DREYFUS S & P 500 INDEX FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
In spite of stock market weakness in late October, the Dreyfus S&P 500
Index Fund achieved favorable returns for its latest fiscal year, the 12
months ended October 31, 1997. For that time period, the Fund's total return
was 31.46%,* which compares with the total return of 32.10% for the Standard
& Poor's 500 Composite Stock Price Index.** The difference is accounted for
by transaction fees and other Fund expenses.
Economic Review
The U.S. economy has registered a step-up in growth in 1997 and the
evidence coming in suggests that momentum is still building. Stronger growth
this year has helped keep corporate profits buoyant despite a substantially
tighter labor market. This is because nationwide shortages of labor have so
far not generated much wage inflation. Moreover, price inflation has
decelerated markedly during the year, suppressed by the strong dollar, import
competition and continued disinflation in health care.
Although the Federal Reserve Board (the "Fed") has held a tightening bias
since mid-1996, the central bank has raised interest rates only once this
year. Expectations for further hikes have been continually postponed. They
were first dampened by the surprising drop in this year's price inflation,
and more recently by unfolding crises in foreign economies. Both events have
helped to cap short-term rates and to pull long-term interest rates lower
since the spring.
Real Gross Domestic Product (GDP) growth accelerated to about 4% this
year from 3% in 1996. Virtually all economic sectors have been strong so far.
Consumer spending has been supported by rising real incomes. Capital spending
has been very robust and new orders imply continued strength. Even housing
demand, typically slowing at this phase of the business cycle, has reached
new highs. Most incoming signals support sustained fast growth. The exception
is that exporters' new orders have marginally slowed in recent months,
indicating that economic turmoil overseas may be impacting this sector. By
contrast, imports have been very robust and, if their growth is sustained,
could help mitigate the economic weakness abroad.
Overall corporate profits have continued to trend higher, although some
companies have been hurt by events overseas and the stronger dollar.
Domestically generated profits have typically remained solid, helped by
strong growth and contained wages.
Market Overview
Even though the equity markets stumbled badly in late October, the fiscal
year ended October 31, 1997 saw solid gains. Measured by price changes alone,
excluding income, the Dow Jones Industrial Average gained 23.58% for the 12
months, the Standard & Poor's 500 Composite Stock Price Index, 29.96%, the
Nasdaq Composite 30.43% and the Russell 2000, 27.52%. These were the gains
after the drop of the last week in October, and before counting the rebound
that occurred in the first week of November.
In retrospect, it is apparent that stock valuations had been riding for a
fall. There was weakness in March when the Fed raised interest rates for the
first time in two years. By early summer, equity prices recovered and soared
to new highs. Then, however, some nervousness set in, related mainly to
concern about high stock valuations and fears of another Fed move to cool off
the bubbling economy. Weakness was apparent mainly in companies with large
capitalization, while smaller companies, such as those listed in the Russell
2000 Index, gained ground.
As autumn leaves began to turn, the stock market as a whole regained its
wind - but not for long. The relatively high valuations that had prevailed
were vulnerable to any major unpleasant surprise. That came in late October
from an unexpected source - the Far East. Severe market setbacks in Hong Kong
and Southeast Asia, together with drops in their foreign exchange rates,
triggered the fall in the U.S. market.
Richard Hoey, Chief Economist for the Dreyfus Corporation, reviewing the
recent events, said that the U.S. stock market had a selling panic, followed
by a buying panic. The underlying logic of it all was valuation, he observed.
When the Dow Jones index peaked at above 8200 in early August, the stock
market was simply discounting favorable U.S. fundamentals into high stock
prices, said Hoey. The financial crisis in Asia was the trigger for a
correction of the major problem for the U.S. stock market: high valuation.
The market drop in Asia was caused by serious fundamental problems of
excess productive capacity, overvalued real estate and a banking system
crisis. European markets, of course, reacted to the Asian weakness, but fell
less severely because their economies are more stable. In the U.S., the sharp
price drop, followed by a vigorous rebound, reflected an economy with much
greater underlying strength.
The influx of investors into stocks when prices dipped was a good augury
for the future. The American investing public appears to be convinced that
equities are a good place to put money for the long term, when their prices
are attractive, despite the recent volatility of the market averages.
Portfolio Overview
As discussed above, the last year was an excellent one for U.S. equities.
Large capitalization stocks, mid caps and small caps, as measured by the S&P
500 Composite Stock Price Index, S&P MidCap 400 Index, and S&P SmallCap 600
Index, respectively, all provided returns in excess of 30%. Large caps
predominated for most of the year, but small caps and mid caps rebounded
strongly in the third quarter of 1997 to pull even with large caps for the
year.
It would be highly unusual if the year ahead matched or exceeded the 1997
record. Question marks are evident - the financial troubles in Asia; the
threat of eventual cost pressures in U.S. industry; the difficulties some
companies are encountering in maintaining profit levels. However, the year
just past was a striking demonstration of the potential rewards of equity
investments.
Sincerely,
[Steven A. Falci signature logo]
Steven A. Falci
Portfolio Manager
December 8, 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.
<TABLE>
DREYFUS S&P 500 INDEX FUND OCTOBER 31, 1997
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS S&P 500 INDEX
FUND
AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
[Exhibit A:
$32,120
Standard & Poor's 500
Composite Stock
Price Index*
Dollars
$30,538
Dreyfus S&P 500
Index Fund
*Source: Lipper Analytical Services, Inc.]
Average Annual Total Returns
One Year Ended Five Years Ended From Inception (1/2/90)
October 31, 1997 October 31, 1997 to October 31, 1997
---------------------- ---------------------- -------------------------
<S> <C> <C> <C>
31.46% 19.21% 15.32%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus S&P 500 Index
Fund on 1/2/90 (Inception Date) to a $10,000 investment made in the Standard
and Poor's 500 Composite Stock Price Index on that date. For comparative
purposes, the value of the Index on 12/31/89 is used as the beginning value
on 1/2/90. All dividends and capital gain distributions are reinvested.
