DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus BASIC
Municipal Money Market Portfolio. For its semi-annual reporting period ended
February 29, 1996, your Portfolio provided an annualized yield of 3.59%.
Income dividends exempt from Federal personal income taxes of approximately
$.018 per share were paid to shareholders.* Reinvesting these dividends and
calculating the effect of compounding resulted in an annualized effective
yield of 3.65%.**
THE ECONOMY
On January 31, 1996, the Federal Reserve Board once again lowered the
Federal Funds rate another quarter of a point to 5.25%. The Federal Funds
rate is the rate of interest that the nation's banks charge each other for
overnight loans and is a key benchmark for all other short-term interest
rates. The Federal Reserve also reduced the discount rate, the rate that the
Fed charges banks for loans, by a quarter of a point to 5.0%. The reduction
in interest rates was a continuation of the easing monetary policy of the
Fed, a stance that has prevailed since last July.
Over the past 12 months, the Fed has kept a cautious eye on price
trends, concerned that undue monetary stimulus would rekindle inflationary
pressures. Yet, inflation has continued at a moderate pace; the Consumer
Price Index rose 2.5% last year.
THE MARKET ENVIRONMENT
The Federal Reserve refrained from overt action on short-term interest
rates in February after reducing the Fed Funds rate in each of the two
previous months. Alan Greenspan, recently reappointed to his third term as
chairman of the Federal Reserve, roiled the capital markets with his
testimony to Congress that the economy may be in better shape than some
investors thought. The implication was that further reductions in interest
rates may not be as likely as many assumed.
The short-term municipal market certainly is influenced by any Federal
Reserve Board decision to alter interest rates; however, market technicals
(i.e., supply/demand) were the overriding factor affecting the yields that
prevailed throughout this period. By Fall, rates on short-term issues had
settled into a trading range. A steady interchange of variable rate demand
notes (VRDNs) between corporate holders and municipal money market funds kept
rates on these securities attractive, which resulted in an inverted yield
curve (with rates on shorter maturities higher than rates on longer issues)
during most of the period.
Despite the Fed's easing move in early December - its second rate
reduction of the year - rates on VRDNs trended even higher toward year-end.
That was a seasonal occurrence (as previous years have demonstrated) which
reverses dramatically in January as cash returns to the money market arena.
The "January effect" leads to a high increase in demand for VRDNs and,
accordingly, a substantial yield drop on these issues as well. The unusually
large asset inflows abated by late January, thereby lessening the high demand
for VRDNs and serving to restore stability to short-term yields.
In previous years, the seasonal drop in yield levels in January has been
substantial: lower rates have been sustained through most of the month and
into February. This year's drop in rates was less pronounced. We attribute
this aberration to the unresolved issues surrounding tax reform. This
uncertainty prompted remarketing agents to price VRDNs at more attractive
yields, which enhanced your Portfolio's overall performance.
THE PORTFOLIO
With the inverted yield curve, daily and weekly demand notes yielded
moderately more than both commercial paper and longer-term notes through most
of the period. Our investment strategy involved lengthening the portfolio's
maturity, when possible, in order to lock in rates that we felt would
outperform variable rate notes early in 1996.
The commercial paper and one-year note markets provided the primary means
for us to extend, while working to maintain a competitive yield. However, our
success in achieving the desired average maturity was limited due to a
scarcity of high quality tax exempt issues from which to choose. As a result,
your Portfolio's current average maturity still leaves room to extend should
a change in market or supply conditions warrant.
Included in this report is a series of detailed statements about your
Portfolio's holdings and its financial condition. We hope they are
informative. Please know that we appreciate greatly your continued confidence
in the Portfolio and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
March 15, 1996
New York, N.Y.
* Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders.
**Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF INVESTMENTS FEBRUARY 29, 1996 (UNAUDITED)
<S> <C> <C>
PRINCIPAL
TAX EXEMPT INVESTMENTS-100.0% AMOUNT VALUE
__________ __________
ALABAMA-1.9%
Alabama Industrial Development Authority, SWDR, VRDN (Pine City Fiber Co.
