Department's Implicit Price Deflator, a broad measure of inflation, rose for the
same period at a 2.2% pace. On the consumer level, the Consumer Price Index
(CPI) remained below 3%. Excluding volatile food and energy prices, the CPI is
actually trending downward, so far this year running at an annual rate of 2.5%.
Inflation has been further restrained by the strong dollar which has moderated
the price of imports and eased potential strains on domestic production
capacity.

The strong economy has put increasing numbers of people to work. This
tightening of the labor market has been a key factor in the implementation of
monetary policy by the Federal Reserve Board's Open Market Committee (FOMC) .
The unemployment rate has been less than 5.5% since June 1996, the lowest
sustained rate since the late 1980s. The rate fell to 4.9% in April of this
year, its lowest level in 24 years. So far, neither strong economic growth nor
wage increases have resulted in any price pressure at the consumer level.
Through the first quarter (the latest available data), total employment costs
(including wages and benefits) rose about the same as inflation.

Renewed confidence, spurred by increasing job security and low inflation, has
resulted in a surge in consumer spending. In the first quarter of the year,
spending rose 6.4%, almost double the rate of the fourth quarter. The combined
six-month performance was the largest increase in consumer spending over the
past ten years. Retail sales have spurted in the early part of this year as
well; first quarter results were sharply higher than the last quarter of 1996.
Not surprisingly, industrial production has been building momentum over the
reporting period. The latest report on capacity utilization indicated the
highest level in two years. So far, while the potential exists for production
bottlenecks, raw materials prices and worker wage demands have remained modest.

Continued economic growth and the resulting rise in tax revenues have slashed
further the Federal budget deficit. Recent estimates by economists suggest that
the deficit is at its lowest level in twenty-three years. Such good news on the
deficit could make it easier to negotiate the Administration's bipartisan plan
to balance the budget by 2002.

While we seem to be enjoying the best of all
possible economic worlds, the potential for future inflation is what concerns
the Fed. Such concern resulted in the March decision by the Federal Reserve
Board's Open Market Committee, the policy-making arm of the Federal Reserve, to
raise the Federal Funds rate one quarter of a percentage point to 5.50%. (The
Federal Funds rate is the rate of interest banks charge each other for overnight
loans.) The traditional assumption that strong economic growth and low
unemployment will eventually result in rising inflation still drives the Fed's
monetary policy initiatives. Although there was little reported evidence of
incipient inflation, the Fed executed a preemptive move of moderate monetary
restraint in March, perhaps to avoid being forced to act more harshly later.
There is little reason to suspect that the Fed will soon change this policy.

<PAGE>

THE MARKET AND THE PORTFOLIO

Money market yields were stable for most of the reporting period remaining well
above the rate of inflation. The increase in the Federal Funds rate on March 25,
1997 from 5.25% to 5.50% caused a rise in money market yields of all maturities.
This marked the first change in the Federal Funds rate since the Fed lowered the
rate to 5.25% in January 1996.

The Fund invests primarily in Government
Obligations. Throughout the reporting period, the Fund's average maturity was
held steady at approximately 35 days. However, we are currently targeting a
shorter average maturity in anticipation of further increases in interest rates
over the next few months.

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

Laurie Carroll
Portfolio Manager
May 15, 1997
New York, N.Y.

*Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<PAGE>
<TABLE>
<CAPTION>

Dreyfus Institutional Government Money Market Fund
- -------------------------------------------------------------------------------
Statement of Investments April 30, 1997 (Unaudited)
Annualized
Yield on
Date of Principal
U.S. Government Agencies--66.6% Purchase Amount Value
- ------------------------------------------------------------------ ----------- ----------- -------
<S> <C> <C> <C>
Federal Farm Credit Banks, Floating Rate Notes
5/1/97......................................................... 5.30% $ 3,475,000 $ 3,475,000
8/1/97......................................................... 5.35 5,000,000 5,000,000
Federal Home Loan Banks, Discount Notes
7/8/97......................................................... 5.31 6,000,000 5,941,067
7/10/97........................................................ 5.32 6,000,000 5,939,333
7/14/97........................................................ 5.41 10,000,000 9,891,672
9/8/97......................................................... 5.70 10,000,000 9,798,861
Federal Home Loan Banks, Floating Rate Notes
12/26/97....................................................... 5.63 5,000,000 5,000,000
Federal Home Loan Mortgage Corp., Discount Notes
5/2/97......................................................... 5.22 15,000,000 14,997,846
5/16/97........................................................ 5.21 15,000,000 14,967,812
5/30/97........................................................ 5.32 10,000,000 9,957,708
Federal National Mortgage Association, Discount Notes
5/22/97........................................................ 5.31 15,000,000 14,954,063
5/27/97........................................................ 5.29 27,220,000 27,117,687
6/6/97......................................................... 5.34 10,000,000 9,947,300
6/30/97........................................................ 5.44 16,300,000 16,154,400
7/18/97........................................................ 5.55 10,000,000 9,881,267
-------------
TOTAL U.S. GOVERNMENT AGENCIES
(cost $163,024,016)............................................ $ 163,024,016
=============

Repurchase Agreements--33.3%
- ------------------------------------------------------------------
Donaldson, Lufkin & Jenrette Securities Inc.
dated 4/30/97, due 5/1/97 in the amount
of $35,005,226 (fully collateralized by
$2,444,000 U.S. Treasury Bond 12.50% due
8/15/2014, and by $31,476,000 U.S. Treasury
Notes 6.125% to 6.50%, due from 8/31/98 to
5/31/2001, value $35,762,950).................................. 5.37% $35,000,000 $ 35,000,000
Goldman, Sachs & Co.
dated 4/30/97, due 5/1/97 in the amount
of $46,614,516 (fully collateralized by
$49,292,000 U.S. Treasury Bonds, 6.50%, due
11/15/2026, value $47,680,478)................................. 5.38 46,607,557 46,607,557
-------------
TOTAL REPURCHASE AGREEMENTS
(cost $81,607,557)............................................. $ 81,607,557
=============

TOTAL INVESTMENTS
(cost $224,631,573)..................................... 99.9% $244,631,573
====== ============
CASH AND RECEIVABLES (NET) ................................ .1% $ 159,049
====== ============
NET ASSETS.................................................100.0% $244,790,622
====== ============

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

Dreyfus Institutional Government Money Market Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1997 (Unaudited)
Cost Value
-------------- -------------
<S> <C> <C> <C>

ASSETS: Investments in securities--See Statement of Investments
(including Repurchase Agreements of $81,607,557) $244,631,573 $244,631,573
Cash............................................. 5,372
Interest receivable.............................. 215,873
-------------
244,852,818
-------------

LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 30,329
Due to Distributor............................... 31,867
-------------
62,196
-------------

NET ASSETS..................................................................... $244,790,622
=============

REPRESENTED BY: Paid-in capital.................................. $244,800,665
Accumulated net realized gain (loss) on investments (10,043)
-------------

NET ASSETS..................................................................... $244,790,622
=============

SHARES OUTSTANDING
(2 billion shares of $.001 par value Capital Stock authorized)................. 244,800,665

NET ASSET VALUE, offering and redemption price per share....................... $1.00
-----
-----

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

Dreyfus Institutional Government Money Market Fund
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended April 30, 1997 (Unaudited)
<S> <C> <C> <C>
INVESTMENT INCOME

INCOME Interest Income.................................. $7,702,474

EXPENSES: Management fee--Note 2(a)......................... $200,231
Shareholder servicing costs--Note 2(b)............ 216,192
Directors' fees and expenses--Note 2(c)........... 14,413
--------
Total Expenses........................... 430,836

INVESTMENT INCOME--NET........................................................... 7,271,638

NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b)............................... (10,043)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................. $7,261,595
----------
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus Institutional Government Money Market Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 7,271,638 $ 16,670,206
Net realized gain (loss) on investments.............................. (10,043) 3,935
--------------- ---------------
Net Increase (Decrease) in Net Assets Resulting from Operations.. 7,261,595 16,674,141
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net............................................... (7,271,638) (16,670,206)
Net realized gain (loss) on investments.............................. (3,935) --
--------------- ---------------
Total Dividends ................................................. (7,275,573) (16,670,206)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................ 1,119,748,932 2,776,506,338
Dividends reinvested................................................. 1,456,719 2,946,604
Cost of shares redeemed.............................................. (1,171,835,171) (2,999,834,397)
--------------- ---------------
Increase (Decrease) in Net Assets from Capital Stock Transactions (50,629,520) (220,381,455)
--------------- ---------------
Total Increase (Decrease) in Net Assets........................ (50,643,498) (220,377,520)
NET ASSETS:
Beginning of Period.................................................. 295,434,120 515,811,640
--------------- ---------------
End of Period........................................................ $ 244,790,622 $ 295,434,120
=============== ===============

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

Dreyfus Institutional Government Money Market Fund
- -------------------------------------------------------------------------------
Financial Highlights

Six Months Ended Year Ended October 31,
April 30, 1997 ---------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(1) 1993 1992
----------- ------ ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------ ------

Investment Operations:
Investment income--net................. .025 .051 .056 .036 .029(2) .039(2)
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net... (.025) (.051) (.056) (.036) (.029) (.039)
------ ------ ------ ------ ------ ------
Net asset value, end of period........ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.................. 5.10%(3) 5.25% 5.71% 3.63% 2.97% 3.92%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .30%(3) .30% .30% .30% .30% .30%
Ratio of net investment income
to average net assets.............. 5.05%(3) 5.14% 5.55% 3.60% 2.93% 3.82%

Net Assets, end of period (000's Omitted) $244,791 $295,434 $515,812 $470,007 $406,690 $391,364

<FN>
- -------------------
(1) 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 Fund's investment manager.
(2) For the years ended October 31, 1993 and 1992 the investment adviser
reimbursed expenses of the Fund amounting to $.0001 and $.0004 per
share, respectively.
(3) Annualized.
See notes to financial statments.
</TABLE>
<PAGE>

Dreyfus Institutional Government Money Market Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:
Dreyfus Institutional Government Money Market Fund (the "Fund") is a series
of The Dreyfus/Laurel Funds, Inc. (the "Company") which 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 Fund. The Fund's investment objective is to seek a high
level of current income consistent with stability of principal and conservative
investment risk by investing principally in high grade money market instruments
issued or guaranteed by the U.S. Government and its agencies and
instrumentalities. 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") is the
distributor of the Fund's shares.

(a) Portfolio valuation: Investments are valued at amortized cost in
accordance with Rule 2a-7 of the Investment Company Act of 1940, which has been
determined by the Fund's Board of Directors to represent the fair value of the
Fund's investments.

It is the Fund's policy to maintain a continuous net asset value per share
of $1.00 for the Fund; the Fund has adopted certain investment, portfolio
valuation and dividend and distribution policies to enable it to do so. There is
no assurance, however, that the Fund will be able to maintain a stable net asset
value per share of $1.00.

(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income is
recognized on the accrual basis. Cost of investments represents amortized cost.

(c) Repurchase agreements: The Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Fund,
through its custodian and sub-custodian, takes possession of an underlying debt
obligation subject to an obligation of the seller to repurchase, and the Fund to
resell, the obligation at an agreed-upon price and time, thereby determining the
yield during the Fund's holding period. This arrangement results in a fixed rate
of return that is not subject to market fluctuations during the Fund's holding
period. The value of the collateral is at least equal, at all times, to the
total amount of the repurchase obligation, including interest. In the event of a
counterparty default, the Fund has the right to use the collateral to offset
losses incurred. There is potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its rights to dispose of the collateral
securities, including the risk of a possible decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights. The Fund's manager, acting under the supervision of the Board of
Directors, reviews the value of the collateral and the creditworthiness of those
banks and dealers with which the Fund enters into repurchase agreements to
evaluate potential risks.

(d) Distributions to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net; such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund 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 Fund not to distribute such gain.

<PAGE>

Dreyfus Institutional Government Money Market Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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 and/or affiliates, 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 .15% 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) Shareholder servicing plan: The Fund has adopted a Shareholder Servicing
Plan (the "Plan"). Under the Plan, the Fund may pay up to .15% of the value of
the average daily net assets annually to compensate certain banks, brokers,
dealers or other financial institutions for shareholder services. During the
period ended April 30, 1997, the Fund incurred service fees of $216,192.

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

(c) 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 meeting 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 $25,000 per year. These fees and expenses
are charged and allocated to each series based on net assets.

NOTE 3--Bank Line of Credit:

The Fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the time
of borrowings. For the period ended April 30, 1997, the Fund did not borrow
under the line of credit.

<PAGE>

[LOGO]

Dreyfus Institutional Government
Money Market Fund
200 Park Avenue
New York, NY 10166

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

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

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

Printed in U.S.A. 919SA974

<PAGE>
[LOGO]
Dreyfus
Institutional Prime
Money Market Fund
Semi-Annual
Report

April 30, 1997

<PAGE>
Dreyfus Institutional Prime Money Market Fund
- -----------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:
We are pleased to report the performance for Dreyfus Institutional Prime
Money Market Fund for its six-month reporting period ended April 30, 1997. For
the period, your Fund produced an annualized yield of 5.17% and after taking
into account the effect of compounding, the annualized effective yield was
5.29%.*

THE ECONOMY
The U.S. economy just kept advancing over the reporting period, while
inflation remained subdued. The unemployment rate fell to its lowest level in 24
years, and a surge in tax revenues meant good news for the Administration's
budget reduction program. Overall, the economic news has been stellar.
The economy grew at a robust 5.6% annual rate during the first quarter, the
best quarter in nine years. Aided by falling energy prices and with no sign of
shortages of raw materials, inflation remained in check. The Commerce
Department's Implicit Price Deflator, a broad measure of inflation, rose for the
same period at a 2.2% pace. On the consumer level, the Consumer Price Index
(CPI) remained below 3%. Excluding volatile food and energy prices, the CPI is
actually trending downward, so far this year running at an annual rate of 2.5%.
Inflation has been further restrained by the strong dollar which has moderated
the price of imports and eased potential strains on domestic production
capacity.
The strong economy has put increasing numbers of people to work. This
tightening of the labor market has been a key factor in the implementation of
monetary policy by the Federal Reserve Board's Open Market Committee (FOMC) .
The unemployment rate has been less than 5.5% since June 1996, the lowest
sustained rate since the late 1980s. The rate fell to 4.9% in April of this
year, its lowest level in 24 years. So far, neither strong economic growth nor
wage increases have resulted in any price pressure at the consumer level.
Through the first quarter (the latest available data), total employment costs
(including wages and benefits) rose about the same as inflation.
Renewed confidence, spurred by increasing job security and low inflation, has
resulted in a surge in consumer spending. In the first quarter of the year,
spending rose 6.4%, almost double the rate of the fourth quarter. The combined
six-month performance was the largest increase in consumer spending over the
past ten years. Retail sales have spurted in the early part of this year as
well; first quarter results were sharply higher than the last quarter of 1996.
Not surprisingly, industrial production has been building momentum over the
reporting period. The latest report on capacity utilization indicated the
highest level in two years. So far, while the potential exists for production
bottlenecks, raw materials prices and worker wage demands have remained modest.
Continued economic growth and the resulting rise in tax revenues have slashed
further the Federal budget deficit. Recent estimates by economists suggest that
the deficit is at its lowest level in twenty-three years. Such good news on the
deficit could make it easier to negotiate the Administration's bipartisan plan
to balance the budget by 2002.
While we seem to be enjoying the best of all possible economic worlds, the
potential for future inflation is what concerns the Fed. Such concern resulted
in the March decision by the Federal Reserve Board's Open Market Committee, the
policy-making arm of the Federal Reserve, to raise the Federal Funds rate one
quarter of a percentage point to 5.50%. (The Federal Funds rate is the rate of
interest banks charge each other for overnight loans.) The traditional
assumption that strong economic growth and low unemployment will eventually
result in rising inflation still drives the Fed's monetary policy initiatives.
Although there was little reported evidence of incipient inflation, the Fed
executed a preemptive move of moderate monetary restraint in March, perhaps to
avoid being forced to act more harshly later. There is little reason to suspect
that the Fed will soon change this policy.

<PAGE>
THE MARKET AND THE PORTFOLIO
Money market yields were stable for most of the reporting period remaining
well above the rate of inflation. The increase in the Federal Funds rate on
March 25, 1997 from 5.25% to 5.5% caused a rise in money market yields of all
maturities. This marked the first change in the Federal Funds rate since the Fed
lowered the rate to 5.25% in January 1996.
The Fund invests in high-grade money market instruments. Throughout the
reporting period, the Fund's average maturity was held steady at approximately
34 days. However, we are currently targeting a shorter average maturity range in
anticipation of further increases in interest rates over the next few months.
Included in this report is a series of detailed statements about your Fund's
holdings and its financial condition. We hope they are informative. Please know
that we appreciate greatly your continued confidence in the Fund and in The
Dreyfus Corporation.
Very truly yours,

Laurie Carroll
Portfolio Manager
May 15, 1997
New York, N.Y.

*Annualized effective yield is based upon dividends declared daily and
reinvested monthly.

<TABLE>
<CAPTION>
<PAGE>
Dreyfus Institutional Prime Money Market Fund
- ------------------------------------------------------------------------------
Statement of Investments April 30, 1997 (Unaudited)
Principal
Negotiable Bank Certificates of Deposit--2.8% Amount Value
- ----------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
Dai-Ichi Kangyo Bank Ltd. (Yankee)
5.52%, 8/29/97 ........................................................... $ 10,000,000 $ 10,000,000
Sumitomo Bank Ltd. (Yankee)
5.55%, 11/12/97........................................................... 5,000,000 5,000,257
------------
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $15,000,257)........................................................ $ 15,000,257
============
Commercial Paper--66.0%
- -----------------------------------------------------------------------------

Aetna Services Inc.
5.58%, 5/27/97 ........................................................... $ 20,000,000 $ 19,919,833
American Home Products Corp.
5.58%, 5/19/97 ........................................................... 20,000,000 19,944,500
Anheuser-Busch Companies Inc.
5.52%, 7/3/97 ............................................................ 10,000,000 9,907,250
AON Corp.
5.68%, 5/9/97-5/15/97 .................................................... 23,700,000 23,658,002
Avon Capital Corp.
5.66%-5.68%, 6/5/97-6/19/97 .............................................. 21,210,000 21,080,999
Bass Finance (C.I.) LTD.
5.37%, 5/15/97 ........................................................... 20,815,000 20,772,098
Browning-Ferris Industries Inc.
5.60%-5.65%, 5/2/97-5/19/97 .............................................. 20,000,000 19,970,586
Burmah Castrol Finance PLC
5.92%, 10/20/97 .......................................................... 9,400,000 9,141,761
CSC Enterprises
5.56%-5.58%, 5/12/97-5/13/97 ............................................. 23,800,000 23,759,176
Coca-Cola Enterprises Inc.
5.60%, 6/2/97 ............................................................ 20,000,000 19,901,156
Columbia/HCA Healthcare Corp.
5.63%, 5/20/97 ........................................................... 25,000,000 24,926,243
Credit Suisse Financial Services Inc.
5.35%, 5/20/97 ........................................................... 10,000,000 9,972,133
FINOVA Capital Corp.
5.65%, 6/12/97 ........................................................... 15,000,000 14,902,000
Gannett Co.
5.53%, 6/2/97 ............................................................ 23,500,000 23,385,111

<PAGE>

Dreyfus Institutional Prime Money Market Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Principal
Commercial Paper (continued) Amount Value
- ----------------------------------------------------------------------------- ----------- -----------
General Motors Acceptance Corp.
5.66%, 5/1/97 ............................................................ $ 6,480,000 $ 6,480,000
Golden Peanut Co.
5.43%, 5/1/97 ............................................................ 4,000,000 4,000,000
Greenwich Funding Corp.
5.56%-5.64%, 5/12/97-5/13/97 ............................................. 20,000,000 19,964,436
Merrill Lynch & Co. Inc.
5.49%, 5/30/97 ........................................................... 10,000,000 9,956,661
Northern Rock Building Society
5.53%, 5/28/97 ........................................................... 25,000,000 24,896,875
Sanwa Business Credit Corp.
5.45%-5.47%, 5/2/97-5/12/97 .............................................. 25,000,000 24,973,742
Windmill Funding Corp.
5.39%, 5/5/97 ............................................................ 7,299,000 7,294,661
------------
TOTAL COMMERCIAL PAPER
(cost $358,807,223)....................................................... $358,807,223
============
Corporate Notes--4.6%
- -----------------------------------------------------------------------------

Chase Manhattan Corp.
5.54%, 1/15/98 ........................................................... $ 5,000,000 $ 5,029,358
General Motors Acceptance Corp.
5.74%, 12/10/97........................................................... 5,140,000 5,137,511
IBM Credit Corp.
5.79%, 1/28/98 ........................................................... 10,000,000 9,991,033
NationsBank Corp.
5.53%, 1/15/98 ........................................................... 5,000,000 5,030,459
------------
TOTAL CORPORATE NOTES
(cost $25,188,361)........................................................ $ 25,188,361
=============
Repurchase Agreements--26.5%
- -----------------------------------------------------------------------------

Donaldson, Lufkin & Jenrette Securities Inc.,
5.375% dated 4/30/97, due 5/1/97 in the
amount of $50,007,465 (fully collateralized
by $33,880,000 U.S.Treasury Bonds 10.75% to
14.00% due 5/15/2003 to 11/15/2011 value $51,141,739).................... $ 50,000,000 $ 50,000,000

<PAGE>

Dreyfus Institutional Prime Money Market Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)
Principal
Commercial Paper (continued) Amount Value
- ----------------------------------------------------------------------------- ----------- -----------
Goldman, Sachs & Co.,
5.375% dated 4/30/97, due 5/1/97 in the
amount of $94,124,273 (fully collateralized
by $99,531,000 U.S.Treasury Bonds 6.50% due
11/15/2026 value $96,276,996)............................................ $ 94,110,222 $ 94,110,222
------------
TOTAL REPURCHASE AGREEMENTS
(cost $144,110,222)....................................................... $144,110,222
============
TOTAL INVESTMENTS
(cost $543,106,063)................................................ 99.9% $543,106,063
====== ============
CASH AND RECEIVABLES (NET) ........................................... .1% $ 249,305
====== ============
NET ASSETS............................................................ 100.0% $543,355,368
====== ============

See notes to financial statements.

</TABLE>
<TABLE>
<CAPTION>
<PAGE>

Dreyfus Institutional Prime Money Market Fund
- ------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1997 (Unaudited)

Cost Value
------------- -------------
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments
(including Repurchase Agreements of $144,110,222) $543,106,063 $543,106,063
Cash............................................. 163,821
Interest Receivable.............................. 749,119
------------
544,019,003
------------

LIABILITIES: Due to The Dreyfus Corporation................... 66,526
Due to Distributor............................... 66,526
Payable for Capital Stock redeemed............... 530,583
------------
663,635
------------

NET ASSETS..................................................................... $543,355,368
============

REPRESENTED BY: Paid-in capital.................................. $543,365,167
Accumulated net realized gain (loss) on investments (9,799)
------------

NET ASSETS..................................................................... $543,355,368
============
SHARES OUTSTANDING
(4 billion shares of $.001 par value Capital Stock authorized)................. 543,365,167

NET ASSET VALUE, offering and redemption price per share....................... $1.00
======

See notes to financial statements.

</TABLE>
<TABLE>
<CAPTION>
<PAGE>

Dreyfus Institutional Prime Money Market Fund
- ------------------------------------------------------------------------------
Statement of Operations Six Months Ended April 30, 1997 (Unaudited)
<S> <C> <C>

INVESTMENT INCOME

INCOME Interest Income.................................. $16,738,973

EXPENSES: Management fee--Note 2(a)......................... $428,716
Shareholder servicing costs--Note 2(b)............ 459,338
Directors' fees and expenses--Note 2(c)........... 30,623
--------

Total Expenses.............................. 918,677
----------

INVESTMENT INCOME--NET.......................................................... 15,820,296

NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b).............................. (9,633)
----------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $15,810,663
===========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>

Dreyfus Institutional Prime Money Market Fund
- ------------------------------------------------------------------------------
Statement of Changes in Net Assets

Net Increase (Decrease) in Net Assets Resulting from Operations 15,810,663 30,143,610
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:............................................... (15,820,296) (30,143,776)
Net realized gain on investments..................................... -- (2,472)
--------------- ---------------

Total Dividends................................................ (15,820,296) (30,146,248)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:....................................... 1,638,426,056 3,991,999,649
Dividends reinvested:................................................ 6,179,077 12,134,814
Cost of shares redeemed:............................................. (1,676,940,156) (4,202,033,832)
--------------- ---------------

Increase (Decrease) in Net Assets from Capital Stock Transactions (32,335,023) (197,899,369)
--------------- ---------------

Total Increase (Decrease) in Net Assets...................... (32,344,656) (197,902,007)

NET ASSETS:
Beginning of Period.................................................. 575,700,024 773,602,031
--------------- ---------------
End of Period........................................................ $ 543,355,368 $ 575,700,024
=============== ===============

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

Dreyfus Institutional Prime Money Market Fund
- ------------------------------------------------------------------------------
Financial Highlights

Six Months Ended Year Ended October 31,
April 30, 1997 ------------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(2) 1993 1992
--------------- ------- ------ ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Investment Operations:
Investment income--net...................... .026 .052 .056 .035 .030(3) .040(3)
------- ------- ------- ------- ------- -------
Distributions:
Dividends from investment income--net...... (.026) (.052) (.056) (.035) (.030) (.040)
------- ------- ------- ------- ------- -------
Net asset value, end of period............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN....................... 5.22%(4) 5.33% 5.77% 3.67% 3.04% 4.09%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.... .30%(4) .30% .30% .29% .27% .29%
Ratio of net investment income
to average net assets................... 5.17%(4) 5.25% 5.61% 3.58% 2.99% 4.04%
Net Assets, end of period (000's Omitted).. $543,355 $575,700 $773,602 $681,781 $824,080 $950,322

<FN>
- ----------------
(1) Prior to October 31, 1995, shares of the Fund were designated Class I
shares. Effective November 1, 1995, the Fund's Class I and Class II designations
were eliminated and the Fund became a single class Fund.

(2) Effective October 17, 1994, The Dreyfus Corporation serves as the Fund's
investment mananger. Prior to October 17, 1994, Mellon Bank, N.A. served as the
Fund's investment manager.

(3) For the years ended October 31, 1993 and 1992 the investment adviser
reimbursed expenses of the Fund amounting to $.0005 and $.0001 per share,
respectively.

(4) Annualized.

See notes to financial statements.
</TABLE>
<PAGE>

Dreyfus Institutional Prime Money Market Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Dreyfus Institutional Prime Money Market Fund (the "Fund") is a series of
The Dreyfus/Laurel Funds, Inc. (the "Company") which 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 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. is the distributor of
the Fund's shares.

(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income is
recognized on the accrual basis. Cost of investments represents amortized cost.

(c) Repurchase agreements: The Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Fund,
through its custodian and sub-custodian, takes possession of an underlying debt
obligation subject to an obligation of the seller to repurchase, and the Fund to
resell, the obligation at an agreed-upon price and time, thereby determining the
yield during the Fund's holding period. This arrangement results in a fixed rate
of return that is not subject to market fluctuations during the Fund's holding
period. The value of the collateral is at least equal, at all times, to the
total amount of the repurchase obligation, including interest. In the event of a
counterparty default, the Fund has the right to use the collateral to offset
losses incurred. There is potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its rights to dispose of the collateral
securities, including the risk of a possible decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights. The Manager, acting under the supervision of the Board of Directors,
reviews the value of the collateral and the creditworthiness of those banks and
dealers with which the Fund enters into repurchase agreements to evaluate
potential risks.

(d) Distributions to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net; such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, it is
the policy of the Fund not to distribute such gain.

<PAGE>

Dreyfus Institutional Prime Money Market Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and excise
taxes.

The Fund has an unused capital loss carryover of $167 available for Federal
income tax purposes to be applied against future net securities profits, if any,
realized subsequent to October 31, 1996. If not applied, the carryover expires
in fiscal 2004.

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 and/or affiliates 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 .15% 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) Shareholder servicing plan: The Fund has adopted a Shareholder
Servicing Plan (the "Plan"). Under the Plan, the Fund may pay up to .15% of the
value of the average daily net assets annually to compensate certain banks,
brokers, dealers or other financial institutions for shareholder services.
During the period ended April 30, 1997, the Fund incurred service fees of
$459,338.

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

NOTE 3--Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the time
of borrowings. For the period ended April 30, 1997, the Fund did not borrow
under the line of credit.

<PAGE>
[LOGO]
Dreyfus Institutional Prime
Money Market Fund
200 Park Avenue
New York, NY 10166

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

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

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

Printed in U.S.A. 922SA974

<PAGE>
[LOGO]
Institutional
U.S. Treasury
Money Market Fund
Semi-Annual
Report
April 30, 1997

<PAGE>

Dreyfus Institutional U.S. Treasury Money Market Fund
- -------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:
We are pleased to report the performance for Dreyfus Institutional U.S.
Treasury Money Market Fund for its six-month reporting period ended April 30,
1997. For the period, your Fund produced an annualized yield of 4.96% and after
taking into account the effect of compounding, the annualized effective yield
was 5.07%.*

THE ECONOMY
The U.S. economy just kept advancing over the reporting period, while
inflation remained subdued. The unemployment rate fell to its lowest level in 24
years, and a surge in tax revenues meant good news for the Administration's
budget reduction program. Overall, the economic news has been stellar.
The economy grew at a robust 5.6% annual rate during the first quarter, the
best quarter in nine years. Aided by falling energy prices and with no sign of
shortages of raw materials, inflation remained in check. The Commerce
Department's Implicit Price Deflator, a broad measure of inflation, rose for the
same period at a 2.2% pace. On the consumer level, the Consumer Price Index
(CPI) remained below 3%. Excluding volatile food and energy prices, the CPI is
actually trending downward, so far this year running at an annual rate of 2.5%.
Inflation has been further restrained by the strong dollar which has moderated
the price of imports and eased potential strains on domestic production
capacity.
The strong economy has put increasing numbers of people to work. This
tightening of the labor market has been a key factor in the implementation of
monetary policy by the Federal Reserve Board's Open Market Committee (FOMC).
The unemployment rate has been less than 5.5% since June 1996, the lowest
sustained rate since the late 1980s. The rate fell to 4.9% in April of this
year, its lowest level in 24 years. So far, neither strong economic growth nor
wage increases have resulted in any price pressure at the consumer level.
Through the first quarter (the latest available data), total employment costs
(including wages and benefits) rose about the same as inflation.
Renewed confidence, spurred by increasing job security and low inflation, has
resulted in a surge in consumer spending. In the first quarter of the year,
spending rose 6.4%, almost double the rate of the fourth quarter. The combined
six-month performance was the largest increase in consumer spending over the
past ten years. Retail sales have spurted in the early part of this year as
well; first quarter results were sharply higher than the last quarter of 1996.
Not surprisingly, industrial production has been building momentum over the
reporting period. The latest report on capacity utilization indicated the
highest level in two years. So far, while the potential exists for production
bottlenecks, raw materials prices and worker wage demands have remained modest.
Continued economic growth and the resulting rise in tax revenues have slashed
further the Federal budget deficit. Recent estimates by economists suggest that
the deficit is at its lowest level in twenty-three years. Such good news on the
deficit could make it easier to negotiate the Administration's bipartisan plan
to balance the budget by 2002.
While we seem to be enjoying the best of all possible economic worlds, the
potential for future inflation is what concerns the Fed. Such concern resulted
in the March decision by the Federal Reserve Board's Open Market Committee, the
policy-making arm of the Federal Reserve, to raise the Federal Funds rate one
quarter of a percentage point to 5.50%. (The Federal Funds rate is the rate of
interest banks charge each other for overnight loans.) The traditional
assumption that strong economic growth and low unemployment will eventually
result in rising inflation still drives the Fed's monetary policy initiatives.
Although there was little reported evidence of incipient inflation, the Fed
executed a preemptive move of moderate monetary restraint in March, perhaps to
avoid being forced to act more harshly later. There is little reason to suspect
that the Fed will soon change this policy.

<PAGE>

THE MARKET AND THE PORTFOLIO
Money market yields were stable for most of the reporting period remaining
well above the rate of inflation. The increase in the Federal Funds rate on
March 25, 1997 from 5.25% to 5.5% caused a rise in money market yields of all
maturities. This marked the first change in the Federal Funds rate since the Fed
lowered the rate to 5.25% in January 1996.
The Fund invests in U.S. Treasury securities and repurchase agreements
secured by such obligations. Throughout the reporting period, the Fund's average
maturity was held steady at approximately 42 days, the lower end of the
established average maturity range of 40-50 days. However, we are currently
targeting a shorter average maturity range in anticipation of further increases
in interest rates over the next few months.
Included in this report is a series of detailed statements about your Fund's
holdings and its financial condition. We hope they are informative. Please know
that we appreciate greatly your continued confidence in the Fund and in The
Dreyfus Corporation.
Very truly yours,

Laurie Carroll
Portfolio Manager
May 15, 1997 New York, N.Y.

*Annualized effective yield is based upon dividends declared daily and
reinvested monthly.