The Fund's performance shown in the line graph takes into account all
applicable fees and expenses. The Standard & Poor's 500 Composite Stock
Price Index is a widely accepted, unmanaged index of overall stock market
performance, which does not take into account charges, fees or other
expenses. Further information relating to Fund performance, including
expense reimbursements, if applicable, is contained in the Financial
Highlights section of the Prospectus and elsewhere in this report.
</TABLE>
<TABLE>
DREYFUS S & P 500 INDEX FUND
STATEMENT OF INVESTMENTS OCTOBER 31, 1997
Shares COMMON STOCKS-93.8% Value
____________ _______________
<S> <C> <C>
Basic Industries-4%
18,500 Air Products & Chemicals $ 1,406,000
6,900 Armstrong World Industries 459,281
17,500 Avery Dennison... 696,718
5,100 Ball............. 178,500
9,000 Bemis............ 343,125
9,400 Boise Cascade.... 325,475
4,900 Centex........... 286,650
16,200 Champion International 894,037
21,700 Crown Cork & Seal 977,856
38,600 Dow Chemical..... 3,502,950
190,900 DuPont (E.I.) de Nemours
& Co................ 10,857,437
13,200 Eastman Chemical. 787,050
24,400 Engelhard........ 423,950
6,300 (a) FMC.............. 509,118
14,200 Fluor............ 583,975
31,900 Fort James....... 1,266,031
29,100 Fortune Brands... 962,118
15,500 Georgia Pacific.. 1,314,593
12,300 Grace (W.R.)..... 836,400
10,100 Great Lakes Chemical 474,700
17,000 Hercules......... 779,875
50,900 International Paper 2,290,500
6,600 Kaufman & Broad Home 140,662
18,500 Louisiana Pacific 388,500
27,300 Masco............ 1,197,787
8,800 Mead............. 532,400
100,000 Monsanto......... 4,275,000
23,700 Morton International 782,100
11,300 Nalco Chemical... 452,000
23,300 (a) Owens-Illinois 803,850
30,500 PPG Industries... 1,727,062
4,900 Potlach.......... 244,387
26,700 Praxair.......... 1,163,118
10,500 Rohm & Haas...... 874,781
29,100 Sherwin-Williams. 807,525
16,900 Sigma-Aldrich.... 593,612
16,800 Stone Container.. 202,650
9,400 Temple-Inland.... 539,325
28,900 Tenneco.......... 1,298,693
11,700 Union Camp....... 633,993
21,200 Union Carbide.... 968,575
17,200 Westvaco......... 564,375
33,500 Weyerhaeuser..... 1,599,625
18,800 Willamette Industries 621,575
________________
50,567,934
________________
Capital Goods- 22.4%
37,100 AMP.............. $ 1,669,500
12,100 Adobe Systems.... 577,775
23,700 (a) Advanced Micro Devices 545,100
4,706 Aeroquip-Vickers. 245,006
29,754 Allegheny Teledyne 782,902
95,600 AlliedSignal..... 3,441,600
15,350 Andrew........... 355,928
21,400 (a) Apple Computer 364,468
61,200 (a) Applied Materials 2,042,550
8,100 Autodesk......... 299,700
49,500 Automatic Data Processing 2,530,687
33,600 (a) Bay Networks 1,062,600
169,498 Boeing........... 8,114,716
4,300 Briggs & Stratton 213,925
33,500 Browning-Ferris
Industries.......... 1,088,750
69,100 (a) CUC International 2,038,450
26,300 Cabletron Systems 762,700
12,600 Case............. 753,637
63,900 Caterpillar...... 3,274,875
13,600 Ceridian......... 531,250
6,700 Cincinnati Milacron 185,925
113,300 (a) Cisco Systems 9,294,140
28,300 Cognizant........ 1,109,006
128,020 (a) Compaq Computer 8,161,275
61,400 Computer Associates
International....... 4,578,137
12,900 (a) Computer Sciences 915,093
20,000 Cooper Industries 1,042,500
7,750 Crane............ 322,109
6,500 Cummins Engine... 396,093
19,800 (a) DSC Communications 482,625
7,900 (a) Data General 152,075
43,200 Deere & Co....... 2,273,400
56,600 (a) Dell Computer 4,535,075
13,900 Deluxe........... 455,225
25,800 (a) Digital Equipment 1,291,612
19,000 Dover............ 1,282,500
16,200 Dow Jones & Co... 753,300
29,800 Dresser Industries 1,255,325
28,900 Dun & Bradstreet. 825,456
7,800 EG&G............. 161,362
41,600 (a) EMC 2,329,600
13,100 Eaton............ 1,265,787
75,300 Emerson Electric. 3,948,543
25,500 Equifax.......... 792,093
</TABLE>
<TABLE>
DREYFUS S & P 500 INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1997
Shares COMMON STOCKS (continued) Value
____________ _______________
<S> <C> <C>
Capital Goods (continued)
75,900 First Data....... $ 2,205,843
6,900 Foster Wheeler... 226,406
10,600 General Dynamics. 860,587
554,600 General Electric. 35,806,362
8,500 General Signal... 341,062
30,400 Genuine Parts.... 951,900
9,100 Goodrich (B.F.).. 405,518
8,700 Grainger (W.W.).. 760,706
32,800 (a) HBO & Co 1,426,800
26,700 (a) HFS 1,882,350
8,300 Harnischfeger Industries 326,812
13,400 Harris........... 584,575
176,100 Hewlett-Packard.. 10,863,168
21,500 Honeywell........ 1,463,343
20,000 ITT Industries... 631,250
22,400 Ikon Office Solutions....... 634,200
42,100 Illinois Tool Works 2,070,793
27,500 Ingersoll-Rand... 1,070,781
276,900 Intel............ 21,321,300
166,300 International Business
Machines............ 16,307,793
20,850 Interpublic Group Cos 990,375
14,200 Johnson Controls. . 637,225
14,200 (a) KLA-Tencor 623,912
23,900 (a) LSI Logic 521,318
32,600 Lockheed Martin.. 3,099,037
108,225 Lucent Technologies 8,921,798
9,300 McDermott International 337,706
35,500 (a) Micron Technology 951,843
202,600 (a) Microsoft 26,338,000
70,400 Minnesota Mining
& Manufacturing..... 6,441,600
100,500 Motorola......... 6,205,875
23,900 (a) National Semiconductor 860,400
7,600 National Service Industries 336,300
44,000 Northern
Telecommunications.. 3,946,250
11,300 Northrop Grumman. . 1,234,525
58,600 (a) Novell 494,437
