BNY Mellon Growth Fund Class I NCSR Certified annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number			811- 04813

	Dreyfus Investment Funds
	(Exact name of Registrant as specified in charter)

	c/o The Dreyfus Corporation 200 Park Avenue New York, New York 10166
	(Address of principal executive offices) (Zip code)

	Michael A. Rosenberg, Esq. 200 Park Avenue New York, New York 10166
	(Name and address of agent for service)

Registrant's telephone number, including area code:				(212) 922-6000

Date of fiscal year end:		9/30
Date of reporting period:		9/30/10

The following N-CSR relates only to the Registrant’s series listed below and does not affect the other series of the Registrant, which have a different fiscal year end and, therefore, different N-CSR reporting requirements. Separate N-CSR Forms will be filed for those series, as appropriate.

Dreyfus/The Boston Company Emerging Markets Core Equity Fund

Dreyfus/The Boston Company International Core Equity Fund

Dreyfus/The Boston Company Large Cap Core Fund

Dreyfus/The Boston Company Small Cap Growth Fund

Dreyfus/The Boston Company Small Cap Tax-Sensitive Equity Fund

Dreyfus/The Boston Company Small Cap Value Fund

Dreyfus/The Boston Company Small/Mid Growth Fund

Dreyfus/Standish Intermediate Tax Exempt Bond Fund

Dreyfus/Newton International Equity Fund

FORM N-CSR

Item 1. Reports to Stockholders.

-2-

Dreyfus/The Boston

Company Emerging

Markets Core Equity Fund

ANNUAL REPORT September 30, 2010

Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.dreyfus.com and sign up for Dreyfus eCommunications. It’s simple and only takes a few minutes.

The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.

	Contents
	THE FUND
2	A Letter from the Chairman and CEO
3	Discussion of Fund Performance
6	Fund Performance
8	Understanding Your Fund’s Expenses
8	Comparing Your Fund’s Expenses With Those of Other Funds
9	Statement of Investments
14	Statement of Assets and Liabilities
15	Statement of Operations
16	Statement of Changes in Net Assets
18	Financial Highlights
21	Notes to Financial Statements
34	Report of Independent Registered Public Accounting Firm
35	Important Tax Information
36	Board Members Information
38	Officers of the Fund
	FOR MORE INFORMATION
	Back Cover

Dreyfus/The Boston
Company Emerging
Markets Core Equity Fund

The Fund

A LETTER FROM THE CHAIRMAN AND CEO

Dear Shareholder:

This annual report for Dreyfus/The Boston Company Emerging Markets Core Equity Fund covers the 12-month period from October 1, 2009, through September 30, 2010.

Although a double-dip recession remains an unlikely scenario in most parts of the world in our analysis, recent uncertainty regarding the breadth and strength of the global economic recovery has led to bouts of weakness in some of the riskier asset classes, including international stocks. Former engines of growth appear stalled as large parts of the developed world remain indebted and burdened by weak housing markets. While some look to the developing world as an engine of economic growth, most emerging economies don’t yet have the demand infrastructure needed to support large-scale imports capable of meaningfully lifting global economic activity.

Uncertainty will probably remain in the broader financial markets until we see a persistent improvement in economic growth; but we currently are optimistic regarding the prospects for some equities. Higher-quality companies with healthy balance sheets, higher credit ratings and strong cash flows are currently priced at a discount, in our view. However, we continue to believe that selectivity will be a key to success in the stock market, as investors appear set to potentially reward fundamentally sound companies relative to those with questionable financial profiles and business strategies. During these market conditions, we suggest that you meet with your financial advisor regularly to review your global portfolio allocation in today’s slow-growth economic environment as well as your needs, goals and attitudes toward risk.

For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.

Thank you for your continued confidence and support.

Jonathan R. Baum
Chairman and Chief Executive Officer
The Dreyfus Corporation
October 15, 2010

DISCUSSION OF FUND PERFORMANCE

For the period of October 1, 2009, through September 30, 2010, as provided by Sean P. Fitzgibbon, CFA, and Jay Malikowski, Portfolio Managers

Fund and Market Performance Overview

For the 12-month period ended September 30, 2010, Dreyfus/The Boston Company Emerging Markets Core Equity Fund’s Class A shares produced a total return of 18.85%, Class C shares returned 17.95% and Class I shares returned 19.73%.¹In comparison, the fund’s benchmark, the Morgan Stanley Capital International Emerging Markets Index (the “MSCI EM Index”), produced a total return of 20.22% for the same period.²Emerging markets stocks posted significant gains during the reporting period despite relative weakness in developed markets stemming from a sluggish global economic recovery. The fund produced lower returns than its benchmark, primarily due to mild shortfalls in the telecommunications and energy sectors, which offset above-average results in the consumer discretionary and industrials sectors.

The Fund’s Investment Approach

The fund seeks long-term growth of capital. To pursue this goal, the fund normally invests at least 80% of its assets in equity securities of companies that are located in foreign countries represented in the MSCI EM Index. The fund may invest up to 20% of its net assets in fixed income securities and may invest in preferred stocks of any credit quality if common stocks of the relevant company are not available.The fund employs a “bottom-up” investment approach, which emphasizes individual stock selection.

Emerging Markets Fare Well Despite Sluggish Global Economy

Robust economic growth in the emerging markets supported global manufacturing activity over the first half of the reporting period, fueling improved confidence among businesses, consumers and investors throughout the world. However, investor sentiment deteriorated in May 2010 due to a sovereign debt crisis in Europe, where Greece found itself unable to finance a heavy debt load. In addition, global investors worried that efforts to forestall inflationary pressures in China might dampen a key engine of global economic growth. An appreciating currency hurt

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

exports in Japan, and high unemployment levels weighed on the United States. The sovereign debt crisis was especially hard on banking stocks, particularly those exposed to Europe’s more indebted economies. Energy stocks throughout the world were punished by the catastrophic oil spill in the Gulf of Mexico early in the reporting period, as investors reacted to uncertainty regarding potential liabilities and regulatory scrutiny of offshore drilling activity.

In contrast, companies in the emerging markets had relatively little exposure to these adverse developments. Instead, robust economic growth and higher stock prices in the emerging markets were supported by the ongoing build-out of industrial infrastructures in China, India and other nations with low-cost labor and manufacturing resources, as well as the expansion of a growing middle class of domestic consumers. Therefore, while macroeconomic factors sparked declines in developed markets during the spring and summer of 2010, the emerging markets generally continued to advance.

Stock Selections Produced Mixed Results

Although the fund participated to a substantial degree in the emerging markets’ overall gains, results from its energy holdings were undermined by Russian integrated oil producers Gazprom and LUKOIL. Gazprom’s earnings suffered due to stubbornly low natural gas prices, while LUKOIL was unable to meet production targets during the reporting period. Similarly, in the telecommunications sector, Russian mobile telephone carrier VimpelCom declined when shareholders expressed discontent regarding recent acquisitions in Italy and Algeria. The fund’s investments in Latin America also generally lagged market averages, mainly due to the fund’s emphasis on Brazil and positioning in Petroleo Brasileiro (Petrobras) where a worse than expected capital raise hurt the performance of Petrobras’ stock.