Project)
3.40% (LOC; Barclays Bank) (a,b)........................................ $20,000,000 $20,000,000
CALIFORNIA-5.5%
California Higher Education Loan Authority Inc., Student Loan Revenue, VRDN
3.35%, Series C (LOC; Student Loan Marketing Association) (a,b)......... 10,000,000 10,000,000
California Public Capital Improvement Financing Authority, Revenue (Pooled
Project)
3.70%, Series C, 3/15/96 (LOC; National Westminster Bank) (b)........... 10,000,000 10,000,000
California School Cash Reserve Program Authority
4.75%, Series A, 7/3/96 (LOC; Industrial Bank of Japan) (b)............. 22,000,000 22,071,797
South Coast Local Education Agency, Partnership Pooled, TRAN 5%, Series A, 8/14/96 15,000,000 15,032,541
COLORADO-2.5%
Colorado Student Obligation Bond Authority, Student Loan Revenue, VRDN
3.20%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 15,000,000 15,000,000
Denver Urban Renewal Authority, Tax Increment Revenue
(Downtown Denver Renewal)
3.625%, Series A, 8/8/96 (Escrowed in; U.S. Treasury Bills)............. 10,850,000 10,850,000
DELAWARE-1.5%
Delaware Economic Development Authority, Gas Facilities Revenue, VRDN
(DelMarVa Power and Light)
3.45% (Corp. Guaranty; DelMarVa Power and Light) (a).................... 12,000,000 12,000,000
Delaware Health Facilities Authority, Revenue, Pooled Loan Program, VRDN
3.25% (BPA; Morgan Guaranty Trust Co. and Insured; MBIA) (a)............ 3,200,000 3,200,000
DISTRICT OF COLUMBIA-2.3%
District of Columbia, VRDN (General Fund Recovery):
3.40%, Series B-2 (LOC; Westdeutsche Landesbank) (a,b).................. 18,500,000 18,500,000
3.40%, Series B-3 (LOC; Landesbank Hessen) (a,b)........................ 5,000,000 5,000,000
FLORIDA-1.7%
Dade County, Water and Sewer Systems Revenue, VRDN
3.05% (LOC; Comerica Bank) (a,b)........................................ 6,000,000 6,000,000
Pinellas Health Facility, Pooled Hospital Loan Program, VRDN
3.25% (LOC; Chemical Bank) (a,b)........................................ 2,800,000 2,800,000
Putnam County Development Authority, PCR (Seminole Electric Co-op)
3.30%, Series D, 6/15/96 (Corp. Guaranty; National Rural Utility Co-op). 9,000,000 9,000,000
GEORGIA-2.7%
Rockdale County Development Authority, Industrial Revenue, VRDN
(Liochem Inc. Project) 3.75% (LOC; Sanwa Bank) (a,b).................... 8,000,000 8,000,000
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 29, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
________ ________
GEORGIA (CONTINUED)
Savannah Economic Development Authority, Exempt Facility Revenue, VRDN
(Home Depot Project) 3.45%, Series A (Corp. Guaranty; Home Depot) (a)... $20,000,000 $20,000,000
IDAHO-1.0%
State of Idaho, TAN 4.50%, 6/27/96.......................................... 10,000,000 10,021,749
INDIANA-2.6%
Indiana Bond Bank, Advanced Funding, 4.25%, Series A-2, 1/9/97.............. 20,000,000 20,124,684
Indiana Secondary Market Educational Loans Inc., Education Loan Revenue, VRDN
3.40%, Series B
(Insured; AMBAC and LOC; Student Loan Marketing Association) (a,b)...... 7,000,000 7,000,000
IOWA-3.1%
Iowa School Corporation, Warrant Certificates:
4.75%, Series A, 6/28/96 (Insured; Capital Guaranty).................... 10,000,000 10,028,157
4.25%, Series B, 1/30/97 (Insured; FSA)................................. 7,425,000 7,480,966
Louisa County, PCR, Refunding, VRDN (Midwest Power System Inc. Project) 3.25% (a) 14,900,000 14,900,000
KANSAS-.5%
Butler County, Solid Waste Disposal Facilities Revenue, VRDN
(Texaco Refining and Marketing) 3.45%, Series A (Corp. Guaranty; Texaco Oil) (a) 5,700,000 5,700,000
KENTUCKY-7.7%
City of Carroll, Collateralized Solid Waste Disposal Facilities Revenue, VRDN
(Utilities Co. Project) 3.40%, Series A (a)............................. 23,700,000 23,700,000