165,700 (a) Oracle 5,928,953
9,000 Owens-Corning.... 308,250
21,400 Pall............. 442,712
21,600 Parametric Technology 953,100
18,850 Parker-Hannifin.. 788,165
7,400 Perkin-Elmer..... 462,500
24,600 Pitney Bowes..... 1,951,087
7,400 Raychem.......... 670,162
Shares COMMON STOCKS (continued) Value
____________ _______________
Capital Goods (continued)
39,900 Raytheon......... $ 2,164,575
36,000 Rockwell International 1,764,000
12,900 Ryder System..... 451,500
9,900 Safety-Kleen..... 219,037
13,100 Scientific-Atlanta 243,168
41,500 (a) Seagate Technology 1,125,687
42,500 Service Corp. International 1,293,593
4,200 Shared Medical Systems 229,950
29,900 (a) Silicon Graphics 439,156
10,300 Snap-On.......... 442,900
15,013 Stanley Works.... 634,299
62,400 (a) Sun Microsystems 2,137,200
58,300 (a) 3COM 2,415,806
5,600 Tektronix........ 331,100
30,500 (a) Tellabs.......... 1,647,000
32,300 Texas Instruments 3,446,006
27,900 Textron.......... 1,612,968
25,400 (a) Thermo Electron.. 947,737
9,100 Thomas & Betts... 452,725
10,600 Timken........... 355,100
90,000 Tyco International 3,397,500
29,600(a) Unisys........... 394,050
40,000 United Technologies 2,800,000
76,600 Waste Management. 1,790,525
54,700 Xerox............ 4,338,393
________________
287,165,429
________________
Consumer Cyclical- 11.1%
42,400 Albertson's...... 1,563,500
12,700 American Greetings, Cl. A 440,531
46,000 American Stores.. 1,181,625
25,500 (a) AutoZone......... 753,843
16,000 Black & Decker... 609,000
16,700 Brunswick........ 563,625
29,100 CVS.............. 1,784,193
17,800 Charming Shoppes. 92,337
114,200 Chrysler......... 4,025,550
16,600 Circuit City Stores 661,925
16,300 (a) Clear Channel
Communications................. 1,075,800
59,200 Comcast, Cl. A... 1,628,000
13,300 Cooper Tire and Rubber 281,793
35,700 (a) Costco Cos....... 1,374,450
17,400 Dana............. 814,537
25,900 Darden Restaurants 294,612
36,700 Dayton Hudson.... 2,305,218
19,200 Dillard's, Cl. A. 736,800
</TABLE>
<TABLE>
DREYFUS S & P 500 INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1997
Shares COMMON STOCKS (continued) Value
____________ _______________
<S> <C> <C>
Consumer Cyclical (continued)
114,100 Disney (Walt).... $ 9,384,725
24,700 Donnelley (R.R.) & Sons 805,837
10,600 Echlin........... 347,150
35,200 (a) Federated
Department Stores................ 1,548,800
6,000 Fleetwood Enterprises 181,875
6,400 Fleming Cos...... 108,000
202,200 Ford Motor....... 8,833,612
12,900 (a) Fruit of the Loom, Cl. A 336,206
47,800 Gannett.......... 2,512,487
46,300 Gap.............. 2,462,581
123,300 General Motors... 7,914,318
10,100 Giant Food, Cl. A 309,312
26,400 Goodyear Tire & Rubber 1,653,300
6,500 Great Atlantic & Pacific 199,468
12,000 Harcourt General. 600,750
5,200 Harland (John H.) 116,675
17,400 Harrah's Entertainment 342,562
21,700 Hasbro........... 629,300
42,200 Hilton Hotel..... 1,300,287
123,201 Home Depot....... 6,853,055
19,700 ITT.............. 1,471,343
6,600 Jostens.......... 153,862
82,000 (a) K mart........... 1,081,375
6,300 King World Productions 297,675
15,400 Knight-Ridder.... 804,650
42,900 (a) Kroger........... 1,399,612
45,800 Limited.......... 1,079,162
11,900 Liz Claiborne.... 603,181
6,600 Longs Drug Stores 165,412
29,300 Lowes............ 1,219,612
21,400 Marriott International 1,492,650
49,300 Mattel........... 1,916,537
40,100 May Department Stores........... 2,160,387
16,500 Maytag........... 550,687
116,600 McDonald's....... 5,225,137
16,900 McGraw-Hill Cos.. 1,104,837
6,200 Mercantile Stores 365,412
9,000 Meredith......... 306,562
29,900 (a) Mirage Resorts... 747,500
14,900 Moore............ 241,193
48,800 NIKE, Cl. B...... 2,293,600
12,400 (a) Navistar International 287,525
16,200 New York Times, Cl. A...... 886,950
24,800 (a) Nextlevel Systems 334,800
13,500 Nordstrom........ 826,875
13,100 PACCAR........... 590,318
Shares COMMON STOCKS (continued) Value
____________ _______________
Consumer Cyclical (continued)
41,800 Penney (J.C.).... $ 2,453,137
10,300 Pep Boys-
Manny, Moe & Jack... 259,431
9,500 (a) Reebok International 350,312
20,800 Rite Aid......... 1,235,000
6,200 Russell.......... 182,125
66,300 Sears, Roebuck & Co 2,776,312
3,400 Springs Industries 157,675
10,100 Supervalu........ 369,912
29,500 Sysco............ 1,180,000
26,300 TJX.............. 779,137
21,100 TRW.............. 1,207,975
18,400 Tandy............ 632,500
84,700 (a) Tele-Communications, Cl. A 1,942,806
94,500 Time Warner...... 5,451,468
16,200 Times Mirror, Cl. A 876,825
48,300 (a) Toys R Us........ 1,645,218
20,800 Tribune.......... 1,146,600
25,910 (a) Tricon Global Restaurants 785,396
10,800 V.F.............. 965,250
59,600 (a) Viacom, Cl. B.... 1,802,900
383,000 Wal-Mart Stores.. 13,452,875
83,200 Walgreen......... 2,340,000
22,200 Wendy's International......... 466,200
119,300 Westinghouse Electric......... 3,153,993
12,600 Whirlpool........ 763,875
25,200 Winn-Dixie Stores 935,550
22,700 (a) Woolworth........ 431,300
________________
141,978,265
________________
Consumer Staples- 10.7%
10,400 Alberto-Culver, Cl. B......... 313,950
83,900 Anheuser-Busch... 3,350,756
94,658 Archer Daniels Midland 2,106,140
22,368 Avon Products.... 1,465,104
11,700 Brown-Forman, Cl. B 575,493
24,200 CPC International 2,395,800
78,600 Campbell Soup.... 4,052,812
17,500 Clorox........... 1,225,000
419,900 Coca-Cola........ 23,724,350