The fund achieved better relative results in the consumer discretionary sector, where Chinese automotive retailer Great Wall Motor restructured during the downturn, enabling it to accelerate earnings growth in the recovery. Korean auto parts producer Hyundai Mobis gained value after boosting sales both in Korea and overseas markets when car and truck production recovered from depressed levels worldwide. In Thailand, food producers fared well, as Charoen Pokphand Foods expanded into underserved markets and noodle maker Indofood Sukses Makmur gained market share. In the industrials sector, Chinese diesel

engines manufacturer Weichai Power benefited from rising demand for its products from package delivery service companies. In India, automaker Tata Motors achieved higher profits and market share after acquiring the Land Rover brand.

Finding Opportunities in Growing Markets

Although near-term prospects for stocks in other regions of the world are uncertain, we remain optimistic regarding the emerging markets, particularly those nations where domestic consumption and incomes are rising and household debt levels remain relatively low.We recently found a number of compelling opportunities meeting our criteria in China and India, where equity valuations have become more attractive. Conversely, we have grown more cautious regarding information technology companies, as the cycle for semiconductors appears to have peaked and some products may suffer from overcapacity.

October 15, 2010


	Equity funds are subject generally to market, market sector, market liquidity, issuer and investment
	style risks, among other factors, to varying degrees, all of which are more fully described in the
	fund’s prospectus.
	The fund’s performance will be influenced by political, social and economic factors affecting
	investments in foreign companies.These special risks include exposure to currency fluctuations, less
	liquidity, less developed or less efficient trading markets, lack of comprehensive company
	information, political instability and differing auditing and legal standards. Investments in foreign
	currencies are subject to the risk that those currencies will decline in value relative to the U.S.
	dollar, or, in the case of hedged positions, that the U.S. dollar will decline relative to the currency
	being hedged.
	Emerging markets tend to be more volatile than the markets of more mature economies, and
	generally have less diverse and less mature economic structures and less stable political systems than
	those of developed countries.
1	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 applicable
	contingent deferred sales charges imposed on redemptions in the case of Class C shares. Had these
	charges been reflected, returns would have been lower. Past performance is no guarantee of future
	results. Share price and investment return fluctuate such that upon redemption, fund shares may be
	worth more or less than their original cost.The fund’s returns reflect the absorption of certain fund
	expenses by The Dreyfus Corporation pursuant to an agreement in effect through February 1,
	2011, at which time it may be extended, terminated or modified. Had these expenses not been
	absorbed, the fund’s returns would have been lower.
2	SOURCE: LIPPER INC. – Reflects reinvestment of net dividends and, where applicable, capital
	gain distributions.The Morgan Stanley Capital International Emerging Markets Index is a free
	float-adjusted market capitalization weighted index that is designed to measure the equity
	performance in global emerging markets.The index consists of 26 MSCI emerging market national
	indices. MSCI Indices reflect investable opportunities for global investors by taking into account local
	market restrictions on share ownership by foreigners. Investors cannot invest directly in any index.

The Fund 5

FUND PERFORMANCE

Comparison of change in value of $10,000 investment in Dreyfus/The Boston Company Emerging Markets Core Equity Fund Class I shares and the Morgan Stanley Capital International Emerging Markets Index

^†Source: Lipper Inc.

Past performance is not predictive of future performance.

The above graph compares a $10,000 investment made in Class I shares of Dreyfus/The Boston Company Emerging

Markets Core Equity Fund on 7/10/06 (inception date) to a $10,000 investment made in the Morgan Stanley Capital

International Emerging Markets Index (the “Index”) on that date.All dividends and capital gain distributions are

reinvested. For comparative purposes, the value of the Index on 6/30/06 is used as the beginning value on 7/10/06.

The fund’s performance shown in the line graph takes into account all applicable fees and expenses for Class I shares.

Performance for Class A and Class C shares will vary from the performance of Class I shares shown above due to

differences in charges and expenses.The Index is a free float-adjusted market capitalization weighted index that is

designed to measure the equity performance in global emerging markets. Unlike a mutual fund, the Index is not subject to

charges, fees and other expenses. Investors cannot invest directly in any index.These factors can contribute to the Index

potentially outperforming the fund. 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.


Average Annual Total Returns as of 9/30/10

	Inception		From
	Date	1 Year	Inception
Class A shares
with maximum sales charge (5.75%)	3/31/09	11.99%	10.76%^††
without sales charge	3/31/09	18.85%	12.33%^††
Class C shares
with applicable redemption charge ^†	3/31/09	16.95%	12.02%^††
without redemption	3/31/09	17.95%	12.02%^††
Class I shares	7/10/06	19.73%	12.57%
Morgan Stanley Capital International
Emerging Markets Index^†††	6/30/06	20.22%	11.47%

Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.


†	The maximum contingent deferred sales charge for Class C shares is 1% for shares redeemed within one year of the
	date of purchase.
††	The total return performance figures presented for Class A and Class C shares of the fund reflect the performance of
	the fund’s Class I shares for periods prior to 3/31/09 (the inception date for Class A and Class C shares), adjusted
	to reflect the applicable sales load for each share class.
^†††The Index date is based on the life of Class I shares. For comparative purposes, the value of the Index as of the
	month end 6/30/06 is used as the beginning value on 7/10/06 (the inception date for Class I shares).

The Fund 7

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus/The Boston Company Emerging Markets Core Equity Fund from April 1, 2010 to September 30, 2010. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended September 30, 2010


	Class A	Class C	Class I
Expenses paid per $1,000^†	$ 11.76	$ 15.66	$ 7.86
Ending value (after expenses)	$1,085.70	$1,082.60	$1,090.80

COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment
assuming a hypothetical 5% annualized return for the six months ended September 30, 2010

† Expenses are equal to the fund’s annualized expense ratio of 2.25% for Class A, 3.00% for Class C and 1.50%

for Class I, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half

year period).


	Class A	Class C	Class I
Expenses paid per $1,000^†	$ 11.36	$ 15.12	$ 7.59
Ending value (after expenses)	$1,013.79	$1,010.03	$1,017.55

STATEMENT OF INVESTMENTS

September 30, 2010


Common Stocks—86.2%	Shares		Value ($)
Bermuda—.4%
Central European Media Enterprises, Cl. A	2,560	^a,b	63,872
Brazil—4.6%
Banco do Brasil	9,400		178,500
Fleury	11,400		141,489
Gafisa	16,800		129,574
Obrascon Huarte Lain Brasil	2,300		72,045
Rossi Residencial	16,800		160,851
Totvs	1,000		76,773
			759,232
China—7.4%
Bank of China, Cl. H	297,000		155,795
China Construction Bank, Cl. H	216,000		189,306
China Petroleum & Chemical, Cl. H	266,000		235,870
China Vanadium Titano-Magnetite Mining	323,000		149,451
Great Wall Motor, Cl. H	60,000		162,395
Industrial & Commercial Bank of China, Cl. H	173,000		128,877
Weichai Power, Cl. H	12,000		126,823
Zhejiang Expressway, Cl. H	66,000		62,267
			1,210,784
Hong Kong—7.8%
China Agri-Industries Holdings	157,481		223,266
China Minsheng Bank, Cl. H	122,500		109,730
China Mobile	44,500		455,676
CNOOC	122,000		236,489
Guangdong Investment	150,000		78,298
Hutchison Whampoa	8,000		74,650
Tianjin Development Holdings	124,000	^b	95,891
			1,274,000
Hungary—1.7%
MOL Hungarian Oil and Gas	1,330	^b	139,766
OTP Bank	5,130 ^b		134,680
			274,446
India—11.1%
Apollo Tyres	82,250		148,356
Balrampur Chini Mills	46,110		95,073