Daviess County, Solid Waste Disposal Facilities Revenue, VRDN (Scott Paper
Co. Project):
3.40%, Series A (LOC; Morgan Guaranty Trust Co.) (a,b).................. 24,200,000 24,200,000
3.45%, Series B (LOC; ABN-Amro Bank) (a,b).............................. 21,500,000 21,500,000
Morgantown, IDR (Sumitomo Electric Wire System)
4.10%, 4/1/96 (LOC; Sumitomo Bank) (b).................................. 10,000,000 10,000,000
LOUISIANA-7.7%
New Orleans Aviation Board, Revenue, VRDN (Passenger Facility Charge
Projects)
3.60% (LOC: Banque Paribas and Canadian Imperial Bank of Commerce) (a,b) 15,000,000 15,000,000
Plaquemines Parish, Environmental Revenue, Refunding, VRDN
(British Petroleum Exploration and Oil)
3.45% (Corp. Guaranty; British Petroleum) (a)........................... 12,200,000 12,200,000
Plaquemines Port, Harbor and Terminal District, Port Facilities Revenue
(International Marine Terminal Project)
4.50%, Series A, 3/15/96 (LOC; Morgan Guaranty Trust Co.) (b)........... 9,275,000 9,275,000
Saint Charles Parish, PCR, VRDN (Shell Oil Co. Norco Project)
3.40% (Corp. Guaranty Shell Oil Co.) (a)................................ 26,300,000 26,300,000
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 29, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
________ ________
LOUISIANA (CONTINUED)
West Baton Rouge Parish Industrial District Number 3, Revenue, VRDN
(Dow Chemical Co. Project) 3.45% (Corp. Guaranty; Dow Chemical Co.) (a). $16,600,000 $16,600,000
MARYLAND-2.1%
Montgomery County Industrial Authority, Revenue, CP
3.30%, 4/11/96 (LOC; Union Bank of Switzerland) (b)..................... 22,200,000 22,200,000
MICHIGAN-5.5%
City of Detroit School District (Wayne County) 4.50%, 5/1/96................ 12,000,000 12,012,636
Grand Rapids Economic Development Corporation, Revenue, VRDN
(Amway/Grand Plaza Hotel Facility #1) 3.25% (LOC; Old Kent Bank and Trust) (a,b) 4,000,000 4,000,000
Michigan Building Authority, CP
3.45%, 3/21/96 (LOC; Canadian Imperial Bank of Commerce) (b)............ 9,000,000 9,000,000
Michigan Higher Education Student Loan Authority, Revenue, VRDN
3.65%, Series XII-F (Insured; AMBAC and Liquidity Agreement; Sumitomo Bank) (a) 5,000,000 5,000,000
Midland County Economic Development Corporation, Economic Development
LOR, VRDN (Dow Chemical Co. Project):
3.20%, Series B (Corp. Guaranty; Dow Chemical) (a).................... 6,225,000 6,225,000
3.35%, Series A (Corp. Guaranty; Dow Chemical) (a).................... 5,000,000 5,000,000
State of Michigan, GO Notes 4%, 9/30/96..................................... 16,000,000 16,081,879
MINNESOTA-2.4%
Minnesota and Saint Paul Housing and Redevelopment Authority, Health Care
Systems Revenue, Refunding, VRDN (Childrens Health Center)
3.30%, Series B (Insured; Capital Guaranty and SBPA; Norwest Bank) (a).. 8,000,000 8,000,000
Minnesota Higher Education Coordinating Board, Revenue, VRDN
3.45% (LOC; Norwest Bank of Minnesota) (a,b)............................ 17,000,000 17,000,000
MISSISSIPPI-.8%
Jackson County, PCR, Refunding, VRDN (Chevron USA Inc. Project)
3.20% (Corp. Guaranty; Chevron USA Inc.) (a)............................ 8,000,000 8,000,000
MISSOURI-3.2%
Missouri Higher Education Loan Authority, Student Loan Revenue, Refunding,
VRDN
3.50%, Series B (Insured; MBIA and SBPA; NMB Post Bank Group) (a)....... 9,500,000 9,500,000
Missouri Housing Development Commission, SFMR, VRDN (Homeowner Loan)
4%, Series B (GIC; FGIC Trinity Funding Corp.) (a)...................... 23,245,000 23,245,000
NEW JERSEY-3.8%
Essex County Improvement Authority, Revenue, VRDN (County Asset Sale Project)
3.10% (Insured; AMBAC and Liquidity Facility; Morgan Guaranty Trust Co.) (a) 10,000,000 10,000,000
Monmouth County Improvement Authority, Revenue, VRDN