<PAGE>
<TABLE>
<CAPTION>
Dreyfus Institutional U.S. Treasury Money Market Fund
- ------------------------------------------------------------------------------
Statement of Investments April 30, 1997 (Unaudited)
Annualized
Yield on
Date of Principal
U.S. Treasury Bills--52.4% Purchase Amount Value
- ----------------------------------------------------------------- ---------- ------------- -------------
<S> <C> <C> <C>

5/15/97........................................................ 5.17% $ 50,000,000 $ 49,901,861
5/22/97........................................................ 5.14 50,000,000 49,851,104
5/29/97........................................................ 5.27 35,000,000 34,857,900
6/5/97......................................................... 5.02 20,000,000 19,903,750
6/26/97........................................................ 5.27 35,000,000 34,716,889
7/3/97......................................................... 5.24 20,000,000 19,821,325
7/24/97........................................................ 5.25 20,000,000 19,763,633
8/21/97........................................................ 5.25 40,000,000 39,366,889
9/11/97........................................................ 5.42 20,000,000 19,607,650
9/18/97........................................................ 5.33 40,000,000 39,198,500
10/2/97........................................................ 5.48 30,000,000 29,313,417
-------------

TOTAL U.S. TREASURY BILLS
(cost $356,302,918)............................................ $356,302,918
=============

U.S. Treasury Notes--6.6%
- ------------------------------------------------------------------
6.125%, 5/31/97................................................ 5.16% $ 15,000,000 $ 15,009,665
5.625%, 6/30/97................................................ 5.16 30,000,000 30,014,365
-------------

TOTAL U.S. TREASURY NOTES
(cost $45,024,030)............................................. $ 45,024,030
=============

Repurchase Agreements--40.8%
- -----------------------------------------------------------------
Donaldson, Lufkin & Jenrette Securities, Inc.
dated 4/30/97, due 5/1/97 in the amount of
$165,024,635 (fully collateralized by
$31,577,000 U.S. Treasury Bonds, 8%-12.75%,
due from 11/15/2010 to 11/15/2021, and,
$128,570,000 U.S. Treasury Notes, 5.50%-7.50%,
due from 2/28/99 to 10/31/99, value
$168,561,951).................................................. 5.38% $165,000,000 $165,000,000
Goldman, Sachs & Co.
dated 4/30/97, due 5/1/97 in the amount of
$112,729,886 (fully collateralized by
$119,205,000 U.S. Treasury Bonds, 6.50%, due
11/15/2026, value $115,307,787)................................ 5.38 112,713,057 112,713,057
-------------
TOTAL REPURCHASE AGREEMENTS
(cost $277,713,057)............................................ $277,713,057
=============

TOTAL INVESTMENTS
(cost $679,040,005)..................................... 99.8% $679,040,005
====== =============
CASH AND RECEIVABLES (NET) ................................ .2% $ 1,448,226
====== =============
NET ASSETS.................................................100.0% $680,488,231
====== =============

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

Dreyfus Institutional U.S. Treasury Money Market Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1997 (Unaudited)

Cost Value
-------------- -------------
<S> <C> <C> <C>

ASSETS: Investments in securities--See Statement of Investments
(including Repurchase Agreements of $277,713,057) $679,040,005 $679,040,005
Cash............................................. 649,137
Interest receivable.............................. 989,279
------------
680,678,421
------------

LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 190,190
------------

NET ASSETS..................................................................... $680,488,231
============

REPRESENTED BY: Paid-in capital.................................. $680,490,481
Accumulated net realized gain (loss) on investments (2,250)
------------

NET ASSETS..................................................................... $680,488,231
============

SHARES OUTSTANDING
(2 billion shares of $.001 par value Capital Stock authorized)................. 680,490,481

NET ASSET VALUE, offering and redemption price per share....................... $1.00
=====

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

Dreyfus Institutional U.S. Treasury Money Market Fund
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended April 30, 1997 (Unaudited)

INVESTMENT INCOME

INCOME Interest Income.................................. $19,368,654

EXPENSES: Management fee--Note 2(a)......................... $515,383
Shareholder servicing costs--Note 2(b)............ 552,195
Directors' fees and expenses--Note 2(c)........... 36,813
----------
Total Expenses.............................. 1,104,391
-----------

INVESTMENT INCOME--NET, representing net increase in net assets
resulting from operations.................................................... $18,264,263
===========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>

Dreyfus Institutional U.S. Treasury Money Market Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
Six Months Ended
April 30, 1997 Year Ended
Unaudited October 31, 1996
---------------- ----------------
<S> <C> <C>

OPERATIONS:
Investment income--net............................................... $ 18,264,263 $ 34,356,531
Net realized gain (loss) on investments.............................. -- (2,250)
------------------ ---------------
Net Increase (Decrease) in Net Assets Resulting from Operations.. 18,264,263 34,354,281
------------------ ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................ (18,264,263) (34,356,531)
------------------ ---------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................ 2,539,145,683 4,469,388,218
Dividends reinvested................................................. 569,834 2,389,411
Cost of shares redeemed.............................................. (2,525,587,068) (4,573,363,146)
------------------ ---------------

Increase (Decrease) in Net Assets from Capital Stock Transactions 14,128,449 (101,585,517)
------------------ ---------------
Total Increase (Decrease) in Net Assets........................ 14,128,449 (101,587,767)
NET ASSETS:
Beginning of Period.................................................. 666,359,782 767,947,549
------------------ ---------------
End of Period........................................................ $ 680,488,231 $ 666,359,782
================== ===============

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

Dreyfus Institutional U.S. Treasury Money Market Fund
- -------------------------------------------------------------------------------
Financial Highlights

Net asset value, beginning of period... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- -----

Investment Operations:
Investment income--net................. .025 .051 .054 .035(2) .029(3) .038(3)
----- ----- ----- ----- ----- -----
Distributions:
Dividends from investment income--net.. (.025) (.051) (.054) (.035) (.029) (.038)
----- ----- ----- ----- ----- -----
Net asset value, end of period........ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== =====
TOTAL INVESTMENT RETURN.................. 5.02%(5) 5.17% 5.57% 3.55% 2.91% 3.88%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .30%(5) .30% .30% .30%(4) .30% .30%
Ratio of net investment income
to average net assets.............. 4.96%(5) 5.06% 5.44% 3.55% 2.87% 3.81%

Net Assets, end of period (000's Omitted) $680,488 $666,360 $767,948 $586,778 $500,653 $666,378
<FN>

- ----------------------
(1) 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 Fund's investment manager.
(2) Net investment income before reimbursement of expenses by the investment
manager for the year ended October 31, 1994 was $0.0350 per share.
(3) For the years ended October 31, 1993 and 1992 the investment adviser
reimbursed expenses of the Fund amounting to $.0004 and
$.0003 per share, respectively.
(4) Annualized expense ratio before reimbursement of expenses by the
investment manager for the year ended October 31, 1994 was .31%.
(5) Annualized.

See notes to financial statements.
</TABLE>
<PAGE>

Dreyfus Institutional U.S. Treasury Money Market Fund
- ----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:
Dreyfus Institutional U.S. Treasury Money Market Fund (the "Fund") is a
series of The Dreyfus/Laurel Funds, Inc. (the "Company") which 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 Fund. The Fund's investment objective is
to seek a high level of current income consistent with stability of principal
and conservative investment risk by investing in direct obligations of the U.S.
Treasury and repurchase agreements secured by such obligations. 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. is the distributor of the Fund's shares.

(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income is
recognized on the accrual basis. Cost of investments represents amortized cost.

(c) Repurchase agreements: The Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Fund,
through its custodian and sub-custodian, takes possession of an underlying debt
obligation subject to an obligation of the seller to repurchase, and the Fund to
resell, the obligation at an agreed-upon price and time, thereby determining the
yield during the Fund's holding period. This arrangement results in a fixed rate
of return that is not subject to market fluctuations during the Fund's holding
period. The value of the collateral is at least equal, at all times, to the
total amount of the repurchase obligation, including interest. In the event of a
counterparty default, the Fund has the right to use the collateral to offset
losses incurred. There is potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its rights to dispose of the collateral
securities, including the risk of a possible decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights. The Manager, acting under the supervision of the Board of Directors,
reviews the value of the collateral and the creditworthiness of those banks and
dealers with which the Fund enters into repurchase agreements to evaluate
potential risks.

(d) Distributions to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net; such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, it is
the policy of the Fund not to distribute such gain.

<PAGE>

Dreyfus Institutional U.S. Treasury Money Market Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The Fund has an unused capital loss carryover of approximately $2,300
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1996. If not
applied, the carryover expires in fiscal 2004.

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 and/or affiliates 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 .15% 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).

NOTE 3--Bank Line of Credit:

<PAGE>

[LOGO]

Dreyfus Institutional U.S. Treasury
Money Market Fund
200 Park Avenue
New York, NY 10166

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

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

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

Printed in U.S.A. 930SA974

DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of Dreyfus International Equity
Allocation Fund for its six-month reporting period ended April 30, 1997, as
shown in the following table:
<TABLE>
<CAPTION>
Total Return*
____________
<S> <C>
Institutional shares 1.85%
Retail shares 2.02%
The Morgan Stanley Capital International
Europe, Australasia, Far East (EAFE) Index** 1.57%
</TABLE>
ECONOMIC REVIEW
Continental Europe's economic recovery progressed slowly over the
reporting period. We believe that low short-term interest rates and weak
currency should increase its momentum over the coming months. The weak
Deutschmark and French Franc have stimulated strong demand for European
exports. Low interest rates and tight production capacity have begun to prod
capital spending. The German unemployment problem has started to show signs
of easing. In Germany, domestic demand has remained subdued, in stark contrast
to the strong demand for exports. The German consumer has not fully
participated in the recovery due to continued uncertainty in the labor
market, a condition that has begun to stabilize. France's economic growth has
been tepid, yet the underlying growth trend showed improvement. Recovery
appears to be dependent on the business sector since French consumers are
still wary spenders given the shakeout in the labor market.
The economic cycle in the United Kingdom is at approximately the same
stage of maturity as the United States, except that inflationary consequences
are beginning to be felt, particularly in the British service sector where
wage growth has doubled over the past 18 months. Both operating rates and the
labor market are extremely tight. Continued monetary tightening seems to be
the most likely course over the coming months.
Japan seems to be at the beginning of an economic recovery and the pace
of its much-needed structural reforms has increased. Record low interest
rates should spur capital expenditures and the housing market, resulting in
an improving labor market and in more confident consumers. It appears that
deregulation of the financial system may also be proceeding since the
Ministry of Finance is no longer protecting the weak banks.
THE MARKET AND THE PORTFOLIO
As of April 30, 1997, the Fund was diversified among 270 stocks allocated
over the 20 countries that comprise the EAFE Index. The Fund employs an asset
allocation model, based on fundamental principles of investment analysis,
that examines the expected returns from each country adjusted for risk.
Active investment decisions are rendered on investment allocations for Japan,
the United Kingdom, Germany and France. The other countries in the EAFE Index
are generally weighted in the same proportion as their weightings in the
Index.
As of April 30, the Fund's largest overweighted positions as compared to
the EAFE Index were in Japan (37.4% vs 30.0%), France (9.4% vs 7.2%) and
Germany (10.0% vs 8.9%). The largest underweighted position was the United
Kingdom (11.1% vs 19.7%). These figures, unlike our Statement of Investments,
includes futures as well as actual stocks held. Our performing better than
the EAFE Index for the reporting period was due primarily to our currency
hedging strategy that took advantage of the strength in the U.S. Dollar over
the weaker local currencies. The Fund uses a currency valuation model to
determine the timing of currency hedging. The model considers the differences
in real (inflation-adjusted) interest rates among countries. These
differences arise due to the varying monetary policies pursued by the central
banks of each country. The Fund benefited specifically from the substantial
appreciation in the U.S. Dollar against
the Deutschmark, the French Franc and the Yen. The Fund maintained partially
hedged positions against these three currencies throughout the period, and
does so still.
The large overweight in Japan did not add value due to the
underperforming Japanese stock market. Yet, by the end of the reporting
period, the Japanese economy was beginning to gain momentum and stocks showed
signs of recovery. The overweighted positions in Germany and France added
value to the portfolio as these equity markets rose significantly over the
past six months. Turning to our plans for going forward, we remain confident
that the low interest rate environment worldwide will prove supportive of
long-term attractive investment returns from equities. The Japanese stock
market seems to reflect attractive value at present levels. Conversely, the
United Kingdom appears overvalued at the end of the reporting period since
corporate earnings have not kept pace with the appreciation of the stock
market. We will consider this as we go forward.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,

[Charles J. Jacklin, Ph.D. signature logp]

Charles J. Jacklin, Ph.D.
Portfolio Manager
May 22, 1997
San Francisco, CA

* 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(R)) Index is an unmanaged
index composed of a sample of companies representative of the market
structure of European and Pacific Basin countries. The return indicated
includes net dividends reinvested. The Index is the property of Morgan
Stanley & Co., Incorporated.
<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
STATEMENT OF INVESTMENTS APRIL 30,1997 (UNAUDITED)
Common Stocks_79.9% Shares Value
_______ ______
<S> <C> <C> <C>
Australia_.6% Amcor......................... 3,000 $ 19,753
Broken Hill Proprietary................ 2,492 35,166
Coca Cola Amatil....................... 1,020 11,670
ICI Australia.......................... 1,000 9,397
Pacific Dunlop......................... 5,912 15,966
Westpac Banking........................ 3,200 17,258
_______
109,210
_______
Austria_.2% Oesterreichische El Wirtsch.......... 300 20,953
Strabag Oesterreich AG................. 420 26,541
_______
47,494
_______
Belgium_1.4% Electrabel...................... 50 11,382
Electrabel Strip VVPR.................. 50 (a) 42
Fortis...................................... 102 18,243
Fortis Strip VVPR...................... 2 (a) 1
Petrofina SA........................... 600 214,046
Solvay Et Cie, Series A, NPV........... 50 29,997
_______
273,711
_______
Denmark_.9% Danisco.......................... 2,930 170,041
_______
Finland_.5% Enso Oy A........................ 5,000 (a) 41,132
Kone B................................. 400 47,239
Nokia AB, Cl. K........................ 200 12,369
_______
100,740
_______
France_8.0% AXA-UAP.......................... 2,100 129,394
Accor...................................... 104 14,936
Banque Nationale de Paris.............. 1,012 43,237
CPR Cie Parisienne De Reescompte....... 386 30,632
Carrefour.............................. 150 93,789
Chargeurs.............................. 10 (a) 592
Compagnie De St. Gobain................ 377 50,586
Compagnie Financiale (Paribas)......... 655 41,370
Eridania Beghin-Say.................... 430 65,297
L'Air Liquide.......................... 770 116,134
L'Oreal................................ 209 74,269
Lafarge................................ 673 44,205
Lyonnaise des Eaux..................... 428 38,776
Moulinex............................... 1,330 (a) 30,785
Pathe...................................... 10 (a) 2,339
Pechiney A............................. 339 12,681
Peugeot................................ 200 19,938
Promodes............................... 180 60,813
Rhone-Poulenc.......................... 3,137 105,661
SAGEM.................................. 50 25,472
SEITA...................................... 1,050 37,438
Saint Louis Bouchon.................... 100 23,662
Salomon................................ 500 35,312
Sanofi...................................... 994 92,953

DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30,1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ ______
France (continued) Sefimeg Ste Francaise..... 100 $ 7,739
Sidel...................................... 520 37,403
Societe National Elf Aquitaine......... 1,857 180,347
Thomson CSF............................ 1,063 32,831
Total B..................................... 12 997
Unibail..................................... 200 19,389
Union des Assurances Federales......... 1,712 42,418
Union Immobiliere de France............ 150 11,453
_______
1,522,848
_______
Germany_4.2% Agiv............................ 630 (a) 11,802
Allianz................................ 50 97,138
BASF..................................... 2,000 77,248
Bayer..................................... 1,000 39,838
Bilfinger & Berger Bau................. 360 13,405
Brau Und Brunnen....................... 50 (a) 3,437
Ckag Colonia Koncern................... 70 6,395
Continental............................ 1,000 22,030
Daimler-Benz........................... 1,320 98,151
Daimler-Benz (Rights).................. 1,320 (a) 114
Dresdner Bank.......................... 2,500 80,081
Linde..................................... 100 73,143
Muenchener Rueckvesicherungs........... 20 48,511
RWE Aktiengesellschaft................. 2,460 102,411
Schering............................... 380 36,473
Siemen................................. 1,790 97,081
_______
807,258
_______
Hong Kong_3.9% Cheung Kong (Holdings)........ 25,000 219,468
China Light & Power.................... 8,740 39,378
HSBC Holdings.......................... 3,842 97,216
Hang Seng Bank......................... 3,400 38,297
Hong Kong & China Gas.................. 82,944 131,709
Hong Kong Telecommunications........... 23,218 39,866
Shangri-La Asia........................ 42,000 52,324
South China Morning Post............... 82,000 70,398
Sun Hung Kai Properties................ 4,220 45,763
_______
734,419
_______
Italy_3.1% Aedes Spa-Ligure Lombard.......... 5,000 25,877
Assicurazioni Generali................. 2,320 39,007
Banca Commercial Italiana SPA.......... 25,000 53,553
ENI..................................... 15,400 78,495
Fiat SPA............................... 20,000 66,199
Finanziaria Autogrill SPA.............. 24,000 (a) 33,684
Italgas..................................... 30,000 103,211
Mediobanca............................. 10,000 62,971
Telecom Italia Mobile.................. 30,680 96,364
Telecom Italia Mobile SPA.............. 10,680 28,311
_______
587,672
_______

DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30,1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ ______
Japan_33.2% Ajinomoto........................ 20,800 $ 189,939
Asahi Chemical Industry................ 70,900 413,021
Asahi Glass............................ 800 7,242
Bank of Tokyo-Mitsubishi............... 2,620 41,456
Bridgestone............................ 400 8,502
Canon..................................... 2,100 49,760
Chudenko............................... 2,200 56,113
Chugai Pharmaceutical.................. 400 2,960
Dai-Ichi Kango Bank.................... 4,210 46,067
Dai Nippon Printing.................... 800 14,422
Dai-Tokoy Fire & Marine Insurance...... 11,000 (a) 51,523
Daido Steel............................ 200 540
Daikyo Kanko........................... 2,000 6,219
Daishowa Paper Manufacturing........... 11,400 (a) 36,795
Daiwa House Industry................... 8,400 93,899
Denki Kagaku Kougyo.................... 600 1,313
Fuji Bank.............................. 4,900 55,160
Fuji Photo Film........................ 200 7,636
Fujita...................................... 17,000 26,096
Fujitsu..................................... 21,800 226,529
Furukawa Electric...................... 13,000 62,324
Haseko...................................... 12,000 (a) 16,815
Hitachi................................ 13,900 125,836
Honda Motor............................ 400 12,407
House Food Industrial.................. 220 3,221
Industrial Bank of Japan............... 2,200 23,380
Itochu...................................... 1,500 7,097
Japan Air Lines........................ 3,600 (a) 14,283
Japan Energy........................... 600 1,346
Joyo Bank.............................. 462 2,095
Kajima................................. 800 3,640
Kamigumi............................... 400 1,978
Kandenko............................... 105 814
Kansai Electric Power.................. 9,999 174,744
Kawasaki Steel......................... 16,600 49,004
Kinki Nippon Railway................... 995 5,514
Kirin Brewery.......................... 7,000 60,616
Komatsu................................ 600 4,383
Konica...................................... 18,000 104,149
Kumagai-Gumi........................... 27,000 36,133
Kyocera................................ 1,200 71,794
Kyushu Electric Power.................. 101 1,654
Mabuchi Motor.......................... 1,000 50,618
Maeda Road Construction................ 200 1,480
Marubeni............................... 68,000 252,129
Marudai Food........................... 200 (a) 630
Maruha...................................... 400 860
Marui...................................... 3,000 49,359
Matsushita Electric Works.............. 10,400 166,197

DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30,1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ ______
Japan (continued) Mitsubishi Chemical........ 900 $ 3,025
Mitsubishi Heavy Industries............ 44,700 294,880
Mitsubishi Trust & Banking............. 200 2,141
Mitsui & Company....................... 400 3,051
Mitsui Marine & Fire Insurance......... 600 3,410
Mitsui Trust & Banking................. 600 3,420
NEC...................................... 800 9,762
Nikon...................................... 8,600 123,215
Nippon Express......................... 8,000 55,105
Nippon Fire & Marine Insurance......... 38,000 (a) 149,571
Nippon Light Metal..................... 400 1,319
Nippon Oil............................. 800 3,766
Nippon Steel........................... 5,100 14,534
Nippon Yusen Kaisha.................... 10,800 39,109
Nomura Securities...................... 4,000 44,714
Oji Paper.............................. 30,000 151,382
Orient...................................... 26,000 83,099
Orix...................................... 2,000 100,921
Osaka Gas.............................. 45,000 107,691
Sakura Bank............................ 28,600 151,071
Sanwa Shutter.......................... 200 1,427
Sekisui House.......................... 12,000 106,746
Seven-Eleven Japan NPV................. 119 7,541
Sharp...................................... 8,000 103,913
Shizuoka Bank.......................... 400 3,558
Snow Brand Milk Products............... 500 2,244
Sony...................................... 940 68,374
Sumitomo Bank.......................... 14,307 163,309
Sumitomo Coal Mining................... 12,000 32,969
Sumitomo Electric Industries........... 800 10,832
Sumitomo Metal Industries.............. 40,000 99,504
Sumitomo Trust & Banking............... 850 7,026
Takara Standard........................ 12,000 90,687
Takeda Chemical Industries............. 1,000 23,065
Tokai Bank............................. 6,800 50,587
Tokio Marine & Fire Insurance.......... 800 7,809
Tokyo Broadcasting System.............. 12,000 187,043
Tokyo Electric Power................... 1,272 22,530
Tokyo Gas.............................. 35,000 83,484
Tokyu...................................... 5,820 30,513
Toppan Printing........................ 12,000 154,924
Toray Industries....................... 21,000 130,599
Toshiba................................ 10,000 56,050
Toyo Engineering....................... 5,000 19,995
Toyobo................................. 1,200 2,758
Toyota Motor........................... 25,014 724,644
Ube Industries......................... 600 1,568
Yakult Honsha.......................... 200 1,921
Yamato Transport....................... 400 4,094

DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30,1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ ______
Japan (continued) Yasuda Trust & Banking..... 43,000 $ 100,535
Yokogawa Electric...................... 2,900 20,295
_______
6,305,422
_______
Malaysia_2.0% Amsteel Berhad................. 85,000 63,683
Kemayan................................ 3,000 3,575
Malayan Banking Berhad................. 7,000 69,740
Perusahaan Otomobil.................... 9,000 53,800
Renong Berhad.......................... 14,000 19,192
Resorts World Berhad................... 23,000 84,785
Tanjong................................ 13,000 47,145
Technology Resources Industrial Berhad. 1,000 (a) 1,833
Telekom Malaysia Berhad................ 4,000 28,056
Tenaga Nasional Berhad................. 1,000 4,623
_______
376,432
_______
Netherlands_4.6% Akzo Nobel.................. 800 103,197
Elsevier............................... 15,000 240,518
ING Groep.............................. 2,607 102,495
Ihc Caland............................. 1,730 85,531
Philips Electronics.................... 2,380 124,394
Royal Dutch Petroleum.................. 455 81,422
Stad Rotterdam......................... 3,125 131,373
_______
868,930
_______
New Zealand_.4% Fisher & Paykel.............. 18,750 67,269
_______
Norway_.3% Aker RGI ASA...................... 2,040 49,754
_______
Singapore_1.4% Development Bank of Singapore. 2,000 23,778
Keppel...................................... 12,500 54,434
Oversea-Chinese Banking................ 4,000 46,727
Singapore Airlines..................... 11,000 97,325
United Overseas Bank................... 5,000 47,004
_______
269,268
_______
Spain_2.4% Banco Bilbao Vizcaya.............. 1,800 121,448
Empresa Nacional De Electricidad....... 1,400 98,108
Fomento de Construcciones y Contratas.. 400 39,056
Repsol...................................... 1,100 46,236
Telefonica de Espana................... 6,000 154,073
_______
458,921
_______
Sweden_2.6% ABB AB Series B.................. 16,200 196,374
Astra Series A......................... 500 20,480
Astra Series B......................... 2,000 79,494
Diligentia............................. 100 (a) 1,059
Esselte..................................... 3,070 70,119
Skandinaviska Enskilda Banken.......... 1,700 17,354
Stora Kopparbergs...................... 1,000 13,844

DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30,1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ ______
Sweden (continued) Svenska Handelsbanken..... 600 $ 16,536
Telefonaktiebolget Ericsson B.......... 2,600 82,275
_______
497,535
_______
Switzerland_6.3% ABB......................... 63 76,474
Danzas Holding......................... 20 19,041
Moevenpick Holding..................... 60 17,157
Nestle..................................... 53 64,515
Novartis(Bearer Shrs).................. 50 66,032
Novartis(Regd Shrs).................... 102 134,705
Pharma Vision 2000..................... 140 (a) 70,262
Roche Holding.......................... 36 304,794
Roche Holding (Bearer Shrs)............ 7 83,781
Schindler Holding...................... 33 40,057
Schweizerische Bankgesellschaft........ 121 114,788
Schweizerische Bankverein.............. 175 38,320
Schweizerische Rueckversicherungs Gesellschaft 90 104,413
Winterthur Schweizerische Versicherungs-Gesellschaft 100 71,948
_______
1,206,287
_______
United Kingdom_3.9% Allied Irish Banks....... 11,475 81,853
Arjo Wiggins Appleton.................. 1,933 5,771
B.A.T. Industries...................... 5,000 42,269
Barclays............................... 4,281 79,744
British Aerospace...................... 649 13,806
British Petroleum...................... 225 2,585
British Steel.......................... 3,763 8,670
British Telecommunications............. 9,056 66,492
Dawson International................... 6,075 6,358
East Midlands Electricity.............. 1,497 16,273
Energy Group........................... 1,333 (a) 10,544
Glaxo Wellcome......................... 3,335 65,667
Grand Metropolitan..................... 739 6,187
Hanson................................. 1,667 8,074
Harrisons & Crosfield.................. 8,008 15,722
Imperial Chemical Industries........... 2,142 24,364
Imperial Tobacco Group................. 1,333 (a) 8,760
Kwik Save.............................. 1,275 6,165
Legal & General........................ 7,985 53,640
Marks & Spencer........................ 1,000 7,951
Meyer International.................... 2,343 16,595
National Westminster Bank.............. 2,932 34,730
Northern Foods......................... 6,149 20,753
Redland................................ 434 2,465
Royal Bank of Scotland................. 4,100 38,885
Sedgwick Group......................... 4,166 8,450
Smithkline Beecham..................... 3,142 50,549
Southern Electric...................... 1,922 13,651

DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30,1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ ______
United Kingdom (continued) Tesco............. 116 $ 672
Unigate................................ 3,984 30,060
Wolseley............................... 375 3,015
_______
750,720
_______
TOTAL COMMON STOCKS
(cost $15,006,442)................... $15,203,931
=======
Preferred Stocks_.1%
Germany; Friedrich Grohe
(cost $11,857)....................... 40 $ 11,991
=======
Warrants_.0%
Hong Kong; Hong Kong & China Gas
(cost $830).......................... 5,760 $ 2,900
=======
Principal
Short-Term Investments_20.5% Amount
_______
Commercial Paper_19.3% Ford Motor Credit Corp.,
5.60%, 5/1/1997...................... $..2,000,000 $ 2,000,000
General Motors Acceptance Corp.,
5.62%, 5/1/1997...................... 1,666,000 1,666,000
_______
3,666,000
_______
U.S. Treasury Bills_1.2% 5.51%, 6/26/1997 230,000 (b) 228,245
_______
TOTAL SHORT-TERM INVESTMENTS
(cost $3,894,175).................... $ 3,894,245
=======
TOTAL INVESTMENTS (cost $18,913,304)........................................ 100.5% $19,113,067
==== =======
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (.5%) $ (97,322)
==== =======
NET ASSETS.................................................................. 100.0% $19,015,745
==== =======
Notes to Statement of Investments:
(a) Non-income producing.
(b) Held by the custodian in a segregated account as collateral for open futures positions.
SEE NOTES TO FINANCIAL STATEMENTS
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
STATEMENT OF FINANCIAL FUTURES APRIL 30,1997 (UNAUDITED)

Unrealized
Market Value Appreciation
Number of Covered (Depreciation)
Financial Futures Long: Contracts by Contracts Expiration at 4/30/97
______________________ ____________ ______________ ______________ ______________
<S> <C> <C> <C> <C>
CAC 40....................................... 3 $ 275,208 June `97 $ (1,544)
CAC 40....................................... 1 92,463 September `97 (841)
Deutsche Aktienindex......................... 5 1,030,403 June `97 50,246
Financial Times 100.......................... 3 530,747 June `97 8,701
Financial Times 100.......................... 2 365,230 September `97 11,683
Nikkei 300................................... 30 692,179 June `97 54,389
Nikkei 300................................... 10 225,233 September `97 10,548
_____
$133,182
=====
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1997 (UNAUDITED)
Cost Value
_______ ______
<S> <C> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $18,913,304 $19,113,067
Cash denominated in foreign currencies..... 16,590 16,532
Net unrealized appreciation on forward
....... currency exchange contracts_Note 1(e) 81,149
Dividends and interest receivable.......... 76,540
Receivable for futures variation margin.... 34,846
_______
19,322,134
_______
LIABILITIES: Due to The Dreyfus Corporation and affiliates 18,632
Cash overdraft due to Custodian............ 287,718
Directors' fees payable.................... 39
_______
306,389
_______
NET ASSETS.................................................................. $19,015,745
=======
REPRESENTED BY: Paid-in capital............................ $17,867,659
Accumulated undistributed investment income_net328,286
Accumulated net realized gain (loss) on investments and
............... foreign currency transactions 410,318
Accumulated net unrealized appreciation (depreciation) on
investments and foreign currency transactions (including
.... $133,182 net unrealized appreciation on
.......................... financial futures) 409,482
_______
NET ASSETS.................................................................. $19,015,745
=======
NET ASSET VALUE PER SHARE
__________________________________
Institutional Retail
Shares Shares
_______ ______
Net Assets.................................................................. $ 1,355,581 $17,660,164
Shares Outstanding.......................................................... 126,688 1,652,601
NET ASSET VALUE PER SHARE................................................... $10.70 $10.69
==== ====
SEE NOTES TO FINANCIAL STATEMENTS.

DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
INVESTMENT INCOME
INCOME: Cash dividends (net of $15,340 foreign taxes
withheld at source).................... $ 98,471
Interest................................... 70,484
_____
Total Income......................... $ 168,955
EXPENSES: Management fee_Note 2(a)................... 119,714
Distribution fees (Institutional shares)_Note 2(b) 1,783
Directors' fees and expenses_Note 2(c)..... 234
_____
Total Expenses....................... 121,731
_____
INVESTMENT INCOME_NET....................................................... 47,224
_____
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 3:
Net realized gain (loss) on investments and
foreign currency transactions.......... $ 249,529
Net realized gain (loss) on forward currency
exchange contracts..................... 314,615
Net realized gain (loss) on financial futures 312,012
_____
Net Realized Gain (Loss)............. 876,156
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions (including $73,579
net unrealized appreciation on financial futures)........................... (553,519)
_____
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 322,637
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 369,861
=====
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996*
________ __________
<S> <C> <C>
OPERATIONS:
Investment income_net................................................. $ 47,224 $ 56,197
Net realized gain (loss) on investments............................... 876,156 1,301,020
Net unrealized appreciation (depreciation) on investments............. (553,519) 864,038
_______ _______
Net Increase (Decrease) in Net Assets Resulting from Operations. 369,861 2,221,255
_______ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Institutional shares................................................ (1,303) (24,383)
Retail shares....................................................... (63,926) (116,090)
Net realized gain on investments:
Institutional shares................................................ (79,359) (73,149)
Retail shares....................................................... (1,024,490) (241,414)
_______ _______
Total Dividends................................................. (1,169,078) (455,036)
_______ _______
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Institutional shares................................................ 1,175,403 4,048,327
Retail shares....................................................... 4,403,434 5,893,163
Dividends reinvested:
Institutional shares................................................ 80,167 92,802
Retail shares....................................................... 1,051,195 325,030
Cost of shares redeemed:
Institutional shares................................................ (1,410,979) (7,131,303)
Retail shares....................................................... (5,747,272) (1,993,211)
_______ _______
Increase (Decrease) in Net Assets from Capital Stock Transactions (448,052) 1,234,808
_______ _______
Total Increase (Decrease) in Net Assets....................... (1,247,269) 3,001,027
NET ASSETS:
Beginning of Period................................................... 20,263,014 17,261,987
_______ _______
End of Period......................................................... $19,015,745 $20,263,014
======= =======
Undistributed investment income_net....................................... $ 328,286 $ 346,291
_______ _______
SEE NOTES TO FINANCIAL STATEMENTS.

DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
________________________________________
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996*
_________ _________
CAPITAL SHARE TRANSACTIONS:
Institutional Shares
___________
Shares sold........................................................... 103,129 366,693
Shares issued for dividends reinvested................................ 7,577 9,080
Shares redeemed....................................................... (124,398) (639,858)
_______ _______
Net Increase (Decrease) in Shares Outstanding................... (13,692) (264,0852
======= =======
Retail Shares
_______
Shares sold........................................................... 411,027 529,510
Shares issued for dividends reinvested................................ 99,545 31,835
Shares redeemed....................................................... (539,168) (182,281)
_______ _______
Net Increase (Decrease) in Shares Outstanding................... (28,596) 379,064
======= =======
*Effective July 15, 1996, Investor Class shares were redesignated as
Institutional shares and Class R shares were redesignated as Retail shares.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating 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.

Institutional Shares
____________________________________________________________
Six Months Ended
April 30, 1997 Year Ended October 31,
________________________________________
PER SHARE DATA: (Unaudited) 1996(1) 1995 1994(2,3)
_________ ____ ____ ____
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $11.12 $10.11 $10.06 $10.00
____ ____ ____ ____
Investment Operations:
Investment income (loss)_net...................... .05 (.12) .01 .01
Net realized and unrealized gain (loss)
on investments.................................. .15 1.37 .06 .05
____ ____ ____ ____
Total from Investment Operations.................. .20 1.25 .07 .06
____ ____ ____ ____
Distributions:
Dividends from investment income_net.............. (.01) (.06) (.02) ._
Dividends from net realized gain on investments... (.61) (.18) _ ._
____ ____ ____ ____
Total Distributions............................... (.62) (.24) (.02) ._
____ ____ ____ ____
Net asset value, end of period.................... $10.70 $11.12 $10.11 $10.06
==== ==== ==== ====
TOTAL INVESTMENT RETURN............................... 1.85%(4) 12.62% .67% .60%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... .74%(4) 1.71% 1.75% .39%(4,5)
Ratio of net investment income to average net assets .13%(4) .03% .04% .44%(4,5)
Portfolio Turnover Rate........................... ._ 34.24% 64.85% ._
Average commission rate paid (6).................. $.0241 $.0219 ._ ._
Net Assets, end of period (000's Omitted)......... $1,356 $1,561 $4,088 $71
(1) Effective July 15, 1996, Investor Class shares were redesignated as Institutional shares.
(2) The Fund commenced operations on August 12, 1994.
(3) 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 Fund's investment manager.
(4) Not annualized.
(5) These ratios have been restated to reflect current year's presentation.
(6) For fiscal years beginning November 1, 1995, the Fund is required to disclose its average commission rate paid per share for
purchases and sales of investment securities.
SEE NOTES TO FINANCIAL STATEMENTS.

DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating 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.