The Fund 9

STATEMENT OF INVESTMENTS (continued)


Common Stocks (continued)	Shares	Value ($)
India (continued)
Bank of Baroda	7,840	152,281
Canara Bank	9,200	119,292
Chambal Fertilizers & Chemicals	68,940	105,631
Oil & Natural Gas	4,070	126,946
Oriental Bank Of Commerce	16,341	167,647
Sintex Industries	15,880	136,288
SpiceJet	74,240 ^b	123,582
Tata Consultancy Services	13,480	276,755
Tata Motors	9,200	224,661
Union Bank of India	7,030	60,749
Welspun	13,950	83,464
		1,820,725
Indonesia—2.3%
Astra International	22,500	142,941
Bank Mandiri	125,500	101,244
Indofood Sukses Makmur	209,000	127,625
		371,810
Malaysia—1.7%
Axiata Group	57,700 ^b	81,868
Hong Leong Bank	19,800	58,432
Tenaga Nasional	48,300	138,000
		278,300
Mexico—2.4%
America Movil, ADR, Ser. L	4,190	223,453
Fomento Economico Mexicano, ADR	3,380	171,467
		394,920
Poland—1.0%
Getin Holding	20,360 ^b	75,645
KGHM Polska Miedz	2,230	89,987
		165,632
Russia—6.5%
Gazprom, ADR	16,190	339,828
LUKOIL, ADR	6,000	340,800
Magnitogorsk Iron & Steel Works, GDR	5,030 ^c,d	65,239
MMC Norilsk Nickel, ADR	8,902	151,779
VimpelCom, ADR	11,440 ^b	169,884
		1,067,530


Common Stocks (continued)	Shares	Value ($)
South Africa—6.7%
African Rainbow Minerals	4,020	96,892
Aveng	25,940	161,887
FirstRand	49,640	152,832
Gold Fields	6,450	97,718
Metropolitan Holdings	25,348	59,640
MTN Group	19,244	347,870
Sasol	4,090	183,592
		1,100,431
South Korea—15.6%
Busan Bank	11,620	143,180
Chong Kun Dang Pharmaceutical	2,320	49,035
Daegu Bank	8,230	108,266
Daehan Steel	4,690	35,784
Hana Financial Group	3,280	97,084
Hyosung	1,464	157,923
Hyundai Mipo Dockyard	631	104,314
Hyundai Mobis	1,543	347,776
Korea Electric Power	3,780 ^b	97,463
KT	3,220	129,054
Kukdo Chemical	1,400	50,585
POSCO	491	222,193
Samsung Electronics	733	499,488
Shinhan Financial Group	2,840	108,718
SK Energy	901	114,971
SK Holdings	846	87,920
Woori Finance Holdings	4,780	59,527
Youngone	8,316	71,692
Youngone Holdings	2,594	68,589
		2,553,562
Taiwan—8.3%
Advanced Semiconductor Engineering	88,892	71,844
Asia Cement	53,169	54,204
Chunghwa Telecom	29,000	64,978
CTCI	115,000	126,442
Fubon Financial Holding	93,195	114,698
HON HAI Precision Industry	57,240	215,281
HTC	8,300	188,362

The Fund 11

STATEMENT OF INVESTMENTS (continued)


Common Stocks (continued)	Shares		Value ($)
Taiwan (continued)
Lite-On Technology	206		259
Powertech Technology	38,500		123,850
Taishin Financial Holdings	253,463	^b	113,582
Taiwan Semiconductor Manufacturing, ADR	28,749		291,515
			1,365,015
Thailand—2.5%
Asian Property Development	323,700		74,211
Bangchak Petroleum	156,700		75,189
Banpu	3,600		78,262
Charoen Pokphand Foods	76,200		56,757
Kasikornbank	32,200		126,987
			411,406
Turkey—4.2%
Arcelik	17,860		98,156
Haci Omer Sabanci Holding	21,587		111,923
KOC Holding	25,780		122,970
Turkiye Halk Bankasi	16,550		153,310
Turkiye Is Bankasi, Cl. C	47,621		202,460
			688,819
United States—2.0%
AsiaInfo-Linkage	4,740 ^a,b		93,520
iShares MSCI Emerging Markets Index Fund	5,100		228,327
			321,847
Total Common Stocks
(cost $10,975,941)			14,122,331

Preferred Stocks—13.0%
Brazil
Banco Bradesco	17,275		346,317
Banco do Estado do Rio Grande do Sul	8,500		85,603
Bradespar	5,700		136,436
Cia de Bebidas das Americas	1,400		169,663
Cia Paranaense de Energia, Cl. B	10,100		222,355
Itau Unibanco Holding	9,924		237,367
Marfrig Alimentos	9,300		94,759
Petroleo Brasileiro	14,700		237,094
Usinas Siderurgicas de Minas Gerais, Cl. A	4,350		58,360


Preferred Stocks (continued)	Shares	Value ($)
Brazil (continued)
Vale, Cl. A	18,700	511,708
Vivo Participacoes	1,300	35,496
Total Preferred Stocks
(cost $1,349,179)		2,135,158

Investment of Cash Collateral
for Securities Loaned—.9%
Registered Investment Company;
Dreyfus Institutional Cash Advantage Fund
(cost $144,550)	144,550 ^e	144,550
Total Investments (cost $12,469,670)	100.1%	16,402,039
Liabilities, Less Cash and Receivables	(.1%)	(14,360)
Net Assets	100.0%	16,387,679

ADR—American Depository Receipts
GDR—Global Depository Receipts

a Security, or portion thereof, on loan.At September 30, 2010, the market value of the fund's securities on loan was

$140,042 and the market value of the collateral held by the fund was $144,550.

b Non-income producing security.

c The valuation of this security has been determined in good faith by management under the direction of the Board of

Trustees.At September 30, 2010, the value of this security amounted to $65,239 or 0.4% of net assets.

d Security exempt from registration under Rule 144A of the Securities Act of 1933.This security may be resold in

transactions exempt from registration, normally to qualified institutional buyers.At September 30, 2010, this securitiy

had a market value of $65,239 or 0.4% of net assets.

e Investment in affiliated money market mutual fund.


Portfolio Summary (Unaudited)^†

	Value (%)		Value (%)
Financial	23.9	Consumer Staples	5.7
Energy	12.9	Utilities	3.3
Materials	12.6	Exchange Traded Funds	1.4
Information Technology	11.2	Health Care	1.2
Industrial	9.3	Money Market Investments	.9
Telecommunication Services	9.2
Consumer Discretionary	8.5		100.1

† Based on net assets.
See notes to financial statements.