(Pooled Government Loan Program) 2.85% (LOC; Union Bank of Switzerland) (a,b) 8,000,000 8,000,000
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 29, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
________ ________
NEW JERSEY (CONTINUED)
New Jersey Transportation, CP
3.20%, Series A, 5/10/96 (LOC; Union Bank of Switzerland) (b)........... $12,000,000 $12,000,000
New Jersey Turnpike Authority, Turnpike Revenue, Refunding, VRDN
2.80%, Series D (Insured; FGIC and LOC; Societe Generale) (a,b)......... 9,800,000 9,800,000
NORTH CAROLINA-.1%
Craven County Industrial Facilities and Pollution Control Finance Authority, VRDN
(Craven Wood Energy) 3.35%, Series A (LOC; ABN-Amro Bank) (a,b)......... 1,100,000 1,100,000
OHIO-4.9%
Cincinnati City School District Board, BAN 4.40%, 9/20/96................... 17,730,000 17,767,772
Greene County, Certificates of Indebtedness, BAN 4.25%, Series B, 7/18/96... 23,580,000 23,618,793
Ohio Air Quality Development Authority, Revenue, Refunding, VRDN
(Cincinnati Gas and Electric) 3.30%, Series A (LOC; ABN-Amro Bank) (a,b) 6,000,000 6,000,000
Student Loan Funding Corporation, Student Loan Revenue, VRDN
3.25%, Series A-3 (LOC; National Westminster Bank) (a,b)................ 3,400,000 3,400,000
OKLAHOMA-1.0%
Holdenville Industrial Authority, Correctional Facility Revenue, VRDN
3.35% (LOC; First Union National Bank) (a,b)............................ 10,000,000 10,000,000
OREGON-2.0%
Klamoth Falls, Electric Revenue, (Salt Caves Hydroelectric)
4.40%, Series A, 5/1/96 (Escrowed in; U.S. Treasury Bills).............. 21,045,000 21,045,000
PENNSYLVANIA-3.7%
Cambria County Hospital Development Authority, HR (Mercy Hospital Johnstown Project)
5%, 3/1/96 (LOC; Bank of Tokyo) (b)..................................... 8,440,000 8,440,000
Delaware Valley Regional Finance Authority, Local Government Revenue, VRDN
3.20%, Series D (LOC; Marine Midland Bank) (a,b)........................ 10,300,000 10,300,000
State of Pennsylvania, TAN 4.50%, 6/28/96................................... 20,000,000 20,047,600
RHODE ISLAND-.8%
Rhode Island Student Loan Authority, Student Loan Revenue, VRDN
3.30%, Series 1 (LOC; National Westminster Bank) (a,b).................. 8,000,000 8,000,000
SOUTH CAROLINA-.5%
South Carolina Job Economic Development Authority, EDR, VRDN (Wellman Inc. Project)
3.40% (LOC; Wachovia Bank and Trust Co.) (a,b).......................... 5,000,000 5,000,000
TEXAS-22.0%
Brazos River Authority, PCR, VRDN (Utilities Electric Co.):
3.40%, Series A (LOC; Morgan Guaranty Trust Co.) (a,b).................. 15,000,000 15,000,000
Refunding 3.40%, Series C (LOC; Swiss Bank Corp.) (a,b)................. 15,000,000 15,000,000
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 29, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
________ ________
TEXAS (CONTINUED)
Brazos River Harbor Navigation District, Harbor Revenue, VRDN
(Dow Chemical Co. Project):
3.45% (Corp. Guaranty; Dow Chemical Co.) (a).......................... $22,300,000 $22,300,000
3.45%, Series A (Corp. Guaranty; Dow Chemical Co.) (a)................ 4,100,000 4,100,000
El Paso Industrial Development Authority Inc., IDR, VRDN
(El Paso School District Limited Project) 3.65% (LOC; Chemical Bank) (a,b) 4,000,000 4,000,000
Grapevine Industrial Development Corporation, Airport Revenue (Singer Co. Project)
4.75%, Series A, 4/1/96 (LOC; Bank of Montreal) (b)..................... 5,100,000 5,100,000
Gulf Coast Industrial Development Authority, VRDN:
Marine Terminal Revenue (Amoco Oil Co. Project)
3.40% (Corp. Guaranty; Amoco Credit Corp.) (a)........................ 34,700,000 34,700,000
SWDR (Citgo Petroleum Corp. Project)
3.45% (LOC; Wachovia Bank of Georgia) (a,b)........................... 9,100,000 9,100,000