49,900 Colgate-Palmolive . 3,231,025
80,800 ConAgra.......... 2,434,100
6,300 Coors (Adolph), Cl. B......... 222,468
38,800 Corning.......... 1,750,850
55,600 Eastman Kodak.... 3,329,050
11,000 Ecolab........... 523,187
27,200 General Mills.... 1,795,200
</TABLE>
<TABLE>
DREYFUS S & P 500 INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1997
Shares COMMON STOCKS (continued) Value
____________ _______________
<S> <C> <C>
Consumer Staples (continued)
94,200 Gillette......... $ 8,389,687
62,200 Heinz (H.J.)..... 2,888,412
24,200 Hershey Foods.... 1,337,050
18,400 International Flavors
& Fragrances........ 890,100
70,300 Kellogg.......... 3,027,293
94,600 Kimberly-Clark... 4,913,287
1,400 NACCO Industries, Cl. A 144,200
26,900 Newell........... 1,032,287
259,100 PepsiCo.......... 9,538,118
410,600 Philip Morris Cos 16,270,025
11,500 Pioneer Hi-Bred
International....... 1,053,687
7,600 Polaroid......... 341,525
229,000 Procter & Gamble. 15,572,000
23,100 Quaker Oats...... 1,105,912
18,000 Ralston Purina Group 1,615,500
25,300 Rubbermaid....... 608,781
81,200 Sara Lee......... 4,151,350
62,700 Seagram.......... 2,112,206
10,400 Tupperware....... 260,650
31,000 UST.............. 928,062
108,400 Unilever......... 5,785,850
17,200 Whitman.......... 451,500
19,600 Wrigley, (Wm) Jr. 1,418,550
________________
136,331,317
________________
Energy-9.1%
15,700 Amerada Hess..... 964,568
83,500 Amoco............ 7,655,906
10,100 Anadarko Petroleum 739,825
15,300 Apache........... 642,600
12,600 Ashland.......... 600,862
54,400 Atlantic Richfield 4,477,800
27,900 Baker Hughes..... 1,281,656
29,945 Burlington Resources 1,465,433
110,500 Chevron.......... 9,164,593
17,900 Coastal.......... 1,076,237
9,400 Columbia Gas System 679,150
16,100 Consolidated Natural Gas 870,406
3,400 Eastern Enterprises . 133,237
51,700 Enron............ 1,964,600
419,800 Exxon............ 25,791,583
42,800 Halliburton...... . 2,551,950
4,200 Helmerich & Payne 338,887
8,100 Kerr-McGee....... 547,256
Shares COMMON STOCKS (continued) Value
____________ _______________
Energy (continued)
133,000 Mobil............ $ 9,684,062
8,300 Nicor............ 320,068
55,800 Occidental Petroleum 1,555,425
4,700 Oneok............ 161,268
17,800 (a) Oryx Energy...... 490,612
14,100 Pacific Enterprises. 460,893
7,900 Pennzoil......... 584,600
5,900 Peoples Energy... 210,925
44,600 Phillips Petroleum . 2,157,525
14,500 (a) Rowan Cos........ 563,687
362,500 Royal Dutch
Petroleum, A.D.R.... 19,076,562
83,500 Schlumberger..... 7,306,250
14,500 Sonat............ 666,093
12,300 Sun.............. . 492,768
89,200 Texaco........... 5,078,825
42,910 Union Pacific
Resources Group..... 1,056,658
42,200 Unocal........... 1,740,750
48,600 USX-Marathon Group 1,737,450
9,100 (a) Western Atlas.... . 784,306
26,800 Williams Cos..... 1,365,125
________________
116,440,401
________________
Health Care- 10.3%
14,400 ALZA............. 375,300
130,800 Abbott Laboratories 8,019,675
11,100 Allergan......... 365,606
109,800 American Home Products 8,138,925
44,800 (a) Amgen............ 2,206,400
9,700 Bard (C.R.)...... 269,175
9,400 Bausch & Lomb.... . 368,950
47,000 Baxter International . 2,173,750
20,600 Becton, Dickinson & Co 948,887
18,600 (a) Beverly Enterprises . 277,837
18,800 Biomet........... 468,825
32,900 (a) Boston Scientific 1,496,950
169,000 Bristol-Myers Squibb . 14,829,750
18,300 Cardinal Health.. 1,358,775
112,850 Columbia/HCA Healthcare 3,188,012
25,000 Guidant.......... 1,437,500
65,600 (a) HEALTHSOUTH...... 1,676,900
27,500 (a) Humana........... 577,500
225,200 Johnson & Johnson 12,920,850
187,800 Lilly (Eli)...... . 12,559,125
12,400 Mallinckrodt Group . 465,000
</TABLE>
<TABLE>
DREYFUS S & P 500 INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1997
Shares COMMON STOCKS (continued) Value
____________ _______________
<S> <C> <C>
Health Care (continued)
10,700 Manor Care....... . $ 367,143
79,200 Medtronic........ 3,445,200
204,100 Merck & Co....... 18,215,925
7,400 Millipore........ 289,525
218,300 Pfizer........... 15,444,725
85,800 Pharmacia & Upjohn 2,724,150
123,700 Schering-Plough.. 6,934,931
15,500 (a) St. Jude Medical. 469,843
51,000 (a) Tenet Healthcare. 1,558,687
12,400 (a) U.S. Surgical.... 334,025
31,500 United Healthcare 1,458,843
45,900 Warner-Lambert... 6,572,306
________________
131,938,995
________________
Interest Sensitive- 15.6%
25,479 Aetna............ 1,810,601
17,000 Ahmanson (H.F.) & Co 1,003,000
74,500 Allstate......... 6,178,843
80,000 American Express. 6,240,000
42,045 American General. 2,144,295
119,050 American International
Group............... 12,150,540
28,150 Aon.............. 1,518,340
24,800 BANKBOSTON....... 2,010,350
98,700 Banc One......... 5,144,737
65,400 Bank of New York. 3,077,887
118,200 BankAmerica...... 8,451,300
16,500 Bankers Trust New York 1,947,000
33,600 Barnett Banks.... 2,318,400
9,100 Beneficial....... 697,856
12,500 CIGNA............ 1,940,625
71,700 Chase Manhattan.. 8,272,387
29,600 Chubb............ 1,961,000
77,500 Citicorp......... 9,692,343
17,900 Comerica......... 1,415,218
31,000 Conseco.......... . 1,352,375
34,900 CoreStates Financial 2,538,975
17,700 Countrywide Credit
Industries.......... 607,331
179,400 Federal National
Mortgage Association 8,689,687
26,900 Fifth Third Bancorp . 1,724,962
50,000 First Chicago NBD 3,637,500
95,000 First Union...... 4,660,937