The Fund 13

STATEMENT OF ASSETS AND LIABILITIES

September 30, 2010


		Cost	Value
Assets ($):
Investments in securities—See Statement of Investments (including
securities on loan, valued at $140,042)—Note 1(c):
Unaffiliated issuers		12,325,120	16,257,489
Affiliated issuers		144,550	144,550
Cash denominated in foreign currencies		180,472	182,647
Dividends and interest receivable			22,012
Receivable for shares of Beneficial Interest subscribed			6,952
Prepaid expenses			19,801
			16,633,451
Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(c)			20,998
Cash overdraft due to Custodian			41,622
Liability for securities on loan—Note 1(c)			144,550
Accrued expenses			38,602
			245,772
Net Assets ($)			16,387,679
Composition of Net Assets ($):
Paid-in capital			15,420,835
Accumulated distributions in excess of investment income—net			(23,114)
Accumulated net realized gain (loss) on investments			(2,944,928)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions			3,934,886
Net Assets ($)			16,387,679


Net Asset Value Per Share
	Class A	Class C	Class I
Net Assets ($)	152,455	257,685	15,977,539
Shares Outstanding	5,649	9,777	596,339
Net Asset Value Per Share ($)	26.99	26.36	26.79

See notes to financial statements.

STATEMENT OF OPERATIONS

Year Ended September 30, 2010


Investment Income ($):
Income:
Cash dividends (net of $45,498 foreign taxes withheld at source):
Unaffiliated issuers	362,549
Affiliated issuers	72
Income from securities lending—Note 1(c)	1,010
Total Income	363,631
Expenses:
Investment advisory fee—Note 3(a)	177,199
Custodian fees—Note 3(c)	126,168
Registration fees	55,039
Accounting and administrative fees—Note 3(a)	45,000
Shareholder servicing costs—Note 3(c)	32,899
Professional fees	25,580
Prospectus and shareholders' reports	14,970
Distribution fees—Note 3(b)	1,573
Trustees' fees and expenses—Note 3(d)	1,255
Interest expense—Note 2	297
Miscellaneous	16,627
Total Expenses	496,607
Less—expense reimbursement from The Dreyfus
Corporation due to undertaking—Note 3(a)	(250,935)
Less—reduction in fees due to earnings credits—Note 3(c)	(1)
Net Expenses	245,671
Investment Income—Net	117,960
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments and foreign currency transactions	2,686,493
Net realized gain (loss) on forward foreign currency exchange contracts	(26,816)
Net Realized Gain (Loss)	2,659,677
Net unrealized appreciation (depreciation) on
investments and foreign currency transactions	103,468
Net unrealized appreciation (depreciation) on
forward foreign currency exchange contracts	297
Net Unrealized Appreciation (Depreciation)	103,765
Net Realized and Unrealized Gain (Loss) on Investments	2,763,442
Net Increase in Net Assets Resulting from Operations	2,881,402

See notes to financial statements.

The Fund 15

STATEMENT OF CHANGES IN NET ASSETS


	Year Ended September 30,
	2010	2009^a
Operations ($):
Investment income—net	117,960	175,825
Net realized gain (loss) on investments	2,659,677	(5,429,445)
Net unrealized appreciation
(depreciation) on investments	103,765	6,970,600
Net Increase (Decrease) in Net Assets
Resulting from Operations	2,881,402	1,716,980
Dividends to Shareholders from ($):
Investment income—net:
Class C Shares	(2,360)	—
Class I Shares	(218,041)	(189,770)
Net realized gain on investments:
Class I Shares	—	(620,343)
Total Dividends	(220,401)	(810,113)
Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Class A Shares	127,583	17,539
Class C Shares	53,392	159,324
Class I Shares	1,420,351	21,038,573
Dividends reinvested:
Class C Shares	2,139	—
Class I Shares	137,480	613,697
Cost of shares redeemed:
Class A Shares	(13,885)	—
Class C Shares	(8,496)	—
Class I Shares	(4,780,001)	(21,275,819)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions	(3,061,437)	553,314
Total Increase (Decrease) in Net Assets	(400,436)	1,460,181
Net Assets ($):
Beginning of Period	16,788,115	15,327,934
End of Period	16,387,679	16,788,115
Undistributed (distributions in excess of)
investment income—net	(23,114)	133,280


	Year Ended September 30,
	2010	2009^a
Capital Share Transactions:
Class A
Shares sold	5,107	1,095
Shares redeemed	(553)	—
Net Increase (Decrease) in Shares Outstanding	4,554	1,095
Class C
Shares sold	2,190	7,867
Shares issued for dividends reinvested	89	—
Shares redeemed	(369)	—
Net Increase (Decrease) in Shares Outstanding	1,910	7,867
Class I
Shares sold	59,386	903,194
Shares issued for dividends reinvested	5,719	44,521
Shares redeemed	(200,276)	(934,915)
Net Increase (Decrease) in Shares Outstanding	(135,171)	12,800

a The fund changed to a multiple class fund on March 31, 2009.The existing shares were redesignated as Class I

shares and the fund commenced offering Class A and Class C shares.

See notes to financial statements.

The Fund 17

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated.All information (except portfolio turnover rate) reflects financial results for a single fund share.Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.


	Year Ended September 30,
Class A Shares	2010	2009^a
Per Share Data ($):
Net asset value, beginning of period	22.70	13.55
Investment Operations:
Investment income—net^b	.17	.14
Net realized and unrealized
gain (loss) on investments	4.12	9.01
Total from Investment Operations	4.29	9.15
Net asset value, end of period	26.99	22.70
Total Return (%)^c	18.85	67.60^d
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	3.69	11.21^e
Ratio of net expenses to average net assets	2.25	2.00^e
Ratio of net investment income
to average net assets	.71	1.56^e
Portfolio Turnover Rate	102.30	157.45^f
Net Assets, end of period ($ x 1,000)	152	25


a	From March 31, 2009 (commencement of initial offering) to September 30, 2009.
b	Based on average shares outstanding at each month end.
c	Exclusive of sales charge.
d	Not annualized.
e	Annualized.
f	Represents portfolio turnover rate for the fund for the year.

See notes to financial statements.


	Year Ended September 30,
Class C Shares	2010	2009^a
Per Share Data ($):
Net asset value, beginning of period	22.62	13.55
Investment Operations:
Investment (loss)—net^b	(.13)	(.03)
Net realized and unrealized
gain (loss) on investments	4.17	9.10
Total from Investment Operations	4.04	9.07
Distributions:
Dividends from investment income—net	(.30)	—
Net asset value, end of period	26.36	22.62
Total Return (%)^c	17.95	66.94^d
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	4.18	3.80^e
Ratio of net expenses to average net assets	3.00	2.75^e
Ratio of net investment (loss)
to average net assets	(.57)	(.35)^e
Portfolio Turnover Rate	102.30	157.45^f
Net Assets, end of period ($ x 1,000)	258	178


a	From March 31, 2009 (commencement of initial offering) to September 30, 2009.
b	Based on average shares outstanding at each month end.
c	Exclusive of sales charge.
d	Not annualized.
e	Annualized.
f	Represents portfolio turnover rate for the fund for the year.

See notes to financial statements.