Gulf Coast Waste Disposal Authority, PCR, VRDN (Amoco Oil Co. Project):
3.40% (Corp. Guaranty; Amoco Credit Corp.) (a).......................... 27,400,000 27,400,000
SWDR, Refunding 3.40% (Corp. Guaranty; Amoco Credit Corp.) (a).......... 28,000,000 28,000,000
North Texas Higher Education Authority Inc., Student Loan Revenue, Refunding, VRDN
3.40%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 10,500,000 10,500,000
Panhandle Plains Higher Education Authority Inc., Student Loan Revenue, VRDN
3.20%, Series A, (LOC; Student Loan Marketing Association) (a,b)........ 26,000,000 26,000,000
Port Development Corporation, IDR, VRDN (Pasadena Terminals Project)
3.50%, Series C (LOC; ABN-Amro Bank) (a,b).............................. 2,420,000 2,420,000
Port of Port Arthur Naval District, PCR, Refunding, VRDN (Texaco Inc. Project)
3.30% (Corp. Guaranty; Texaco Inc.) (a)................................. 23,600,000 23,600,000
UTAH-1.5%
Intermountain Power Agency, Power Supply, CP
3.30%, Series E, 5/23/96 (LOC; Bank of America) (b)..................... 10,400,000 10,400,000
Utah Board of Regents, Student Loan Revenue, Refunding, VRDN
3.40%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 5,000,000 5,000,000
VIRGINIA-2.8%
Campbell County Industrial Development Authority, Exempt Facility Revenue, VRDN
(Hadson Power Project) 3.40%, Series 12-A (LOC; Barclays Bank) (a,b).... 5,100,000 5,100,000
Hopewell Industrial Development Authority, Exempt Facility Revenue, VRDN
(Hadson Power Project) 3.40%, Series 13-A (LOC; Credit Suisse) (a,b).... 5,700,000 5,700,000
Richmond Industrial Development Authority, VRDN (Cogentrix of Richmond Project):
Exempt Facility Revenue 3.45%, Series A (LOC; Banque Paribas) (a,b)..... 3,400,000 3,400,000
Revenue:
3.45%, Series A (LOC; Banque Paribas) (a,b)........................... 8,300,000 8,300,000
3.45%, Series B (LOC; Banque Paribas) (a,b)........................... 6,000,000 6,000,000
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 29, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
________ ________
WYOMING-2.2%
Lincoln County, PCR, VRDN (Exxon Project):
3.35%, Series B (Corp. Guaranty; Exxon Corp.) (a)....................... $ 8,800,000 $8,800,000
3.35%, Series C (Corp. Guaranty; Exxon Corp.) (a)....................... 6,400,000 6,400,000
Unita County, PCR (Amoco Standard Oil Co.) 3.98%, Series A 12/1/96.......... 7,455,000 7,466,819
______________
TOTAL INVESTMENTS (cost $1,035,055,393)..................................... $1,035,055,393
==============
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
BAN Bond Anticipation Notes LOR Limited Obligation Revenue
BPA Bond Purchase Agreement MBIA Municipal Bond Investors Assurance
CP Commercial Paper Insurance Corporation
EDR Economic Development Revenue PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance Company SBPA Standby Bond Purchase Agreement
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
GIC Guaranteed Investment Contract SWDR Solid Waste Disposal Revenue
GO General Obligation TAN Tax Anticipation Notes
HR Hospital Revenue TRAN Tax and Revenue Anticipation Notes
IDR Industrial Development Revenue 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) 91.8%
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) 3.2
Not Rated (f) Not Rated (f) Not Rated (f) 5.0
______
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 February 29, 1996, 44.2% of the
Series' net assets are backed by letters of credit issued by domestic
banks, foreign banks 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 or Standard &
Poor's have been determined by the Series' Board of Directors to be of
comparable quality to those rated securities in which the Series may
invest.