42,300 Fleet Financial Group......... 2,720,418
117,500 Federal Home
Loan Mortgage....... 4,450,312
Shares COMMON STOCKS (continued) Value
____________ _______________
Interest Sensitive (continued)
13,700 General Re....... $ 2,701,468
9,700 Golden West Financial......... 841,475
23,000 Green Tree Financial 968,875
17,600 H&R Block........ 651,200
19,900 Hartford Financial
Services Group...... 1,611,900
18,000 Household International 2,038,500
32,200 Huntington Bancshares......... 1,040,462
12,000 Jefferson Pilot.. 927,750
37,800 Keycorp.......... 2,312,887
17,400 Lincoln National. 1,196,250
19,400 Loews............ . 2,166,737
14,600 MBIA............. 872,350
84,750 MBNA............. 2,229,984
20,000 MGIC Investment.. 1,206,250
28,000 Marsh & McLennan. 1,988,000
42,600 Mellon Bank...... 2,196,562
56,000 Merrill Lynch & Co 3,787,000
30,300 Morgan (J.P.) & Co 3,325,425
99,380 Morgan Stanley, Dean Witter,
Discover and Co..... 4,869,620
37,300 National City.... 2,228,675
120,514 NationsBank...... 7,215,775
126,400 Norwest.......... 4,052,700
52,000 PNC Bank......... 2,470,000
12,100 Progressive...... 1,261,425
15,900 Providian Financial 588,300
3,500 Pulte............ 130,812
9,200 Republic New York 973,475
23,600 Safeco........... 1,123,950
18,300 Salomon.......... 1,421,681
44,400 Schwab (Charles). 1,515,150
14,100 St. Paul Cos..... 1,127,118
27,400 State Street..... 1,527,550
33,100 SunAmerica....... 1,189,531
36,200 SunTrust Banks... 2,346,212
23,600 Torchmark........ 941,050
11,200 Transamerica..... 1,130,500
108,466 Travelers Group.. 7,592,620
23,600 UNUM............. 1,150,500
18,700 USF&G............ 378,675
41,416 U.S. Bancorp..... 4,211,489
27,300 Wachovia......... 2,056,031
42,260 Washington Mutual 2,892,168
15,100 Wells Fargo...... 4,399,762
________________
199,215,063
________________
</TABLE>
<TABLE>
DREYFUS S & P 500 INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1997
Shares COMMON STOCKS (continued) Value
____________ _______________
<S> <C> <C>
Mining And Metals-.9%
18,100 (a) ARMCO............ $ 104,075
7,300 ASARCO........... 199,837
38,400 Alcan Aluminium.. 1,096,800
29,400 Aluminum Co. of America 2,146,200
63,000 Barrick Gold..... 1,295,437
38,800 Battle Mountain Gold 237,650
19,000 (a) Bethlehem Steel.. 190,000
15,800 Cyprus Amax Minerals 330,812
23,600 (a) Echo Bay Mines... 95,875
33,900 Freeport-McMoRan
Copper, Cl. B....... 809,362
24,800 Homestake Mining. 306,900
28,100 (a) Inco............. 579,562
8,300 Inland Steel Industries 162,887
26,425 Newmont Mining... 924,875
14,900 Nucor............ 778,525
10,500 Phelps Dodge..... 780,937
40,500 Placer Dome...... 627,750
12,400 Reynolds Metals.. 755,625
14,500 USX-U.S. Steel... 493,000
16,300 Worthington Industries 337,206
________________
12,253,315
________________
Transportation-1.3%
15,400 (a) AMR.............. 1,793,137
26,100 Burlington Northern
Santa Fe............ 2,479,500
36,800 CSX.............. 2,012,500
6,600 Caliber System... 344,025
12,400 Delta Air Lines.. 1,249,300
19,300 Federal Express.. 1,288,275
55,600 Laidlaw.......... 785,350
63,600 Norfolk Southern. 2,043,150
24,600 Southwest Airlines 802,575
41,700 Union Pacific.... 2,554,125
15,300 (a) USAir Group...... 717,187
________________
16,069,124
________________
Utilities-8.4%
274,700 AT&T............. 13,443,131
31,500 ALLTEL........... 1,114,312
85,100 (a) Airtouch Communications 3,286,987
Utilities (continued)
31,900 American Electric Power $ 1,507,275
92,800 Ameritech........ 6,032,000
25,000 Baltimore Gas & Electric 685,937
131,168 Bell Atlantic.... 10,477,044
167,800 BellSouth........ 7,939,037
26,700 CINergy.......... 881,100
25,500 Carolina Power & Light 911,625
35,900 Central & Southwest 774,093
39,700 Consolidated Edison 1,359,725
24,500 DTE Energy....... 753,375
31,200 Dominion Resources 1,160,250
60,794 Duke Power....... 2,933,310
69,300 Edison International 1,775,812
40,200 Entergy.......... 982,387
30,800 FPL Group........ 1,591,975
27,700 Frontier......... 599,012
20,400 GPU.............. 738,225
161,400 GTE.............. 6,849,412
48,266 Houston Industries 1,049,785
116,200 MCI Communications 4,125,100
24,400 (a) Niagara Mohawk Power 236,375
11,700 Northern States Power......... 589,387
25,800 Ohio Edison...... 638,550
74,100 PG&E............. 1,894,181
27,800 PP&L Resources... 601,175
37,600 PECO Energy...... 853,050
50,000 PacifiCorp....... 1,084,375
39,200 Public Service
Enterprise Group.... 1,016,750
154,219 SBC Communications 9,812,183
115,200 Southern......... 2,642,400
72,800 Sprint........... 3,785,600
40,697 Texas Utilities.. 1,460,004
81,000 US West.......... 3,224,812
102,500 (a) US West Media Group 2,588,125
36,600 UniCom........... 1,024,800
17,300 Union Electric... 651,993
152,700 (a) WorldCom......... 5,134,537
________________
108,209,206
________________
TOTAL COMMON STOCKS
(cost $862,945,666). $1,200,169,049
================
</TABLE>
<TABLE>
DREYFUS S & P 500 INDEX FUND
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1997
Principal SHORT-TERM Principal SHORT-TERM
Amount INVESTMENTS-5.6% Value Amount INVESTMENTS (continued) Value
____________ _______________ ____________ _______________
<S> <C> <C>
U.S. Treasury Bills:
$ 2,675,000 4.73%, 12/4/1997 $ 2,663,123
9,428,000 (b) 4.96%, 12/11/1997. 9,376,900
17,726,000 4.89%, 12/18/1997.. 17,612,554
6,858,000 4.83%, 12/26/1997... 6,805,605