The Fund 19

FINANCIAL HIGHLIGHTS (continued)


		Year Ended September 30,
Class I Shares	2010	2009^a	2008	2007	2006^b
Per Share Data ($):
Net asset value, beginning of period	22.67	21.33	33.24	20.55	20.00
Investment Operations:
Investment income—net^c	.18	.24	.35	.31	.06
Net realized and unrealized
gain (loss) on investments	4.26	2.21	(8.86)	12.62	.49
Total from Investment Operations	4.44	2.45	(8.51)	12.93	.55
Distributions:
Dividends from investment income—net	(.32)	(.26)	(.26)	(.24)	—
Dividends from net realized
gain on investments	—	(.85)	(3.14)	—	—
Total Distributions	(.32)	(1.11)	(3.40)	(.24)	—
Net asset value, end of period	26.79	22.67	21.33	33.24	20.55
Total Return (%)	19.73	14.90	(28.51)	63.25	2.75^d
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	3.07	3.50	2.74	3.18	8.64^e
Ratio of net expenses
to average net assets	1.50	1.43	1.45	1.45	1.45^e
Ratio of net investment income
to average net assets	.75	1.43	1.21	1.15	1.31^e
Portfolio Turnover Rate	102.30	157.45	128	76	31^d
Net Assets, end of period ($ x 1,000)	15,978	16,585	15,328	13,671	5,693

a The fund commenced offering three classes of shares on March 31, 2009.The existing shares were redesignated as

Class I shares.

b From July 10, 2006 (commencement of operations) to September 30, 2006.

c Based on average shares outstanding at each month end.

d Not annualized.

e Annualized.

See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus/The Boston Company Emerging Markets Core Equity Fund (the “fund”) is a separate diversified series of Dreyfus Investment Funds (the “Trust”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering twelve series, including the fund.The fund’s investment objective is to seek long-term growth of capital. The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser.

MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares.The fund is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest in each of the following classes of shares: Class A, Class C and Class I. Class A shares are subject to a sales charge imposed at the time of purchase. Class C shares are subject to a contingent deferred sales charge (“CDSC”) on Class C shares redeemed within one year of purchase. Class I shares are sold primarily to bank trust departments and other financial service providers (including The Bank of NewYork Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus), acting on behalf of customers having a qualified trust or investment account or relationship at such institution, and bear no distribution or shareholder services fees. Class I shares are offere d without a front-end sales charge or CDSC. Other differences between the classes include the services offered to, the expenses borne by each class, the allocation of certain transfer agency costs and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

As of September 30, 2010, MBC Investments Corp., an indirect subsidiary of BNY Mellon, held 738 Class A and Class C shares of the fund.

The Fund 21

NOTES TO FINANCIAL STATEMENTS (continued)

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

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, 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 or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is available. Registered investment companies that are not traded on an exchange are valued at their net asset value.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board of Trustees. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securi-

ties and other appropriate indicators, such as prices of relevant ADRs and futures contracts. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. Forward foreign currency exchange contracts (“forward contracts”) are valued at the forward rate.

The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value.This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements.These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for
identical investments.

Level 2—other significant observable inputs (including quoted
prices for similar investments, interest rates, prepayment speeds,
credit risk, etc.).

Level 3—significant unobservable inputs (including the fund’s
own assumptions in determining the fair value of investments).

The Fund 23

NOTES TO FINANCIAL STATEMENTS (continued)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of September 30, 2010 in valuing the fund’s investments:


	Level 1—	Level 2—Other	Level 3—
	Unadjusted	Significant	Significant
	Quoted	Observable	Unobservable
	Prices	Inputs	Inputs	Total
Assets ($)
Investments in Securities:
Equity Securities—
Foreign^†	15,963,923	65,239	—	16,029,162
Mutual Funds/
Exchange
Traded Funds	372,877	—	—	372,877

† See Statement of Investments for country and industry classification.

In January 2010, FASB issued Accounting Standards Update ("ASU") No. 2010-06 "Improving Disclosures about Fair Value Measurements". The portions of ASU No. 2010-06 which require reporting entities to prepare new disclosures surrounding amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3 have been adopted by the fund. No significant transfers between Level 1 or Level 2 fair value measurements occurred at September 30, 2010. The remaining portion of ASU No. 2010-06 requires reporting entities to make new disclosures about information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements. These new and revised disclosures are required to be implemented for fiscal years beginning after December 15, 2010. Management is currently evaluating the impact that the adoption of this remaining portion of ASU No. 2010-06 may have on the fund's financial statement disclosures.

(b) 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 market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized on securities transactions between trade and settlement date and the difference between the amounts 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 resulting from changes in exchange rates. Foreign currency gains and losses on investments are included with net realized and unrealized gain or loss on investments.

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses 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, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

Pursuant to a securities lending agreement with The Bank of New York Mellon, the fund may lend securities to qualified institutions. It is the fund’s policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by the Manager, U.S. Government and Agency securities or letters of credit. The fund is

The Fund 25

NOTES TO FINANCIAL STATEMENTS (continued)

entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner. During the period ended September 30, 2010, The Bank of New York Mellon earned $544 from lending portfolio securities, pursuant to the securities lending agreement.

Investing in foreign markets may involve special risks and considerations not typically associated with investing in the U.S. These risks include revaluation of currencies, high rates of inflation, repatriation restrictions on income and capital, and adverse political and economic developments. Moreover, securities issued in these markets may be less liquid, subject to government ownership controls and delayed settlements, and their prices may be more volatile than those of comparable securities in the U.S.

(d) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as “affiliated” in the Act.

The fund may invest in shares of certain affiliated investment companies also advised or managed by Dreyfus. Investments in affiliated investment companies for the period ended September 30, 2010 were as follows:


Affiliated
Investment	Value			Value	Net
Company	9/30/2009 ($)	Purchases ($)	Sales ($) 9/30/2010 ($)		Assets (%)
Dreyfus
Institutional
Preferred
Plus Money
Market Fund	220,220	4,657,119	4,877,339	—	—
Dreyfus
Institutional
Cash Advantage
Fund	—	6,261,213	6,116,663	144,550	.9
Total	220,220	10,918,332	10,994,002	144,550	.9

(e) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends

from net realized capital gains, 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 of 1986, as amended (the “Code”). Prior to January 1, 2010, the fund paid dividends from investment income-net semi-annually.To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

(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 Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

As of and during the period ended September 30, 2010, the fund did not have any liabilities for any uncertain tax positions.The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period, the fund did not incur any interest or penalties.

Each of the tax years in the four-year period ended September 30, 2010 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At September 30, 2010, the components of accumulated earnings on tax basis were as follows: undistributed ordinary income $61,103, accumulated capital losses $2,045,216 and unrealized appreciation $2,950,957.

The accumulated capital loss carryover is available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to September 30, 2010. If not applied, $1,300,051 of the carryover expires in fiscal 2017 and $745,165 expires in fiscal 2018.

The Fund 27

NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid to shareholders during the fiscal periods ended September 30, 2010 and September 30, 2009 were as follows: ordinary income $220,401 and $200,787 and long-term capital gains $0 and $609,326, respectively.

During the period ended September 30, 2010, as a result of permanent book to tax differences, primarily due to the tax treatment for foreign currency gains and losses, passive foreign investment companies and Thailand capital gain taxes, the fund decreased accumulated undistributed investment income-net by $53,953 and increased accumulated net realized gain (loss) on investments by the same amount. Net assets and net asset value per share were not affected by this reclassification.

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed funds in a $225 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York Mellon (each, a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing.

The average amount of borrowings outstanding under the Facilities during the period ended September 30, 2010 was approximately $21,400, with a related weighted average annualized interest rate of 1.39%.