Retail Shares
____________________________________________________________
Six Months Ended
April 30, 1997 Year Ended October 31,
______________________________________
PER SHARE DATA: (Unaudited) 1996(1) 1995 1994(2,3,4)
_________ ____ ____ __________
Net asset value, beginning of period.............. $11.12 $10.12 $10.06 $10.00
____ ____ ____ ____
Investment Operations:
Investment income_net............................. .03 .04 .06 .02
Net realized and unrealized gain (loss)
on investments.................................. .19 1.23 .02 .04
____ ____ ____ ____
Total from Investment Operations.................. .22 1.27 .08 .06
____ ____ ____ ____
Distributions:
Dividends from investment income_net.............. (.04) (.09) (.02) ._
Dividends from net realized gain on investments... (.61) (.18) _ ._
____ ____ ____ ____
Total Distributions............................... (.65) (.27) (.02) ._
____ ____ ____ ____
Net asset value, end of period.................... $10.69 $11.12 $10.12 $10.06
==== ==== ==== ====
TOTAL INVESTMENT RETURN............................... 2.02%(5) 12.80% .81% .60%(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... .62%(5) 1.43% 1.50% .33%(5,6)
Ratio of net investment income to average net assets .25%(5) .36% .52% .49%(5,6)
Portfolio Turnover Rate........................... ._ 34.24% 64.85% ._
Average commission rate paid (7).................. $.0241 $.0219 ._ ._
Net Assets, end of period (000's Omitted)......... $17,660 $18,702 $13,174 $11,844
(1) Effective July 15, 1996, Class R shares were redesignated as Retail shares.
(2) The Fund commenced operations on August 12, 1994.
(3) 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 Fund's the investment manager.
(4) Effective October 17, 1994, the Fund's Trust shares were redesignated as Class R shares.
(5) Not annualized.
(6) These ratios have been restated to reflect current year's presentation.
(7) For fiscal years beginning November 1, 1995, the Fund is required to disclose its average commission rate paid per share for
purchases and sales of investment securities.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus International Equity Allocation Fund (the "Fund") is a series of
The Dreyfus/Laurel Funds, Inc. (the "Company") which 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 Fund. The Fund's investment objective is to
exceed the total return of the Morgan Stanley Capital International-Europe
Australia Far East (MSCI EAFE) Index. 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") is the distributor
of the Fund's shares. The Fund is authorized to issue 60 million of $.001 par
value Capital Stock. The Fund currently offers two classes of shares:
Institutional (24 million shares authorized) and Retail (36 million shares
authorized). Retail shares are offered to any investor and Institutional
shares are offered only to clients of banks, securities brokers or dealers
and other financial institutions (collectively, Service Agents) that have
entered into selling agreements with the Fund's distributor. Other
differences between the two classes include the services offered to and the
expenses borne by each class.
Investment income, net of expenses (other than class specific expenses),
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.
The Fund's 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.
(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.
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) Foreign currency transactions: The Fund does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates
on investments from the fluctuations arising from changes in the market
prices of securities held. Such fluctuations are included with the net
realized and unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized on securities transactions, the difference between
the 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) Financial futures: The Fund may invest in financial futures contracts
in order to gain exposure to or protect against changes in the market. The
Fund is exposed to market risk as a result of changes in the value of the
underlying financial instruments (see Statement of Financial Futures).
Investments in financial futures require the fund to "mark to market" on
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
a daily basis, which reflects the change in the market value of the contract
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 Fund 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
April 30, 1997, and their related unrealized appreciation (depreciation) are
set forth in the Statement of Financial Futures.
(e) 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 gain on each
open contract. In addition, the following summarizes open forward currency
exchange contracts at April 30, 1997:
<TABLE>
<CAPTION>

Unrealized
Foreign Currency Appreciation
Forward Currency Contracts Amount Proceeds Value (Depreciation)
____________________________ __________________ ________ _______ ______________
<S> <C> <C> <C> <C>
Sales:
______
French Francs, expiring 7/2/96........... 3,580,000 $ 642,210 $ 616,593 $ 25,617
Japanese Yen, expiring 6/17/97........... 297,107,600 2,429,637 2,354,446 75,191
Purchases: Cost
__________ ________
German Deutschmarks, expiring 6/25/97.... 1,039,000 623,038 602,878 (20,160)
British Pounds, expiring 6/25/97......... 759,100 1,230,046 1,230,547 501
_____
Total............................... $ 81,149
=====
</TABLE>
(f) 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 distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers it is the policy of the Fund not to distribute such gain.
(g) 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.
The Fund has an unused capital loss carryover of approximately $1,256,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1996. 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 Fund. If not applied, $1,229,000 of the carryover expires in
fiscal 2000 and $27,000 expires in fiscal 2002.

DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 and/or affiliates 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 1.25% 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, commitment fees,
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) Distribution plan: The Fund has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the 1940 Act relating to its
Institutional shares. Under the Plan, the Fund may pay annually up to .25% of
the value of the average daily net assets attributable to its Institutional
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
Institutional shares. The Retail shares bear no distribution fee. During the
period ended April 30, 1997, the distribution fee for the Institutional
shares was $1,783.
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 Company and who have no
direct or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan.
(c) 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 meeting 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. The Chairman of
the Board receives an additional annual fee of $25,000 per year. These fees an
d expenses are charged and allocated to each series based on net assets.
NOTE 3_SECURITIES TRANSACTIONS:
The aggregate amount of sales of investment securities, excluding
short-term securities and forward currency exchange contracts, during the
period ended April 30, 1997, amounted to $1,235,846.
At April 30, 1997, accumulated net unrealized appreciation on
investments, financial futures and forward currency exchange contracts was
$414,094, consisting of $2,917,386 gross unrealized appreciation and
$2,503,292 gross unrealized depreciation.
At April 30, 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).
NOTE 4_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. For the period ended April
30, 1997, the Fund did not borrow under the Facility.

Registration Mark
[Dreyfus lion "d" logo]
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, 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. 323/723SA974
Registration Mark
[Dreyfus logo]
International
Equity Allocation
Fund
Semi-Annual
Report
April 30, 1997

<PAGE>
[LOGO]
Money Market
Reserves
Semi-Annual
Report

April 30, 1997

<PAGE>

Dreyfus Money Market Reserves
- -------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:
We are pleased to report the performance for Dreyfus Money Market Reserves
for its six-month reporting period ended April 30, 1997 as shown in the
following table:
Annualized
Annualized Yield Effective Yield*
----------------- ----------------
Investor Shares............. 4.80 4.91
Class R Shares.............. 5.01 5.12

ECONOMIC ENVIRONMENT
Growth Remains Robust
Defying predictions by many analysts that the six-year expansion would slow
down at last, economic growth continued unabated over the past six months. In
fact, after posting a 3.8% gain during the fourth quarter of 1996, real Gross
Domestic Product (GDP) rose to a growth rate of 5.6% during the first three
months of 1997, a level not attained in a decade. According to the government,
much of the surge in growth occurred because businesses added to their
inventories--a short-term trend that should not boost growth in coming
quarters. Other sectors were also strong, however, most especially housing,
where home resales jumped a full 9% during February and sales of new homes
surpassed an 800,000 annual rate for two consecutive months--January and
February--for the first time in over a decade. Sales of manufactured goods
also increased, as new orders for factory durables rose and consumer confidence
improved.

Fed Strikes Preemptively; Inflation Remains at Bay
Alongside the news of surprisingly strong economic growth came another
surprise: inflation remained very low. The latest evidence was the employment
cost index for the first quarter of 1997, which rose only 0.6%. This fell below
the 0.8% rise in the last quarter of 1996. Yet the unemployment rate for April
hit 4.9%, the lowest level in 23 years. Prior to the release of these rather
reassuring statistics, the Federal Reserve Board (Fed) increased the overnight
bank lending rate from 5.25% to 5.50% at its March 25 Federal Open Market
Committee meeting. Most market participants interpreted the hike as a preemptive
move, to be the first in a series of strikes against a growing risk of inflation
which stemmed primarily from the economy's strength, rising factory utilization
rates, and tightening labor markets.

MARKET ENVIRONMENT
Rising Rates, as Uncertainty over Fed Policy Prevails
After falling slightly early in the first quarter of 1997, interest rates on
money market securities rose sharply following Fed Chairman Alan Greenspan's
Humphrey-Hawkins Senate testimony on February 26, when the chairman warned of
coming interest rate increases. Thereafter, money market interest rates
continued to trend upward gradually even before the Fed actually raised rates on
March 25. As an example, the three-month LIBOR** rate rose 27 basis points
during March and other money market rates have risen at a similarly moderate
pace throughout the period. The market widely anticipated the Fed's March move,
and has already been pricing in the next rate increase which could occur at the
Fed's meeting in May. Nonetheless, with advance inflation indicators not all
flashing "red" as yet, the market remains unsettled as participants watch and
wait to gauge the economy and the mood of the Federal Reserve Board.

<PAGE>

PORTFOLIO OVERVIEW
Given the economy's robust growth and the uncertainty surrounding the future
direction of interest rates, your Fund retained a fairly defensive posture for
much of the period. Primarily, this strategy involved maintaining a relatively
short average portfolio maturity during the period. As of April 30, 1997, that
maturity was approximately 43 days, which compares with an average portfolio
maturity of approximately 56 days for comparable money market funds as measured
by the IBC's Money Fund Report average. The Fund concentrated investments mainly
in securities maturing between 30 and 90 days, although we did purchase some
one-year Certificates of Deposit in the first quarter of 1997 when yields
appeared attractive. These investments and the portfolio's short average
maturity enabled the Fund to benefit from rising interest rates while
simultaneously protecting its net asset value.
The Fund's defensive positioning also led to a somewhat higher position of
36% of assets diversified among various floating rate notes during the
semi-annual period. Floating rate securities provide yields that reset daily,
weekly, monthly, or quarterly tied to the rate at which a money market index
changes, such as the bank prime rate or LIBOR. In the recent semi-annual period,
many of these securities offered more attractive yields than comparable fixed
rate securities.
In the coming months, management currently intends to retain its defensive
posture. With the Fed still giving mixed signals as to its future policy, the
interest rate environment remains somewhat unsettled. Until we believe market
interest rates adequately discount the prospects of future Fed interest rate
increases, the current defensive position best protects assets while still
allowing the Fund to benefit from potentially rising rates. As always, we will
remain vigilant in watching the economy, the market, and interest rates and will
continue to seek a competitive level of income by investing in a diversified
portfolio of traditional, high quality money market securities.

Sincerely,

David Hertan
Portfolio Manager

May 16, 1997
New York, NY

* Annualized effective yield takes into account the effect of compounding and
is based upon dividends declared daily and reinvested monthly.
** The London Interbank Offered Rate ("LIBOR") is "the rate that most
creditworthy international banks dealing in Eurodollars charge each other
for large loans."-- John Downes and Elliot Goodman, Dictionary of
Finance and Investment Terms (New York, Barron's, 1995) s.v.

<PAGE>
<TABLE>
<CAPTION>
Dreyfus Money Market Reserves
- -------------------------------------------------------------------------------
Statement of Investments April 30, 1997 (Unaudited)

Principal
Negotiable Bank Certificates of Deposit--20.7% Amount Value
- ---------------------------------------------------------------------------- -------------- ----------
<S> <C> <C>
Bank of Scotland (London)
5.35%, 5/13/97............................................................ $ 2,000,000 $ 2,000,155
Bank of Tokyo--Mitsubishi (Yankee)
5.50%, 5/19/97............................................................ 8,000,000 8,000,000
Banque Nationale de Paris (Yankee)
5.60%, 6/18/97............................................................ 8,000,000 8,000,000
Canadian Imperial Bank of Commerce (Yankee)
5.82%, 3/2/98............................................................. 7,500,000 7,491,902
Generale Bank (Yankee)
5.52%, 9/3/97............................................................. 7,500,000 7,500,253
Industrial Bank of Japan LTD.
5.64%, 5/16/97............................................................ 8,500,000 8,500,035
Norinchukin Bank (London)
5.62%, 5/23/97............................................................ 8,000,000 8,000,049
Royal Bank of Canada
6.24%, 4/6/98............................................................. 8,000,000 7,997,130
Sanwa Bank Ltd.
5.62% 5/19/97............................................................. 8,500,000 8,500,042
Societe Generale (Yankee)
5.88%, 3/3/98............................................................. 7,500,000 7,498,195
--------------

TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $73,487,761)........................................................ $ 73,487,761
==============
Commercial Paper--30.0%
- -----------------------------------------------------------------------------
Allianz of America Finance Corp.
5.35%, 5/20/97............................................................ $ 7,500,000 $ 7,479,100
ANZ (DE) Inc.
5.44%, 6/3/97............................................................. 1,000,000 995,078
BT Securities Corp.
5.59%, 5/20/97............................................................ 8,500,000 8,475,057
BOC Group Inc.(DE)
5.52%, 5/2/97............................................................. 2,200,000 2,199,663
Caisse des Depots et Consignations
5.65%, 5/1/97............................................................. 8,200,000 8,200,000
Countrywide Home Loans, Inc.
5.68%, 5/1/97............................................................. 2,910,000 2,910,000
CSR America Inc.
5.44%, 6/26/97............................................................ 4,000,000 3,966,773
Credit Suisse
5.65%, 5/1/97............................................................. 13,870,000 13,870,000
Daimler-Benz North America Corp.
5.51%, 8/18/97............................................................ 3,765,000 3,703,784
EksportFinans A/S
5.71%, 7/3/97............................................................. 8,000,000 7,921,180
General Motors Acceptance Corp.
5.41%, 5/6/97............................................................. 7,500,000 7,494,438

<PAGE>
Dreyfus Money Market Reserves
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Principal
Commercial Paper (continued) Amount Value
- ---------------------------------------------------------------------------- ------------ --------------
Great Lakes Chemical Corp.
5.65%, 5/1/97............................................................. $ 2,200,000 $ 2,200,000
Household International Corp.
5.62%, 55/7/97............................................................ 9,000,000 8,991,615
Morgan Stanley Group Inc.
5.35%, 5/20/97............................................................ 7,500,000 7,479,100
Nordbanken
5.73%, 7/1/97............................................................. 5,000,000 4,952,132
Petrofina (DE) Inc.
5.63%, 5/1/97............................................................. 16,000,000 16,000,000
--------------
TOTAL COMMERCIAL PAPER
(cost $106,837,920)....................................................... $ 106,837,920
==============
Corporate Notes--26.5%
- ----------------------------------------------------------------------------
American Express Centurion Bank
5.65%, 10/24/97 (a)....................................................... $ 1,900,000 $ 1,900,720
Ameritech Capital Funding Corp.
5.43%, 5/12/98 (a)........................................................ 8,000,000 8,006,523
AmSouth Bank of Alabama
5.63%, 10/7/97 (a)........................................................ 7,000,000 6,998,476
Bear Stearns Mortgage Capital Corp.
5.53%, 11/7/97 (a)........................................................ 7,500,000 7,500,000
Caterpillar Financial Services Corp.
5.51%, 11/3/97 (a)........................................................ 7,500,000 7,500,000
CIT Group Holdings Inc.
5.70%, 1/28/98 (a)........................................................ 7,500,000 7,495,136
Comerica Bank
5.65%, 2/5/98 (a)......................................................... 7,500,000 7,496,340
Corestates Bank
5.66%, 11/6/97 (a)........................................................ 5,000,000 5,000,000
Countrywide Funding Corp.
5.68%, 12/29/97 (a)....................................................... 8,500,000 8,516,500
Dean Witter, Discover & Co.
5.66%, 9/29/97 (a)........................................................ 6,000,000 6,005,420
Ford Motor Credit Co.
5.49%, 11/3/97 (a)........................................................ 2,920,000 2,923,094
General Motors Acceptance Corp.
5.83%, 4/17/98 (a)........................................................ 795,000 794,719
International Lease Finance Corp.
7.20%, 6/23/97 (a)........................................................ 2,000,000 2,001,267
Liberty Mutual Capital Corp.
5.78%, 1/21/98 (a)........................................................ 6,000,000 6,029,402
MBNA America Bank
5.51%, 2/9/98 (a)......................................................... 8,000,000 8,009,780

<PAGE>

Dreyfus Money Market Reserves
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Principal
Corporate Notes (continued) Amount Value
- ---------------------------------------------------------------------------- ------------ --------------
National Rural Utilities Cooperative Finance Corp.
5.28%, 5/19/97............................................................ $ 1,000,000 $ 1,002,118
SMM Trust
5.69%, 1/15/98 (a)........................................................ 7,000,000 6,999,948
--------------
TOTAL CORPORATE NOTES
(cost $94,179,443)........................................................ $ 94,179,443
==============
Short-Term Bank Notes--8.3%
- -----------------------------------------------------------------------------
Bank One Milwaukee, N.A.
5.64%, 5/14/97 (a)........................................................ $ 7,000,000 $ 6,999,830
Key Bank of Washington
6.33%, 12/10/97 (a)....................................................... 7,500,000 7,500,000
PNC Bank N.A.
5.66%, 9/3/97 (a)......................................................... 8,000,000 7,998,113
Westdeutsche Landesbank Girozentrale
5.67%, 3/6/98 (a)......................................................... 7,000,000 6,996,015
--------------
TOTAL SHORT-TERM BANK NOTES
(cost $29,493,958)........................................................ $ 29,493,958
==============
U.S. Government Agencies--5.6%
- -----------------------------------------------------------------------------
Federal National Mortgage Association,
Floating Rate Notes
5.69%, 10/16/97 (a)
(cost $19,994,195)........................................................ $20,000,000 $ 19,994,195
==============
Time Deposits--7.4%
- -----------------------------------------------------------------------------
Fifth Third Bank (Cayman)
5.63%, 5/1/97............................................................. $ 7,494,000 $ 7,494,000
Norwest Bank Minnesota (Cayman)
5.66%, 5/1/97............................................................. 10,000,000 10,000,000
Societe Generale (Cayman)
5.69%, 5/1/97............................................................. 9,000,000 9,000,000
--------------
TOTAL TIME DEPOSITS
(cost $26,494,000)........................................................ $ 26,494,000
==============
TOTAL INVESTMENTS
(cost $350,487,277)................................................. 98.5% $ 350,487,277
======= ==============
CASH AND RECEIVABLES (NET).............................................. 1.5% $ 5,246,415
======= ==============
NET ASSETS............................................................ 100.0% $ 355,733,692
======= ==============
<FN>
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Variable interest rates are subject to periodic change.

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

<PAGE>

Dreyfus Money Market Reserves
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1997 (Unaudited)

Cost Value
------------- ------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments... $350,487,277 $350,487,277
Cash...................................................... 4,379,143
Interest receivable....................................... 1,577,899
-------------
356,444,319
-------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates............. 170,987
Due to Distributor........................................ 223
Dividends payable......................................... 539,417
-------------
710,627
-------------
NET ASSETS............................................................................. $355,733,692
=============
REPRESENTED BY: Paid-in capital......................................... $355,756,147
Accumulated net realized gain (loss) on investments..... (22,455)
------------
NET ASSETS............................................................................. $355,733,692
=============
</TABLE>

NET ASSET VALUE PER SHARE
---------------------------
<TABLE>
<CAPTION>
Investor Shares Class R Shares
---------------- --------------
<S> <C> <C>
Net Assets...................................................................... $178,643,987 $177,089,705
Shares Outstanding.............................................................. 178,654,493 177,101,654
NET ASSET VALUE PER SHARE....................................................... $1.00 $1.00
====== ======
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations Six Months Ended April 30, 1997 (Unaudited)

INVESTMENT INCOME

INCOME Interest Income................................... $9,511,670
EXPENSES: Management fee--Note 2(a)......................... $846,353
Distribution fees (Investor shares)--Note 2(b).... 145,972
Directors' fees and expenses--Note 2(c)........... 17,272
--------

Total Expenses............................... 1,009,597
----------
INVESTMENT INCOME--NET........................................................... 8,502,073

NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b)............................... (12,659)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................. $8,489,414
----------
----------

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

Dreyfus Money Market Reserves
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets

Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................ $ 8,502,073 $ 16,551,791
Net realized gain (loss) on investments............................... (12,659) 1,082
--------------- ---------------
Net Increase (Decrease) in Net Assets Resulting from Operations... 8,489,414 16,552,873
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Investor shares..................................................... (3,510,460) (6,902,288)
Class R shares...................................................... (4,991,613) (9,649,503)
------------- -------------
Total Dividends................................................... (8,502,073) (16,551,791)
------------- -------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share): Net proceeds from shares sold:
Investor shares..................................................... 134,111,221 159,934,479
Class R shares...................................................... 218,990,278 716,962,318
Dividends reinvested:
Investor shares..................................................... 3,360,605 6,757,305
Class R shares...................................................... 2,812,382 5,233,636
Cost of shares redeemed:
Investor shares..................................................... (102,990,116) (184,344,018)
Class R shares...................................................... (215,114,997) (691,573,952)
------------- -------------
Increase (Decrease) in Net Assets from Capital Stock Transactions 41,169,373 12,969,768
------------- -------------
Total Increase (Decrease) in Net Assets......................... 41,156,714 12,970,850
NET ASSETS:
Beginning of Period................................................... 314,576,978 301,606,128
------------- -------------
End of Period......................................................... $ 355,733,692 $ 314,576,978
============= =============

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus Money Market Reserves
- -------------------------------------------------------------------------------
Financial Highlights

Investor Shares
--------------------------------------------------
Six Months Ended Year Ended October 31,
April 30, 1997 -------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(1,2)
---------- - ------ -------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- -------
Investment Operations:
Investment income--net................................ .024 .048 .052 .021
------- ------- ------- -------
Distributions:
Dividends from investment income--net................. (.024) (.048) (.052) (.021)
------- ------- ------- -------
Net asset value, end of period....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= =======
TOTAL INVESTMENT RETURN................................. 4.86%(3) 4.94% 5.28% 2.14%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. .70%(3) .70% .70% .71%(3)
Ratio of net investment income
to average net assets............................. 4.81%(3) 4.84% 5.25% 3.31%(3)
Net Assets, end of period (000's Omitted)............ $178,644 $144,168 $161,819 $3,611

<FN>

- --------------------
(1) The Fund commenced selling Investor shares on April 6, 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 Fund's investment manager.
(3) Annualized.
(4) Not annualized.

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

Dreyfus Money Market Reserves
- -------------------------------------------------------------------------------
Financial Highlights (continued)

Class R Shares
---------------------------------------------------------------------
Six Months Ended Year Ended October 31,
April 30, 1997 ---------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(1,2) 1993 1992
----------- ------ ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------ ------

Investment Operations:
Investment income--net..................... .025 .050 .053 .034(3) .028(4) .039(4)
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net...... (.025) (.050) (.053) (.034) (.028) (.039)
------ ------ ------ ------ ------ ------
Net asset value, end of period............. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN....................... 5.06%(5) 5.16% 5.44% 3.52% 2.84% 3.92%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .50%(5) .50% .50% .51%(6) .50% .50%
Ratio of net investment income
to average net assets................... 5.00%(5) 5.01% 5.40% 3.51% 2.80% 3.88%

Net Assets, end of period (000's Omitted)... $177,090 $170,409 $139,787 $124,754 $103,760 $91,848

<FN>
- -----------------------
(1) 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 Fund's investment manager.
(2) The Fund commenced selling Investor shares on April 6, 1994. Those
shares outstanding prior to April 4, 1994 were redesignated
as Trust shares. Effective October 17, 1994, the Fund's Trust
shares were reclassified as Class R shares.
(3) Net investment income before expenses reimbursed by the investment
adviser for the year ended October 31, 1994 was $.0331.
(4) For the year ended October 31, 1992, the investment adviser waived
all or a portion of its advisory fee amounting to $.0007 per share.
For the years ended October 31, 1993 and 1992, the investment
adviser reimbursed expenses of the Fund amounting to $.0036 and
$.0027 per share, respectively.
(5) Annualized.
(6) Annualized expense ratio before expenses reimbursed by the
investment adviser for the year ended October 31, 1994
was 0.64%.
</TABLE>

See notes to financial statments.
<PAGE>

Dreyfus Money Market Reserves
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Dreyfus Money Market Reserves (the "Fund") is a series of The Dreyfus/Laurel
Funds, Inc. (the "Company") which 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
Fund. The Fund's investment objective is to seek a high level of current income
consistent with stability of principal by investing in high-grade money market
instruments. 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") is the distributor of
the Fund's shares. The Fund is authorized to issue 2 billion of $.001 par value
Capital Stock in each of the following classes of shares: Investor and Class R.
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 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.

(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and discounts on investments, is
recognized on the accrual basis. Cost of investments represents amortized cost.

(c) Distributions to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net; such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, it is
the policy of the Fund not to distribute such gain.

(d) 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 Money Market Reserves
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The Fund has an unused capital loss carryover of approximately $10,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1996. If not
applied, the carryover expires in fiscal 2003.

At April 30, 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).

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 and/or affiliates 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 .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) 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. During the period April 30, 1997, the distribution fee for the Investor
shares was $145,972.

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 Company and who have no direct or
indirect financial interest in the operation of the Plan or in any agreement
related to the Plan.

NOTE 3--Bank Line of Credit:

<PAGE>
[LOGO]
Dreyfus Money Market Reserves
200 Park Avenue
New York, NY 10166

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

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

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

Printed in U.S.A. 317/717SA974

<PAGE>
[LOGO]
Dreyfus
Municipal Reserves
Semi-Annual
Report

April 30, 1997

Dreyfus Municipal Reserves
- -------------------------------------------------------------------------------
Statement of Investments April 30, 1997 (Unaudited)

Principal
Tax Exempt Investments--100.0% Amount Value
- ---------------------------------------------------------------------------- ----------- -----------
<S> <C> <C>

Alabama--1.9%
Phoenix City Industrial Development Board, Environmental Improvement Revenue,
VRDN
4.55%, Series A (LOC; Toronto-Dominion Bank) (a,b)........................ $ 3,400,000 $ 3,400,000

Alaska--1.5%
Alaska Industrial Development Authority, Revenue, VRDN
(Providence Medical Office Building) 3.50% (LOC; Kredietbank) (a,b)....... 1,720,000 1,720,000
City of Anchorage, Refunding, Revenue 4%, Series B, 10/1/97 (Insured; FGIC).. 1,125,000 1,126,370

Arizona--2.5%
Cochise County Pollution Control Corporation, SWDR
(Arizona Electric Power Co-Op Inc. Project)
3.50%, 9/1/97 (Liquidity; National Rural Utility Co-Op)................... 2,100,000 2,100,000
Pinal County Industrial Development Authority, PCR, Refunding, VRDN
(Magma Copper Co. Project) 4.60% (LOC; Banque Nationale de Paris) (a,b)... 2,400,000 2,400,000

California--2.1%
Eastern Municipal Water District, Water and Sewer Revenue, COP, Refunding, VRDN
4.50%, Series B (Insured; FGIC and SBPA; Rabobank Nederland) (a).......... 200,000 200,000
Fairfield Industrial Development Authority, IDR, VRDN (R. Dakin and Co. Project)
3.55% (LOC; Bank of America) (a,b)........................................ 600,000 600,000
Los Angeles Regional Airport Improvement Corporation, Lease Revenue, VRDN
(American Airlines) 4.50% (LOC; Wachovia Bank and Trust Co.) (a,b)........ 1,100,000 1,100,000
Regional Airports Improvement Corporation of Los Angeles,
Terminal Facilities Completion Revenue, VRDN (Los Angeles International
Airport) 4.55% (LOC; Societe Generale) (a,b).............................. 1,900,000 1,900,000

Colorado--1.8%
Arapahoe County, IDR, VRDN (CSX Beckett Aviation) 3.66% (LOC; Barclays Bank) (a,b) 700,000 700,000
Dover Valley Metropolitan District of Arapahoe County, Revenue, Refunding
3.90%, Series B, 11/1/97 (LOC; Banque Nationale de Paris) (b)............. 1,000,000 1,000,000
Interstate South Metropolitan District, Refunding, Revenue
3.75%, Series B, 11/1/97 (LOC; Banque Nationale de Paris) (b)............. 975,000 975,000
Lakewood, IDR, VRDN (Service Merchandise Co., Inc. Project)
3.65% (LOC; Canadian Imperial Bank of Commerce) (a,b)..................... 500,000 500,000
City of Thornton, IDR, VRDN (Service Merchandise Co., Inc. Project)
3.65% (LOC; Canadian Imperial Bank of Commerce) (a,b)..................... 200,000 200,000

Florida--3.5%
Florida Multi-Family Housing Finance Agency, Refunding, VRDN
4%, Series E (LOC; Comerica Bank) (a,b)................................... 1,200,000 1,200,000
Hillsborough County Port District, Special Purpose Revenue, Refunding, VRDN
(IMC Fertilizer)
4.70% (LOC; Rabobank Nederland) (a,b)..................................... 2,100,000 2,100,000
Putnam County Development Authority, PCR, VRDN (Seminole Electric)
4.55%, Series H-1 (Corp. Guaranty; National Rural Utility Co-Op) (a)...... 1,050,000 1,050,000
West Orange Memorial Hospital, Tax District Revenue, CP
4.30%, Series 1991A-2, 5/20/97 (LOC; Rabobank Nederland) (b).............. 2,000,000 2,000,000

<PAGE>

Dreyfus Municipal Reserves
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------------------------------ -------------- ------------
Georgia--6.0%
City of Dalton, Utilities Revenue, Refunding 4%, 1/1/98 (Insured; MBIA)...... $ 2,015,000 $ 2,019,562
State of Georgia, Revenue 7.70%, Series E, 7/1/97............................ 5,000,000 5,032,546
Hart County Industrial Building Authority, IDR, Refunding, VRDN
(Dundee Mills Inc. Project)
4.70% (LOC; Trust Co. Bank) (a,b)......................................... 2,000,000 2,000,000
Municipal Electric Authority, VRDN (Project One)
3.55%, Series E (LOC; ABN-Amro Bank) (a,b)................................ 2,000,000 2,000,000

Illinois--8.6%
Alsip, IDR, VRDN (Ardco Inc. Project) 4.80% (LOC; Harris Trust and Savings
Bank) (a,b).............................................................. 1,455,000 1,455,000
Burbank, IDR, VRDN (Service Merchandise Co., Inc. Project)
3.65% (LOC; Canadian Imperial Bank of Commerce) (a,b)..................... 400,000 400,000
City of Chicago, VRDN 4.50%, Series B (LOC; Canadian Imperial Bank of
Commerce) (a,b)........................................................... 1,000,000 1,000,000
Chicago O'Hare International Airport, General Airport Revenue, VRDN
(Second Lien):
4.60%, Series B (LOC; Societe Generale) (a,b)............................. 680,000 680,000
4.65%, Series B (LOC; Bayerische Landesbank) (a,b)........................ 500,000 500,000
Illinois Development Finance Authority, VRDN:
IDR (Columbia Graphics Corp. Project)
4.80% (LOC; Harris Trust and Savings Bank) (a,b)........................ 2,400,000 2,400,000
Revenue:
(Aurora Central Catholic High School) 4.55% (LOC; Northern Trust Co.) (a,b) 1,000,000 1,000,000
(Saint Paul's House Project) 4.55% (LOC; Lasalle National Bank) (a,b)... 1,625,000 1,625,000
Illinois Educational Facilities Authority, Revenues, VRDN (Aurora University)
4.70% (LOC; Harris Trust and Savings Bank) (a,b).......................... 500,000 500,000
City of Naperville, IDR, VRDN (Service Merchandise Co., Inc. Project) 3.65% (a) 1,800,000 1,800,000
City of New Lenox, IDR, VRDN (Panduit Corp. Project) 4.75% (LOC; Commerzbank) (a,b) 1,300,000 1,300,000
City of Zion, Revenue, VRDN (H & M Enterprises LLC Project)
4.70%, Series A (LOC; Federal Home Loan Bank) (a,b)....................... 3,050,000 3,050,000

Indiana--2.3%
City of Auburn, EDR, VRDN (RJ Tower Corp. Project) 4.75% (LOC; Comerica Bank)
(a,b)..................................................................... 325,000 325,000
Fort Wayne Hospital Authority, HR, VRDN (Parkview Memorial Hospital)
4.50%, Series B (LOC; Bank of America) (a,b).............................. 1,950,000 1,950,000
Indiana Educational Facilities Authority, Revenue, VRDN
(University of Notre Dame Du Lac Project)
4.50% (Liquidity; First National Bank of Chicago) (a)..................... 800,000 800,000
Indiana Hospital Equipment Financing Authority, Revenue, VRDN
4.60%, Series A (SBPA; National Bank of Detroit and Insured; MBIA) (a).... 1,200,000 1,200,000

Kansas--1.1%
City of Burlington, PCR, Refunding, CP (Kansas City Power and Light)
3.60%, Series A, 5/6/97 (LOC; Toronto-Dominion Bank) (b).................. 2,000,000 2,000,000

<PAGE>

Dreyfus Municipal Reserves
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Principal
Tax Exempt Investments (continued) Amount Value
- ----------------------------------------------------------------------------- ------------ ----------
Kentucky--1.1%
Mayfield, Multi-City Lease Revenue, VRDN (League of Cities Funding Trust)
4.65% (LOC; PNC Bank) (a,b)............................................... $ 1,000,000 $ 1,000,000
University of Kentucky, University Revenues, Prerefunded
6.70%, 5/1/97 (Escrowed in; U.S. Government Securities)................... 1,000,000 1,020,000

Louisiana--3.9%
State of Louisiana, Revenue, Prerefunded
8%, Series B, 5/1/97 (Escrowed in; U.S. Government Securities)............ 2,000,000 2,040,000
Louisiana Recovery District, Sales Tax Revenue
3.90%, 7/1/97 (Escrowed in; U.S. Government Securities and Insured; FGIC). 5,000,000 5,000,000

Maine--1.1%
State of Maine, TAN 4.50%, 6/27/97........................................... 2,000,000 2,001,878

Massachusetts--4.5%
Massachusetts Bay Transportation Authority, Notes:
4.75%, Series B, 9/5/97................................................... 2,000,000 2,005,351
4.25%, Series A, 2/27/98.................................................. 3,000,000 3,015,083
City of Worchester:
BAN 3.97%, 8/28/97........................................................ 1,500,000 1,500,922
Municipal Purpose Loan Revenue, Refunding 5%, Series A, 8/1/97
(Insured; AMBAC).......................................................... 1,640,000 1,644,202

Michigan--6.7%
Meridian Economic Development Corporation, LOR, VRDN
(Service Merchandise Co., Inc. Project)
3.65% (LOC; Canadian Imperial Bank of Commerce) (a,b)..................... 600,000 600,000
State of Michigan, Notes 4.50%, 9/30/97...................................... 5,000,000 5,021,424
Michigan Building Authority, Revenue, CP
3.50%, Series 1, 5/1/97 (LOC; Canadian Imperial Bank of Commerce) (b)..... 2,600,000 2,600,000
Michigan Municipal Bond Authority, Revenue, Notes 4.50%, 7/3/97.............. 3,000,000 3,002,988
University of Michigan, University Revenues, VRDN (Medical Service Plan)
4.50%, Series A (a)....................................................... 1,000,000 1,000,000

Minnesota--4.5%
State of Minnesota, Revenue:
5%, Series A, 6/30/97 (Insured; AMBAC).................................... 5,000,000 5,012,302
6.60%, 8/1/97............................................................. 3,125,000 3,149,215

Mississippi--1.8%
Jackson County, Water Systems Revenue, Refunding
3.55%, 8/1/97 (Guaranteed by; Chevron USA Corp.).......................... 1,840,000 1,840,000
Perry County, PCR, Refunding, VRDN (Leaf River Forest Project)
4.45% (LOC; Credit Suisse) (a,b).......................................... 1,400,000 1,400,000

Missouri--.7%
Kansas City Industrial Development Authority, MFHR, VRDN
(Timberline Village Apartments Project) 4.60%
(LOC; Bank of America) (a,b)............................................. 1,300,000 1,300,000