4,851,000 4.90%, 1/2/1998..... 4,809,184
22,457,000 4.93%, 1/8/1998.... 22,242,087
U.S. Treasury Bills (continued):
$ 621,000 4.89%, 1/15/1998 $ 614,442
7,842,000 5.08%, 1/22/1998.... 7,749,543
________________
TOTAL SHORT-TERM INVESTMENTS
(cost $71,883,544).. $ 71,873,438
================
TOTAL INVESTMENTS
(cost $934,829,210)..... 99.4% $1,272,042,487
======= ================
CASH AND RECEIVABLES (NET) . .6% $ 7,408,841
======= ================
NET ASSETS................ 100.0% $1,279,451,328
======= ================
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 OCTOBER 31, 1997
Market Value Unrealized
Covered (Depreciation)
Financial Futures Purchased: Contracts by Contracts Expiration at 10/31/97
_________________________ ____________ _____________ ______________ ______________
Standard & Poor's 500........................ 162 $74,844,000 December '97 $(2,067,425)
===========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS S&P 500 INDEX FUND
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1997
Cost Value
_______________ _______________
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $ 934,829,210 $1,272,042,487
Cash....................................... 4,617,946
Receivable for futures variation margin-Note 4(a) 1,692,900
Dividends and interest receivable.......... 1,397,832
Receivable for shares of Common Stock subscribed 887,053
_______________
1,280,638,218
_______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 279,195
Due to Distributor......................... 290,452
Payable for shares of Common Stock redeemed 424,328
Payable for investment securities purchased 192,253
Commitment fees payable-Note 2............. 662
_______________
1,186,890
_______________
NET ASSETS.................................................................. $1,279,451,328
===============
REPRESENTED BY: Paid-in capital............................ $ 911,661,923
Accumulated undistributed investment income-net 1,196,652
Accumulated net realized gain (loss) on investments 21,446,901
Accumulated net unrealized appreciation (depreciation) on
investments [including ($2,067,425) net unrealized
(depreciation) on financial futures]-Note 4(b)....................... 335,145,852
_______________
NET ASSETS.................................................................. $1,279,451,328
===============
SHARES OUTSTANDING
(200 million shares of $.001 par value of Common Stock authorized).......... 46,138,650
NET ASSET VALUE, offering and redemption price per share-Note 3(d).......... $27.73
=======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS S&P 500 INDEX FUND
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1997
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME: Cash dividends (net of $100,259 foreign taxes
withheld at source).................... $ 15,952,296
Interest................................... 3,127,986
_____________
Total Income......................... $ 19,080,282
EXPENSES: Management fee-Note 3(a)................... 2,414,435
Shareholder servicing costs-Note 3(b)...... 2,473,641
Registration fees.......................... 127,858
Professional fees.......................... 48,183
Prospectus and shareholders' reports....... 46,720
Directors' fees and expenses-Note 3(c)..... 31,062
Loan commitment fees-Note 2................ 8,480
Miscellaneous.............................. 12,648
_____________
Total Expenses....................... 5,163,027
Less-reduction in management fee due to
undertaking-Note 3(a).................. (429,005)
_____________
Net Expenses......................... 4,734,022
_____________
INVESTMENT INCOME-NET....................................................... 14,346,260
_____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ 9,071,050
Net realized gain (loss) on financial futures 15,634,025
_____________
Net Realized Gain (Loss)................... 24,705,075
Net unrealized appreciation (depreciation) on investments
[including ($2,750,900) net unrealized (depreciation) on
financial futures] 189,796,889
_____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 214,501,964
_____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $228,848,224
=============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS S&P 500 INDEX FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
October 31, 1997 October 31, 1996
________________ ________________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 14,346,260 $ 8,767,747
Net realized gain (loss) on investments................................. 24,705,075 18,063,093
Net unrealized appreciation (depreciation) on investments............... 189,796,889 67,183,468
_______________ _______________
Net Increase (Decrease) in Net Assets Resulting from Operations....... 228,848,224 94,014,308
_______________ _______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (10,625,144) (6,205,887)
Net realized gain on investments........................................ (18,728,587) (4,169,581)
_______________ _______________
Total Dividends....................................................... (29,353,731) (10,375,468)
_______________ _______________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 740,252,211 307,525,173
Dividends reinvested.................................................... 27,500,971 9,406,794
Cost of shares redeemed................................................. (279,427,033) (145,087,307)