(g) At February 29, 1996, the Series had $281,800,000 (26.9% of net
assets) invested in securities whose payment of principal and interest is
dependent upon revenues generated from pollution control projects.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 29, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $1,035,055,393
Cash.................................................................... 4,156,975
Interest receivable..................................................... 7,566,933
Prepaid expenses........................................................ 106,720
______________
1,046,886,021
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $286,738
Accrued expenses and other liabilities.................................. 110,866 397,604
_______ __________
NET ASSETS.................................................................. $1,046,488,417
==============
REPRESENTED BY:
Paid-in capital......................................................... $1,046,586,077
Accumulated net realized (loss) on investments.......................... (97,660)
______________
NET ASSETS at value applicable to 1,046,586,077 outstanding shares of
Common Stock, equivalent to $1.00 per share
(3 billion shares of $.001 par value authorized)........................ $1,046,488,417
==============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS SIX MONTHS ENDED FEBRUARY 29, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $21,310,897
EXPENSES:
Management fee-Note 2(a).............................................. $2,717,101
Shareholder servicing costs-Note 2(b)................................. 228,571
Professional fees..................................................... 57,998
Registration fees..................................................... 44,416
Custodian fees........................................................ 44,220
Directors' fees and expenses-Note 2(c)................................ 9,473
Prospectus and shareholders' reports.................................. 6,777
Miscellaneous......................................................... 20,709
_________
TOTAL EXPENSES.................................................. 3,129,265
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 1,412,762
_________
NET EXPENSES.................................................... 1,716,503
___________
INVESTMENT INCOME-NET....................................................... 19,594,394
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)................................ (6,240)
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $19,588,154
============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
AUGUST 31, FEBRUARY 29, 1996
1995 (UNAUDITED)
___________ _________________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $38,916,102 $ 19,594,394
Net realized (loss) on investments................................ (37,281) (6,240)
_______________ ________________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............ 38,878,821 19,588,154
_______________ ________________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net............................................. (38,916,102) (19,594,394)
_______________ ________________
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold..................................... 1,715,223,924 829,149,227
Dividends reinvested.............................................. 36,684,023 18,441,099
Cost of shares redeemed........................................... (1,679,813,715) (900,529,307)
_______________ ________________
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS 72,094,232 (52,938,981)
_______________ ________________
TOTAL INCREASE (DECREASE) IN NET ASSETS..................... 72,056,951 (52,945,221)
NET ASSETS:
Beginning of period............................................... 1,027,376,687 1,099,433,638
_______________ ________________
End of period..................................................... $ 1,099,433,638 $ 1,046,488,417
================ ================
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
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 Series' financial statements.
<TABLE>
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED AUGUST 31, FEBRUARY 29, 1996
_____________________________________________
PER SHARE DATA: 1992(1) 1993 1994 1995 (UNAUDITED)
_______ ______ ______ ______ __________
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period............ $ 1.00 $1.00 $1.00 $1.00 $ 1.00
_______ ______ ______ ______ _______
INVESTMENT OPERATIONS;
Investment income-net........................... .024 .027 .026 .037 .018
_______ ______ ______ ______ _______
DISTRIBUTIONS;
Dividends from investment income-net............ (.024) (.027) (.026) (.037) (.018)
_______ ______ ______ ______ _______
Net asset value, end of period.................. $ 1.00 $ 1.00 $1.00 $1.00 $ 1.00
========= ====== ======= ======= =======
TOTAL INVESTMENT RETURN............................. 3.41%(2) 2.73% 2.60% 3.80% 3.61%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets......... - .02% .09% .14% .32%(2)
Ratio of net investment income to average net assets 3.22%(2) 2.64% 2.58% 3.73% 3.60%(2)
Decrease reflected in above expense ratios due to
undertakings by the Manager................... .77%(2) .64% .50% .45% .26%(2)
Net Assets, end of period (000's Omitted)....... $228,708 $685,540 $1,027,377 $1,099,434 $1,046,488
(1) From December 16, 1991 (commencement of operations) to August 31, 1992.