<PAGE>

Dreyfus Municipal Reserves
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Principal
Tax Exempt Investments (continued) Amount Value
- ----------------------------------------------------------------------------- ------------- -----------
Montana--.9%
Butte-Silver Bow, PCR, Refunding, VRDN (Rhone-Poulenc Inc. Project)
4.60% (LOC; Banque Nationale de Paris) (a,b).............................. $ 1,705,000 $ 1,705,000

Nevada--2.9%
Clark County, IDR, VRDN (Nevada Power Co. Project)
4.65%, Series A (LOC; Barclays Bank) (a,b)................................ 1,000,000 1,000,000
Clark County, Sanitation District Revenue 5.25%, Series A, 7/1/97
(Insured; AMBAC).......................................................... 2,935,000 2,943,259
City of Las Vegas, Revenue, Prerefunded
7.50%, 11/1/97 (Escrowed in; U.S. Government Securities and
Insured; MBIA)........................................................... 1,300,000 1,349,317

New Hampshire--1.4%
New Hampshire Higher Educational and Health Facilities Authority, Revenue
(Dartmouth Educational Loan Corp.)
3.80%, 6/1/97 (Guaranteed by; Dartmouth College).......................... 1,575,000 1,575,000
New Hampshire Municipal Bond Bank, Revenue
5.25%, Series A, 8/15/97 (Insured; AMBAC)................................. 1,000,000 1,004,387

New York--.6%
New York State Job Development Authority, VRDN
4.70%, Series B-1 thru B-21 (BPA; Fuji Bank) (a).......................... 1,100,000 1,100,000

North Carolina--2.3%
Halifax County Industrial Facilities and Pollution Control Financing Authority,
Exempt Facilities Revenue, VRDN (Westmoreland) 4.55% (LOC; Credit Suisse) (a,b) 1,200,000 1,200,000
North Carolina Educational Facilities Finance Agency, Revenue, VRDN
(Bowman Gray School Medical Project) 4.60% (LOC; Wachovia Bank) (a,b)..... 3,000,000 3,000,000

North Dakota--.5%
City of Fargo, Revenue, Refunding 3.80%, Series B, 7/1/97.................... 890,000 889,816

Ohio--.6%
City of Columbus, Sewer Improvement Revenue 9%, No. 26-E, 9/15/97............ 1,075,000 1,095,404

Oregon--.6%
City of Portland, Revenue 7%, Series B, 6/1/97............................... 1,130,000 1,132,932

Pennsylvania--4.5%
Bucks County Industrial Development Authority, Revenue, VRDN
(SHV Real Estate Inc.)
4.20% (LOC; ABN-Amro Bank) (a,b).......................................... 200,000 200,000
Chartiers Valley Industrial and Commercial Development Authority,
Commercial Development Revenue VRDN (William Penn Place Project)
4.10% (LOC; PNC Bank) (a,b)............................................... 900,000 900,000
Jeannette Health Service Authority, HR, VRDN (Jeanette District
Memorial Hospital Project)
4.60% (LOC; PNC Bank) (a,b)............................................... 600,000 600,000
Lehigh County Industrial Development Authority, PCR, VRDN
(Allegheny Electric Co-Op)
3.65% (LOC; Rabobank Nederland) (a,b)..................................... 120,000 120,000

<PAGE>

Dreyfus Municipal Reserves
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ---------- ---------
Pennsylvania (continued)
Moon Industrial Development Authority, IDR, VRDN (Executive Office
Association Project)
4.60% (LOC; PNC Bank) (a,b)............................................... $ 1,250,000 $ 1,250,000
Quakertown General Authority, Revenue, VRDN (Pooled Financing Program)
4.55%, Series A (LOC; PNC Bank) (a,b)..................................... 1,200,000 1,200,000
Schuylkill County Industrial Development Authority, Revenue, VRDN
(Pine Grove Landfill Inc.)
4.55% (LOC; Meridian Bancorp Inc.) (a,b).................................. 1,500,000 1,500,000
Warren County Hospital Authority, Revenue, VRDN (Warren General
Hospital Project)
4.60%, Series B (LOC; PNC Bank) (a,b)..................................... 900,000 900,000
Washington County, Revenue, Refunding 5.20%, 6/1/97 (Insured; FGIC).......... 1,000,000 1,001,403
Washington County Industrial Development Authority, IDR, Refunding, VRDN
(Wetterau Finance Co. Project) 4.60% (LOC; PNC Bank) (a,b)................ 500,000 500,000

South Carolina--2.4%
South Carolina Job-Economic Development Authority, EDR, VRDN
(Wellman Inc. Project)
4.60% (LOC; Wachovia Bank and Trust Co.) (a,b)............................ 3,600,000 3,600,000
York County, PCR, VRDN (North Carolina Electric Project)
4.55%, Series N-2 (Corp. Guaranty; National Rural Utility Co-Op) (a)...... 750,000 750,000

Tennessee--.8%
Knox County Industrial Development Board, Industrial Revenue, VRDN
(Service Merchandise Co., Inc. Project)
3.65% (LOC; Canadian Imperial Bank of Commerce) (a,b)..................... 1,500,000 1,500,000

Texas--11.3%
Dallas Industrial Development Corporation, IDR, VRDN (Sealed Power Corp.)
3.65% (LOC; National Bank of Detroit) (a,b)............................... 1,100,000 1,100,000
Grapevine, IDR, VRDN 3.95% (LOC; J.P. Morgan) (a,b).......................... 800,000 800,000
Gulf Coast Waste Disposal Authority, Water Pollution Control Contract Revenue
(Amoco Oil-Amoco Chemicals) 3.45%, 7/15/97 (Corp. Guaranty;
Amoco Credit Corp.)....................................................... 4,000,000 4,000,000
Harris County, Revenue, Prerefunded (Toll Road-Senior Lien) 6.625%,
Series B, 8/15/97
(Escrowed in; U.S. Government Securities and Insured; AMBAC).............. 3,355,000 3,449,008
Houston Independent School District, Revenue, Refunding (School House)
6.95%, 8/15/97............................................................ 1,000,000 1,009,363
Lower Neches Valley Authority, PCR (Chevron USA Inc. Project)
3.50%, 8/15/97 (Corp. Guaranty; Chevron USA Inc.)......................... 2,000,000 2,000,000
North Texas Higher Education Authority, Student Loan Revenue, Refunding, VRDN
4.60%, Series A (BPA; Student Loan Marketing Association and
Insured; AMBAC) (a)....................................................... 1,900,000 1,900,000
Nueces County Health Facilities Development Corporation, Revenue, VRDN
(Driscoll Children Foundation) 4.55% (LOC; Bank One) (a,b)................ 2,395,000 2,395,000
State of Texas, TRAN 4.75%, Series A, 8/29/97................................ 4,000,000 4,010,114

Utah--4.9%
Layton Municipal Building Authority, City Facilities Revenue
7.25%, 8/1/97 (Insured; MBIA)............................................. 3,350,000 3,430,235

<PAGE>

Dreyfus Municipal Reserves
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Principal
Tax Exempt Investments (continued) Amount Value
- -------------------------------------------------------------------------- ----------- ----------
Utah (continued)
Utah Water Finance Agency, Revenue (Pooled Loan Program)
3.75%, Series A, 10/1/97 (Insured; MBIA).................................. $ 1,195,000 $ 1,195,477
City of West Jordan, TRAN 4%, 6/30/97........................................ 4,350,000 4,350,000

Virginia--1.6%
Campbell County Industrial Development Authority, Exempt Facility
Revenue, VRDN
(Hadson Power 12) 4.60%, Series A (LOC; Barclays Bank) (a,b).............. 2,900,000 2,900,000

Washington--.5%
Port Seattle Industrial Development Corporation, Revenue, Refunding, VRDN
(Sysco Food Services Project) 4.65% (a)................................... 1,000,000 1,000,000

West Virginia--1.9%
Putnam County, IDR, VRDN (FMC Corp.) 3.65% (LOC; Union Bank of Switzerland)
(a,b)..................................................................... 700,000 700,000
West Virginia Public Energy Authority, Energy Revenue, CP
(Morgantown Association Project)
3.65%, Series A, 5/2/97 (LOC; Swiss Bank Corp.) (b)....................... 2,800,000 2,800,000

Wisconsin--3.1%
State of Wisconsin, Revenue, Prerefunded
7.25%, Series B, 5/1/97 (Escrowed in; U.S. Government Securities)......... 3,825,000 3,863,250
Wisconsin Health and Educational Facilities Authority, Revenue, VRDN
(Wheaton Franciscan Services) 4.60% (LOC; Toronto-Dominion Bank) (a,b).... 1,750,000 1,750,000

Wyoming--3.6%
Green River, VRDN (Rhone Poulenc Inc. Project):
PCR, Refunding 4.50% (LOC; ABN-Amro Bank) (a,b)........................... 4,800,000 4,800,000
Revenue 4.60% (LOC; Societe Generale) (a,b)............................... 1,800,000 1,800,000
-------------
TOTAL INVESTMENTS (cost $182,729,880)........................................ $182,730,808
=============
</TABLE>

<PAGE>

Dreyfus Municipal Reserves
- -------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Summary of Abbreviations
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOR Limited Obligation Revenue
BAN Bond Anticipation Notes MBIA Municipal Bond Investors Assurance
BPA Bond Purchase Agreement Insurance Corporation
COP Certificate of Participation MFHR Multi-Family Housing Revenue
CP Commercial Paper PCR Pollution Control Revenue
EDR Economic Development Revenue SBPA Standby Bond Purchase Agreement
FGIC Financial Guaranty Insurance Company SWDR Solid Waste Disposal Revenue
HR Hospital Revenue TAN Tax Anticipation Notes
IDR Industrial Development Revenue TRAN Tax and Revenue Anticipation Notes
LOC Letter of Credit VRDN Variable Rate Demand Notes
</TABLE>

<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------------------------------------
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
- ------ -------- ---------------- -------------------
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1(d) SP1+/SP1, A1+/A1(d) 61.3%
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) 36.3
Not Rated (f) Not Rated (f) Not Rated (f) 2.4
-------
100.0%
=======
</TABLE>

Notes to Statement of Investments:
- -------------------------------------------------------------------------------
(a) Securities payable on demand. The interest rate, which is subject to change,
is based upon bank prime rates or an index of market interest rates.
(b) Secured by letters of credit. At April 30, 1997, 46.1% of the Fund's net
assets are backed by letters of credit issued by domestic banks, foreign
banks, brokerage firms and government agencies.
(c) Fitch currently provides creditworthiness information for a limited number
of investments.
(d) P1 and A1 are the highest ratings assigned tax exempt commercial paper by
Moody's and Standard & Poor's, respectively.
(e) Notes which are not F, MIG or SP rated are represented by bond ratings of
the issuers.
(f) Securities which, while not rated by Fitch, Moody's and Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.
(g) At April 30, 1997, the Fund had $47,845,000 (25.3% of net assets) invested
in securities whose payment of principal and interest is dependent upon
revenues generated from industry.

See notes to financial statements.

<PAGE>
<TABLE>
<CAPTION>
Dreyfus Municipal Reserves
- ------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1997 (Unaudited)

Cost Value
------------ ------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $182,729,880 $182,730,808
Cash............................................. 2,928,472
Interest receivable.............................. 2,016,699
Receivable for investment securities sold........ 1,555,105
------------
189,231,084
------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 72,665
Due to Distributor............................... 114
Dividends Payable................................ 195,085
------------
267,864
------------
NET ASSETS..................................................................... $188,963,220
============
REPRESENTED BY: Paid-in capital.................................. $188,973,327
Accumulated distributions in excess of
investment income--net.......................... (1,575)
Accumulated net realized gain (loss) on investments (9,460)
Accumulated gross unrealized appreciation on investments 928
------------
NET ASSETS..................................................................... $188,963,220
============
</TABLE>

<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
-------------------------
Investor Shares Class R Shares
--------------- --------------
<S> <C> <C>
Net Assets..................................................................... $16,465,606 $172,497,614
Shares Outstanding............................................................. 16,468,092 172,504,632

NET ASSET VALUE PER SHARE...................................................... $1.00 $1.00
===== =====
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations Six Months Ended April 30, 1997 (Unaudited)

<S> <C> <C> <C>
INVESTMENT INCOME

INCOME Interest Income.................................. $3,906,639

EXPENSES: Management fee--Note 2(a)......................... $556,198
Distribution fees (Investor Shares)--Note 2(b)... 15,771
Directors' fees and expenses--Note 2(c).......... 15,408
--------
Total Expenses.............................. 587,377
----------
INVESTMENT INCOME--NET.......................................................... 3,319,262
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b):
Net realized gain (loss) on investments......... $ (9,460)
Net unrealized appreciation (depreciation) on investments (495)
--------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... (9,955)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $3,309,307
==========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>

Dreyfus Municipal Reserves
- ------------------------------------------------------------------------------
Statement of Changes in Net Assets

Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
--------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 3,319,262 $ 7,431,410
------------- -------------
Net realized gain (loss) on investments.............................. (9,460) 136,101
Net unrealized appreciation (depreciation) on investments............ (495) 1,423
------------- -------------
Net Increase (Decrease) in Net Assets Resulting from Operations.. 3,309,307 7,568,934
------------- -------------

DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Investor shares.................................................... (220,735) (481,550)
Class R shares..................................................... (3,098,527) (6,949,860)
Net realized gain on investments:
Investor shares.................................................... (8,836) --
Class R shares..................................................... (126,412) --
------------- -------------
Total Dividends.................................................. (3,454,510) (7,431,410)
------------- -------------

CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Investor shares.................................................... 13,100,202 13,776,159
Class R shares..................................................... 410,203,582 922,707,532
Dividends reinvested:
Investor shares.................................................... 215,393 469,830
Class R shares..................................................... 800,838 1,964,486
Cost of shares redeemed:
Investor shares.................................................... (10,914,371) (17,943,271)
Class R shares..................................................... (459,549,461) (908,996,571)
------------- -------------
Increase (Decrease) in Net Assets from Capital Stock Transactions (46,143,817) 11,978,165
------------- -------------
Total Increase (Decrease) in Net Assets........................ (46,289,020) 12,115,689

NET ASSETS:
Beginning of Period.................................................. 235,252,240 223,136,551
------------- -------------
End of Period........................................................ $ 188,963,220 $ 235,252,240
============= =============

Distributions in excess of investment income--net....................... $ (1,575) $ (1,575)
------------- -------------

See notes to financial statements.

</TABLE>
<TABLE>
<CAPTION>
<PAGE>

Dreyfus Municipal Reserves
- ------------------------------------------------------------------------------
Financial Highlights

Investor Shares
--------------------------------------------------
Six Months Ended Year Ended October 31,
April 30, 1997 ------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(1, 2)
-------------- ------ ------ ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period................. $1.00 $1.00 $1.00 $1.00
----- ----- ----- -----
Investment Operations:
Investment income--net................................ .014 .029 .032 .012
----- ----- ----- -----
Distributions:
Dividends from investment income--net................. (.014) (.029) (.032) (.012)
----- ----- ----- -----
Net asset value, end of period....................... $1.00 $1.00 $1.00 $1.00
===== ===== ===== =====
TOTAL INVESTMENT RETURN................................. 2.92%(3) 2.96% 3.28% 1.23%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. .72%(3) .70% .70% .70%(3)
Ratio of net investment income
to average net assets............................. 2.80%(3) 2.92% 3.33% 2.11%(3)
Net Assets, end of period (000's Omitted)............ $16,465 $14,074 $17,764 $1,161
<FN>
- ----------------------
(1) 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 Fund's investment manager.
(2) The Fund commenced selling Investor shares on April 20, 1994. Those
shares outstanding prior to April 4, 1994 were redesignated as Trust
shares. Effective October 17, 1994, the Fund's Trust shares were
reclassified as Class R shares.
(3) Annualized.
(4) Not annualized.

See notes to financial statements.

<PAGE>
</TABLE>
<TABLE>
<CAPTION>
Dreyfus Municipal Reserves
- -------------------------------------------------------------------------------
Financial Highlights (continued)

Class R Shares
--------------------------------------------------------------------
Six Months Ended Year Ended October 31,
April 30, 1997 ---------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(1, 2) 1993 1992
----------- ------ ------ ---------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- -----
Investment Operations:
Investment income--net................. .015 .031 .034 .023(3) .021(4) .029(4)
----- ----- ----- ----- ----- -----
Distributions:
Dividends from investment income--net.. (.015) (.031) (.034) (.023) (.021) (.029)
----- ----- ----- ----- ----- -----
Net asset value, end of period........ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- -----
TOTAL INVESTMENT RETURN.................. 3.15%(5) 3.17% 3.48% 2.29% 2.10% 2.94%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .51%(5) .50% .50% .51%(6) .50% .50%
Ratio of net investment income
to average net assets.............. 3.00%(5) 3.11% 3.41% 2.30% 2.08% 2.90%

Net Assets, end of period (000's Omitted) $172,498 $221,178 $205,373 $205,105 $187,830 $184,719
<FN>
- --------------------
(1) 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 Fund's investment manager.
(2) The Fund commenced selling Investor shares on April 20, 1994. Those shares outstanding prior to
April 4, 1994 were redesignated as Trust shares. Effective October 17, 1994, the Fund's Trust
shares were reclassified as Class R shares.
(3) Net investment income before expenses reimbursed by the investment adviser for the year ended
October 31, 1994 was $.0218.
(4) For the years ended October 31, 1993 and 1992, the investment adviser reimbursed expenses of the
Fund amounting to $.0024 and $.0029 per share, respectively.
(5) Annualized.
(6) Annualized expense ratio before expenses reimbursed by the investment adviser for the year ended
October 31, 1994 was 0.61%.

See notes to financial statements.
</TABLE>
<PAGE>

Dreyfus Municipal Reserves
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Dreyfus Municipal Reserves (the "Fund") is a series of The Dreyfus/Laurel
Funds, Inc. (the "Company") which 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
Fund. The Fund's investment objective is to seek a high level of current income
consistent with stability of principal by investing in high-grade money market
instruments. 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") is the distributor of
the Fund's shares. The Fund is authorized to issue 1 billion of $.001 par value
Capital Stock in each of the following classes of shares: Investor and Class R.
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 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.

(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums on investments, is recognized on the
accrual basis. Cost of investments represents amortized cost.

(c) Distributions to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net; such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund 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 Fund not to distribute such gain.

(d) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, 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.

At April 30, 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 Municipal Reserves
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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 and/or affiliates 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 .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).

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 Company and who have no direct or
indirect financial interest in the operation of the Plan or in any agreement
related to the Plan.

NOTE 3--Bank Line of Credit:

NOTE 4--Subsequent Event:

On December 13, 1996, Middlesex County, Massachusetts defaulted on payment
of principal and interest on $1,500,000 (principal amount) County Hospital
Revenue Anticipation Notes held by the Fund. The Fund is currently pursuing
available legal remedies to protect its interests.

15
<PAGE>
[LOGO]
Dreyfus Municipal Reserves
200 Park Avenue
New York, NY 10166

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

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

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

Printed in U.S.A. 324/724SA974

<PAGE>
[LOGO]
Institutional
S&P 500 Stock
Index Fund
Semi-Annual
Report

April 30, 1997

<PAGE>
Dreyfus Institutional S&P 500 Stock Index Fund
- --------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:
We are pleased to provide you with this semi-annual report for the Dreyfus S
& P 500 Index Fund for the six-month period ended April 30, 1997. Over this
period, your Fund produced a total return of 14.40%,* which compares with a
total return of 14.71% for the Standard & Poor's 500 Composite Stock Price Index
over the same period.** The difference is accounted for by transaction fees and
other fund expenses.
Over the last six months, large capitalization equities, as represented by
the S & P 500 Index, provided performance that was significantly better than
both mid-cap and small-cap equities. The S & P 400 MidCap Stock Index had a
total return of 6.88% while the Russell 2000 Index, made up of small cap stocks,
had a total return of 1.61% for the same period.***

ECONOMIC REVIEW
The Federal Reserve Board (the "Fed") decision in March to tighten credit
already has been vindicated by the reported 5.6% rise in first quarter real
Gross Domestic Product and by the drop to 4.9% in April's unemployment rate. The
economic debate is now splintered into 1) those who believe that softer incoming
economic data for the second quarter can keep Fed policy on hold, and 2) those
who believe the economy is fundamentally too strong, warranting higher rates
irrespective of short-term economic fluctuations. Views on the risk of inflation
clearly distinguish these camps. To date, a strong dollar has helped mute price
inflation, preventing a follow-through from rising wages. Market interest rates
are likewise treading water until the policy outlook becomes clearer. We believe
that some tightening is likely in coming months and this should temper overall
growth to sustain a long business cycle.
First quarter real GDP grew an annualized 5.6% for the quarter and by 4.0%
since the first quarter of 1996, both growth rates unseen since 1987/88.
Virtually every major economic sector contributed positively to growth. In the
early evidence for the second quarter, rising new orders portend continued
strength in exports and capital spending. By contrast, retail spending weakened
in April and the housing sector slowed. However, real disposable income grew
3.8% in the last year, a pace which, if sustained, should support the upward
cycle in consumer spending, while mortgage rates have not yet risen
substantially.
Alongside the recent evidence of slowing consumer demand is the report of the
drop in unemployment in April. With this, the labor market is becoming extremely
tight. This is raising fears of future inflation even though actual inflation
remains modest and despite signs of a slower second quarter economy. Hence, bond
yields remain near their recent highs, largely ignoring the bullish news of a
Washington agreement to balance the Federal budget. Short-term rates likewise
contain built-in expectations for another Fed rate hike in coming weeks.
If inflation should stay subdued, then the larger risk from the combination
of slower economic growth and a tightening labor market is to corporate profits.
Through the first quarter, however, profits continued to surprise on the upside,
and we expect overall profits to post modest gains in 1997.
The economy is now embarked on the seventh year for this business cycle.
Economic growth is proving stronger than seen since the late 1980s while
inflation is still subdued. More Fed tightening would indicate a willingness
to err on the side of caution and would thus help sustain the expansion.

MARKET OVERVIEW
The six-month fiscal period ended April 30, 1997 was one of the most volatile
in recent stock market history. While the underlying U.S. economy continued to
grow with little inflation, investor concerns over the outlook for interest
rates and for corporate profits caused major shifts in market sentiment, and
hence in prices.

<PAGE>
Early in the half-year period, the dominant market trend was strong, despite
nervousness about the strength of economic growth and the possible reactions of
the Fed. The trend picked up steam during the winter, with the Dow Jones
Industrial Average breaking the 7000 mark in mid-February, and then hitting a
new high of 7085.16 in mid-March. However, when the Fed, in a widely anticipated
move, increased its overnight lending rate on March 25 by one quarter of a
percentage point seeking to cool off the economy and the "irrational exuberance"
in the equity markets (as Fed chairman Alan Greenspan termed it), the markets
promptly obliged. Between mid-March and mid-April the DJIA dropped 9.8%.
By then, however, a stream of strong quarterly profit reports began issuing
from major corporations, and the latest Government numbers on inflation appeared
reassuring. Moreover, underlying economic expansion continued, but at a pace
that appeared sustainable.
The market's reaction was to resume the upward trend of earlier in the year,
breaking the 7000 level once again on April 30.

Clearly one of the engines currently driving the market is the profit
outlook. According to two companies that monitor profit reports, I.B.E.S. and
First Call, overall first-quarter corporate profits ran about 3.7% above
forecasts. This reflects results from most of the companies in the Standard &
Poor's 500 Index. At the same time, increases in wages and compensation
during that same period were modest.

Big, heavily capitalized and well-established companies were the chief
beneficiaries of this market environment. The mid- and small-cap stocks enjoyed
a revival along with the general market in late April and the first few days of
May.
The latest trend could, of course, be affected by a Fed decision to raise
interest rates once again. However, there is no denying the resilience displayed
by the equity markets, especially the larger issues, in the closing days of the
Fund's latest fiscal period.
We appreciate your investment in this Fund and will continue our best
efforts to bring you rewarding returns.
Sincerely,

Steven A. Falci, CFA
Portfolio Manager

May 21, 1997
New York, N.Y.

* Total return includes reinvestment of dividends and any capital gains paid.
** 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. "Standard & Poor's 500,"
"S&P(R)" and "S&P 500(R)" are trademarks of Standard & Poor's, a division
of The McGraw-Hill Companies, Inc., and have been licensed for use by the
Fund. The Fund is not sponsored, endorsed, sold or promoted by Standard &
Poor's.
***SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 400 MidCap Index is a broad-based index of 400 companies
and is a widely accepted, unmanaged index of median-cap stock market
performance. The Russell 2000 Index is a widely accepted unmanaged index of
small cap stock performance.

<PAGE>
Dreyfus Institutional S&P 500 Stock Index Fund
- --------------------------------------------------------------------------------
Statement of Investments April 30, 1997 (Unaudited)

Shares COMMON STOCKS--97.6% Value
-------- -------------
Basic Industries--6.2%
10,800 Air Products & Chemicals... $ 774,900
4,000 Armstrong World Industries. 263,000
7,200 Ashland.................... 321,300
9,992 Avery Dennison............. 367,206
3,000 Ball....................... 80,625
5,000 Bemis...................... 190,625
4,714 Boise Cascade.............. 156,740
2,807 Centex..................... 101,052
9,200 Champion International..... 427,800
12,400 Crown Cork & Seal.......... 678,900
23,525 Dow Chemical............... 1,996,684
54,300 duPont (E.I.) de
Nemours & Co............ 5,762,587
7,526 Eastman Chemical........... 383,826
14,000 Engelhard.................. 294,000
3,700 (a)FMC........................ 248,362
8,089 Fluor...................... 444,895
3,900 Foster Wheeler............. 150,637
8,800 Georgia Pacific............ 686,400
5,300 Goodrich (B.F.)............ 211,337
7,000 Grace (W.R.)............... 364,000
5,803 Great Lakes Chemical....... 245,902
9,900 Hercules................... 389,812
28,965 International Paper........ 1,223,771
8,400 James River................ 250,950
3,700 Kaufman & Broad Home....... 51,337
54,600 Kimberly-Clark............. 2,798,254
10,600 Louisiana Pacific.......... 197,425
15,409 Masco...................... 581,689
5,027 Mead....................... 282,140
56,800 Monsanto................... 2,428,200
13,700 Morton International....... 573,687
6,545 Nalco Chemical............. 235,620
31,700 Occidental Petroleum....... 701,362
2,800 Potlach.................... 114,800
15,100 Praxair.................... 779,537
65,600 Procter & Gamble........... 8,249,200
6,211 Rohm & Haas................ 517,065
16,600 Sherwin-Williams........... 502,150
9,600 Sigma-Aldrich.............. 288,000
9,600 Stone Container............ 97,200
5,400 Temple-Inland.............. 299,700
16,500 Tenneco.................... 657,937
6,800 Union Camp................. 330,650
12,322 Union Carbide.............. 614,559
9,800 Westvaco................... 274,400
19,100 Weyerhaeuser............... 873,825
5,400 Willamette Industries...... 344,250
-------------
37,808,298
-------------
Capital Goods--23.0%
21,100 AMP........................ 756,962
13,200 (a)Advanced Micro Devices..... 561,000

Shares COMMON STOCKS (continued) Value
-------- -------------
Capital Goods (continued)
2,800 Aeroquip-Vickers........... $ 113,050
16,767 Allegheny Teledyne......... 446,421
27,300 AlliedSignal............... 1,972,425
11,888 (a)Amdahl..................... 101,791
8,800 Andrew..................... 217,800
12,200 Apple Computer............. 207,400
17,400 (a)Applied Materials.......... 954,825
4,700 Autodesk................... 166,850
28,200 Automatic Data Processing.. 1,276,050
19,100 (a)Bay Networks............... 339,025
34,547 Boeing..................... 3,407,197
2,900 Briggs & Stratton.......... 142,462
20,600 Browning-Ferris Industries. 584,525
26,200 (a)COMPAQ Computer............ 2,236,825
38,250 (a)CUC International.......... 808,031
15,000 (a)Cabletron Systems.......... 517,500
7,000 Case....................... 387,625
18,400 Caterpillar................ 1,637,600
7,733 (a)Ceridian................... 258,088
3,800 Cincinnati Milacron........ 76,950
63,500 (a)Cisco Systems.............. 3,286,125
16,400 Cognizant.................. 535,050
35,100 Computer Associates
International........... 1,825,200
7,400 (a)Computer Sciences.......... 462,500
10,400 Cooper Industries.......... 478,400
4,500 Crane...................... 168,187
3,747 Cummins Engine............. 210,300
11,300 (a)DSC Communications......... 230,237
3,903 (a)Data General............... 73,181
24,700 Deere & Co................. 1,136,200
16,900 (a)Dell Computer.............. 1,414,318
8,000 Deluxe..................... 245,000
15,200 (a)Digital Equipment.......... 454,100
10,800 Dover...................... 572,400
9,300 Dow Jones & Co............. 376,650
16,900 Dresser Industries......... 504,887
16,400 Dun & Bradstreet........... 403,850
23,600 (a)EMC........................ 858,450
4,616 EG&G....................... 87,127
7,421 Eaton...................... 555,647
43,100 Emerson Electric........... 2,187,325
43,200 First Data................. 1,490,400
6,000 General Dynamics........... 427,500
158,900 General Electric........... 17,618,118
4,800 General Signal............. 188,400
17,400 Genuine Parts.............. 563,325
3,264 Giddings & Lewis........... 66,096
5,100 Grainger (W.W.)............ 384,412
4,800 Harnischfeger Industries... 199,800
3,803 Harris..................... 325,156
97,900 Hewlett-Packard............ 5,139,750

<PAGE>
Dreyfus Institutional S&P 500 Stock Index Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Shares COMMON STOCKS (continued) Value
-------- -------------
Capital Goods (continued)
12,300 Honeywell.................. $ 868,687
11,400 ITT Industries............. 287,850
13,000 Ikon Office Solutions...... 349,375
11,900 Illinois Tool Works........ 1,087,362
10,600 Ingersoll-Rand............. 520,725
79,200 Intel...................... 12,127,500
4,700 (a)Intergraph................. 29,962
50,000 International Business
Machines................ 8,037,500
7,800 Interpublic Group Cos...... 441,675
8,128 Johnson Controls........... 311,912
13,491 (a)LSI Logic.................. 516,030
18,600 Lockheed Martin............ 1,664,700
61,664 Lucent Technologies........ 3,645,884
5,400 McDermott International.... 99,900
20,500 McDonnell Douglas.......... 1,217,187
20,200 Micron Technology.......... 712,050
116,100 (a)Microsoft.................. 14,106,150
40,400 Minnesota Mining &
Manufacturing........... 3,514,800
57,200 Motorola................... 3,274,700
13,400 (a)National Semiconductor..... 335,000
4,300 National Service Industries 181,137
24,900 Northern Telecommunications 1,808,362
5,600 Northrop Grumman........... 467,600
33,600 (a)Novell..................... 254,100
65,200 (a)Oracle..................... 2,591,700
5,000 Owens-Corning.............. 202,500
17,621 PPG Industries............. 958,141
12,303 Pall....................... 284,506
12,500 Parametric Technology...... 565,625
7,260 Parker-Hannifin............ 361,185
4,200 Perkin-Elmer............... 305,025
14,303 Pitney Bowes............... 915,392
4,300 Raychem.................... 277,350
22,700 Raytheon................... 990,287
21,100 Rockwell International..... 1,403,150
7,200 Ryder System............... 224,100
5,700 Safety-Kleen............... 84,787
7,500 Scientific-Atlanta......... 120,000
23,900 (a)Seagate Technology......... 1,096,412
22,700 Service Corp. International 777,475
2,300 Shared Medical Systems..... 96,887
17,100 (a)Silicon Graphics........... 254,362
5,900 Snap-On.................... 227,150
8,527 Stanley Works.............. 331,487
35,500 (a)Sun Microsystems........... 1,022,843
17,000 (a)3COM....................... 493,000
11,500 (a)Tandem Computers........... 148,062
3,206 Tektronix.................. 173,524
17,300 (a)Tellabs.................... 689,837
18,300 Texas Instruments.......... 1,633,275
7,900 Textron.................... 879,862

Shares COMMON STOCKS (continued) Value
-------- -------------
Capital Goods (continued)
14,400 Thermo Electron............ $ 496,800
5,241 Thomas & Betts............. 237,810
3,100 Timken..................... 180,187
16,000 Tyco International......... 976,000
16,900 (a)Unisys..................... 101,400
22,914 United Technologies........ 1,732,871
43,300 WMX Technologies........... 1,271,937
31,324 Xerox...................... 1,926,426
-------------
139,529,996
-------------
Consumer Cyclical--11.4%
24,200 Albertson's................ 798,600
7,300 American Greetings, Cl. A.. 233,600
14,100 American Stores............ 641,550
14,600 AutoZone................... 357,700
9,200 Black & Decker............. 308,200
9,500 Brunswick.................. 268,375
10,309 CVS........................ 511,584
10,100 (a)Charming Shoppes........... 59,653
67,800 Chrysler................... 2,034,000
9,418 Circuit City Stores........ 373,188
31,400 Comcast, Cl. A............. 494,550
8,003 Cooper Tire and Rubber..... 176,066
20,200 Costco Cos................. 583,275
9,800 Dana ...................... 312,375
15,600 Darden Restaurants......... 120,900
20,900 Dayton Hudson.............. 940,500
10,900 Dillard Department Stores,
Cl. A................... 336,537
65,200 Disney (Walt).............. 5,346,400
14,500 Donnelley (R.R.) & Sons.... 496,625
6,100 Echlin..................... 199,012
20,000 (a)Federated Department Stores 680,000
3,400 Fleetwood Enterprises...... 89,675
3,690 Fleming Cos................ 59,962
114,400 Ford Motor................. 3,975,400
7,400 (a)Fruit of the Loom, Cl. A... 266,400
13,600 Gannett.................... 1,186,600
26,900 Gap........................ 857,437
13,200 (a)General Instrument......... 308,550
73,000 General Motors............. 4,224,875
5,900 Giant Food, Cl. A.......... 190,275
15,000 Goodyear Tire & Rubber..... 789,375
3,743 Great Atlantic & Pacific... 93,107
10,100 H&R Block.................. 325,725
15,300 (a)HFS........................ 906,525
6,900 Harcourt General........... 319,125
3,041 Harland (John H.).......... 62,720
9,994 (a)Harrah's Entertainment..... 159,904
12,450 Hasbro..................... 311,250
23,900 Hilton Hotel............... 645,300
46,300 Home Depot................. 2,685,400
11,200 (a)ITT........................ 663,600