NOTE 3—Investment Advisory Fee and Other Transactions with Affiliates:

(a) Pursuant to an investment advisory agreement with the Manager, the investment advisory fee is computed at the annual rate of 1.10% of the value of the fund’s average daily net assets and is payable monthly. The Manager has agreed, until February 1, 2011, to waive receipt of its fees and/or assume the expenses of the fund so that the direct

expenses of Class A, Class C and Class I shares (excluding Rule 12b-1 fees, shareholder services fees, taxes, interest, brokerage commissions, acquired fund fees and extraordinary expenses) do not exceed 2.00%, 2.00% and 1.50%, respectively, of the value of such class’ average daily net assets. The expense reimbursement, pursuant to the undertaking, amounted to $250,935 during the period ended September 30, 2010.

The Trust entered into an agreement with The Bank of New York Mellon pursuant to which The Bank of New York Mellon provides administration and fund accounting services for the fund. For these services, the fund pays The Bank of NewYork Mellon a fixed fee plus asset and transaction based fees, as well as out-of-pocket expenses. Pursuant to this agreement, the fund was charged $45,000 during the period ended September 30, 2010 for administration and fund accounting services.

(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Class C shares pay the Distributor for distributing its shares at an annual rate of .75% of the value of the average daily net assets of Class C shares. During the period ended September 30, 2010, Class C shares were charged $1,573 pursuant to the Plan.

(c) Under the Shareholder Services Plan, Class A and Class C shares pay the Distributor at the annual rate of .25% of the value of their average daily net assets for the provision of certain services. 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 ended September 30, 2010, Class A and Class C shares were charged $197 and $524, respectively, pursuant to the Shareholder Services Pla n.

The Fund 29

NOTES TO FINANCIAL STATEMENTS (continued)

The fund 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 fund. During the period ended September 30, 2010, the fund was charged $444 pursuant to the transfer agency agreement, which is included in Shareholder servicing costs in the Statement of Operations.

The fund has arrangements with the custodian and cash management bank whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset custody and cash management fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.

The fund compensates The Bank of New York Mellon under cash management agreements for performing cash management services related to fund subscriptions and redemptions. During the period ended September 30, 2010, the fund was charged $196 pursuant to the cash management agreements, which is included in Shareholder servicing costs in the Statement of Operations.These fees were partially offset by earnings credits of $1.

The fund also compensates The Bank of New York Mellon under a custody agreement for providing custodial services for the fund. During the period ended September 30, 2010, the fund was charged $126,168 pursuant to the custody agreement.

During the period ended September 30, 2010, the fund was charged $6,380 for services performed by the Chief Compliance Officer.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: investment advisory fees $16,535, Rule 12b-1 distribution plan fees $152, shareholder services plan fees $77, custodian fees $26,600, chief compliance officer fees $1,783 and transfer agency per account fees $235, which are offset against an expense reimbursement currently in effect in the amount of $24,384.

(d) Prior to January 1, 2010, eachTrustee received $45,000 per year, plus $6,000 for each joint Board meeting of the Trust,The Dreyfus/Laurel Funds, Inc.,The Dreyfus/Laurel Funds Trust,The Dreyfus/Laurel Tax-Free Municipal Funds and Dreyfus Funds, Inc. (collectively, the “Board Group Open-End Funds”) attended, $2,000 for separate in-person committee meetings attended which were not held in conjunction with a regularly scheduled Board meeting and $1,500 for Board meetings and separate committee meetings attended that were conducted by telephone. Effective January 1, 2010, the Board Group Open-End Funds will pay each Trustee who is not an “interested person” of the Trust (as defined in the Act) $60,000 per annum, plus $7,000 per joint Board Group Open-End Funds Board meeting attended, $2,500 for separate in - -person committee meetings attended which are not held in conjunction with a regularly scheduled Board meeting and $2,000 for Board meetings and separate committee meetings attended that are conducted by telephone.The Board Group Open-End Funds also reimburse each Trustee who is not an “interested person” of theTrust (as defined in the Act) for travel and out-of-pocket expenses.With respect to Board meetings, the Chairman of the Board receives an additional 25% of such compensation (with the exception of reimbursable amounts). With respect to compensation committee meetings prior to January 1, 2010, the Chair of the compensation committee received $900 per compensation committee meeting, and, effective January 1, 2010, the Chair of each of the Board’s committees, unless the Chair also serves as Chair of the Board, will receive $1,350 per applicable committee meeting. In the event that there is an in-person joint committee meeting or a joint telephone meeting of the Board Group Open-End Funds a nd Dreyfus High Yield Strategies Fund, the $2,000 or $1,500 fee (prior to January 1, 2010) or the $2,500 or $2,000 fee (effective January 1, 2010), as applicable, is allocated between the Board Group Open-End Funds and

The Fund 31

NOTES TO FINANCIAL STATEMENTS (continued)

Dreyfus HighYield Strategies Fund.These fees and expenses are charged and allocated to each series based on net assets.

(e) A 2% redemption fee is charged and retained by the fund on certain shares redeemed within sixty days following the date of issuance, subject to exceptions, including redemptions made through the use of the fund’s exchange privilege. During the period ended September 30, 2010, redemption fees charged and retained by the fund amounted to $20.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities and forward contracts, during the period ended September 30, 2010, amounted to $16,186,361 and $19,369,787, respectively.

The provisions of ASC Topic 815 “Derivatives and Hedging” require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements. The disclosure requirements distinguish between derivatives, which are accounted for as “hedges” and those that do not qualify for hedge accounting. Because investment companies value their derivatives at fair value and recognize changes in fair value through the Statement of Operations, they do not qualify for such accounting. Accordingly, even though a fund’s investments in derivatives may represent economic hedges, they are considered to be non-hedge transactions for purposes of this disclosure.

The following summarizes the average market value and percentage of average net assets of derivatives outstanding for the period ended September 30, 2010:


		Average
	Value ($)	Net Assets (%)
Forward contracts	70,616	.44

Forward Foreign Currency Exchange Contracts: The fund enters into forward contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to settle foreign currency transactions or as a part of its investment strategy. When executing forward 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 contracts, the fund incurs 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 contracts, the fund incurs a loss if the value of the contract decreases between the date the fo rward 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. Any realized gain or loss which occurred during the period is reflected in the Statement of Operations.The fund is exposed to foreign currency risk as a result of changes in value of underlying financial instruments. The fund is also exposed to credit risk associated with counterparty nonperformance on these forward contracts, which is typically limited to the unrealized gain on each open contract. At September 30, 2010, there were no forward contracts outstanding.

At September 30, 2010, the cost of investments for federal income tax purposes was $13,453,599; accordingly, accumulated net unrealized appreciation on investments was $2,948,440 consisting of $4,171,940 gross unrealized appreciation and $1,223,500 gross unrealized depreciation.