_______________ _______________
Increase (Decrease) in Net Assets from Capital Stock Transactions..... 488,326,149 171,844,660
_______________ _______________
Total Increase (Decrease) in Net Assets............................. 687,820,642 255,483,500
NET ASSETS:
Beginning of Period..................................................... 591,630,686 336,147,186
_______________ _______________
End of Period........................................................... $1,279,451,328 $ 591,630,686
=============== ===============
Undistributed investment income-net....................................... $ 11,196,652 $ 7,475,536
_______________ _______________
Shares Shares
_______________ _______________
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 29,141,689 15,194,675
Shares issued for dividends reinvested.................................. 1,216,319 496,663
Shares redeemed......................................................... (11,036,833) (7,162,184)
_______________ _______________
Net Increase (Decrease) in Shares Outstanding......................... 19,321,175 8,529,154
=============== ===============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS S&P 500 INDEX FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common 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.
Year Ended October 31,
______________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $22.06 $18.38 $16.41 $16.88 $15.16
______ ______ ______ ______ ______
Investment Operations:
Investment income-net........................ .34 .33 .36 .39 .30
Net realized and unrealized gain(loss)
on investments............................. 6.37 3.89 3.36 .11 1.86
______ ______ ______ ______ ______
Total from Investment Operations............. 6.71 4.22 3.72 .50 2.16
______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net......... (.38) (.32) (.42) (.31) (.40)
Dividends from net realized gain on investments (.66) (.22) (1.33) (.66) (.04)
______ ______ ______ ______ ______
Total Distributions.......................... (1.04) (.54) (1.75) (.97) (.44)
______ ______ ______ ______ ______
Net asset value, end of period............... $27.73 $22.06 $18.38 $16.41 $16.88
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.......................... 31.46% 23.41% 25.68% 3.14% 14.49%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .50% .57% .55% .61% .39%
Ratio of net investment income to average net assets 1.52% 1.90% 2.75% 2.26% 2.36%
Decrease reflected in above expense ratios
due to undertakings by WFNIA and Dreyfus... .05% - - .03% .14%
Portfolio Turnover Rate...................... 2.26% 5.22% 3.66% 18.81% 3.77%
Average commission rate paid*................ $.0301 $.0297 - - -
Net Assets, end of period (000's Omitted).... $1,279,451 $591,631 $336,147 $ 245,202 $ 281,403
* 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 S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus S&P 500 Index Fund (the "Fund") is a series of Dreyfus Index
Funds, Inc. (the "Company") which is registered under the Investment Company
Act of 1940 ("Act") as a non-diversified open-end management investment
company and operates as a series company currently offering three series
including the Fund. The Fund's investment objective is to provide investment
results that correspond to the price and yield performance of publicly-traded
common stocks in the aggregate, as represented by the Standard & Poor's 500
Composite Stock Price Index. The Dreyfus Corporation ("Dreyfus") serves as
the Fund's investment adviser. Boston Safe Deposit and Trust Company, an
affiliate of Dreyfus, is the Fund's custodian. Dreyfus 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.
Prior to June 30, 1997, Mellon Equity Associates ("Mellon Equity"), an
affiliate of Dreyfus, served as the Fund's index manager.
The company accounts separately for the assets, liabilities and
operations of each fund. Expenses directly attributable to each fund are
charged to the fund's operations; expenses which are applicable to all funds
are allocated among them on a pro rata basis.
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.
(b) Securities transactions and investment income: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(c) Dividends to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid annually.
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, 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-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
October 31, 1997, the Fund did not borrow under the Facility.
DREYFUS S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) Effective January 1, 1997, pursuant to an amended management
agreement ("Agreement") with Dreyfus, the management fee is computed at the
annual rate of .25 of 1% of the value of the Fund's average daily net assets,
and is payable monthly. Under the terms of the Agreement, Dreyfus has agreed
to pay all the expenses of the Fund, except brokerage commissions, taxes,
commitment fees, interest, Shareholder Services Plan fees and extraordinary
expenses. Effective July 1, 1997, Dreyfus has agreed to pay all expenses of
the Fund, except fees and expenses as noted above and also, fees and expenses
of non-interested Directors (including counsel fees). In addition, Dreyfus 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).