Shares COMMON STOCKS (continued) Value
-------- -------------
Consumer Cyclical (continued)
3,822 Jostens.................... $ 91,250
46,700 K mart..................... 636,287
3,662 (a)King World Productions..... 133,663
9,100 Knight-Ridder.............. 353,762
24,400 (a)Kroger..................... 671,000
26,100 Limited.................... 473,062
7,000 Liz Claiborne.............. 316,750
3,838 Longs Drug Stores.......... 96,909
16,700 Lowes...................... 634,600
12,400 Marriott International..... 685,100
28,000 Mattel..................... 780,500
23,600 May Department Stores...... 1,091,500
9,700 Maytag..................... 221,887
67,400 McDonald's................. 3,614,325
9,500 McGraw-Hill Cos............ 483,312
3,600 Mercantile Stores.......... 177,300
5,260 Meredith................... 123,610
9,702 Moore...................... 195,252
822 NACCO Industries, Cl. A.... 38,017
27,900 NIKE, Cl. B................ 1,569,375
7,200 (a)Navistar International..... 81,000
9,418 New York Times, Cl. A...... 407,328
7,700 Nordstrom.................. 302,225
3,661 PACCAR..................... 255,812
23,700 Penney (J.C.).............. 1,131,675
5,800 Pep Boys-Manny, Moe & Jack. 189,225
5,415 Reebok International....... 207,123
11,800 Rite Aid................... 542,800
3,714 Russell.................... 103,063
37,800 Sears, Roebuck & Co........ 1,814,400
1,900 Springs Industries......... 88,825
4,800 Stride Rite................ 66,000
6,600 Supervalu.................. 202,125
17,002 Sysco...................... 603,571
7,500 TJX Cos.................... 354,375
12,300 TRW........................ 641,137
5,638 Tandy...................... 295,290
64,000 (a)Tele-Communications, Cl. A. 884,000
54,900 Time Warner................ 2,470,500
8,839 Times Mirror, Cl. A........ 488,354
27,900 (a)Toys R Us.................. 795,150
11,822 Tribune.................... 518,690
6,100 V.F........................ 439,962
34,100 (a)Viacom, Cl. B.............. 912,175
221,300 Wal-Mart Stores............ 6,251,725
23,700 Walgreen................... 1,090,200
12,547 Wendy's International...... 258,781
58,200 Westinghouse Electric...... 989,400
7,200 Whirlpool.................. 336,600
14,400 Winn-Dixie Stores.......... 500,400

Shares COMMON STOCKS (continued) Value
-------- -------------
Consumer Cyclical (continued)
13,000 (a)Woolworth.................. $ 279,500
-------------
69,282,767
-------------
Consumer Staples--12.3%
5,344 Alberto-Culver, Cl. B...... 155,644
16,471 American Brands............ 885,316
48,200 Anheuser-Busch Cos......... 2,066,575
52,345 Archer Daniels Midland..... 961,839
12,768 Avon Products.............. 786,828
6,700 Brown-Forman, Cl. B........ 338,350
13,900 CPC International.......... 1,148,487
45,100 Campbell Soup.............. 2,305,737
5,000 Clorox..................... 636,875
240,100 Coca-Cola.................. 15,276,362
14,200 Colgate-Palmolive.......... 1,576,200
23,116 ConAgra.................... 1,332,059
3,715 Coors (Adolph), Cl. B...... 84,980
22,000 Corning.................... 1,061,500
32,200 Eastman Kodak.............. 2,688,700
6,300 Ecolab..................... 256,725
15,600 General Mills.............. 967,200
53,600 Gillette................... 4,556,000
35,500 Heinz (H.J.)............... 1,473,250
14,800 Hershey Foods.............. 802,900
10,700 International Flavors &
Fragrances.............. 450,737
128,500 Johnson & Johnson.......... 7,870,625
20,400 Kellogg.................... 1,422,900
15,300 Newell..................... 535,500
150,000 PepsiCo.................... 5,231,250
235,800 Philip Morris Cos.......... 9,284,625
7,900 Pioneer Hi-Bred International 557,937
4,500 Polaroid................... 218,250
13,100 Quaker Oats................ 524,000
10,300 Ralston-Ralston Purina Group 848,462
14,448 Rubbermaid................. 346,752
46,400 Sara Lee................... 1,948,800
35,700 Seagram.................... 1,365,525
6,100 Tupperware................. 202,825
17,900 UST........................ 467,637
15,500 Unilever, N.V. ............ 3,041,875
10,100 Whitman.................... 233,562
11,200 Wrigley, (Wm) Jr........... 652,400
-------------
74,565,189
-------------
Energy--9.2%
9,000 Amerada Hess............... 437,625
48,000 Amoco...................... 4,014,000
15,600 Atlantic Richfield......... 2,123,550
14,100 Baker Hughes............... 486,450
12,000 Burlington Resources....... 508,500
62,900 Chevron.................... 4,308,650

Shares COMMON STOCKS (continued) Value
-------- -------------
Energy (continued)
10,110 Coastal.................... $ 480,225
5,400 Columbia Gas System........ 334,125
9,131 Consolidated Natural Gas... 459,974
2,018 Eastern Enterprises........ 68,359
24,500 Enron...................... 921,812
6,700 Enserch.................... 131,487
239,600 Exxon...................... 13,567,350
12,000 Halliburton................ 847,500
2,405 Helmerich & Payne.......... 114,838
4,740 Kerr-McGee................. 286,177
3,308 Louisiana Land & Exploration 165,400
38,000 Mobil...................... 4,940,000
4,800 Nicor...................... 162,600
13,200 Noram Energy............... 193,050
2,682 Oneok...................... 79,789
10,200 (a)Oryx Energy................ 204,000
8,300 Pacific Enterprises........ 254,187
14,500 Panenergy.................. 641,625
4,500 Pennzoil................... 221,625
3,370 Peoples Energy............. 113,737
25,300 Phillips Petroleum......... 996,187
8,310 (a)Rowan Cos.................. 149,580
51,800 Royal Dutch Petroleum...... 9,336,950
8,700 (a)Santa Fe Energy Resources.. 122,887
23,800 Schlumberger............... 2,635,850
8,300 Sonat...................... 474,137
6,968 Sun........................ 190,749
25,500 Texaco..................... 2,690,250
24,107 Union Pacific Resources Group 653,902
24,100 Unocal..................... 918,812
27,700 USX-Marathon Group......... 765,212
5,100 (a)Western Atlas.............. 316,200
15,150 Williams Cos............... 664,706
-------------
55,982,057
-------------
Health Care--9.3%
8,300 (a)ALZA....................... 242,775
75,000 Abbott Laboratories........ 4,575,000
6,400 Allergan................... 171,200
61,700 American Home Products..... 4,087,625
25,480 (a)Amgen...................... 1,500,135
5,500 Bard (C.R.)................ 174,625
5,364 Bausch & Lomb.............. 216,571
26,200 Baxter International....... 1,254,325
11,800 Becton, Dickinson & Co..... 542,800
9,700 (a)Beverly Enterprises........ 140,650
11,200 (a)Biomet..................... 170,100
18,500 (a)Boston Scientific.......... 892,625
96,600 Bristol-Myers Squibb....... 6,327,300
64,800 Columbia/HCA Healthcare.... 2,268,000
7,100 Guidant.................... 484,575

Shares COMMON STOCKS (continued) Value
-------- -------------
Health Care (continued)
30,300 HEALTHSOUTH................ $ 598,425
15,800 (a)Humana..................... 343,650
53,300 Lilly (Eli)................ 4,683,737
7,200 Mallinckrodt Group......... 261,900
6,100 Manor Care................. 142,587
23,200 Medtronic.................. 1,606,600
116,300 Merck & Co................. 10,525,150
4,200 Millipore.................. 158,550
62,200 Pfizer..................... 5,971,200
49,100 Pharmacia & Upjohn......... 1,454,587
7,900 (a)St. Jude Medical........... 256,750
35,600 Schering-Plough............ 2,848,000
29,000 (a)Tenet Healthcare........... 754,000
6,700 U.S. Surgical.............. 229,475
17,700 United Healthcare.......... 860,662
26,200 Warner-Lambert............. 2,567,600
-------------
56,311,179
-------------
Interest Sensitive--15.0%
14,627 Aetna...................... 1,332,885
10,219 Ahmanson (H.F.) & Co....... 389,599
42,900 Allstate................... 2,809,950
45,800 American Express........... 3,017,075
19,500 American General........... 850,687
45,300 American International Group 5,821,050
10,400 Aon........................ 691,600
14,800 BANKBOSTON................. 1,076,700
41,100 Banc One................... 1,741,612
37,864 Bank of New York........... 1,495,628
34,600 BankAmerica................ 4,043,875
7,800 Bankers Trust New York..... 634,725
19,948 Barnett Banks.............. 974,958
5,200 Beneficial................. 332,800
7,300 CIGNA...................... 1,097,737
42,341 Chase Manhattan............ 3,921,835
16,800 Chubb...................... 970,200
44,700 Citicorp................... 5,034,337
10,300 Comerica................... 602,550
16,400 Conseco.................... 678,550
21,600 CoreStates Financial....... 1,093,500
31,000 Dean Witter, Discover & Co. 1,185,750
105,400 Fannie Mae................. 4,334,575
69,100 Federal Home Loan Mortgage. 2,202,562
10,200 Fifth Third Bancorp........ 761,175
12,917 First Bank Systems......... 991,379
30,700 First Chicago NBD.......... 1,726,875
27,400 First Union................ 2,301,600
25,300 Fleet Financial Group...... 1,543,300
7,958 General Re................. 1,330,975
5,600 Golden West Financial...... 364,000
13,323 Great Western Financial.... 559,566

Shares COMMON STOCKS (continued) Value
-------- -------------
Interest Sensitive (continued)
13,300 Green Tree Financial....... $ 394,012
9,323 Household International.... 820,424
11,300 ITT Hartford............... 841,850
6,800 Jefferson Pilot............ 392,700
21,700 Keycorp.................... 1,131,112
10,000 Lincoln National........... 560,000
11,100 Loews...................... 1,019,812
4,200 MBIA....................... 408,975
32,250 MBNA....................... 1,064,250
5,700 MGIC Investment............ 463,125
7,900 Marsh & McLennan........... 951,950
12,500 Mellon Bank................ 1,039,062
15,900 Merrill Lynch & Co......... 1,514,475
17,900 Morgan (J.P.) & Co......... 1,823,562
14,700 Morgan Stanley Group....... 927,937
21,500 National City.............. 1,048,125
74,334 NationsBank................ 4,487,915
35,700 Norwest.................... 1,780,537
32,400 PNC Bank................... 1,332,450
9,000 Providian.................. 519,750
1,999 Pulte...................... 56,971
5,400 Republic New York.......... 494,775
8,000 St. Paul Cos............... 536,000
12,100 Safeco..................... 484,000
10,500 Salomon.................... 525,000
21,500 SunTrust Banks............. 1,091,125
6,858 Torchmark.................. 426,053
6,393 Transamerica............... 541,806
61,666 Travelers Group............ 3,414,754
14,500 U.S. Bancorp............... 828,312
7,032 UNUM....................... 541,464
11,200 USF&G...................... 224,000
3,277 USLife..................... 158,934
15,900 Wachovia................... 930,150
8,948 Wells Fargo................ 2,386,879
-------------
91,075,856
-------------
Mining and Metals--1.2%
9,900 (a)ARMCO...................... 34,650
4,100 ASARCO..................... 116,850
21,800 Alcan Aluminium............ 738,475
16,700 Aluminum Co. of America.... 1,166,912
34,400 Barrick Gold............... 769,700
21,900 Battle Mountain Gold....... 125,925
10,900 (a)Bethlehem Steel............ 89,925
9,008 Cyprus Amax Minerals....... 201,554
13,400 Echo Bay Mines............. 72,862
18,600 Freeport-McMoRan Copper, Cl.B 541,725
14,100 Homestake Mining........... 186,825
16,200 Inco....................... 518,400
4,800 Inland Steel Industries.... 109,200

Shares COMMON STOCKS (continued) Value
-------- -------------
Mining and Metals (continued)
9,527 Newmont Mining............. $ 329,872
8,500 Nucor...................... 422,875
6,190 Phelps Dodge............... 475,082
23,100 Placer Dome................ 378,262
6,900 Reynolds Metals............ 468,337
12,900 Santa Fe Pacific Gold...... 190,275
8,300 USX-U.S. Steel............. 242,775
9,400 Worthington Industries..... 177,425
-------------
7,357,906
-------------
Transportation--1.4%
8,700 (a)AMR........................ 810,188
14,739 Burlington Northern Santa Fe 1,160,696
20,900 CSX........................ 974,462
3,800 Caliber System............. 113,050
7,668 Conrail.................... 876,069
7,000 Delta Air Lines............ 644,875
10,996 (a)Federal Express............ 592,409
30,400 Laidlaw, Cl. B............. 414,200
12,000 Norfolk Southern........... 1,078,500
14,100 Southwest Airlines......... 387,750
23,700 Union Pacific.............. 1,510,875
6,100 (a)USAir Group................ 197,487
-------------
8,760,561
-------------
Utilities--8.6%
18,100 ALLTEL..................... 570,150
156,400 AT&T....................... 5,239,400
48,300 (a)Airtouch Communications.... 1,231,650
18,100 American Electric Power.... 733,050
53,000 Ameritech.................. 3,239,625
14,200 Baltimore Gas & Electric... 362,100
42,200 Bell Atlantic.............. 2,859,050
95,700 BellSouth.................. 4,258,650
15,200 CINergy.................... 505,400
14,556 Carolina Power & Light..... 494,904
20,300 Central & Southwest........ 408,537
22,600 Consolidated Edison........ 627,150
14,100 DTE Energy................. 377,175
17,400 Dominion Resources......... 598,125
19,400 Duke Power................. 851,175
41,700 Edison International....... 875,700
22,300 Entergy.................... 521,262
17,600 FPL Group.................. 785,400
15,900 Frontier................... 252,412
11,700 GPU........................ 377,325
92,900 GTE........................ 4,261,787
22,600 Houston Industries......... 452,000
66,100 MCI Communications......... 2,520,062
42,500 NYNEX...................... 2,199,375
14,100 Niagara Mohawk Power....... 119,850

Shares COMMON STOCKS (continued) Value
-------- -------------
Utilities (continued)
6,700 Northern States Power...... $ 304,850
14,800 Ohio Edison................ 296,000
39,800 PG&E....................... 955,200
15,800 PP&L Resources............. 310,075
21,500 PECO Energy................ 424,625
28,400 PacifiCorp................. 564,450
22,900 Public Service Enterprise Group 552,462
88,551 SBC Communications......... 4,914,580
64,900 Southern................... 1,322,337
41,500 Sprint..................... 1,820,812
21,600 Texas Utilities............ 729,000
46,300 US West.................... 1,626,287
60,200 US West Media Group........ 1,038,450
20,900 UniCom..................... 454,575
9,900 Union Electric............. 352,687
83,600 (a)WorldCom................... 2,006,400
-------------
52,394,104
-------------
TOTAL COMMON STOCKS
(cost $447,649,045)...... $ 593,067,913
-------------
-------------
Principal SHORT-TERM
Amount INVESTMENTS--3.4% Value
- ----------- -------------
$ 930,000(b) U.S. Treasury Bills--.2%
5.11%, 6/26/1997......... $ 922,904
-------------
Repurchase Agreement--3.2%
19,700,000 Goldman Sachs & Co., 5.375%
dated 4/30/1997, due 5/1/1997
in the amount of $19,700,901 (fully
collateralized by $20,753,000 U.S.
Treasury Bonds, 6.625% 2/15/2027,
value $20,094,919)....... 19,700,000
-------------
TOTAL SHORT-TERM
INVESTMENTS
(cost $20,622,607)..... $ 20,622,904
-------------
-------------
TOTAL INVESTMENTS
(cost $468,271,652)............ 101.0% $613,690,817
------ ------------
------ ------------
LIABILITIES, LESS CASH
AND RECEIVABLES................ (1.0%) $ (6,173,888)
------ ------------
------ ------------

NET ASSETS....................... 100.0% $607,516,929
------ ------------
------ ------------

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.

Statement of Financial Futures April 30, 1997 (Unaudited)

Financial Futures Purchased:
- --------------------------------------------------------------------------------

Market Value Unrealized
Number of Covered Appreciation
Issuer Contracts by Contracts Expiration at 4/30/97
- ----- ---------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Standard & Poor's 500............................ 55 $22,077,000 June '97 $623,450
--------
--------

See notes to financial statements.

</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus Institutional S&P 500 Stock Index Fund
- ------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1997 (Unaudited)

Cost Value
------------- -------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $468,271,652 $613,690,817
Cash............................................. 917,036
Dividends and interest receivable................ 723,265
Receivable for investment securities sold........ 153,408
Receivable for shares of Capital Stock subscribed 103,865
Receivable for futures variation margin--Note 1(d) 82,500
------------
615,670,891
------------
LIABILITIES: Due to The Dreyfus Corporation................... 94,910
Payable for shares of Capital Stock redeemed..... 7,851,337
Payable for investment securities purchased...... 205,439
Interest payable................................. 2,276
------------
8,153,962
------------
NET ASSETS..................................................................... $607,516,929
------------
------------
REPRESENTED BY: Paid-in capital.................................. $452,371,054
Accumulated undistributed investment income--net.. 2,801,015
Accumulated net realized gain (loss) on investments 6,302,245
Accumulated net unrealized appreciation (depreciation)
on investments (including $623,450 net unrealized
appreciation on financial futures)--Note 3...... 146,042,615
------------
NET ASSETS..................................................................... $607,516,929
------------
------------
SHARES OUTSTANDING
(70 million shares of $.001 par value Capital Stock authorized)................ 35,129,060

NET ASSET VALUE, offering and redemption price per share....................... $17.29
------
------

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

<PAGE>
Dreyfus Institutional S&P500 Stock Index Fund
- ---------------------------------------------------------------------------
Statement of Operations Six Months Ended April 30, 1997 (Unaudited)

INVESTMENT INCOME

<S> <C> <C> <C>
INCOME: Cash dividends (net of $7,822 foreign taxes
withheld at source)........................... $4,667,977
Interest......................................... 408,104
----------
Total Income................................ $ 5,076,081

EXPENSES: Management fee--Note 2(a)......................... 502,375
Interest--Note 4.................................. 2,276
Directors' fees and expenses--Note 2(b).......... 2,100
----------
Total Expenses.............................. 506,751
-----------

INVESTMENT INCOME--NET.......................................................... 4,569,330
-----------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments.......... $5,607,956
Net realized gain (loss) on financial futures.... 886,601
----------
Net Realized Gain (Loss).................... 6,494,557
Net unrealized appreciation (depreciation) on investments
(including $659,300 net unrealized appreciation on
financial futures)............................. 59,942,205
-----------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... 66,436,762
-----------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $71,006,092
-----------
-----------

See notes to financial statements.

</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus Institutional S&P 500 Stock Index Fund
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets

DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................ (3,525,009) (6,203,176)
Net realized gain on investments..................................... (5,619,611) (857,577)
------------ ------------
Total Dividends.................................................. (9,144,620) (7,060,753)
------------ ------------

CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................ 175,711,987 270,339,224
Dividends reinvested................................................. 9,033,821 6,961,370
Cost of shares redeemed.............................................. (88,213,349) (90,040,231)
------------ ------------
Increase (Decrease) in Net Assets from Capital Stock Transactions 96,532,459 187,260,363
------------ ------------
Total Increase (Decrease) in Net Assets........................ 158,393,931 244,844,900

NET ASSETS:
Beginning of Period.................................................. 449,122,998 204,278,098
------------ ------------
End of Period........................................................ $607,516,929 $449,122,998
------------ ------------
------------ ------------

Undistributed investment income--net.................................... $ 2,801,015 $ 1,756,694
------------ ------------

Shares Shares
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 10,706,724 19,010,939
Shares issued for dividends reinvested............................... 562,053 506,046
Shares redeemed...................................................... (5,334,031) (6,345,352)
------------ ------------
Net Increase (Decrease) in Shares Outstanding.................... 5,934,746 13,171,633
------------ ------------
------------ ------------

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

<PAGE>
Dreyfus Institutional S&P 500 Stock Index Fund
- ----------------------------------------------------------------------
Financial Highlights

Six Months Ended
April 30, 1997 Year Ended October 31,
--------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995(1) 1994(2, 3) 1993(3)
--------- -------- -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $15.38 $12.75 $10.42 $10.23 $10.00
------ ------ ------ ------ ------
Investment Operations:
Investment income--net.................... .14 .29 .26 .21(4) .01(5)
Net realized and unrealized gain (loss)
on investments........................ 2.08 2.69 2.37 .14 .22
------ ------ ------ ------ ------
Total from Investment Operations......... 2.22 2.98 2.63 .35 .23
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net..... (.12) (.30) (.26) (.16) --
Dividends from net realized gain
on investments........................ (.19) (.05) (.04) (.00)(6) --
------ ------ ------ ------ ------
Total Distributions...................... (.31) (.35) (.30) (.16) --
------ ------ ------ ------ ------
Net asset value, end of period........... $17.29 $15.38 $12.75 $10.42 $10.23
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN..................... 14.60%(7) 23.78% 25.75% 3.50% 2.30%(7)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.. .10%(7) .20% .37% .40%(8) .04%(7,9)
Ratio of net investment income
to average net assets................. .90%(7) 2.16% 2.36% 2.38% .12%(7,9)
Portfolio Turnover Rate.................. 3.32%(7) 4.75% 1.03% 13.00% 22.00%(10)
Average commission rate paid (11)........ $.0295 $.0297 -- -- --
Net Assets, end of period (000's Omitted) $607,517 $449,123 $204,278 $123,994 $24,004

<FN>
- --------------------
(1) Effective September 15, 1995, the Fund's Investor and Class R designates
were eliminated and the Fund became a single class Fund.
(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 Fund's investment manager.
(3) The Fund commenced operations on September 30, 1993. Effective October 17,
1994, the Fund's Trust shares were redesignated as Class R shares.
(4) Net investment income before reimbursement of expenses by the investment
adviser for the year ended October 31, 1994 was $0.21.
(5) For the period September 30, 1993 (commencement of operations) to October
31, 1993, net investment income before reimbursement of expenses by the
investment adviser was $0.00.
(6) Amount represents less than $0.01.
(7) Not annualized.
(8) Annualized expense ratio before voluntary reimbursement of expenses by the
investment adviser for the year ended October 31, 1994 was 0.45%.
(9) These ratios have been restated to reflect current year's presentation.
(10) Turnover calculation does not include in-kind purchases amounting to $22,472,314.
(11) For fiscal years beginning November 1, 1995, the Fund is required to
disclose its average commission rate paid per share for purchases and sales of
investment securities.

See notes to financial statements.
</TABLE>
<PAGE>
Dreyfus Institutional S&P 500 Stock Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:
Dreyfus Institutional S & P 500 Stock Index Fund (the "Fund") is a series of
The Dreyfus/Laurel Funds, Inc. (the "Company") which 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 Fund. The Fund's investment objective is to replicate the
total return of the Standard & Poor's 500 Composite Stock Price Index primarily
through investments in equity securities. 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") is the distributor of the Fund's shares.

(a) Portfolio valuation: Investments in securities are valued at the last
sales price on the securities exchange on which such securities are primarily
traded or at the last sales price on the national securities market. Securities
not listed on an exchange or the national securities market, or securities for
which there were no transactions, are valued to the average of the most recent
bid and asked prices. 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.

(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) Repurchase agreements: The Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Fund,
through its custodian and sub-custodian, takes possession of an underlying debt
obligation subject to an obligation of the seller to repurchase, and the Fund to
resell, the obligation at an agreed-upon price and time, thereby determining the
yield during the Fund's holding period. This arrangement results in a fixed rate
of return that is not subject to market fluctuations during the Fund's holding
period. The value of the collateral is at least equal, at all times, to the
total amount of the repurchase obligation, including interest. In the event of a
counterpart default, the Fund has the right to use the collateral to offset
losses incurred. There is potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its rights to dispose of the collateral
securities, including the risk of a possible decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights. The Manager, acting under the supervision of the Board of Directors,
reviews the value of the collateral and the creditworthiness of those banks and
dealers with which the Fund enters into repurchase agreements to evaluate
potential risks.

(d) Financial futures: The Fund may invest in financial futures contracts in
order to gain exposure to or protect against changes in the market. The Fund is
exposed to market risk as a result of changes in the value of the underlying
financial instruments (see Statement of Financial Futures). Investments in
financial futures require the Fund to "mark to market" on a daily basis, which
reflects the change in the market value of the contract at the close of each
day's trading. Typically, variation margin payments are received or made to
reflect daily unrealized

<PAGE>
Dreyfus Institutional S&P 500 Stock Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

gains or losses. When the contracts are closed, the Fund 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 April 30, 1997, and their related unrealized appreciation are
set forth in the Statement of Financial Futures.

(e) Distributions to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid on a quarterly
basis. 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 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 Fund not to distribute such gain.

On May 5, 1997, the Board of Directors declared dividends from net
investment income in the amount of $.08 per share payable on May 6, 1997 to
shareholders of record on May 5, 1997.

(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.

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 and/or affiliates 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 .20 of 1% 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, commitment fees, 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) 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 meeting 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. The Chairman of the Board
receives an additional annual fee of $25,000 per year. These fees and expenses
are charged and allocated to each series based on net assets.

NOTE 3--Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and financial futures, during the period ended
April 30, 1997, amounted to $108,024,637 and $16,386,716, respectively.

<PAGE>
Dreyfus Institutional S&P 500 Stock Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

At April 30, 1997, accumulated net unrealized appreciation on investments
and financial futures was $146,042,615, consisting of $154,189,831 gross
unrealized appreciation and $8,147,216 gross unrealized depreciation.

At April 30, 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).

NOTE 4--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. At April 30, 1997, there were
no outstanding borrowings under the Facility.

The average daily amount of borrowings outstanding under a previous line of
credit during the period ended April 30, 1997 was approximately $80,000, with a
related weighted average annualized interest rate of 5.72%. The maximum amount
borrowed at any time during the period ended April 30, 1997 was $3.6 million.

NOTE 5--Acquisition of Common TrustAssets:
On April 2, 1997, the Fund acquired a portion of the assets of the MCM EB
Funds, a trust advised by a subsidiary of Mellon Bank. The acquisition was
accomplished by an exchange of 4,447,760 shares of the Fund's Capital Stock for
cash and securities of the trust totaling $71,920,286 which is included in net
proceeds from shares sold on the Statement of Changes in Net Assets.

<PAGE>
[LOGO]
Dreyfus Institutional S&P 500
Stock Index Fund
200 Park Avenue
New York, NY 10166

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

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

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

Printed in U.S.A. 713SA974

<PAGE>
Dreyfus
U.S. Treasury
Reserves
Semi-Annual
Report

April 30, 1997

<PAGE>
Dreyfus U.S. Treasury Reserves
- -------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:
We are pleased to report the performance for Dreyfus U.S. Treasury Reserves
for its six-month reporting period ended April 30, 1997 as shown in the
following table:
Annualized
Annualized Yield Effective Yield*
---------------- ----------------
Investor Shares............. 4.67 4.77
Class R Shares.............. 4.87 4.98

ECONOMIC ENVIRONMENT

Growth Remains Robust
Defying the predictions of many analysts who thought the six-year
expansion would slow down at last, economic growth continued unabated over
the past six months. In fact, after posting a 3.8% gain during the fourth
quarter of 1996, real Gross Domestic Product (GDP) rose to a growth rate of
5.6% during the first three months of 1997, a level not attained in a
decade. According to the government, much of the growth surge occurred
because businesses added to their inventories -- a short-term trend that
should not boost growth in coming quarters. Other sectors were also strong,
however, most especially housing, where home resales jumped a full 9%
during February and sales of new homes surpassed an 800,000 annual rate
for two consecutive months -- January and February -- for the first time in
over a decade. Sales of manufactured goods also increased, as new orders
for factory durables rose and consumer confidence improved.

Fed Strikes Preemptively; Inflation Remains at Bay
Alongside the news of surprisingly strong economic growth came
another surprise: inflation remained very low. The latest supporting
evidence was the employment cost index for the first quarter of 1997,
which rose only 0.6 percent. This fell below the 0.8% rise in the last
quarter of 1996. Yet the unemployment rate for April hit 4.9%, the lowest
level in 23 years. Prior to the release of these rather reassuring statistics,
the Federal Reserve Board (Fed) increased the overnight bank lending rate
from 5.25% to 5.50% at its March 25 Federal Open Market Committee meeting. Most
market participants interpreted the hike as a preemptive move, to be the
first in a series of strikes against a growing risk of inflation which
stemmed primarily from the economy's strength, rising factory utilization
rates, and tightening labor markets.

MARKET ENVIRONMENT

Rising Rates, as Uncertainty over Fed Policy Prevails
After falling slightly early in the first quarter of 1997, interest rates
on Treasury securities rose sharply after Fed Chairman Alan
Greenspan's Humphrey-Hawkins Senate testimony on February 26, when the
chairman warned of coming interest rate increases. Thereafter, Treasury
yields continued to trend upward gradually even before the Fed raised
short-term interest rates on March 25. During the first quarter of 1997,
for example, yields on three-month, six-month and one-year Treasury bills
increased 14, 23, and 51 basis points, respectively. The market widely
anticipated the Fed's March move, and has already been pricing in the next
rate increase which could occur at the Fed's meeting in May. Nonetheless,
with advance inflation indicators not all flashing "red" as yet, the market
remains unsettled as participants watch and wait to gauge the economy and
the mood of the Fed.

<PAGE>
PORTFOLIO OVERVIEW
Given the economy's robust growth and the uncertainty surrounding the
future direction of interest rates, your Fund retained a fairly defensive
posture for much of the period. Primarily, this strategy involved maintaining
a relatively short average portfolio maturity during the period. As of April
30, 1997, that maturity was approximately 28 days, which compares with an
average portfolio maturity of approximately 41 days for comparable U.S.
Treasury funds as measured by the Donoghue's Money Fund Average. Keeping the
portfolio's average maturity short enabled the Fund to benefit from
rising interest rates while simultaneously protecting its net asset value.

Once again, the Fund allocated a substantial portion of the
portfolio's assets to well-priced repurchase agreements or "repos." Repos
typically are collateralized by U.S. Treasury securities and may offer
higher yields than direct investment in U.S. Treasury securities. This
remained true during the past semi-annual period, as repos continued to be a
high-yielding area of the market, averaging 14 basis points better than
three-month Treasury bills during the first quarter of 1997. These higher basis
points translated into more income for the Fund. The repurchase agreement
investments also provided enough liquidity to enable the Fund to
capture higher overnight rates at first quarter-end while seeking
opportunities to invest in longer dated Treasury securities. In fact, the
Fund took advantage of higher yields to purchase a small number of Treasury
notes with February 1998 maturities.

In the coming months, management currently intends to retain a
relatively defensive posture. With the Fed still giving mixed signals as
to its future policy, the interest rate environment remains somewhat
unsettled. However, we will be looking for signs that the market has begun to
compensate for further increases in interest rates. When we believe U.S.
Treasury yields begin to adequately reflect the prospects of future Fed
interest rate increases, we plan to purchase more Treasury securities and to
lengthen the portfolio's average maturity. In the meantime, management
will remain vigilant in monitoring the economy, the market, and interest
rates and will continue to seek the competitive level of income and
stable net asset value that have been the Fund's hallmarks since inception.

Sincerely,

David Hertan
Portfolio Manager

May 16, 1997
New York, N.Y.

* Annualized effective yield takes into account the effect of compounding and is
based upon dividends declared daily and reinvested monthly.

<TABLE>
<CAPTION>
<PAGE>
Dreyfus U.S. Treasury Reserves
- -------------------------------------------------------------------------------
Statement of Investments April 30, 1997 (Unaudited)

Annualized
Yield on
Date of Principal
U.S. Treasury Bill--23.9% Purchase Amount Value
- ----------------------------------------------------------------- ---------- --------------- ----------------
<S> <C> <C> <C>
5/1/97
(cost $125,000,000)............................................ 4.81% $125,000,000 $125,000,000
============
U.S. Treasury Notes--28.6%
- -----------------------------------------------------------------
6.50%, 5/15/97................................................. 5.55% $ 75,000,000 $ 75,031,408
5.875%, 7/31/97................................................ 5.29 50,000,000 50,057,109
7.25%, 2/15/98 ................................................ 5.69 10,000,000 10,115,669
5.125%, 2/28/98................................................ 6.78 15,000,000 14,892,600
------------

TOTAL U.S. TREASURY NOTES
(cost $150,096,786)............................................ $150,096,786
============

Repurchase Agreements--46.9%
- -------------------------------------------------------------------
Dean Witter Reynolds Inc.
Dated 4/30/97, due 5/1/97 in the amount
of $95,114,039 (fully collateralized by
$90,418,000 U.S. Treasury Bonds 6.375% to
10.75%, due from 1/15/99 to 8/15/2005, value
$96,205,600)................................................... 5.32% $ 95,000,000 $ 95,000,000
Goldman, Sachs & Co.
Dated 4/30/97, due 5/1/97 in the amount
of $23,691,322 (fully collateralized by
$20,610,000 U.S. Treasury Bonds 8.50%,
due 2/15/2020, value $24,323,679).............................. 5.05 23,688,000 23,688,000
HSBCSecurities Inc.
Dated 4/30/97, due 5/1/97 in the amount of $127,019,050
(fully collateralized by $95,515,000 U.S. Treasury Bonds
7.875% to 11.25%, due form 11/15/2004 to 2/15/2015, value
$131,742,361).................................................. 5.40 127,000,000 127,000,000
------------

TOTAL REPURCHASE AGREEMENTS
(cost $245,688,000)............................................ $245,688,000
============

TOTAL INVESTMENTS
(cost $520,784,786).................................. 99.4% $520,784,786
====== ============
CASH AND RECEIVABLES (NET) ............................... .6% $ 3,219,672
====== ============
NET ASSETS.............................................. 100.0% $524,004,458
====== ============

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

Dreyfus U.S. Treasury Reserves
- ------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1997 (Unaudited)

Cost Value
-------------- -------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments
(including Repurchase Agreements of $245,688,000) $520,784,786 $520,784,786
Cash............................................. 945,113
Interest receivable.............................. 3,294,644
------------
525,024,543
------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 253,563
Due to Distributor............................... 67
Dividends payable................................ 766,455
------------
1,020,085
------------
NET ASSETS..................................................................... $524,004,458
============
REPRESENTED BY: Paid-in capital.................................. $523,998,155
Accumulated net realized gain (loss) on investments 6,303
------------
NET ASSETS..................................................................... $524,004,458
============
</TABLE>

NET ASSET VALUE PER SHARE
--------------------------

Investor Shares Class R Shares
--------------- --------------
<S> <C> <C>
Net Assets...................................................................... $24,889,740 $499,114,718
Shares Outstanding.............................................................. 24,889,470 499,108,114
NET ASSET VALUE PER SHARE....................................................... $1.00 $1.00
===== =====

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus U.S. Treasury Reserves
- ------------------------------------------------------------------------------
Statement of Operations Six Months Ended April 30, 1997 (Unaudited)

INVESTMENT INCOME

<S> <C> <C> <C>
INCOME Interest Income.................................. $13,489,220

EXPENSES: Management fee--Note 2(a)......................... $1,229,070
Distribution fees (Investor Shares)--Note 2(b).... 25,349
Directors' fees and expenses--Note 2(c)........... 25,083
----------
Total Expenses.............................. 1,279,502
-----------
INVESTMENT INCOME--NET........................................................... 12,209,718

NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b).................................. 6,303
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................................. $12,216,021
===========

See notes to financial statements.