The Fund 33

REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders Dreyfus/The Boston Company Emerging Markets Core Equity Fund:

We have audited the accompanying statement of assets and liabilities of Dreyfus/The Boston Company Emerging Markets Core Equity Fund (the “Fund”), a series of Dreyfus Investment Funds, including the statement of investments as of September 30, 2010, the related statement of operations for the year then ended, and the statements of changes in net assets and the financial highlights for each of the years in the two-year 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.The financial highlights for each of the years or periods in the three-year period ended September 30, 2008 were audited by other independent registered public accountants whose report thereon, dated November 28, 2008, expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2010 by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received.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/The Boston Company Emerging Markets Core Equity Fund as of September 30, 2010, the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for each of the years in the two-year period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York
November 24, 2010

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the fund elects to provide each shareholder with their portion of the fund’s income sourced from foreign countries and taxes paid from foreign countries. The fund designates the maximum amount allowable but not less than $407,329 as income sourced from foreign countries for the fiscal year ended September 30, 2010 in accordance with Section 853(c)(2) of the Internal Revenue Code and also the fund designates the maximum amount allowable but not less than $74,354 as taxes paid from foreign countries for the fiscal year ended September 30, 2010 in accordance with Section 853(a) of the Internal Revenue Code.Where required by federal tax rules, shareholders will receive notification of their proportionate share of foreign sourced income and foreign taxes paid for the 2010 calendar year with Form 1099-DIV which will be mailed by early 2011. Also, the fund designates the maximum amount allo wable, but not less than $147,671 as ordinary income dividends paid during the fiscal year ended September 30, 2010 as qualified dividend income in accordance with Section 854(b)(1)(B) of the Internal Revenue Code.

The Fund 35

BOARD MEMBERS INFORMATION (Unaudited)

Once elected all Board Members serve for an indefinite term, but achieve Emeritus status upon reaching age 80.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, NewYork, NewYork 10166.Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-554-4611.

The Fund 37

OFFICERS OF THE FUND (Unaudited)

BRADLEY J. SKAPYAK, President since
January 2010.

Chief Operating Officer and a director of the Manager since June 2009. From April 2003 to June 2009, Mr. Skapyak was the head of the Investment Accounting and Support Department of the Manager. He is an officer of 76 investment companies (comprised of 170 portfolios) managed by the Manager. He is 51 years old and has been an employee of the Manager since February 1988.

PHILLIP N. MAISANO, Executive Vice
President since December 2008.

Chief Investment Officer,Vice Chair and a director of the Manager, and an officer of 76 investment companies (comprised of 170 portfolios) managed by the Manager. Mr. Maisano also is an officer and/or Board member of certain other investment management subsidiaries of The Bank of New York Mellon Corporation, each of which is an affiliate of the Manager. He is 63 years old and has been an employee of the Manager since November 2006. Prior to joining the Manager, Mr. Maisano served as Chairman and Chief Executive Officer of EACM Advisors, an affiliate of the Manager, since August 2004.

MICHAEL A. ROSENBERG, Vice President
and Secretary since December 2008.

Assistant General Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 50 years old and has been an employee of the Manager since October 1991.

KIESHA ASTWOOD, Vice President and
Assistant Secretary since January 2010.

Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. She is 37 years old and has been an employee of the Manager since July 1995.

JAMES BITETTO, Vice President and
Assistant Secretary since
December 2008.

Senior Counsel of BNY Mellon and Secretary of the Manager, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President
and Assistant Secretary since
December 2008.

Senior Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. She is 54 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and
Assistant Secretary since
December 2008.

Senior Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since June 2000.

KATHLEEN DENICHOLAS, Vice President
and Assistant Secretary since
January 2010.

Senior Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. She is 35 years old and has been an employee of the Manager since February 2001.

JANETTE E. FARRAGHER, Vice President
and Assistant Secretary since
December 2008.

Assistant General Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. She is 47 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President
and Assistant Secretary since
December 2008.

Managing Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since February 1991.

M. CRISTINA MEISER, Vice President and
Assistant Secretary since January 2010.

Senior Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. She is 40 years old and has been an employee of the Manager since August 2001.

ROBERT R. MULLERY, Vice President
and Assistant Secretary since
December 2008.

Managing Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 58 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Vice President
and Assistant Secretary since
December 2008.

Managing Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since October 1990.

JAMES WINDELS, Treasurer since
December 2008.

Director –Mutual Fund Accounting of the Manager, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 52 years old and has been an employee of the Manager since April 1985.

RICHARD CASSARO, Assistant Treasurer
since December 2008.

Senior Accounting Manager –Money Market and Municipal Bond Funds of the Manager, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 51 years old and has been an employee of the Manager since September 1982.

GAVIN C. REILLY, Assistant Treasurer
since December 2008.

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since April 1991.

ROBERT ROBOL, Assistant Treasurer
since December 2008.

Senior Accounting Manager – Fixed Income Funds of the Manager, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 46 years old and has been an employee of the Manager since October 1988.

ROBERT SALVIOLO, Assistant Treasurer
since December 2008.

Senior Accounting Manager – Equity Funds the Manager, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 43 years old and has been an employee of the Manager since June 1989.

The Fund 39

OFFICERS OF THE FUND (Unaudited) (continued)

ROBERT SVAGNA, Assistant Treasurer
since December 2008.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 43 years old and has been an employee of the Manager since November 1990.

JOSEPH W. CONNOLLY, Chief Compliance
Officer since December 2008.

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (77 investment companies, comprised of 195 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 53 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

NATALIA GRIBAS, Anti-Money Laundering
Compliance Officer since July 2010.

Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 73 investment companies (comprised of 191 portfolios) managed by the Manager. She is 40 years old and has been an employee of the Distributor since September 2008.

For More Information

Telephone Call your financial representative or 1-800-554-4611

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the fund voted these proxies for the most recent 12-month period ended June 30 is available at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

Dreyfus/The Boston

Company International

Core Equity Fund

ANNUAL REPORT September 30, 2010

	Contents
	THE FUND
2	A Letter from the Chairman and CEO
3	Discussion of Fund Performance
6	Fund Performance
7	Understanding Your Fund’s Expenses
7	Comparing Your Fund’s Expenses With Those of Other Funds
8	Statement of Investments
13	Statement of Assets and Liabilities
14	Statement of Operations
15	Statement of Changes in Net Assets
16	Financial Highlights
17	Notes to Financial Statements
30	Report of Independent Registered Public Accounting Firm
31	Important Tax Information
31	Proxy Results
32	Board Members Information
34	Officers of the Fund
	FOR MORE INFORMATION
	Back Cover

Dreyfus/The Boston
Company International
Core Equity Fund

The Fund

A LETTER FROM THE CHAIRMAN AND CEO

Dear Shareholder:

This annual report for Dreyfus/The Boston Company International Core Equity Fund covers the 12-month period from October 1, 2009, through September 30, 2010.

For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.

Thank you for your continued confidence and support.

Jonathan R. Baum
Chairman and Chief Executive Officer
The Dreyfus Corporation
October 15, 2010

DISCUSSION OF FUND PERFORMANCE

For the period of October 1, 2009, through September 30, 2010, as provided by Sean Fitzgibbon and Mark Bogar, Portfolio Managers

Fund and Market Performance Overview

For the 12-month period ended September 30, 2010, Dreyfus/The Boston Company International Core Equity Fund’s Class I shares produced a total return of 3.18%.¹In comparison, the fund’s benchmark, the Morgan Stanley Capital International Europe, Australasia, Far East Index (“MSCI EAFE Index”), produced a total return of 3.27% for the same period.²

International stocks encountered heightened volatility amid intensifying economic concerns, ending the reporting period with modest gains.The fund produced returns that were roughly in line with its benchmark, as above-average results from information technology and industrials stocks balanced shortfalls in the health care and materials sectors.