Each Director receives an annual fee of $2,500 and an attendance fee of $500
per meeting and is reimbursed for travel and out-of-pocket expenses. The
Chairman of the Board receives an additional 25% of such compensation. These
fees pertain to the following funds: Dreyfus S&P 500 Index Fund, Dreyfus
International Stock Index Fund and Dreyfus Small Cap Stock Index Fund. These
fees and expenses are charged and allocated to each series based on net
assets. Amounts required to be paid by the Company directly to the
non-interested Directors, that would be applied to offset a portion of the
management fee payable to Dreyfus are in fact paid directly by Dreyfus to the
non-interested Directors.
Prior to January 1, 1997, pursuant to a management agreement with
Dreyfus, the management fee was computed at the annual rate of .295 of 1% of
the value of the Fund's average daily net assets, and was payable monthly.
Included in this, Dreyfus paid Mellon Equity, pursuant to an index management
agreement which terminated as of June 30, 1997, a monthly index management
fee at the annual rate of .095 of 1% of the value of the Fund's average daily
net assets. During the period from January 1, 1997 through June 30, 1997, the
index management fee was reduced to .05 of 1% until the Fund's assets exceed
$1 billion, whereupon the fee increases to .075 of 1%.
Dreyfus had undertaken from November 6, 1996 through June 30, 1997, that
if the Fund's aggregate net expenses exclusive of taxes, brokerage, interest
on borrowing, commitment fees and extraordinary expenses, exceeded .50 of 1%
of the value of the Fund's average daily net assets, the Fund would deduct
from the payment made to Dreyfus to the extent of such excess. The reduction
in management fee, pursuant to the undertaking, amounted to $429,005 during
the period from November 6, 1996 through June 30, 1997.
(b) Effective January 1, 1997 under the Shareholder Services Plan, the
Fund pays the Distributor for the provision of certain services a fee, at the
annual rate of .25 of 1% of the value of the Fund's average daily net assets.
The services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The distributor determines the
amounts to be paid to Service Agents. During the period from January 1, 1997
through October 31, 1997, the Fund was charged $2,096,283 pursuant to the
Shareholder Services Plan.
Prior to January 1, 1997, the Fund reimbursed Dreyfus Service
Corporation, a wholly-owned subsidiary of Dreyfus, an amount not to exceed an
annual rate of .25 of 1% of the value of the Fund's average daily net assets
for certain allocated expenses of providing personal services and/or
maintaining shareholder accounts. During the period from November 1, 1996
through December 31, 1996 the Fund was charged $154,770 pursuant to the prior
Shareholder Services Plan.
DREYFUS S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Prior to July 1, 1997, the Fund compensated Dreyfus Transfer, Inc., a
wholly-owned subsidiary of Dreyfus, under a transfer
agency agreement for providing personnel and facilities to perform transfer
agency services for the Fund. During the period from November 1, 1996 through
June 30, 1997, the Fund was charged $71,550 pursuant to the transfer agency
agreement.
(c) Prior to July 1, 1997, each director who is not an "affiliated
person" as defined in the Act receives from the Fund an annual fee of $2,500
and an attendance fee of $500 per meeting. The Chairman of the Board received
an additional 25% of such compensation.
(d) A 1% redemption fee is charged and retained by the Fund on certain
redemptions of Fund shares where the redemption occurs within the initial six
month period following the opening of the account. During the period ended
October 31, 1997, redemption fees amounted to $45,095.
NOTE 4-SECURITIES TRANSACTIONS:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and financial futures during the period ended
October 31, 1997 amounted to $464,446,277 and $19,913,697, respectively.
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 the 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. Accordingly, 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 as of October
31, 1997, and their related unrealized market depreciation are set forth in
the Statement of Financial Futures.
(b) At October 31, 1997, accumulated net unrealized appreciation on
investments and financial futures was $335,145,852, consisting of
$347,779,219 gross unrealized appreciation and $12,633,367 gross unrealized
depreciation.
At October 31, 1997, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS S&P 500 INDEX FUND
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Directors of
Dreyfus S&P 500 Index Fund
We have audited the accompanying statement of assets and liabilities,
including the statements of investments and financial futures, of Dreyfus S&P
500 Index Fund (the "Fund") (one of the Series constituting Dreyfus Index
Funds), as of October 31, 1997, and the related statements of operations for
the year then ended, changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of October 31, 1997 by correspondence
with the custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus S&P 500 Index Fund of the Dreyfus Index Funds at October
31, 1997, the results of its operations for the year then ended, the changes
in its net assets for each of the two years in the period then ended and the
financial highlights for the periods referred to above, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
December 12, 1997
IMPORTANT TAX INFORMATION (UNAUDITED)
For Federal tax purposes the Fund hereby designates $.546 per share as a
long-term capital gain distribution of the $1.036 per share paid on December
30, 1996.
The Fund also designates 78.04% of the ordinary dividends paid during the
fiscal year ended October 31, 1997 as qualifying for the corporate dividends
received deduction. Shareholders will receive notification in January 1998 of
the percentage applicable to the preparation of their 1997 income tax return.
Registration Mark
[Dreyfus lion "d" logo]
DREYFUS S&P 500 INDEX FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Boston Safe Deposit and Trust Company
One Boston Place
Boston, MA 02109
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 078AR9710
Registration Mark
[Dreyfus logo]
S&P 500 Index
Fund
Annual Report
October 31, 1997
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS S&P 500 INDEX FUND AND THE STANDARD &
POOR'S 500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
STANDARD
DREYFUS & POOR'S 500
PERIOD S&P 500 COMPOSITE STOCK
INDEX FUND PRICE INDEX *
1/2/90 10,000 10,000
10/31/90 8,688 8,855
10/31/91 11,542 11,814
10/31/92 12,684 12,990
10/31/93 14,521 14,927
10/31/94 14,976 15,502
10/31/95 18,823 19,596
10/31/96 23,229 24,315
10/31/97 30,538 32,120
*Source: Lipper Analytical Services, Inc.