</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus U.S. Treasury Reserves
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets

Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................ $ 12,209,718 $ 20,711,504
Net realized gain (loss) on investments.............................. 6,303 --
---------------- ----------------
Net Increase (Decrease) in Net Assets Resulting from Operations 12,216,021 20,711,504
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net
Investor shares.................................................. (593,287) (1,270,016)
Class R Shares................................................... (11,616,431) (19,441,488)
Net realized gain on investments:
Investor shares.................................................. -- (397)
Class R shares................................................... -- (5,013)
---------------- ----------------
Total Dividends................................................ (12,209,718) (20,716,914)
---------------- ----------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share): Net proceeds from shares sold:
Investor shares.................................................. 176,181,104 324,250,936
Class R shares................................................... 740,227,763 2,060,016,760
Dividends reinvested:
Investor shares.................................................. 526,956 1,205,008
Class R shares................................................... 9,951,557 16,026,655
Cost of shares redeemed:
Investor shares.................................................. (173,644,900) (325,014,906)
Class R shares................................................... (715,373,289) (2,011,609,264)
---------------- ----------------
Increase (Decrease) in Net Assets from Capital Stock Transactions 37,869,191 64,875,189
---------------- ----------------
Total Increase (Decrease) in Net Assets...................... 37,875,494 64,869,779

NET ASSETS:
Beginning of Period.................................................. 486,128,964 421,259,185
---------------- ----------------
End of Period........................................................ $ 524,004,458 $ 486,128,964
================ ================

Investor Shares
----------------------------------------------------
Six Months Ended Year Ended October 31,
April 30, 1997 -----------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(1, 2)
---------------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------
Investment Operations:
Investment income--net................................ .023 .046 .049 .020
------ ------ ------ ------
Distributions:
Dividends from investment income--net................. (.023) (.046) (.049) (.020)
------ ------ ------ ------
Net asset value, end of period....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ======
TOTAL INVESTMENT RETURN................................. 4.72%(3) 4.74% 5.02% 1.96%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. .70%(3) .70% .70% .70%(3)
Ratio of net investment income
to average net assets............................. 4.68(3) 4.64% 4.92% 3.42%(3)
Net Assets, end of period (000's Omitted)............ $24,890 $21,826 $21,386 $1,324

<FN>
- ----------------------
(1) The Fund commenced selling Investor shares on April 18, 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 Fund's investment manager.
(3) Annualized.
(4) Not annualized.

Class R Shares
----------------------------------------------------------------
Six Months Ended
April 30, 1997 Year Ended October 31,
--------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(1,2) 1993 1992
----------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net...................... .024 .048 .051 .033(3) .027(4) .037(4)
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net....... (.024) (.048) (.051) (.033) (.027) (.037)
------ ------ ------ ------ ------ ------
Net asset value, end of period............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN....................... 4.92%(5) 4.94% 5.23% 3.37% 2.77% 3.73%

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.... .50%(5) .50% .50% .50%(6) .50% .50%
Ratio of net investment income
to average net assets................... 4.88%(5) 4.79% 5.14% 3.62% 2.74% 3.63%
Net Assets, end of period (000's Omitted).. $499,114 $464,303 $399,873 $228,797 $69,785 $69,187

<FN>
- -----------------------
(1) 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 Fund's investment manager.
(2) The Fund commenced selling Investor shares on April 18, 1994. Those shares
outstanding prior to April 4, 1994 were designated as Trust shares.
Effective October 17, 1994, the Fund's Trust shares were reclassified as
Class R shares.
(3) Net investment income before expenses reimbursed by the investment adviser
for the year ended October 31, 1994 was $.0323.
(4) For the years ended October 31, 1993 and 1992, the investment adviser
reimbursed expenses of the Fund amounting to $.0040 and $.0040 per share,
respectively.
(5) Annualized.
(6) Annualized expense ratio before expenses reimbursed by the investment
adviser for the year ended October 31, 1994 was 0.59%.

</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus U.S. Treasury Reserves
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:
Dreyfus U.S. Treasury Reserves (the "Fund") is a series of The
Dreyfus/Laurel Funds, Inc. (the "Company") which 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 Fund. The Fund's investment objective is to seek a high
level of current income consistent with stability of principal by investing in
high-grade money market instruments. 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") is the distributor
of the Fund's shares. The Fund is authorized to issue 1 billion of $.001 par
value Capital Stock in each of the following classes of shares: Investor and
Class R. 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 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.

(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and discounts on investments, is
recognized on the accrual basis. Cost of investments represents amortized cost.

<PAGE>
Dreyfus U.S. Treasury Reserves
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

assert its rights. The Manager, acting under the supervision of the Board of
Directors, reviews the value of the collateral and the creditworthiness of those
banks and dealers with which the Fund enters into repurchase agreements to
evaluate potential risks.

At April 30, 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).

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 and/or affiliates 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 .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) 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. During the period April 30, 1997, the distribution fee for the
Investor shares was $25,349.

<PAGE>
Dreyfus U.S. Treasury Reserves
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Inc., The Dreyfus/Laurel Tax-Free Municipal Funds, and The Dreyfus/Laurel Funds
Trust. The Chairman of the Board receives an additional annual fee of $25,000
per year. These fees and expenses are charged and allocated to each series based
on net assets.

NOTE 3--Bank Line of Credit:

<PAGE>
[LOGO]
Dreyfus U.S. Treasury Reserves
200 Park Avenue
New York, NY 10166

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

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

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

Printed in U.S.A. 326/726SA974

<PAGE>

Semi-Annual Report

- -------------------------------------------------------------------------------
Dreyfus Premier
- -------------------------------------------------------------------------------
Balanced Fund
- -------------------------------------------------------------------------------

April 30, 1997

[LOGO]

<PAGE>
Dreyfus Premier Balanced Fund
- -------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:
We are pleased to report the performance of the Dreyfus Premier Balanced Fund
for its six-month reporting period ended April 30, 1997, as shown in the
following table:
Total Return*
-------------
Class A shares 9.48%
Class B shares 9.13%
Class C shares 9.21%
Class R shares 9.63%
Hybrid Blended Benchmark Index** 9.52%

The Fund's Hybrid Blended Benchmark Index is composed of 60% Standard &
Poor's 500 Composite Stock Price Index (S&P 500 Index) and 40% Lehman Brothers
Intermediate Government/Corporate Bond Index (Intermediate Government/Corporate
Bond Index).** Because of the structure of the Fund's portfolio, a mix of stocks
and bonds, its returns are not comparable to a market index composed entirely of
either common stocks, such as the S&P 500 Index, or bonds, such as the
Intermediate Government/Corporate Bond Index. The total returns of the S&P 500
Index and the Intermediate Government/Corporate Bond Index for the same period
were 14.71% and 1.74%, respectively.***

ECONOMIC REVIEW
The Federal Reserve Board's (the "Fed") decision in March to tighten credit
already has been vindicated by the reported 5.6% rise in first quarter real
Gross Domestic Product and by the drop to 4.9% in April's unemployment rate. The
economic debate is now splintered into 1) those who believe that softer incoming
economic data for the second quarter can keep Fed policy on hold, and 2) those
who believe the economy is fundamentally too strong, warranting higher rates
irrespective of short-term economic fluctuations. Views on the risk of inflation
clearly distinguish these camps. To date, a strong dollar has helped mute price
inflation, preventing a follow-through from rising wages. Market interest rates
are likewise treading water until the policy outlook becomes clearer. We believe
that some tightening is likely in coming months and this should temper overall
growth to sustain a long business cycle.

First quarter real GDP grew an annualized 5.6% on the quarter and by 4.0%
since the first quarter of 1996, both growth rates unseen since 1987/88.
Virtually every major economic sector contributed positively to growth. In the
early evidence for the second quarter, rising new orders portend continued
strength in exports and capital spending. By contrast, retail spending weakened
in April and the housing sector slowed. However, real disposable income grew
3.8% in the last year, a pace which, if sustained, should support the upward
cycle in consumer spending, while mortgage rates have not yet risen
substantially.

The economy is now embarked on the seventh year for this business cycle.
Economic growth is proving stronger than seen since the late 1980s while
inflation is still subdued. More Fed tightening would indicate a willingness to
err on the side of caution and would thus help sustain the expansion.

<PAGE>
MARKET OVERVIEW
The six-month fiscal period ended April 30, 1997 was one of the most volatile
in recent stock market history. While the underlying U.S. economy continued to
grow with little inflation, investor concerns over the outlook for interest
rates and for corporate profits caused major shifts in market sentiment, and
hence in stock prices.

Early in the half-year period, the dominant market trend was strong, despite
nervousness about the solidity of economic growth and the possible reactions of
the Fed. The trend picked up steam during the winter, with the Dow Jones
Industrial Average (DJIA) breaking the 7000 mark in mid-February, and then
hitting a new high of 7085.16 in mid-March. However, on March 25, when the Fed,
in a widely anticipated move, increased its overnight lending rate by one
quarter of a percentage point in seeking to cool off the economy and the
"irrational exuberance" (as Fed Chairman Alan Greenspan termed it) in the equity
markets, the markets promptly obliged. Between mid-March and mid-April the DJIA
dropped 9.8%.

By then, however, a stream of strong quarterly profit reports were released
by major corporations, and the latest Government numbers on inflation appeared
reassuring. Moreover, underlying economic expansion continued, but at a pace
that appeared sustainable. The market's reaction was to resume the upward trend
of earlier in the year, breaking the 7000 level once again on April 30.

Clearly one of the engines currently driving the market is the profit
outlook. According to two companies that monitor profit reports, I.B.E.S. and
First Call, overall first-quarter corporate profits ran about 3.7% above
forecasts. This reflects the solid performance of most of the companies in the
S&P 500 Index. At the same time, increases in wages and compensation during that
same period were modest.

Big, heavily capitalized and well-established companies were the chief
beneficiaries. For the six months under review, the blue chip DJIA gained
17.42%, the S&P 500 Index rose 14.71%, the Nasdaq was up only 3.23% and the
Russell 2000 Index of small-cap stocks only rose 1.61%. The mid- and small-cap
stocks enjoyed a revival along with the general market in late April and the
first few days of May.

Fixed income investors were concerned during the reporting period about the
pace of economic growth and the outlook for inflation, given the tightening in
the labor market. As a result, long-term interest rates rose modestly. On April
30, 1997, the 30-year U.S. Treasury Bond yielded 6.95%, an increase of 31 points
from six months earlier.

In view of the continued strength in the economy, even though some slowing
has been reported, we see no sign that the Fed has changed its policy of
monetary restraint. Therefore the fixed-income market appears to be
preparing itself for further rate increases.

PORTFOLIO FOCUS
The Dreyfus Premier Balanced Fund seeks to outperform its hybrid benchmark
index by shifting the overall asset allocation towards the undervalued asset
class as well as actively managing both the stocks and bonds within the Fund.

During the past six months, the Fund's allocation to stocks was higher than
the normal 60% target. This decision was based upon a formal process which
evaluates the relationships between stocks and bonds. The continued strength in
corporate earnings and the stable inflationary environment influenced our
decision to tilt the Fund towards stocks. For the six months ended April 30,
1997, stocks, as measured by the S&P 500 Index, outperformed bonds, as measured
by the Intermediate Government/Corporate Bond Index, by 12.97%.***

<PAGE>
The Fund's stock component is broadly diversified with exposure to all
economic sectors of the market, as measured by the S&P 500 Index. The Fund
typically selects stocks that have a favorable earnings profile and are
attractively priced relative to its peer group. For the six months ended April
30, 1997, the stock component provided a return of 13.8%, modestly
underperforming the S&P 500 Index. Stock selection within the health care and
interest-sensitive sectors provided the largest contribution to equity returns.

Bonds made up about 25% of the portfolio during the six-month fiscal period.
The fixed-income sector outperformed the benchmark Intermediate
Government/Corporate Bond Index primarily due to the fact that we were neutral
to the Index in average duration of bonds we had, but overweighted in sectors
where there was a significant spread from Treasuries, namely corporates and
mortgage obligations.

We thank you for your investment in the Dreyfus Premier Balanced Fund. We
will continue to exert our best efforts on your behalf.

Sincerely,

Ron Gala
Laurie Carroll
Portfolio Managers
May 19, 1997
New York, N.Y.

* Total return includes reinvestment of dividends and any capital gains
paid without taking into consideration the maximum initial sales charge
in the case of Class A shares or the applicable contingent deferred sales
charge imposed on redemptions in the case of Class B shares and Class C
shares.
** Under normal circumstances, the Fund invests approximately 60% of its
assets in common stocks and 40% of its assets in bonds. However, the
Fund 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 Dreyfus.
*** SOURCES: (1) LIPPER ANALYTICAL SERVICES, INC. -- The Standard & Poor's
500 Composite Stock Price Index is a widely accepted unmanaged index of
U.S. stock market performance. (2) LEHMAN BROTHERS -- 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>
<TABLE>
<CAPTION>
Dreyfus Premier Balanced Fund
- -------------------------------------------------------------------------------
Statement of Investments April 30, 1997 (Unaudited)

Common Stocks--69.4% Shares Value
- ----------------------------------------------------------------------------- ----------- -----------
<S> <C> <C> <C>

Basic Industries--3.7% Dow Chemical............................. 6,300 $ 534,713
duPont (E.I.)deNemours & Co.............. 19,500 2,069,438
Eastman Chemical......................... 6,900 351,900
Fort Howard...........................(a) 6,300 216,956
James River.............................. 18,000 537,750
Morton International..................... 12,900 540,187
Owens-Illinois........................(a) 10,800 291,600
Praxair.................................. 10,500 542,062
Sealed Air............................(a) 4,200 194,250
Sherwin-Williams......................... 9,600 290,400
-----------
5,569,256
-----------
Capital Spending--16.6% Adaptec...............................(a) 6,300 233,100
American Power Conversion.............(a) 15,300 294,525
Applied Materials.....................(a) 9,000 493,875
Arrow Electronics.....................(a) 7,200 400,500
Cabletron Systems.....................(a) 21,000 724,500
Caterpillar.............................. 22,800 2,029,200
Cisco Systems.........................(a) 25,500 1,319,625
Compaq Computer.......................(a) 14,700 1,255,013
Cummins Engine........................... 5,700 319,913
Eaton.................................... 6,000 449,250
Gateway 2000............................. 9,300 510,338
General Electric......................... 17,100 1,895,963
Harnischfeger Industries................. 5,100 212,288
HealthCare COMPARE....................(a) 7,500 325,312
Hewlett-Packard.......................... 25,800 1,354,500
Ingersoll-Rand........................... 13,500 663,187
Intel.................................... 19,500 2,985,937
International Business Machines.......... 5,100 819,825
Lexmark International Group, Cl.A.....(a) 11,700 272,025
Lockheed Martin.......................... 5,700 510,150
Lucent Technologies...................... 18,600 1,099,725
Microsoft.............................(a) 32,100 3,900,150
Oracle................................(a) 18,600 739,350
Parker-Hannifin.......................... 6,900 343,275
Reuters Holdings, A.D.R. ................ 5,100 314,287
Tellabs...............................(a) 22,200 885,225
Thiokol.................................. 3,600 234,900
U.S. Robotics.........................(a) 3,600 182,250
USA Waste Service.....................(a) 6,800 222,700
Wheelabrator Technology.................. 3,100 39,137
-----------
25,030,025
-----------
Consumer Cyclical--7.7% Borders Group.........................(a) 12,800 272,000
Boston Chicken........................(a) 12,600 300,825
Brunswick................................ 10,800 305,100
Chrysler................................. 21,900 657,000
Disney (Walt)............................ 5,900 483,800
Federated Department Stores...........(a) 24,900 846,600
Gannett.................................. 3,000 261,750

<PAGE>
Dreyfus Premier Balanced Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Common Stocks (continued) Shares Value
- ---------------------------------------------------------------------------- ---------- -----------

Consumer Cyclical (continued) Gap...................................... 32,400 $ 1,032,750
General Motors........................... 21,300 1,232,737
Goodyear Tire & Rubber................... 3,300 173,663
King World Productions................... 8,100 295,650
MGM Grand.............................(a) 7,200 243,000
Magna International, Cl. A............... 4,200 218,925
Maytag................................... 9,600 219,600
New York Times, Cl. A.................... 18,600 804,450
News, A.D.R. ............................ 6,300 116,550
NIKE, Cl. B.............................. 9,000 506,250
Safeway...............................(a) 22,800 1,017,450
Sears, Roebuck & Co...................... 19,500 936,000
TJX...................................... 20,700 978,075
Tommy Hilfiger........................(a) 6,600 262,350
V.F...................................... 6,600 476,025
-----------
11,640,550
-----------
Consumer Staples--9.7% Avon Products............................ 19,800 1,220,175
Campbell Soup............................ 13,200 674,850
Coca-Cola................................ 54,300 3,454,837
Corning.................................. 8,100 390,825
Dole Food................................ 1,900 77,425
General Mills............................ 9,000 558,000
Gillette................................. 10,500 892,500
Heinz (H.J.)............................. 7,500 311,250
Johnson & Johnson........................ 39,300 2,407,125
Philip Morris ........................... 56,700 2,232,563
Pioneer Hi-Bred International............ 3,900 275,438
Quaker Oats.............................. 15,600 624,000
Ralston-Ralston Purina Group............. 8,100 667,237
Unilever, N.V. (New York Shares)......... 3,000 588,750
Universal Foods.......................... 8,000 282,000
-----------
14,656,975
-----------
Energy--6.6% British Petroleum, A.D.S. ............... 3,300 454,163
Burlington Resources..................... 11,400 483,075
Chevron.................................. 25,200 1,726,200
Coastal.................................. 12,900 612,750
Consolidated Natural Gas................. 7,200 362,700
Diamond Offshore Drilling.............(a) 6,000 386,250
Exxon.................................... 31,800 1,800,675
Kerr-McGee............................... 3,300 199,238
NICOR.................................... 3,900 132,112
Phillips Petroleum....................... 19,500 767,813
Reading & Bates.......................(a) 15,000 335,625
Royal Dutch Petroleum (New York Shares).. 3,000 540,750
Transocean Offshore...................... 6,900 418,312
Unocal................................... 9,900 377,437
USX-Marathon Group....................... 36,900 1,019,362
Williams ................................ 9,450 414,619
-----------
10,031,081
-----------

<PAGE>

Dreyfus Premier Balanced Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Common Stocks (continued) Shares Value

- ----------------------------------------------------------------------------- ----------- -----------

Health Care--6.4% Abbott Laboratories...................... 23,400 $ 1,427,400
Amgen.................................(a) 20,700 1,218,713
Becton, Dickinson & Co................... 7,500 345,000
Bristol-Myers Squibb..................... 21,000 1,375,500
HEALTHSOUTH ..........................(a) 38,200 754,450
Merck & Co............................... 21,000 1,900,500
Oxford Health Plans...................(a) 11,100 731,212
Pfizer................................... 5,700 547,200
Schering-Plough.......................... 18,000 1,440,000
------------
9,739,975
------------
Interest Sensitive--10.9% AMBAC.................................... 6,300 407,925
Ahmanson (H.F.) & Co..................... 6,000 228,750
American National Insurance.............. 2,700 209,250
AmSouth Bancorp.......................... 9,600 506,400
Banc One................................. 15,400 652,575
BankAmerica.............................. 16,200 1,893,375
Barnett Banks............................ 10,200 498,525
Bear Stearns ............................ 23,310 710,955
CIGNA.................................... 8,400 1,263,150
Citicorp................................. 9,000 1,013,625
Comerica................................. 21,000 1,228,500
Conseco.................................. 18,600 769,575
EXEL..................................... 20,700 807,300
Federal National Mortgage Association.... 22,800 937,650
First Chicago ........................... 20,100 1,130,625
Green Tree Financial..................... 13,800 408,825
MGIC Investment.......................... 3,300 268,125
Norwest.................................. 11,000 548,625
Republic New York........................ 3,900 357,338
SouthTrust............................... 5,400 201,825
State Street............................. 5,700 448,875
Student Loan Marketing Association....... 9,000 1,064,250
Travelers Group.......................... 16,000 886,000
------------
16,442,043
------------
Mining & Metals--.8% Phelps Dodge............................. 4,500 345,375
Potash Saskatchewan...................... 7,200 553,500
USX-U.S. Steel Group..................... 9,600 280,800
------------
1,179,675
------------
Transportation--1.0% CSX...................................... 14,400 671,400
Carnival, Cl. A.......................... 7,500 276,562
Delta Air Lines.......................... 5,700 525,113
------------
1,473,075
------------
Utilities--6.0% AES...................................(a) 3,600 234,900
Ameritech................................ 35,100 2,145,488
BellSouth................................ 30,300 1,348,350
Consolidated Edison...................... 20,400 566,100
DQE...................................... 10,200 281,775

<PAGE>
Dreyfus Premier Balanced Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Common Stocks (continued) Shares Value
- ----------------------------------------------------------------------------- ------ ------------
Utilities (continued) Edison International..................... 19,800 $ 415,800
Entergy.................................. 23,400 546,975
MCI Communications....................... 13,500 514,687
Pinnacle West Capital.................... 14,400 410,400
SBC Communications....................... 29,700 1,648,350
Vodafone Group, A.D.R. .................. 15,900 703,575
WorldCom..............................(a) 10,800 259,200
------------
9,075,600
------------
TOTAL COMMON STOCKS
(cost $82,514,446)..................... $104,838,255
============
</TABLE>

Principal
Bonds & Notes--24.7% Amount
- ----------------------------------------------------------------------------- -------------
<S> <C> <C> <C>

Interest Sensitive--2.9% ABN Amro Bank, Notes,
7.55%, 6/28/2006....................... $ 700,000 $ 711,795
Citicorp, Notes,
6.60%, 8/1/2000........................ 2,000,000 1,990,256
General Motors Acceptance, Notes,
7.75%, 1/15/1999....................... 500,000 509,735
Republic New York, Deb.,
9.75%, 12/1/2000....................... 1,000,000 1,093,428
------------
4,305,214
------------

U.S. Government & Agencies--21.8% Federal Home Loan Mortgage Corporation:
5.40%, 11/1/2000....................... 500,000 481,762
7%, 1/1/2012........................... 44,266 43,892
7%, 1/1/2012........................... 893,617 886,076
Federal National Mortgage Association,
5.30%, 12/10/1998...................... 1,000,000 985,052
Government National Mortgage Association:
8%, 2/15/2011.......................... 445,118 457,497
6.50%, 4/15/2011....................... 31,736 31,012
7.50%, 8/15/2011....................... 539,055 545,287
7.50%, 10/15/2011...................... 395,185 399,754
8%, 12/15/2011......................... 446,957 459,106
6.50%, 1/15/2012....................... 907,344 885,505
U.S. Treasury Bonds:
11.625%, 11/15/2002.................... 500,000 616,016
12.375%, 5/15/2004..................... 100,000 131,453
10.75%, 8/15/2005...................... 500,000 625,391
U.S. Treasury Notes:
6.25%, 6/30/1998....................... 2,500,000 2,506,250
4.75%, 8/31/1998....................... 1,000,000 982,969
6.125%, 8/31/1998...................... 1,800,000 1,800,844
8.25%, 7/15/1998....................... 1,000,000 1,024,687
7%, 4/15/1999.......................... 1,300,000 1,317,469
6.75%, 5/31/1999....................... 1,000,000 1,008,437
6.875%, 7/31/1999...................... 1,000,000 1,011,406
6.875%, 3/31/2000...................... 500,000 506,016

<PAGE>
Dreyfus Premier Balanced Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Principal
Bonds & Notes (continued) Amount Value
- ----------------------------------------------------------------------------- ------------ ------------

U.S. Government & Agencies 6.25%, 5/31/2000....................... $ 1,930,000 $ 1,920,350
(continued) 6.25%, 8/31/2000....................... 1,300,000 1,291,672
5.75%, 10/31/2000...................... 1,200,000 1,172,813
6.50%, 5/31/2001....................... 4,650,000 4,644,914
7.50%, 5/15/2002....................... 1,000,000 1,040,156
6.375%, 8/15/2002...................... 1,000,000 991,719
5.75%, 8/15/2003....................... 1,000,000 955,156
7.25%, 8/15/2004....................... 500,000 515,859
6.50%, 5/15/2005....................... 1,300,000 1,282,734
7%, 7/15/2006.......................... 2,350,000 2,390,758
------------
32,912,012
------------
TOTAL BONDS & NOTES
(cost $ 37,340,266).................... $ 37,217,226
============
Short-Term Investments--12.2%
- -----------------------------------------------------------------------------

Repurchase Agreement--11.6% Goldman, Sachs & Co. Tri-Party Repurchase
Agreement, 5.375% Dated 4/30/1997,
Due 5/1/1997 in the amount of
$17,581,457 (fully collateralized
by $18,521,000 U.S. Treasury Bonds,
6.625%, 2/15/2027, value $17,933,696).. $17,581,457 $ 17,581,457

U.S. Treasury Bill--.6% 5.19%, 6/26/1997......................(b) 850,000 843,514
------------

TOTAL SHORT-TERM INVESTMENTS
(cost $18,424,595)..................... $ 18,424,971
============

TOTAL INVESTMENTS (cost $138,279,307)........................................ 106.3% $160,480,452
====== ============

LIABILITIES, LESS CASH AND RECEIVABLES....................................... (6.3%) $ (9,457,582)
======= ============

NET ASSETS................................................................... 100.0% $151,022,870
====== ============
<FN>

Notes to Statement of Investments:
- -------------------------------------------------------------------------------

(a) Non-income producing.
(b) Held by the custodian in a segregated account as collateral for open
Financial Futures positions.

</TABLE>
<TABLE>
<CAPTION>
Statement of Financial Futures April 30, 1997 (Unaudited)
Market Value Unrealized
Number of Covered (Depreciation)
Financial Futures Purchased; Contracts by Contracts Expiration at 4/30/97
- ---------------------------- ----------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
Standard & Poor's 500............................ 16 $6,422,400 June '97 ($159,600)
==========

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

Dreyfus Premier Balanced Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1997 (Unaudited)
Cost Value
------------ ------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments
(including Repurchase Agreements of $17,581,457)..... $138,279,307 $160,480,452
Cash................................................... 243,276
Receivable for investment securities sold.............. 5,150,090
Dividends and interest receivable...................... 902,913
Receivable for shares of Capital Stock subscribed...... 270,023
Receivable for futures variation margin................ 67,238
------------
167,113,992
------------

LIABILITIES: Due to The Dreyfus Corporation and affiliates......... 140,579
Due to Distributor.................................... 4,643
Payable for shares of Capital Stock redeemed.......... 15,581,893
Payable for investment securities purchased........... 364,007
------------
16,091,122
------------

NET ASSETS.......................................................................... $151,022,870
============

REPRESENTED BY: Paid-in capital....................................... $121,194,446
Accumulated undistributed investment income--net...... 192,020
Accumulated net realized gain (loss) on investments... 7,594,859
Accumulated net unrealized appreciation (depreciation)
on investments [including ($159,600) net unrealized
(depreciation) on financial futures]--Note 3........ 22,041,545
-----------

NET ASSETS.......................................................................... $151,022,870
============
</TABLE>

NET ASSET VALUE PER SHARE
-------------------------

Class A Class B Class C Class R
---------- ----------- ---------- ------------
<S> <C> <C> <C> <C>

Net Assets.................................. $9,997,004 $15,448,593 $1,001,231 $124,576,042
Shares Outstanding.......................... 750,384 1,161,494 75,118 9,344,222
NET ASSET VALUE PER SHARE................... $13.32 $13.30 $13.33 $13.33
====== ====== ====== ======

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

Dreyfus Premier Balanced Fund
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended April 30, 1997 (Unaudited)

INVESTMENT INCOME

INCOME: Interest......................................... $1,738,294
Cash dividends (net of $4,737 foreign taxes
withheld at source)............................ 892,649
----------
Total Income................................... $ 2,630,943

EXPENSES: Management fee--Note 2(a)......................... 774,396
Distribution and service fees--Note 2(b).......... 69,909
Directors' fees and expenses--Note 2(c)........... 783
----------
Total Expenses.................................. 845,088
-----------

INVESTMENT INCOME--NET.......................................................... 1,785,855
-----------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments........... $5,902,539
Net realized gain (loss) on financial futures..... 2,059,229
----------
Net Realized Gain (Loss)........................ 7,961,768
Net unrealized appreciation (depreciation) on
investments [including ($553,400) net
unrealized (depreciation) on financial
futures]..................................... 4,428,286
-----------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS.......................... 12,390,054
-----------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................ $14,175,909
===========

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus Premier Balanced Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets

Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
------------ ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net....................................................... $ 1,785,855 $ 3,110,853
Net realized gain (loss) on investments...................................... 7,961,768 14,166,699
Net unrealized appreciation (depreciation) on investments.................... 4,428,286 3,609,857
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations.......... 14,175,909 20,887,409
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares............................................................. (106,048) (82,168)
Class B shares............................................................. (115,717) (93,190)
Class C shares............................................................. (3,648) (880)
Class R shares............................................................. (2,213,333) (2,779,831)
Net realized gain on investments:
Class A shares............................................................. (682,485) (12,895)
Class B shares............................................................. (971,412) (23,311)
Class C shares............................................................. (32,594) (93)
Class R shares............................................................. 12,818,244) (630,855)
------------ -----------
Total Dividends.......................................................... (16,943,481) (3,623,223)
------------ -----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares............................................................. 3,689,824 4,827,120
Class B shares............................................................. 6,298,469 5,867,242
Class C shares............................................................. 749,068 220,931
Class R shares............................................................. 47,136,294 91,066,091
Dividends reinvested:
Class A shares............................................................. 716,205 80,519
Class B shares............................................................. 849,749 85,124
Class C shares............................................................. 29,909 935
Class R shares............................................................. 15,019,772 3,412,336
Cost of shares redeemed:
Class A shares............................................................. (586,893) (821,065)
Class B shares............................................................. (680,018) (790,373)
Class C shares............................................................. (16,370) (3,092)
Class R shares............................................................. (64,812,883) (78,467,084)
------------- -------------
Increase (Decrease) in Net Assets from Capital Stock Transactions........ 8,393,126 25,478,684
------------- -------------
Total Increase (Decrease) in Net Assets............................... 5,625,554 42,742,870

NET ASSETS:
Beginning of Period......................................................... 145,397,316 102,654,446
------------- -------------
End of Period............................................................... $151,022,870 $145,397,316
============ ============
Undistributed investment income--net........................................... $ 192,020 $ 844,911
------------ ------------

See notes to financial statements.

<PAGE>

Dreyfus Premier Balanced Fund
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets (continued)

Shares
-----------------------------------
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
CAPITAL SHARE TRANSACTIONS:

Class A
-------
Shares sold................................................................. 280,029 376,308
Shares issued for dividends reinvested...................................... 57,134 6,409
Shares redeemed............................................................. (44,501) (63,542)
---------- ----------
Net Increase (Decrease) in Shares Outstanding... 292,662 319,175
========== ==========

Class B
-------
Shares sold................................................................. 476,590 459,770
Shares issued for dividends reinvested...................................... 67,811 6,805
Shares redeemed............................................................. (50,944) (60,720)
---------- ----------
Net Increase (Decrease) in Shares Outstanding... 493,457 405,855
========== ==========

Class C
-------
Shares sold................................................................. 56,624 16,995
Shares issued for dividends reinvested...................................... 2,386 74
Shares redeemed............................................................. (1,240) (238)
---------- ----------
Net Increase (Decrease) in Shares Outstanding... 57,770 16,831
========== ==========

Class R
-------
Shares sold................................................................. 3,602,335 6,955,109
Shares issued for dividends reinvested...................................... 1,198,050 274,851
Shares redeemed............................................................. (4,913,906) (5,985,999)
---------- ----------
Net Increase (Decrease) in Shares Outstanding... (113,521) 1,243,961
========== ==========

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

Dreyfus Premier Balanced Fund
- -------------------------------------------------------------------------------
Financial Highlights

Class A Shares
---------------------------------------------------
Six Months Ended Year Ended October 31, 1996
April 30, 1997 -------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(1)(2)
------------------ ---- ---- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period................. $13.71 $11.91 $10.08 $ 9.73
------ ------ ------ ------
Investment Operations:
Investment income--net................................ .18 .31 .28 .11
Net realized and unrealized gain (loss)
on investments..................................... 1.02 1.88 1.82 .34
------ ------ ------- ------
Total from Investment Operations..................... 1.20 2.19 2.10 .45
------ ------- ------- ------
Distributions:
Dividends from investment income--net................ (.22) (.31) (.27) (.10)
Dividends from net realized gain on investments...... (1.37) (.08) -- --
------ ------- ------- ------
Total Distributions.................................. (1.59) (.39) (.27) (.10)
------ ------- ------- ------
Net asset value, end of period....................... $13.32 $13.71 $11.91 $10.08
====== ======= ======= ======
TOTAL INVESTMENT RETURN(3).............................. 9.48%(4) 18.71% 21.17% 4.68%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. .62%(4) 1.25% 1.25% .71%(4,5)
Ratio of net investment income
to average net assets............................. 1.06%(4) 2.39% 2.65% 1.09%(4,5)
Portfolio Turnover Rate.............................. 42.84%(4) 85.21% 53.20% 83.00%
Average commission rate paid(6)...................... $.0566 $.0540 -- --
Net Assets, end of period (000's Omitted)............ $9,997 $6,275 $1,650 $1,798

<FN>

- --------------------
(1) The Fund commenced selling Investor shares on April 14, 1994. On October
17, 1994, Investor shares were redesignated as Class A shares.
(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 Fund's investment manager.
(3) Exclusive of sales load.
(4) Not annualized.
(5) These ratios have been restated to reflect current year's presentation.
(6) For fiscal years beginning November 1, 1995, the Fund is required to
disclose its average commission rate paid per share for purchases and
sales of investment securities.

Class B Shares
--------------------------------------------------
Six Months Ended Year Ended October 31,
April 30, 1997 -------------------------
PER SHARE DATA: (Unaudited) 1996 1995(1)
---------------- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period..................... $13.68 $11.89 $ 9.76
------ ------ ------
Investment Operations:
Investment income--net................................... .12 .21 .14
Net realized and unrealized gain (loss)
on investments........................................ 1.04 1.87 2.11
------- ------- -------
Total from Investment Operations......................... 1.16 2.08 2.25
------- ------- -------
Distributions:
Dividends from investment income--net.................... (.17) (.21) (.12)
Dividends from net realized gain on investments.......... (1.37) (.08) --
------- ------- -------
Total Distributions...................................... (1.54) (.29) (.12)
------- ------- -------
Net asset value, end of period........................... $13.30 $13.68 $11.89
======= ======= =======

TOTAL INVESTMENT RETURN................................... 9.13%(2) 17.76% 23.19%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................ .99%(2) 2.00% 1.73%(2)
Ratio of net investment income
to average net assets............................... .68%(2) 1.65% 2.16%(2)
Portfolio Turnover Rate................................ 42.84%(2) 85.21% 53.20%(2)
Average commission rate paid(3)........................ $.0566 $.0540 --
Net Assets, end of period (000's Omitted).............. $15,449 $9,141 $3,118

<FN>

- ----------------------
(1) The Fund commenced selling Class B shares on December 20, 1994.
(2) Not annualized.
(3) For fiscal years beginning November 1, 1995, the Fund is required
to disclose its average commission rate paid per share for purchases and
sales of investment securities.