(2) Annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus BASIC Municipal Fund, Inc. (the "Fund") 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 four series, including the Dreyfus BASIC Municipal Money Market
Portfolio (the "Series"). The Series' investment objective is to provide
investors with as high a level of current income exempt from Federal income
tax as is consistent with the preservation of capital and maintenance of
liquidity. 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") acts as the
distributor of the Fund's shares, which are sold to the public without a
sales charge.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
It is the Series' policy to maintain a continuous net asset value per
share of $1.00; the Series has adopted certain investment, portfolio
valuation and dividend and distribution policies to enable it to do so. There
is no assurance, however, that the Series will be able to maintain a stable
net asset value of $1.00.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Directors to represent the fair
value of the Series' investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Interest income, adjusted
for amortization of premiums and original issue discounts on investments, is
earned from settlement date and recognized on the accrual basis. Realized
gain and loss from securities transactions are recorded on the identified
cost basis. Cost of investments represents amortized cost.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Series 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 Series may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Series not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Series 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 income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
The Series has an unused capital loss carryover of approximately $54,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to August 31, 1995. The
carryover does not include net realized securities losses from November 1,
1994 through August 31, 1995, which are treated, for Federal income tax
purposes, as arising in fiscal 1996. If not applied, $1,700 of the carryover
expires in fiscal 2001, $2,000 expires in fiscal 2002 and $50,300 expires in
fiscal 2003.
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
At February 29, 1996, 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-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .50 of 1% of the average
daily value of the Series' net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Series'
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series for any full fiscal year. The most stringent
state expense limitation applicable to the Series presently requires
reimbursement of expenses in any full fiscal year that such expenses
(exclusive of certain expenses as described above) exceed 2-1\2% of the first
$30 million, 2% of the next $70 million and 1-1\2% of the excess over $100
million of the average value of the Series' net assets in accordance with
California "blue sky" regulations. However, the Manager had undertaken from
September 1, 1995 through January 31, 1996 to reduce the management fee paid
by the Series, to the extent that the Series' aggregate expenses (exclusive
of certain expenses as described above) exceeded specified annual percentages
of the Series' average daily net assets. The Manager has currently undertaken
from February 1, 1996 through June 30, 1996 to reduce the management fee paid
by the Series, to the extent that the Series' aggregate expenses (exclusive
of certain expenses as described above) exceed an annual rate of .45 of 1% of
the average daily value of the Series' net assets. The reduction in
management fee pursuant to the undertakings, amounted to $1,412,762 for the
six months ended February 29, 1996.
The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the agreement.
(B) Pursuant to the Series' Shareholder Services Plan, the Series
reimburses Dreyfus Service Corporation, a wholly-owned subsidiary of the
Manager, an amount not to exceed an annual rate of .25 of 1% of the value of
the Series' average daily net assets for certain allocated expenses of
providing personal services and/or maintaining shareholder accounts. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Series and
providing reports and other information, and services related to the
maintenance of shareholder accounts. During the six months ended February 29,
1996, the Series was charged an aggregate of $169,237 pursuant to the
Shareholder Services Plan.
Effective December 1, 1995, the Series compensates Dreyfus Transfer,
Inc., a wholly-owned subsidiary of the Manager, under a transfer agency
agreement for providing personnel and facilities to perform transfer agency
services for the Series. Such compensation amounted to $12,302 for the period
from December 1, 1995 through February 29, 1996.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,000 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus BASIC Municipal Money
Market Portfolio (one of the Series constituting Dreyfus BASIC Municipal
Fund, Inc.) as of February 29, 1996, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended February 29, 1996. These financial statements and financial highlights
are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
August 31, 1995 and financial highlights for each of the four years in the
period ended August 31, 1995 and in our report dated October 4, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst & Young LLP signature logo]
New York, New York
April 3, 1996
[Dreyfus lion "d" logo]
DREYFUS BASIC MUNICIPAL
MONEY MARKET PORTFOLIO
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 122SA962
[Dreyfus logo]
BASIC Municipal
Money Market
Portfolio
Semi-Annual
Report
February 29, 1996