See notes to financial statements.
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
Dreyfus Premier Balanced Fund
- -------------------------------------------------------------------------------
Financial Highlights (continued)

Contained below is per share operating 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.
Class C Shares
----------------------------------------------
Six Months Ended Year Ended October 31,
April 30, 1997 ------------------------
PER SHARE DATA: (Unaudited) 1996 1995(1)
----------------- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period................... $13.70 $11.90 $ 9.76
------ ------- -------
Investment Operations:
Investment income--net.................................. .15 .25 .11
Net realized and unrealized gain (loss)
on investments....................................... 1.02 1.84 2.15
------- ------- -------
Total from Investment Operations........................ 1.17 2.09 2.26
------- ------- -------
Distributions:
Dividends from investment income--net................... (.17) (.21) (.12)
Dividends from net realized gain on investments......... (1.37) (.08) --
------- ------- -------
Total Distributions..................................... (1.54) (.29) (.12)
------- ------- -------
Net asset value, end of period.......................... $13.33 $13.70 $11.90
======= ======= =======
TOTAL INVESTMENT RETURN.................................... 9.21%(2) 17.83% 23.29%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................. .99%(2) 2.00% 1.73%(2)
Ratio of net investment income
to average net assets................................ .68%(2) 1.62% 2.16%(2)
Portfolio Turnover Rate................................. 42.84%(2) 85.21% 53.20%(2)
Average commission rate paid(3)......................... $.0566 $.0540 --
Net Assets, end of period (000's Omitted)............... $1,001 $237 $6

<FN>

- ------------------------------------------------------------------------------
(1) The Fund commenced selling Class C shares on December 20, 1994.
(2) Not annualized.
(3) For fiscal years beginning November 1, 1995, the Fund is required
to disclose its average commission rate paid per share for purchases and
sales of investment securities.

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

Dreyfus Premier Balanced Fund
- --------------------------------------------------------------------------------
Financial Highlights (continued)

Six Months Ended
April 30, 1997 Year Ended October 31,
------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(1) 1993(2)
--------- ---- ---- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $13.72 $11.92 $10.09 $10.18 $10.00
------ ------- ------- ------- -------
Investment Operations:
Investment income--net.................... .17 .34 .31 .20(3) .02
Net realized and unrealized gain (loss)
on investments........................ 1.05 1.88 1.81 (.13) .16
------ ------- ------ ------- -------
Total from Investment Operations......... 1.22 2.22 2.12 .07 .18
------- ------- ------ ------- ------
Distributions:
Dividends from investment income--net..... (.24) (.34) (.29) (.16) --
Dividends from net realized gain
on investments........................ (1.37) (.08) -- -- --
------ ------- ------ ------- -----
Total Distributions...................... (1.61) (.42) (.29) (.16) --
------ ------- ------ ------- -----
Net asset value, end of period........... $13.33 $13.72 $11.92 $10.09 $10.18
====== ======= ======= ======= ======
TOTAL INVESTMENT RETURN..................... 9.63%(4) 18.99% 21.46% .68% 1.80%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.. .50%(4) 1.00% 1.00% 1.04%(5) .15%(4,6,7)
Ratio of net investment income
to average net assets................. 1.19%(4) 2.68% 2.89% 2.23% .25%(4,7)
Portfolio Turnover Rate.................. 42.84%(4) 85.21% 53.20% 83.00% --
Average commission rate paid (8)......... $.0566 $.0540 -- -- --
Net Assets, end of period (000's Omitted) $124,576 $129,744 $97,881 $75,720 $28,904

<FN>

- ------------------------
(1) 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 Fund's investment manager.
(2) The Fund commenced operations on September 15, 1993. On April 14, 1994,
the Fund commenced selling Investor shares. Those shares outstanding
prior to April 14, 1994 were designated as Trust shares. On October 17, 1994,
Trust shares were redesignated as Class R shares.
(3) Net investment income before reimbursement of expenses by the investment
adviser for the year ended October 31, 1994 was $.2031. The amount shown in
this caption for each share outstanding throughout the period may not
accord with the change in the aggregate gains and losses in the portfolio
securities for the period because of the timing of purchases and withdrawals
of shares in relation to the fluctuations of market values of the portfolio.
(4) Not annualized.
(5) Expense ratio before voluntary reimbursement of expenses by the
investment adviser for the year ended October 31, 1994 was 1.09%.
(6) For the period September 30, 1993
(commencement of operations) to October 31, 1993, the investment adviser
reimbursed expenses of the Fund amounting to $.0109.
(7) These ratios have been restated to reflect current year's presentation.
(8) For fiscal years beginning November 1, 1995, the Fund is required to
disclose its average commission rate paid per share for purchases and sales
of investment securities.

See notes to financial statements.
</TABLE>
<PAGE>
Dreyfus Premier Balanced Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:
Dreyfus Premier Balanced Fund (the "Fund") is a series of The
Dreyfus/Laurel Funds, Inc. (the "Company") which 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 Fund. The Fund's investment objective is to outperform a
hybrid index, 60% of which is the Standard & Poor's 500 Composite Stock Price
Index and 40% of which is the Lehman Brothers Intermediate Government/Corporate
Bond Index, by investing in common stocks and bonds in proportions consistent
with their expected returns and risks as determined by the Fund's investment
manager. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon
Bank").
On January 31, 1997, the Fund's Directors approved a change to the Fund's
name, effective March 1, 1997, from "Premier Balanced Fund" to "Dreyfus Premier
Balanced Fund."
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor
of the Fund's shares. The Fund is authorized to issue 50 million shares of $.001
par value Capital Stock in each of the following classes of shares: Class A,
Class B, Class C and Class R. Class A, Class B and Class C shares are sold
primarily to retail investors through financial intermediaries and bear a
distribution fee and/or service fee. Class A shares are sold with a front-end
sales charge and bear a distribution fee, while Class B and Class C shares are
subject to a contingent deferred sales charge ("CDSC") and a distribution and
service fee. Class R shares are sold primarily to bank trust departments and
other financial service providers (including Mellon Bank 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 or service fee.
Class R shares are offered without a front-end sales load or CDSC. Each class of
shares has identical rights and privileges, except with respect to distribution
fees and voting rights on matters affecting a single class.
Investment income, net of expenses (other than class specific expenses),
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.
The Fund's 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.
(a) Portfolio valuation: Investments in securities are valued at the last
sales price on the securities exchange on which such securities are primarily
traded or at the last sales price on the national securities market. Securities
not listed on an exchange or the national securities market, or securities for
which there were no transactions, are valued at the average of the most recent
bid and asked prices. 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.
(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) Repurchase agreements: The Fund may engage in repurchase
agreement transactions. Under the terms of a typical repurchase agreement,
the Fund, through its custodian and sub-custodian, takes possession of an
underlying debt obligation subject to an obligation of the seller to
repurchase, and the Fund to resell, the obligation at an agreed-upon price
and time, thereby determining the yield during the Fund's holding period.

<PAGE>
Dreyfus Premier Balanced Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

This arrangement results in a fixed rate of
return that is not subject to market fluctuations during the Fund's holding
period. The value of the collateral is at least equal, at all times, to the
total amount of the repurchase obligation, including interest. In the event of a
counterparty default, the Fund has the right to use the collateral to offset
losses incurred. There is potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its rights to dispose of the collateral
securities, including the risk of a possible decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights. The Manager, acting under the supervision of the Board of Directors,
reviews the value of the collateral and the creditworthiness of those banks and
dealers with which the Fund enters into repurchase agreements to evaluate
potential risks.
(d) Financial futures: The Fund may invest in financial futures contracts
in order to gain exposure to or protect against changes in the market. The Fund
is exposed to market risk as a result of changes in the value of the underlying
financial instruments (see Statement of Financial Futures). Investments in
financial futures require the fund to "mark to market" on a daily basis, which
reflects the change in the market value of the contract 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
Fund 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 April 30, 1997, and their related
unrealized depreciation are set forth in the Statement of Financial Futures.
(e) Distributions to shareholders: Dividends are recorded on the
ex-dividend date. Dividends from investment income-net are declared and paid on
a quarterly basis. 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 distribution requirements of the Internal
Revenue Code. This may result in distributions that are in excess of the net
realized gains on the fiscal year basis. To the extent that net realized capital
gain can be offset by capital loss carryovers, if any, it is the policy of the
Fund not to distribute such gain.
On May 5, 1997, the Board of Directors declared dividends from net
investment income for the Class A, Class B, Class C and Class R shares in the
amount of $.0478, $.0221, $.0221 and $.0564 per share, respectively, payable on
May 6, 1997 to shareholders of record on May 5, 1997.
(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.

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 and/or affiliates 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 1.00% 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, commitment
fees, Rule 12b-1 distribution fees and expenses,

<PAGE>
Dreyfus Premier Balanced Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

service fees, 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) Distribution and service plan: The Fund has adopted a Distribution Plan
(the "Plan") pursuant to Rule 12b-1 under the 1940 Act relating to its Class A,
B and C shares. Under the Plan, the Fund may pay annually up to .25% of the
value of its average daily net assets attributable to its Class A shares to
compensate the Distributor and Dreyfus Service Corporation, an affiliate of the
Manager, for shareholder servicing activities and the Distributor for activities
and expenses primarily intended to result in the sale of Class A shares. Under
the Plan, the Fund may pay the Distributor for distributing the Fund's Class B
and Class C shares at an aggregate annual rate of .75% of the value of the
average daily net assets of Class B and Class C shares. Class B and Class C
shares are also subject to a service plan adopted pursuant to Rule 12b-1, under
which the Fund pays Dreyfus Service Corporation or the Distributor for providing
certain services to the holders of Class B and Class C shares a fee at the
annual rate of .25% of the value of the average daily net assets of Class B and
Class C shares. Class R shares bear no service or distribution fee. During the
period ended April 30, 1997, the distribution fee for Class A, Class B and Class
C shares were $10,049, $42,774 and $2,121, respectively. During the period ended
April 30, 1997, the service fee for Class B and Class C shares were $14,258 and
$707, respectively.
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 Company and who have no direct
or indirect financial interest in the operation of the Plan or in any agreement
related to the Plan.
(c) 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 meeting 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. The Chairman of the Board
receives an additional annual fee of $25,000 per year. These fees and expenses
are charged and allocated to each series based on net assets.

NOTE 3--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, other
than short-term securities, during the period ended April 30, 1997, amounted to
$64,194,801 and $59,131,284, respectively.
At April 30, 1997, accumulated net unrealized appreciation on investments
and financial futures was $22,041,545, consisting of $23,900,381 gross
unrealized appreciation and $1,858,836 gross unrealized depreciation.
At April 30, 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).

Dreyfus Premier Balanced Fund
200 Park Avenue
New York, NY 10166

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

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

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

Printed in U.S.A. 342/642SA974

<PAGE>

Semi-Annual Report
------------------
Dreyfus Premier
------------------
Limited Term
------------------
Income Fund
------------------

April 30, 1997
[LOGO]

<PAGE>
Dreyfus Premier Limited Term Income Fund
- ------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:

We are pleased to report the performance of the Dreyfus Premier Limited Term
Income Fund for its six-month reporting period ended April 30, 1997, as shown in
the following table:

Annualized
Income Dividends Distribution
Total Return* (Approximate Per Share) Rate** (per share)
------------- ----------------------- ------------------
<S> <C> <C> <C>
Class A Shares 1.31% $.310 5.71%
Class B Shares 1.07% $.284 5.39%
Class C Shares 1.04% $.281 5.37%
Class R Shares 1.44% $.323 6.15%

</TABLE>

These returns compare with a total return of 1.70% for the Fund's benchmark
index, the Lehman Brothers Aggregate Bond Index.***

THE ECONOMY

The U.S. economy kept advancing over the reporting period, while inflation
remained subdued. The unemployment rate fell to its lowest level in 24 years,
and a surge in tax revenues meant good news for the Administration's budget
reduction program. Overall, the economic news has been stellar.

The economy grew at a robust 5.6% annual rate during the first quarter, the
best quarter in nine years. Aided by falling energy prices and with no sign of
shortages of raw materials, inflation remained in check. The Commerce
Department's Implicit Price Deflator, a broad measure of inflation, rose for the
same period at a 2.2% pace. On the consumer level, the Consumer Price Index
(CPI) remained below 3%. Excluding volatile food and energy prices, the CPI is
actually trending downward, so far this year running at an annual rate of 2.5%.
Inflation has been further restrained by the strong dollar which has moderated
the price of imports and eased potential strains on domestic production
capacity.

The strong economy has put increasing numbers of people to work. This
tightening of the labor market has been a key factor in the implementation of
monetary policy by the Federal Reserve Board's Open Market Committee (FOMC). The
unemployment rate has been less than 5.5% since June 1996, the lowest sustained
rate since the late 1980s. The rate fell to 4.9% in April of this year, its
lowest level in 24 years. So far, neither strong economic growth nor wage
increases have resulted in any price pressure at the consumer level. Through the
first quarter, total employment costs (including wages and benefits) rose about
the same as inflation.

Renewed confidence, spurred by increasing job security and low inflation, has
resulted in a surge in consumer spending. In the first quarter of the year,
spending rose 6.4%, almost double the rate of the fourth quarter of 1996. The
combined six-month performance was the largest increase in consumer spending
over the past ten years. Retail sales have spurted in the early part of this
year as well; first quarter results were sharply higher than the last quarter of
1996. Not surprisingly, industrial production has been building momentum over
the reporting period. The latest report on capacity utilization indicated the
highest level in two years. So far, while the potential exists for production
bottlenecks, raw materials prices and worker wage demands have remained modest.

<PAGE>
Reserve, to raise the Federal Funds rate one-quarter of a percentage point to
5.50%. (The Federal Funds rate is the rate of interest banks charge each other
for overnight loans.) The traditional assumption that strong economic growth and
low unemployment will eventually result in rising inflation still drives the
Fed's monetary policy initiatives. Although there was little reported evidence
of incipient inflation, the Fed executed a preemptive move of moderate monetary
restraint in March, perhaps to avoid being forced to act more harshly later.
There is little reason to suspect that the Fed will soon change this policy.

THE MARKET AND THE PORTFOLIO

Fixed-income investors were concerned during the reporting period about the
pace of economic growth and the outlook for inflation, given the tightening in
the labor market. As a result, long-term interest rates rose modestly. On April
30, 1997, the 30-year U.S. Treasury bond yielded 6.95%, an increase of 31 basis
points from six months earlier.

For most of the reporting period, the Fund held a neutral duration relative
to its benchmark index, the Lehman Brothers Aggregate Bond Index. Sector
allocations were overweighted in corporate securities (28% for the Fund vs 19%
for the Index) to take advantage of the improving credit environment that is
being enhanced by strong corporate earnings. This decision retarded performance
since yield spreads widened during the last four months compared to Treasury
securities. The Fund was underweighted in Treasury securities (23% for the Fund
vs 44% for the Index). The Fund overweighted mortgage securities compared to the
benchmark index (40% for the Fund vs 30% for the Index), a decision that helped
performance.

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

Very truly yours,

Laurie Carroll
Portfolio Manager

May 15, 1997
New York, N.Y.

* Total return includes reinvestment of dividends and any capital gains paid,
and does not take into consideration the maximum initial sales charge in the
case of Class A shares or the contingent deferred sales charge imposed on
redemptions in the case of Class B and Class C shares.

** Distribution rate per share is based upon dividends per share paid from net
investment income during the period (annualized), divided by the maximum
offering price per share at the end of the period in the case of Class A
shares or net asset value at the end of the period in the case of Class B,
Class C and Class R shares.

*** SOURCE: LEHMAN BROTHERS -- The Lehman Brothers Aggregate Bond Index is a
widely accepted unmanaged index of corporate, government and government
agency debt instruments.

<PAGE>
<TABLE>
<CAPTION>
Dreyfus Premier Limited Term Income Fund
- -------------------------------------------------------------------------------
Statement of Investments April 30, 1997 (Unaudited)

Principal
Bonds and Notes--95.0% Amount Value
- ---------------------------------------------------------------------------- ---------- ----------
<S> <C> <C> <C>
Banking--3.9% BankAmerica Capital II,
Gtd. Capital Securities,
Ser. 2, 8%, 2026...................... $2,000,000 $ 1,975,174
-----------
Foods and Beverages--4.1% McDonald's,
Medium-Term Notes, 8 3/8%, 1999...... 2,000,000 2,083,334
-----------
Industrial--11.5% ASARCO,
Deb., 8 1/2%, 2025................... 1,500,000 1,544,697
Goodyear Tire & Rubber,
Notes, 6 5/8%, 2006.................. 2,000,000 1,913,590
Lukens,
Medium-Term Notes, Ser. A, 6 1/2%,
2006................................. 2,500,000 2,329,595
-----------
5,787,882
-----------
Oil and Gas--4.0% ENSERCH,
Notes, 8%, 1999...................... 2,000,000 2,014,010
-----------
Utilities--4.1% Philadelphia Electric,
First and Refunding Mortgage,
7 3/4%, 2023.......................... 2,050,000 2,044,875
-----------
U.S. Government--22.3% U.S. Treasury Notes:
9 1/4%, 8/15/1998..................... 1,000,000 1,038,906
7 1/8%, 9/30/1999..................... 1,000,000 1,017,500
8 7/8%, 5/15/2000..................... 2,000,000 2,134,375
6 1/4%, 10/31/2001.................... 2,000,000 1,976,250
7 1/2%, 11/15/2001.................... 2,000,000 2,072,813
7 1/4%, 5/15/2004..................... 1,500,000 1,547,344
6 1/4%, 2/15/2007..................... 1,500,000 1,451,719
-----------
11,238,907
-----------
U.S. Government Agencies--45.1% Federal Home Loan Mortgage Corp.,
7.04%, 4/11/2001...................... 1,000,000 999,250
Federal National Mortgage Association:
7.01%, 3/18/2002...................... 2,200,000 2,189,865
8%, 9/1/2011.......................... 2,814,080 2,880,014
Government National Mortgage
Association I: 6 1/2%, 3/15/2024...... 5,607,331 5,309,413
7%, 8/15/2008-2/15/2026............... 4,673,183 4,582,960
7 1/2%, 5/15/2010-5/15/2023........... 4,046,596 4,059,400
9%, 9/15/2024......................... 2,567,762 2,712,994
-----------
22,733,896
-----------
TOTAL BONDS AND NOTES
(cost $48,682,066)..................... $47,878,078
-----------
-----------

<PAGE>
Dreyfus Premier Limited Term Income Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Principal
Short-Term Investments--4.4% Amount Value
- ---------------------------------------------------------------------------- ----------- ----------

Repurchase Agreement: Goldman, Sachs & Co. Tri-Party
Repurchase Agreement, 5 3/8% dated
4/30/1997, due 5/1/1997 in the
amount of $2,243,253 (fully
collateralized by $2,307,000 U.S.
Treasury Inflation Indexed Notes,
33/8%, 1/15/2007, value $2,308,796)
(cost $2,242,918)..................... $2,242,918 $ 2,242,918
-----------
-----------
TOTAL INVESTMENTS (cost $50,924,984)........................................ 99.4% $50,120,996
------ -----------
------ -----------
CASH AND RECEIVABLES (NET).................................................. .6% $ 283,715
------ -----------
------ -----------
NET ASSETS................................................................... 100.0% $50,404,711
------ -----------
------ -----------

See notes to financial statements.

<PAGE>

Dreyfus Premier Limited Term Income Fund
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1997 (Unaudited)

Cost Value
---------- -----------
ASSETS: Investments in securities--See Statement of
Investments..................................... $50,924,984 $50,120,996
Cash.............................................. 75,127
Interest receivable............................... 759,960
Receivable for shares of Capital Stock subscribed. 10,000
-----------
50,966,083
-----------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 25,043
Due to Distributor............................... 50
Payable for investment securities purchased...... 534,233
Payable for shares of Capital Stock redeemed..... 2,046
-----------
561,372
-----------
NET ASSETS..................................................................... $50,404,711
-----------
-----------
REPRESENTED BY: Paid-in capital.................................. $52,891,360
Accumulated undistributed investment income--net. 41,493
Accumulated net realized gain (loss) on investments (1,724,154)
Accumulated net unrealized appreciation
(depreciation) on investments--Note 3.......... (803,988)
-----------
NET ASSETS..................................................................... $50,404,711
-----------
-----------

</TABLE>

NET ASSET VALUE PER SHARE
-------------------------
<TABLE>
<CAPTION>

Class A Class B Class C Class R
----------- ------------ --------- -----------
<S> <C> <C> <C> <C>
Net Assets.................................. $1,071,136 $179,476 $302,521 $48,851,578
Shares Outstanding.......................... 100,954 16,920 28,644 4,603,740
NET ASSET VALUE PER SHARE................... $10.61 $10.61 $10.56 $10.61
------ ------ ------ ------
------ ------ ------ ------

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus Premier Limited Term Income Fund
- --------------------------------------------------------------------------------
Statement of Operations Six Months Ended April 30, 1997 (Unaudited)

INVESTMENT INCOME

<S> <C> <C> <C>
INCOME Interest Income.................................. $1,676,977

EXPENSES: Management fee--Note 2(a)......................... $ 147,768
Directors' fees and expenses--Note 2(c)........... 2,476
Distribution and service fees--Note 2(b).......... 2,123
----------
Total Expenses................................. 152,367
----------
INVESTMENT INCOME--NET.......................................................... 1,524,610

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:

Net realized gain (loss) on investments........... $ 241,706
Net unrealized appreciation (depreciation) on
investments..................................... (1,045,536)
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS.......................... (803,830)
-----------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................ $ 720,780
-----------
-----------

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

Dreyfus Premier Limited Term Income Fund
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets

Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
<S>
OPERATIONS:
<C> <C>
Investment income--net....................................................... $ 1,524,610 $ 3,346,323
Net realized gain (loss) on investments..................................... 241,706 213,628
Net unrealized appreciation (depreciation) on investments................... (1,045,536) (695,719)
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations......... 720,780 2,864,232
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares............................................................ (30,691) (55,899)
Class B shares............................................................ (4,193) (6,186)
Class C shares............................................................ (1,351) (47)
Class R shares............................................................ (1,486,554) (3,244,519)
------------ ------------
Total Dividends......................................................... (1,522,789) (3,306,651)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares............................................................ 166,948 73,664
Class B shares............................................................ 38,585 73,604
Class C shares............................................................ 300,000 16,607
Class R shares............................................................ 4,418,993 10,953,081
Dividends reinvested:
Class A shares............................................................ 13,977 23,900
Class B shares............................................................ 3,326 4,451
Class C shares............................................................ 1,326 24
Class R shares............................................................ 1,139,674 2,447,188
Cost of shares redeemed:
Class A shares............................................................ (93,242) (239,578)
Class B shares............................................................ (3,194) (11,612)
Class C shares............................................................ -- (16,722)
Class R shares............................................................ (5,587,595) (28,225,985)
------------ ------------
Increase (Decrease) in Net Assets from Capital Stock Transactions....... 398,798 (14,901,378)
------------ ------------
Total Increase (Decrease) in Net Assets............................... (403,211) (15,343,797)

NET ASSETS:

Beginning of Period......................................................... 50,807,922 66,151,719
------------ ------------
End of Period............................................................... $ 50,404,711 $ 50,807,922
------------ ------------
------------ ------------
Undistributed investment income--net........................................... $ 41,493 $ 39,672
------------ ------------

See notes to financial statements.

<PAGE>
Dreyfus Premier Limited Term Income Fund
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets (continued)

Shares
---------------------------------
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
CAPITAL SHARE TRANSACTIONS:
Class A
-------
Shares sold................................................................. 15,451 6,946
Shares issued for dividends reinvested...................................... 1,308 2,231
Shares redeemed............................................................. (8,685) (22,392)
---------- ----------
Net Increase (Decrease) in Shares Outstanding... 8,074 (13,215)
---------- ----------
---------- ----------
Class B
-------
Shares sold................................................................. 3,598 6,818
Shares issued for dividends reinvested...................................... 312 417
Shares redeemed............................................................. (294) (1,081)
---------- ----------
Net Increase (Decrease) in Shares Outstanding... 3,616 6,154
---------- ----------
---------- ----------
Class C*
-------
Shares sold................................................................. 28,517 1,585
Shares issued for dividends reinvested...................................... 126 2
Shares redeemed............................................................. -- (1,587)
---------- ----------
Net Increase (Decrease) in Shares Outstanding... 28,643 --
---------- ----------
---------- ----------
Class R
-------
Shares sold................................................................. 411,043 1,019,945
Shares issued for dividends reinvested...................................... 106,588 228,591
Shares redeemed............................................................. (521,025) (2,631,091)
---------- ----------
Net Increase (Decrease) in Shares Outstanding... (3,394) (1,382,555)
---------- ----------
---------- ----------

<FN>
- --------------------
* The Fund commenced selling C shares on April 30, 1995.

Class A Shares
-----------------------------------------------------
Six Months Ended Year Ended October 31,
April 30, 1997 ----------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(1)(2)
----------- ---------- ------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period................. $10.78 $10.84 $10.22 $10.49
------ ------ ------ ------
Investment Operations:

Investment income--net............................... .31 .58 .56 .28
Net realized and unrealized gain (loss)
on investments.................................... (.17) (.07) .62 (.27)
------ ------ ------ ------
Total from Investment Operations..................... .14 .51 1.18 .01
------- ------- ------- -------
Distributions:

Dividends from investment income--net................. (.31) (.57) (.56) (.28)
------ ------ ------ ------
Net asset value, end of period....................... $10.61 $10.78 $10.84 $10.22
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN(3).............................. 2.64%(4) 4.85% 11.83% .11%

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. .85%(4) .85% .85% .83%(4)
Ratio of net investment income
to average net assets............................. 5.84%(4) 5.38% 5.33% 4.47%(4)
Portfolio Turnover Rate.............................. 53.52%(5) 153.63% 73.00% 117.00%
Net Assets, end of period (000's Omitted)............ $1,071 $1,001 $1,150 $932

<FN>
- --------------------
(1) The Fund commenced selling Investor shares on April 7, 1994. Effective
October 17, 1994, the Fund's Investor shares were redesignated as Class A
shares.
(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 Fund's investment manager.
(3) Exclusive of sales load.
(4) Annualized.
(5) Not annualized.

See notes to financial statements.

</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus Premier Limited Term Income Fund
- --------------------------------------------------------------------------------
Financial Highlights (continued)

Class B Shares Class C Shares
---------------------------------------- -----------------------------------------
Six Months Ended Six Months Ended
April 30, 1997 Year Ended October 31, April 30, 1997 Year Ended October 31,
---------------------- ----------------------
PER SHARE DATA: (Unaudited) 1996 1995(1) (Unaudited) 1996 1995(1)
---------- ------- ------- ----------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.78 $10.84 $10.15 $10.73 $10.84 $10.15
------ ------ ------ ------ ------ ------
Investment Operations:

Investment income--net............ .28 .52 .47 .28 3.05 .48
Net realized and unrealized gain (loss)
on investments................ (.17) (.07) .69 (.17) (2.65) .69
------ ------ ------ ------ ------ ------
Total from Investment Operations. .11 .45 1.16 .11 .40 1.17
------ ------ ------ ------ ------ ------
Distributions:

Dividends from investment income--net (.28) (.51) (.47) (.28) (.51) (.48)
------ ------ ------ ------ ------ ------
Net asset value, end of period... $10.61 $10.78 $10.84 $10.56 $10.73 $10.84
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------

TOTAL INVESTMENT RETURN............. 2.16%(2) 4.33% 11.32% 2.10%(2) 3.83% 11.32%

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.35%(2) 1.35% 1.35%(2) 1.35%(2) 1.41% --
Ratio of net investment income
to average net assets.......... 5.30%(2) 4.86% 4.85%(2) 4.72%(2) 5.50% --
Portfolio Turnover Rate.......... 53.52%(3) 153.63% 73.00% 53.52%(3) 153.63% 73.00%
Net Assets, end of period
(000's Omitted)................ $179 $143 $78 $303 -- --

<FN>
- ----------------------
(1) The Fund commenced selling Class B and Class C shares on December 19, 1994.
(2) Annualized.
(3) Not annualized.

Class R Shares
---------------------------------------------------------------------------
Six Months Ended Year Ended October 31,
April 30, 1997 --------------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(1) 1993 1992
---------------- ------ ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.78 $10.84 $10.22 $11.07 $10.71 $10.41
------ ------ ------ ------ ------ ------
Investment Operations:

Investment income--net............ .32 .60 .58 .49(2) .51 .62
Net realized and unrealized gain (loss)
on investments................. (.17) (.06) .62 (.75) .46 .30
------ ------ ------ ------ ------ ------
Total from Investment Operations. .15 .54 1.20 (.26) .97 .92
------ ------ ------ ------ ------ ------
Distributions:

Dividends from investment income--net (.32) (.60) (.58) (.53) (.52) (.62)
Dividends from net realized gain
on investments................. -- -- -- (.06) (.09) --
------ ------ ------ ------ ------ ------
Total Distributions.............. (.32) (.60) (.58) (.59) (.61) (.62)
------ ------ ------ ------ ------ ------
Net asset value, end of period... $10.61 $10.78 $10.84 $10.22 $11.07 $10.71
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN............. 2.90%(3) 5.12% 12.11% (2.46%) 9.33% 9.11%

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets..................... .60%(3) .60% .60% .60%(4) .60% .51%
Ratio of net investment income
to average net assets.......... 6.09%(3) 5.62% 5.58% 4.70% 4.81%(5) 5.91%(5)
Portfolio Turnover Rate.......... 53.52%(6) 153.63% 73.00% 117.00% 112.00% 67.00%
Net Assets, end of period
(000's Omitted)................ $48,852 $49,664 $69,924 $82,406 $59,534 $20,619

<FN>
- --------------------
(1) 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 Fund's investment manager.
(2) Net investment income before reimbursement of expenses by the investment
adviser was $.49 per share for the year ended October 31, 1994.
(3) Annualized.
(4) Expense ratio before reimbursement of expenses by the investment adviser
was .60% for the year ended October 31, 1994.
(5) For the year ended October 31, 1992 the investment adviser waived all or a
portion of its advisory fee amounting to $.0064 per share. For the years
ended October 31, 1993 and 1992, the investment adviser reimbursed expenses
of the Fund amounting to $.0509 and $.1147 per share, respectively.
(6) Not annualized.

See notes to financial statements.

</TABLE>
<PAGE>
Dreyfus Premier Limited Term Income Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Dreyfus Premier Limited Term Income Fund (the "Fund") is a series of The
Dreyfus/Laurel Funds, Inc. (the "Company") which 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 Fund. The Fund's investment objective is to obtain as high
a level of current income as is consistent with safety of principal and
maintenance of liquidity by investing in fixed income obligations with average
maturities not in excess of ten years. The Dreyfus Corporation ("Manager")
serves as the Fund's investment adviser. The Manager is a direct subsidiary of
Mellon Bank, N.A. ("Mellon Bank").

On January 31, 1997, the Fund's Directors approved a change to the Fund's
name, effective March 1, 1997, from "Premier Limited Term Income Fund" to
"Dreyfus Premier Limited Term Income Fund."

Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor
of the Fund's shares. The Fund is authorized to issue 250 million of $.001 par
value Capital Stock. The Fund currently offers four classes of shares: Class A
(50 million shares authorized), Class B (50 million shares authorized), Class C
(50 million shares authorized) and Class R (100 million shares authorized).
Class A, Class B and Class C shares are sold primarily to retail investors
through financial intermediaries and bear a distribution fee and/or service fee.
Class A shares are sold with a front-end sales charge and bear a distribution
fee, while Class B and Class C shares are subject to a contingent deferred sales
charge ("CDSC") and a distribution and service fee. Class R shares are sold
primarily to bank trust departments and other financial service providers
(including Mellon Bank and its affiliates) acting on behalf of customers having
a qualified trust or investment account or relationship at such institution, and
bear no distribution or service fees. Class R shares are offered without a
front-end sales load or CDSC. Each class of shares has identical rights and
privileges, except with respect to distribution and service fees and voting
rights on matters affecting a single class.

<PAGE>
Dreyfus Premier Limited Term Income Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and discounts on investments, is
recognized on the accrual basis.

(c) Repurchase agreements: The Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Fund,
through its custodian and sub-custodian, takes possession of an underlying debt
obligation subject to an obligation of the seller to repurchase, and the Fund to
resell, the obligation at an agreed upon price and time, thereby determining the
yield during the Fund's holding period. This arrangement results in a fixed rate
of return that is not subject to market fluctuations during the Fund's holding
period. The value of the collateral is at least equal, at all times, to the
total amount of the repurchase obligation, including interest. In the event of a
counterparty default, the Fund has the right to use the collateral to offset
losses incurred. There is potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its rights to dispose of the collateral
securities, including the risk of a possible decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights. The Manager, acting under the supervision of the Board of Directors,
reviews the value of the collateral and the creditworthiness of those banks and
dealers with which the Fund enters into repurchase agreements to evaluate
potential risks.

(d) Distributions to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net; such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, it the
policy of the Fund not to distribute such gain.

The Fund has an unused capital loss carryover of approximately $1,925,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1996. If not
applied, $1,651,000 of the carryover expires in fiscal 2002 and $274,000 of the
carryover expires in fiscal 2003.

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 and/or affiliates 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 .60% 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, commitment fees, Rule 12b-1 distribution fees
and expenses, service fees, 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).

<PAGE>
Dreyfus Premier Limited Term Income Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(b) Distribution and service plan: The Fund has adopted a Distribution Plan
(the "Plan") pursuant to Rule 12b-1 under the 1940 Act relating to its Class A,
B and C shares. Under the Plan, the Fund may pay annually up to .25% of the
value of its average daily net assets attributable to its Class A shares to
compensate the Distributor and Dreyfus Service Corporation, an affiliate of the
Manager, for shareholder servicing activities and the Distributor for activities
and expenses primarily intended to result in the sale of Class A shares. Under
the Plan, the Fund may pay the Distributor for distributing the Fund's Class B
and Class C shares at an aggregate annual rate of .50% of the value of the
average daily net assets of Class B and Class C shares. Class B and Class C
shares are also subject to a service plan adopted pursuant to Rule 12b-1, under
which the Fund pays Dreyfus Service Corporation or the Distributor for providing
certain services to the holders of Class B and Class C shares a fee at the
annual rate of .25% of the value of the average daily net assets of Class B and
Class C shares. Class R shares bear no service or distribution fee. During the
period ended April 30, 1997, the distribution fee for Class A, Class B and Class
C shares were $1,314, $396 and $143, respectively. During the period ended April
30, 1997, the service fee for Class B and Class C shares were $198 and $72,
respectively.

NOTE 3--Securities Transactions:

The aggregate amount of purchase and sales (including paydowns) of
investment securities, excluding short-term securities, during the period ended
April 30, 1997, amounted to $26,246,221 and $25,802,439, respectively.

At April 30, 1997, accumulated net unrealized depreciation on investments
was $803,988, consisting of $53,102 gross unrealized appreciation and $857,090
gross unrealized depreciation.

At April 30, 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).

NOTE 4--Bank Line of Credit:

<PAGE>
Dreyfus Premier Limited Term
Income Fund
200 Park Avenue
New York, NY 10166

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

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

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.

P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 345/645SA974

<PAGE>

Semi-Annual Report
- --------------------------------------------------------------------------------
Dreyfus Premier
- --------------------------------------------------------------------------------
Small Company
- --------------------------------------------------------------------------------
Stock Fund
- --------------------------------------------------------------------------------
April 30, 1997
[LOGO]

<PAGE>

Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:

We are pleased to report the performance of Dreyfus Premier Small Company
Stock Fund for its six-month reporting period ended April 30, 1997, as shown in
the following table:

Total Return*
-------------
Class A 3.95%
Class B 3.58%
Class C 3.65%
Class R 4.08%
Russell 2500 Index** 4.01%

Economic Review

The Federal Reserve Board's (the "Fed") decision in March to tighten credit
already has been vindicated by the reported 5.6% rise in first quarter real
Gross Domestic Product and by the drop to 4.9% in April's unemployment rate.
The economic debate is now splintered into 1) those who believe that softer
incoming economic data for the second quarter can keep Fed policy on hold, and
2) those who believe the economy is fundamentally too strong, warranting higher
rates irrespective of short-term economic fluctuations. Views on the risk of
inflation clearly distinguish these camps. To date, a strong dollar has helped
mute price inflation. Market interest rates are likewise treading water until
the policy outlook becomes clearer. We believe that some tightening is likely
in coming months and this should temper overall growth to sustain a long
business cycle.

For the first quarter, real GDP grew an annualized 5.6%, and for the 12
months ended March 30, by 4.0%, both growth rates unseen since 1987/88.
Virtually every major economic sector contributed positively to growth. In the
early evidence for the second quarter, rising new orders portend continued
strength in exports and capital spending. By contrast, retail spending weakened
in April and the housing sector slowed. However, real disposable income grew
3.8% in the last year, a pace which, if sustained, should support the upward
cycle in consumer spending, while mortgage rates have not yet risen
substantially.

The economy has now embarked on the seventh year for this business cycle.
Economic growth is proving stronger than seen since the late 1980s while
inflation is still subdued. More Fed tightening would indicate a willingness
to err on the side of caution and would thus help sustain the expansion.

Market Overview

The six-month fiscal period ended April 30, 1997 was one of the most volatile
in recent stock market history. While the underlying U.S. economy continued to
grow with little inflation, investor concerns over the outlook for interest
rates and for corporate profits caused major shifts in market sentiment, and
hence in prices.

<PAGE>

Early in the half-year period, the dominant market trend was strong, despite
nervousness about the solidity of economic growth and the possible reactions of
the Fed. The trend picked up steam during the winter, with the Dow Jones
Industrial Average (the "DJIA") breaking the 7000 mark in mid-February, and then
hitting a new high of 7085.16 in mid-March. However, when the Fed on March 25,
in a widely anticipated move, increased its overnight lending rate by one
quarter of a percentage point to cool off the economy and "irrational
exuberance" in the equity markets, the markets promptly obliged. Between
mid-March and mid-April the DJIA dropped 9.8%.

By then, however, a stream of strong quarterly profit reports were issued
from major corporations, and the latest Government numbers on inflation appeared
reassuring. Moreover, underlying economic expansion continued, but at a pace
that appeared sustainable. The market's reaction was to resume the upward trend
of earlier in the year, breaking the 7000 level once again on April 30.

Clearly one of the engines currently driving the market is the profit
outlook. According to two companies that monitor profit reports, I.B.E.S. and
First Call, overall first-quarter corporate profits ran about 3.7% above
forecasts. This is reflected in the results from most of the companies in the
Standard & Poor's 500 Composite Stock Price Index (the "S&P 500"). At the same
time, increases in wages and compensation during that same period were modest.

Big, heavily capitalized and well-established companies were the chief
beneficiaries. For the six months under review, large-cap stocks, as measured by
the S&P 500, outperformed small-cap stocks, as measured by the Russell 2500. The
mid- and small-cap stocks enjoyed a revival along with the general market in
late April and the first few days of May.

The latest trend could, of course, be affected by a Fed decision to raise
interest rates once again. However, there is no denying the resilience
displayed by the equity markets, especially the larger issues, in the
closing days of the Fund's latest fiscal period.

Portfolio Focus

The past six months have been volatile and trying for smaller-cap stocks,
especially relative to large-cap stocks. In the first three months of the recent
semi-annual period small-cap stocks, as measured by the Russell 2500, rose 9.20%
but then fell by 4.76% in the three months ended April 30. The correction was
attributed to concerns that the economy was accelerating excessively and that
the Fed would embark on a tighter monetary course in order to slow economic
activity and keep inflation in check.

In the meantime, large-cap issues continued to perform well. For the
six-month period ended April 30, the S&P 500 climbed 14.71%, and exceeded the
4.01% gain achieved by the Russell 2500 benchmark by more than 10%. The
performance gap over the past year has been even greater, as the S&P 500
advanced 25.12% for the twelve months ended April 30 compared to only a 5.19%
rise for the Russell 2500 Index.

The performance differential between large-cap and small-cap stocks is
unprecedented. As a result, small-cap stocks are currently near the low end of
their relative valuation range compared to large-cap issues. We would not
venture to say when small caps will start to do better relatively, although a
proposed cut in the capital gains tax, if enacted, could be the catalyst for
better performance. We do know, however, that low relative valuations have
historically preceded small-stock rallies. Of course, past performance is no
guarantee of future results.

The performance of the Fund's share classes ranged from below to slightly
above the performance of the Russell 2500 benchmark in the latest semi-annual
period. The difference in the performance among the Fund's share classes is
attributable to differences in fees and expenses.

Several investments that enhanced performance in 1996, hurt
performance so far in 1997. In the telephone, apparel, and miscellanous
finance industries stocks like LCI Intl., Fila Holdings A.D.S. and Advanta
Corp. underperformed.

<PAGE>

We are pleased to report that your Fund had some notable portfolio successes
in the pollution control, health care and electronics industries with such
winners as Philip Environmental, Universal Health Services, Vencor, Dallas
Semiconductor and Atmel. In addition, PHH Corp., Eckerd Corp. and Amphenol were
all acquired by other companies at significant stock price premiums.

Although we are unable to predict when smaller cap issues will regain renewed
investor focus, we remain confident that our disciplined investment process of
seeking stocks with above average value and accelerating earnings growth can
continue to serve our shareholders well.

Sincerely,

Anthony J. Galise

James C. Wadsworth
Portfolio Managers

May 21, 1997
Pittsburgh, PA

** Source: FRANK RUSSELL COMPANY -- Reflects the reinvestment of income
dividends and where applicable capital gain distributions. The Russell 2500
Index is a widely accepted measure of small-cap stock performance.

<PAGE>
<TABLE>
<CAPTION>
Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
Statement of Investments April 30, 1997 (Unaudited)

Common Stocks--96.0% Shares Value
- ----------------------------------------------------------------------------- -------- -------

<S> <C> <C> <C>
Basic Industries--7.2% ACX Technologies......................... 44,650(a) $ 853,931
American Building........................ 16,910(a) 439,660
AptarGroup............................... 17,410 696,400
Cabot.................................... 47,980 1,055,560
Caraustar Industries..................... 25,570 645,643
Clayton Homes............................ 86,866 1,216,124
Cytec Industries......................... 45,490(a) 1,711,561
Jacobs Engineering Group................. 19,880(a) 506,940
Medusa................................... 22,140 838,553
Paragon Trade Brands..................... 22,310(a) 356,960
Quanex................................... 35,490 896,122
Sealed Air............................... 14,850(a) 686,812
Triangle Pacific......................... 22,140(a) 600,548
Ultramar Diamond Shamrock................ 37,100 1,191,838
------------
11,696,652
------------

Capital Goods--.3% Atmel.................................... 21,090(a) 524,614
------------

Capital Spending--24.1% AGCO..................................... 52,760 1,365,165
AMETEK................................... 33,630 752,471
Adaptec.................................. 37,690(a) 1,394,530
Altron................................... 38,260(a) 636,073
Analysts ................................ 32,020 912,570
CIDCO.................................... 47,100(a) 600,525
Cognex................................... 26,740(a) 658,473
DT Industries............................ 15,600 405,600
Dallas Semiconductor..................... 27,040 986,960
ECI Telecom.............................. 33,980 743,313
ENCAD.................................... 23,100(a) 848,925
Electroglas.............................. 43,070(a) 683,736
Electronics For Imaging.................. 44,200(a) 1,734,850
Elsag Bailey Process Auto, N.V........... 42,290(a) 592,060
Hadco.................................... 26,940(a) 1,151,685
Hummingbird Communications............... 23,410(a) 632,070
Ionics................................... 11,120(a) 511,520
Kennametal............................... 26,270 945,720
Komag.................................... 32,100(a) 906,825
Mutual Risk Management................... 49,880 1,833,090
PHH...................................... 35,790 1,735,815
Philip Environmental..................... 133,050(a) 2,095,538
Pittston Brinks Group.................... 53,910 1,711,643
Plantronics.............................. 17,610(a) 739,620
Regis.................................... 32,710 670,555
Reynolds & Reynolds, Cl. A............... 39,320 815,890
Rohr..................................... 32,830(a) 512,968
Silicon Valley Group..................... 63,430(a) 1,304,279
Sirrom Capital........................... 25,860 804,892
Sotheby's Holdings, Cl. A................ 53,110 843,121
Sterling Commerce........................ 37,760(a) 977,040
Sterling Software........................ 38,010(a) 1,159,305

<PAGE>

Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Common Stocks (continued) Shares Value
- ----------------------------------------------------------------------------- -------- -------

Capital Spending (continued) SunGard Data Systems..................... 34,130(a) $ 1,514,518
Tech Data................................ 42,290(a) 1,036,105
Tellabs.................................. 35,140(a) 1,401,208
Thermedics............................... 38,860(a) 650,905
Thiokol.................................. 13,590 886,748
Wyle Electronics......................... 28,440 963,405
Zebra Technologies, Cl. A................ 36,790(a) 846,170
------------
38,965,886
------------

Consumer Cyclical--14.4% Apple South.............................. 28,400 369,200
Borg-Warner Automotive................... 18,140 761,880
Breed Technologies....................... 42,790 775,569
Cannondale............................... 38,900(a) 758,550
CompUSA.................................. 73,000(a) 1,405,250
Devon Group.............................. 22,360(a) 631,670
Evergreen Media, Cl. A................... 36,800(a) 1,191,400
Fila Holdings, A.D.S..................... 15,450 668,213
Fingerhut Cos............................ 52,040 774,095
General Nutrition........................ 74,750(a) 1,607,125
Harman .................................. 19,525 746,831
Interface, Cl. A......................... 41,390 926,101
Interstate Hotels........................ 28,210(a) 708,776
Luby's Cafeterias........................ 24,010 438,183
Regal Cinemas............................ 48,405(a) 1,319,036
Richfood Holdings........................ 24,815 505,606
Ryan's Family Steak House................ 106,220(a) 942,703
Safeskin................................. 24,700(a) 552,662
Speedway Motorsports..................... 33,500(a) 699,312
Sports Authority......................... 39,120(a) 694,380
Sturm Ruger.............................. 4,000 61,500
Tommy Hilfiger........................... 21,240(a) 844,290
Toro..................................... 16,410 574,350
U.S. Office Products..................... 39,690(a) 1,012,095
Waban.................................... 34,430(a) 921,002
Wallace Computer Services................ 39,320 1,051,810
Warnaco Group, Cl. A..................... 37,050 1,055,925
Winnebago Industries..................... 52,610 328,813
Zale..................................... 56,890(a) 1,052,465
------------
23,378,792
------------

Consumer Services--.5% FelCor Suite Hotels...................... 24,400 875,350
------------

Consumer Staples--2.9% Central Garden & Pet..................... 43,200(a) 861,300
Consolidated Cigar Holdings, Cl. A....... 24,400(a) 561,200
Morningstar Group........................ 70,520(a) 1,710,110
Robert Mondavi, Cl. A.................... 29,100(a) 1,091,250
Ultratech Stepper........................ 29,600(a) 530,950
------------
4,754,810
------------

<PAGE>

Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Common Stocks (continued) Shares Value
- ----------------------------------------------------------------------------- -------- -------

Energy--6.5% Benton Oil & Gas......................... 53,710(a) $ 785,509
Cairn Energy USA......................... 50,940(a) 566,707
Chesapeake Energy........................ 45,100(a) 682,137
Holly.................................... 21,040 515,480
KN Energy................................ 21,140 787,465
Nabors Industries........................ 60,110(a) 1,127,063
Noble Drilling........................... 79,030(a) 1,373,146
Pacific Enterprises...................... 55,170 1,689,581
Smith ................................... 24,560(a) 1,163,530
Valero Energy............................ 29,900 1,050,238
WICOR.................................... 21,540 756,592
------------
10,497,448
------------

Health Care--8.4% AmeriSource Health, Cl. A................ 41,290(a) 1,842,566
Lincare Holdings......................... 41,290(a) 1,620,633
Orthodontic Centers of America........... 80,300(a) 963,600
Physician Sales & Service................ 80,300(a) 1,164,350
Prime Medical Services................... 25,990(a) 240,407
RoTech Medical........................... 43,750(a) 689,062
Teva Pharmaceutical Industries, A.D.R.... 26,550 1,347,413
Universal Health Services, Cl. B......... 50,140(a) 1,899,053
Vencor................................... 43,473(a) 1,809,563
Vital Signs.............................. 27,740 527,060
Watson Pharmaceuticals................... 39,930(a) 1,427,498
------------
13,531,205
------------

Interest Sensitive--20.7% ADVANTA, Cl. B........................... 14,750 328,187
AMBAC.................................... 15,550 1,006,863
AMRESCO.................................. 51,540(a) 750,551
Amerin................................... 37,100(a) 723,450
Bank United, Cl. A....................... 25,310 771,955
Beacon Properties........................ 30,625 945,547
CMAC Investment.......................... 61,820 2,349,160
Cali Realty.............................. 32,570 960,815
City National............................ 52,610 1,203,453
Conseco.................................. 22,120 915,215
Crestar Financial........................ 52,540 1,943,980
Cullen Frost Bankers..................... 34,890 1,221,150
EVEREN Capital........................... 24,860 587,318
Edwards (A.G.)........................... 28,290 990,150
Equity Residential Properties Trust...... 24,340 1,064,875
First Tennessee National................. 32,460 1,407,953
Franchise Finance Corp. of America....... 32,830 792,024
Health Care Property Investors........... 27,350 905,969
Kimco Realty............................. 28,430 884,884
Mid Ocean................................ 23,910 1,096,871
Money Store.............................. 39,770 860,026
ONBANCorp................................ 26,070 1,274,171
Old Kent Financial....................... 22,376 1,135,582

<PAGE>

Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Common Stocks (continued) Shares Value
- ----------------------------------------------------------------------------- -------- -------

Interest Sensitive (continued) Pacific Century Financial................ 34,790 $ 1,487,273
Pacific Gulf Properties.................. 47,200 997,100
People's Bank............................ 31,240 937,200
Public Storage........................... 39,720 1,067,475
RCSB Financial........................... 32,510 967,172
Reliance Group Holdings.................. 85,670 953,078
USLIFE................................... 28,750 1,394,375
United Cos. Financial.................... 27,840 546,360
Washington Federal....................... 42,829 1,027,896
------------
33,498,078
------------

Mining and Metals--2.9% Brush Wellman............................ 29,800 566,200
Cable Design Technologies................ 23,610(a) 445,639
IMCO Recycling........................... 18,980 284,700
Pittston Minerals Group.................. 31,260 406,380
Potash Saskatchewan...................... 19,307 1,484,226
Titanium Metals.......................... 25,700(a) 664,987
TubosDeAceroMex, A.D.R................... 52,500(a) 859,687
------------
4,711,819
------------

Telecommunications--.3% Glenayre Technologies.................... 44,600(a) 440,425
------------

Transportation--1.9% Air Express ............................. 16,910 579,168
America West Holdings, Cl. B............. 56,440(a) 867,765
Illinois Central ........................ 29,350 975,887
Pittston Burlington Group................ 25,870 588,543
------------
3,011,363
------------

Utilities--5.9% CalEnergy................................ 50,340(a) 1,969,553
Calpine.................................. 22,500(a) 365,625
DQE...................................... 38,970 1,076,546
Illinova................................. 48,930 1,100,925
LCI International........................ 36,190(a) 601,659
MidAmerican Energy Holdings.............. 60,154 1,007,579
NIPSCO Industries........................ 27,600 1,090,200
Pinnacle West Capital.................... 42,290 1,205,265
Transaction Network Services............. 72,600(a) 816,750
Vanguard Cellular Systems................ 36,950(a) 364,881
------------
9,598,983
------------
TOTAL COMMON STOCKS
(cost $146,324,964).................... $155,485,425
============

<PAGE>

Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)

Principal
Short-Term Investments--3.8% Amount Value
- -------------------------------------------------------------------------------------- --------- -----

Repurchase Agreements: Goldman, Sachs & Company, Tri-Party Repurchase
Agreement, 5.375% dated 4/30/1997 to be
repurchased at $6,096,990 on 5/1/1997,
collateralized by $6,271,000 U.S. Treasury Index
Inflation Notes, 3.375% due 1/15/2007
(cost $6,096,080)............................... $6,096,080 $ 6,096,080
=============

TOTAL INVESTMENTS (cost $152,420,964)................................................. 99.8% $ 161,581,505
======= =============
CASH AND RECEIVABLES (NET)............................................................ .2% $ 284,389
======= =============
NET ASSETS............................................................................ 100.0% $ 161,865,894
======= =============

<FN>

Notes to Statement of Investments:
- --------------------------------------------------------------------------------

(a) Non-income producing.

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

<PAGE>

Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1997 (Unaudited)

Cost Value
---------- ------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments... $152,420,964 $161,581,505
Cash...................................................... 191,402
Dividends and interest receivable......................... 117,411
Receivable for shares of Capital Stock subscribed......... 107,276
Receivable for investment securities sold................. 82,459
-------------
162,080,053
-------------

LIABILITIES: Due to The Dreyfus Corporation and affiliates............. 187,758
Due to Distributor........................................ 2,291
Payable for shares of Capital Stock redeemed.............. 24,043
Directors' fees payable................................... 67
-------------
214,159
-------------

NET ASSETS.............................................................................. $161,865,894
=============

REPRESENTED BY: Paid-in capital........................................... $147,916,123
Accumulated investment (loss)............................. (38,088)
Accumulated net realized gain (loss) on investments....... 4,827,318
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3.................................. 9,160,541
-------------

NET ASSETS.............................................................................. $161,865,894
=============

NET ASSET VALUE PER SHARE
-------------------------

Class A Class B Class C Class R
---------- ----------- --------- -------------

<S> <C> <C> <C> <C>
Net Assets.................................. $5,545,341 $8,274,958 $904,176 $147,141,419
Shares Outstanding.......................... 369,143 559,917 61,154 9,772,333
NET ASSET VALUE PER SHARE................... $15.02 $14.78 $14.79 $15.06
====== ====== ====== ======

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

Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
Statement of Operations Six Months Ended April 30, 1997 (Unaudited)

INVESTMENT INCOME

<S> <C> <C> <C>
INCOME: Cash dividends (net of $3,124 foreign taxes
withheld at source)............................ $ 844,075
Interest ........................................ 101,115
-----------
Total Income................................... $ 945,190

EXPENSES: Management fee--Note 2(a)......................... 915,511
Distribution and service fees--Note 2(b).......... 42,484
Directors' fees and expenses--Note 2(c)........... 400
-----------
Total Expenses.................................. 958,395
-----------

INVESTMENT (LOSS)............................................................... (13,205)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:

Net realized gain (loss) on investments........... $4,828,410
Net unrealized appreciation (depreciation)
on investments.................................. (1,020,404)
-----------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS.......................... 3,808,006
-----------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................ $3,794,801
===========

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

<PAGE>

Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets

Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------

<S> <C> <C>
OPERATIONS:

Investment income (loss)--net................................................ $ (13,205) $ 32,164
Net realized gain (loss) on investments...................................... 4,828,410 6,007,705
Net unrealized appreciation (depreciation) on investments.................... (1,020,404) 6,376,076
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations.......... 3,794,801 12,415,945
------------ ------------

DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class R shares............................................................ -- (74,620)
Net realized gain on investments:
Class A shares............................................................ (199,136) (46,945)
Class B shares............................................................ (233,749) (70,569)
Class C shares............................................................ (29,222) (5,415)
Class R shares............................................................ (5,553,471) (1,525,133)
------------ ------------
Total Dividends......................................................... (6,015,578) (1,722,682)
------------- ------------

CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares............................................................ 3,303,545 2,878,911
Class B shares............................................................ 4,293,139 6,644,770
Class C shares............................................................ 606,788 566,377
Class R shares............................................................ 42,686,344 66,544,296
Dividends reinvested:
Class A shares............................................................ 176,180 38,169
Class B shares............................................................ 213,766 35,174
Class C shares............................................................ 12,117 2,374
Class R shares............................................................ 4,568,652 1,284,178
Cost of shares redeemed:
Class A shares............................................................ (1,743,143) (733,226)
Class B shares............................................................ (695,645) (3,370,585)
Class C shares............................................................ (200,833) (240,657)
Class R shares............................................................ (10,374,220) (9,724,649)
------------- ------------
Increase (Decrease) in Net Assets from Capital Stock Transactions....... 42,846,690 63,925,132
------------- ------------
Total Increase (Decrease) in Net Assets............................... 40,625,913 74,618,395

NET ASSETS:
Beginning of Period......................................................... 121,239,981 46,621,586
------------- ------------
End of Period............................................................... $161,865,894 $121,239,981
============= =============
Distributions in excess of investment income-net.............................. $ (38,088) $ (24,883)
------------- -------------

See notes to financial statements.

<PAGE>

Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets (continued)

Shares
---------------------------------------
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------

CAPITAL SHARE TRANSACTIONS:

Class A
-------
Shares sold................................................................. 212,619 199,489
Shares issued for dividends reinvested...................................... 11,606 2,890
Shares redeemed............................................................. (111,787) (49,482)
---------- ----------
Net Increase (Decrease) in Shares Outstanding... 112,438 152,897
========== ==========
Class B
-------
Shares sold................................................................. 281,237 464,654
Shares issued for dividends reinvested...................................... 14,270 2,675
Shares redeemed............................................................. (45,392) (236,062)
---------- ----------
Net Increase (Decrease) in Shares Outstanding... 250,115 231,267
========== ==========
Class C*
-------
Shares sold................................................................. 39,431 39,491
Shares issued for dividends reinvested...................................... 809 180
Shares redeemed............................................................. (13,432) (16,584)
---------- ----------
Net Increase (Decrease) in Shares Outstanding... 26,808 23,087
========== ==========
Class R
-------
Shares sold................................................................. 2,733,652 4,605,951
Shares issued for dividends reinvested...................................... 300,569 96,979
Shares redeemed............................................................. (668,298) (662,887)
---------- ----------
Net Increase (Decrease) in Shares Outstanding... 2,365,923 4,040,043
========== ==========
<FN>
- ----------------------
* The Fund commenced selling Class C shares on April 30, 1995.

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

<PAGE>

Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
Financial Highlights

Class A Shares
----------------------------------------------------
Six Months Ended Year Ended October 31,
April 30, 1997 -------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(1)(2)
------------------ -------------------------------

<S> <C> <C> <C> <C>
Net asset value, beginning of period................. $15.13 $13.09 $10.07 $10.00
------ ------ ------ ------
Investment Operations:

Investment income (loss)--net......................... (.03) (.02) .02 .01
Net realized and unrealized gain (loss)
on investments..................................... .64 2.48 3.03 .06
------ ------ ------- ------
Total from Investment Operations...................... .61 2.46 3.05 .07
------ ------ ------- ------
Distributions:

Dividends from investment income--net................. -- -- (.03) --
Dividends from net realized gain on investments....... (.72) (.42) -- --
------- ------- ------- ------
Total Distributions.................................. (.72) (.42) (.03) --
------- ------- ------- ------
Net asset value, end of period....................... $15.02 $15.13 $13.09 $10.07
======= ======= ======= ======
TOTAL INVESTMENT RETURN(3).............................. 3.95%(4) 19.22% 30.31% .70%(4)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. .74%(4) 1.50% 1.50% .25%(4,5)
Ratio of net investment income (loss)
to average net assets............................. (.25%)(4) (.16%) .10% .14%(4,5)
Portfolio Turnover Rate.............................. 18.85%(4) 49.03% 56.00% 8.00%(4)
Average commission rate paid(6)...................... $.0302 $.0528 -- --
Net Assets, end of period (000's Omitted)............ $5,545 $3,884 $1,359 $ 60

<FN>
- --------------------
(1) The Fund commenced operations and commenced selling Investor shares on
September 2, 1994. Effective October 17, 1994, the Fund's Investor shares
were redesignated as Class A shares.

(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 Fund's investment manager.

(3) Exclusive of sales load.

(4) Not annualized.

(5) These ratios have been restated to reflect current year's presentation.

(6) For fiscal years beginning November 1, 1995, the Fund is required to
disclose its average commission rate paid per share for purchases and
sales of investment securities.

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

Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
Financial Highlights (continued)

Class B Shares
--------------------------------------------------
Six Months Ended Year Ended October 31,
April 30, 1997 ------------------------
PER SHARE DATA: (Unaudited) 1996 1995(1)
--------------------- ------ -------
<S> <C> <C> <C>
Net asset value, beginning of period................... $14.95 $13.05 $ 9.49
------ ------ ------
Investment Operations:

Investment income (loss)--net........................... (.01) (.07) (.03)
Net realized and unrealized gain (loss)
on investments....................................... .56 2.39 3.59
------ ------ ------
Total from Investment Operations........................ .55 2.32 3.56
------ ------ ------
Distributions:

Dividends from net realized gain on investments......... (.72) (.42) --
------ ------ ------
Net asset value, end of period.......................... $14.78 $14.95 $13.05
====== ====== ======

TOTAL INVESTMENT RETURN................................... 3.58%(2) 18.17% 37.51%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................ 1.12%(2) 2.25% 1.95%(2)
Ratio of net investment income (loss)
to average net assets............................... (.51%)(2) (.93%) (.56%)(2)
Portfolio Turnover Rate................................ 18.85%(2) 49.03% 56.00%(2)
Average commission rate paid(3)........................ $.0302 $.0528 --
Net Assets, end of period (000's Omitted).............. $8,275 $4,633 $1,025

<FN>
- -------------------
(1) The Fund commenced selling Class B shares on December 19, 1994.

(2) Not annualized.

(3) For fiscal years beginning November 1, 1995, the Fund is required to
disclose its average commission rate paid per share for purchases and
sales of investment securities.

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

<PAGE>

Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
Financial Highlights (continued)

Class C Shares
----------------------------------------------------
Six Months Ended Year Ended October 31,
April 30, 1997 ---------------------------
PER SHARE DATA: (Unaudited) 1996 1995(1)
------------------------ -------- ----------
<S> <C> <C> <C>
Net asset value, beginning of period................... $14.95 $13.04 $ 9.49
------ ------ ------
Investment Operations:

Investment income (loss)--net........................... (.02) (.09) (.01)
Net realized and unrealized gain (loss)
on investments...................................... .58 2.42 3.56
------ ------ -------
Total from Investment Operations....................... .56 2.33 3.55
------ ------ -------
Distributions:

Dividends from net realized gain on investments........ (.72) (.42) --
------ ------ -------
Net asset value, end of period......................... $14.79 $14.95 $ 13.04
====== ====== =======

TOTAL INVESTMENT RETURN................................... 3.65%(2) 18.27% 37.41%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................ 1.12%(2) 2.25% 1.14%(2)
Ratio of net investment income (loss)
to average net assets............................... (.49%)(2) (.93%) (.33%)(2)
Portfolio Turnover Rate................................ 18.85%(2) 49.03% 56.00%(2)
Average commission rate paid(3)........................ $.0302 $.0528 --
Net Assets, end of period (000's Omitted).............. $ 904 $ 514 $ 147

<FN>
- ------------------
(1) The Fund commenced selling Class C shares on April 30, 1995.

(2) Not annualized.

(3) For fiscal years beginning November 1, 1995, the Fund is required to
disclose its average commission rate paid per share for purchases and
sales of investment securities.

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

<PAGE>

Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
Financial Highlights (continued)

Class R Shares
-------------------------------------------------
Six Months Ended Year Ended October 31,
April 30, 1997 ------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(1)(2)
---------------- ---- ---- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period................. $15.15 $13.10 $10.07 $10.00
------ ------ ------ ------
Investment Operations:

Investment income--net................................ -- .01 .04 .02
Net realized and unrealized gain (loss)
on investments..................................... .63 2.48 3.04 .05
------ ------ ------ ------
Total from Investment Operations..................... .63 2.49 3.08 .07
------ ------ ------ ------
Distributions:

Dividends from investment income--net................. -- (.02) (.05) --
Dividends from net realized gain on investments....... (.72) (.42) -- --
------ ------ ------ ------
Total Distributions................................... (.72) (.44) (.05) --
------ ------ ------ ------
Net asset value, end of period........................ $15.06 $15.15 $13.10 $10.07
====== ====== ====== =======
TOTAL INVESTMENT RETURN.................................. 4.08%(3) 19.43% 30.70% .70%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............... .62%(3) 1.25% 1.25% .21%(3,4)
Ratio of net investment income
to average net assets.............................. .03%(3) .09% .35% .18%(3,4)
Portfolio Turnover Rate............................... 18.85%(3) 49.03% 56.00% 8.00%(3)
Average commission rate paid(5)....................... $.0302 $.0528 -- --
Net Assets, end of period (000's Omitted)............. $147,142 $112,209 $44,091 $10,747

<FN>
- ------------------
(1) The Fund commenced operations and commenced selling Trust shares on
September 2, 1994. Effective October 17, 1994, the Fund's Trust shares were
redesignated as Class R shares.

(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 Fund's investment manager.

(3) Not annualized.

(4) These ratios have been restated to reflect current year's presentation.

(5) For fiscal years beginning November 1, 1995, the Fund is required to
disclose its average commission rate paid per share for purchases and
sales of investment securities.

See notes to financial statements.
</TABLE>

<PAGE>

Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Dreyfus Premier Small Company Stock Fund (the "Fund") is a series of The
Dreyfus/Laurel Funds, Inc. (the "Company") which 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 Fund. The Fund's investment objective is to consistently
exceed the total return performance of the Russell 2500(TM) Stock Index while
maintaining a similar level of risk. The Dreyfus Corporation ("Manager") serves
as the Fund's investment adviser. The Manager is a direct subsidiary of Mellon
Bank, N.A. ("Mellon Bank").

On January 31, 1997, the Fund's Directors approved a change to the Fund's
name, effective March 1, 1997, from "Premier Small Company Stock Fund" to
"Dreyfus Premier Small Company Stock Fund."

Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor
of the Fund's shares. The Fund is authorized to issue 168 million of $.001 par
value Capital Stock. The Fund currently offers four classes of shares: Class A
(27 million shares authorized), Class B (50 million shares authorized), Class C
(50 million shares authorized) and Class R (41 million shares authorized). Class
A, Class B and Class C shares are sold primarily to retail investors through
financial intermediaries and bear a distribution fee and/or service fee. Class A
shares are sold with a front-end sales charge and bear a distribution fee, while
Class B and Class C shares are subject to a contingent deferred sales charge
("CDSC") and a distribution and service fee. Class R shares are sold primarily
to bank trust departments and other financial service providers (including
Mellon Bank and its affiliates) acting on behalf of customers having a qualified
trust or investment account or relationship at such institution, and bear no
distribution or service fees. Class R shares are offered without a front-end
sales load or CDSC. Each class of shares has identical rights and privileges,
except with respect to distribution and service fees and voting rights on
matters affecting a single class.

(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.

<PAGE>

Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(d) Distributions to shareholders: Dividends are recorded on the
ex-dividend date. Dividends from investment income-net, if any, are declared and
paid on a quarterly basis. 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 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 Fund not to distribute
such gain.

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 and/or affiliates 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 1.25% of the value of the Fund' average daily
net assets. Out of its fee, the Manager pays all of the expenses of the Fund
except brokerage fees, taxes, interest, commitment fees, Rule 12b-1
distribution fees and expenses, service fees, 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) Distribution and service plan: The Fund has adopted a Distribution
Plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act relating to its
Class A, B and C shares. Under the Plan, the Fund may pay annually up to .25%
of the value of its average daily net assets attributable to its Class A
shares to compensate the Distributor and Dreyfus Service Corporation, an
affiliate of the Manager, for shareholder servicing activities and the
Distributor for activities and expenses primarily intended to result in the
sale of Class A shares. Under the Plan, the Fund may pay the Distributor for
distributing the Fund's Class B and Class C shares at an aggregate annual rate
of .75% of the value of the average daily net assets of Class B and Class C
shares. Class B and Class C shares are also subject to a service plan adopted
pursuant to Rule 12b-1, under which the Fund pays Dreyfus Service Corporation
or the Distributor for providing certain services to the holders of Class B and
Class C shares a fee at the annual rate of .25% of the value of the average
daily net assets of Class B and Class C shares. Class R shares

<PAGE>
Dreyfus Premier Small Company Stock Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

bear no service or distribution fee. During the period ended April 30, 1997,
the distribution fee for Class A, Class B and Class C shares were $6,375,
$24,265 and $2,817, respectively. During the period ended April 30, 1997, the
service fee for Class B and Class C shares were $8,088 and $939, respectively.

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

(c) Director's 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 meeting 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. The Chairman of the Board
receives an additional annual fee of $25,000 per year. These fees and expenses
are charged and allocated to each series based on net assets.

NOTE 3--Securities Transactions:

The aggregate amount of purchase and sales of investment securities,
excluding short-term securities, during the period ended April 30, 1997,
amounted to $61,369,417 and $26,985,742, respectively.

At April 30, 1997, accumulated net unrealized appreciation on investments
was $9,160,541, consisting of $18,836,497 gross unrealized appreciation and
$9,675,956 gross unrealized depreciation.

At April 30, 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).

NOTE 4--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. For the period ended April
30, 1997, the Fund did not borrow under the Facility.

<PAGE>

Dreyfus Premier Small Company
Stock Fund
200 Park Avenue
New York, NY 10166

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

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

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.

P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 385/685/SA974