The Fund’s Investment Approach

The objective of the fund is to seek long-term growth of capital.To pursue this goal, the fund normally invests at least 80% of net assets in equity securities of companies that are represented in the MSCI EAFE Index and Canada.The fund intends to invest in a broad range of (and in any case at least five different) countries.The fund may invest up to 25% of its assets in emerging market countries, but no more than 5% of its assets may be invested in issuers located in any one emerging market country.

We employ a “bottom-up” investment approach, which emphasizes individual stock selection, and is designed to produce a diversified portfolio that, relative to the MSCI EAFE Index, frequently has a below-average price/earnings ratio and an above-average earnings growth trend.

International Equities Volatile in Struggling Economy

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

eign debt crisis in Europe, where Greece found itself unable to finance a heavy debt load. In addition, global investors worried that efforts to forestall inflationary pressures in China might dampen a key engine of global economic growth. An appreciating currency hurt exports in Japan, and high unemployment levels weighed on the United States.

The sovereign debt crisis was especially hard on banking stocks, particularly those exposed to Europe’s more indebted economies. Energy stocks throughout the world were punished by the catastrophic oil spill in the Gulf of Mexico early in the reporting period, as investors reacted to uncertainty regarding potential liabilities and regulatory scrutiny of offshore drilling activity. In addition, over the reporting period’s second half, falling currency exchange rates relative to the U.S. dollar in most major markets except Japan undermined returns for U.S. residents.

Technology and Automobile Stocks Boosted Fund Results

In this environment, the fund achieved strong relative performance in the information technology sector, where Japanese electronics and industrial conglomerate Hitachi successfully restructured, reducing costs and boosting profit margins.The fund also benefited from lack of exposure to wireless handset maker Nokia, which has lost market share to smart-phones from other manufacturers. In the industrials sector, automakers Volkswagen and Honda Motor gained value as demand intensified for smaller cars and motorcycles in the emerging markets. Conversely, the fund did not own shares of Toyota Motor, which lost market share amid highly publicized safety recalls.The fund also benefited from its security selection strategy in Japan’s financials sector, where it avoided weakness among large banks and participated in gains among real estate firms.

The fund encountered more disappointing results in the health care sector, where German generic drug maker STADA Arzneimittel was hurt by intensifying pricing and competitive pressures, prompting us to sell the fund’s position in the company. Similarly, Swiss pharmaceutical giant Roche Holding was hurt when generic versions of its biologic medications put pressure on pricing. Results from the materials sector were undermined by Irish building materials company CRH when a number of government construction projects were delayed due to fiscal pressures stemming from Europe’s sovereign debt crisis and sluggish

economy. Finally, Swiss oil refiner Petroplus Holdings was hurt by overcapacity issues, which depressed earnings.

Finding Opportunities in Volatile Markets

As of the reporting period’s end, we expect the subpar global economic recovery to continue, with generally sluggish growth in developed markets and more robust expansion in emerging markets. In addition, equity valuations have moderated to more reasonable levels in some regions, especially Europe.Therefore, it is not surprising to us that our bottom-up stock selection process has found a number of opportunities in recently beaten-down sectors and regions, including energy stocks in the wake of the Gulf oil spill, certain European banks, and companies in Japan and Europe that derive significant revenues from the emerging markets. In our judgment, these strategies position the fund for gains as the global economy gradually gains momentum and investors refocus on the fundamental strengths of individual companies.

October 15, 2010


	Equity funds are subject generally to market, market sector, market liquidity, issuer and investment
	style risks, among other factors, to varying degrees, all of which are more fully described in the
	fund’s prospectus.
	The fund’s performance will be influenced by political, social and economic factors affecting
	investments in foreign companies. Special risks associated with investments in foreign companies
	include exposure to currency fluctuations, less liquidity, less developed or less efficient trading
	markets, lack of comprehensive company information, political instability and differing auditing
	and legal standards.These risks are enhanced in emerging markets countries. Investments in foreign
	currencies are subject to the risk that those currencies will decline in value relative to the U.S.
	dollar, or, in the case of hedged positions, that the U.S. dollar will decline relative to the currency
	being hedged. Each of these risks could increase the fund’s volatility.
1	Total return includes reinvestment of dividends and any capital gains paid. Past performance is no
	guarantee of future results. Share price and investment return fluctuate such that upon redemption,
	fund shares may be worth more or less than their original cost.The fund’s returns reflect the
	absorption of certain fund expenses by The Dreyfus Corporation pursuant to an agreement in
	effect through February 1, 2011, at which time it may be extended, terminated or modified. Had
	these expenses not been absorbed, the fund’s returns would have been lower.
2	SOURCE: LIPPER INC. – Reflects reinvestment of net dividends and, where applicable,
	capital gain distributions.The Morgan Stanley Capital International Europe,Australasia, Far
	East (MSCI EAFE) Index is an unmanaged index composed of a sample of companies
	representative of the market structure of European and Pacific Basin countries. Returns are
	calculated on a month-end basis. Investors cannot invest directly in any index.

The Fund 5

FUND PERFORMANCE

Comparison of change in value of $10,000 investment in Dreyfus/The Boston Company International Core Equity Fund Class I shares and the Morgan Stanley Capital International Europe Australasia Far East Index


Average Annual Total Returns as of 9/30/10
	1 Year	5 Years	10 Years
Class I shares	3.18%	–1.50%	4.56%
Morgan Stanley Capital International
Europe Australasia Far East Index	3.27%	1.97%	2.56%

^†Source: Lipper Inc.

Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not

reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

The above graph compares a $10,000 investment made in Class I shares of Dreyfus/The Boston Company International

Core Equity Fund on 9/30/00 to a $10,000 investment made in the Morgan Stanley Capital International Europe

Australasia Far East Index (the “Index”) on that date.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 Index is an

unmanaged index composed of a sample of companies representative of the market structure of European and Pacific

Basin countries. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest

directly in any index.These factors can contribute to the Index potentially outperforming the fund. 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.

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus/The Boston Company International Core Equity Fund from April 1, 2010 to September 30, 2010. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended September 30, 2010


Expenses paid per $1,000^†	$ 4.12
Ending value (after expenses)	$1,006.20

COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

Expenses and Value of a $1,000 Investment
assuming a hypothetical 5% annualized return for the six months ended September 30, 2010


Expenses paid per $1,000^†	$ 4.15
Ending value (after expenses)	$1,020.96


†	Expenses are equal to the fund’s annualized expense ratio of .82% for Class I, multiplied by the average account
	value over the period, multiplied by 183/365 (to reflect the one-half year period).

The Fund 7

STATEMENT OF INVESTMENTS

September 30, 2010


Common Stocks—89.4%	Shares		Value ($)
Australia—6.1%
AGL Energy	6,980		109,091
Atlas Iron	40,730	^a	91,333
Australia & New Zealand Banking Group	5,250		120,161
BHP Billiton	3,923		147,538
Commonwealth Bank of Australia	4,280		211,681
Dexus Property Group	191,570 ^b		158,313
Macquarie Group	2,410		84,487
Stockland	36,810		136,622
Westfield Group	13,482		159,760
			1,218,986
Austria—.9%
Erste Group Bank	4,688		187,701
Denmark—.9%
Carlsberg, Cl. B	1,720		179,337
Finland—1.5%
Fortum	4,620		120,863
Sampo, Cl. A	6,530		176,349
			297,212
France—10.6%
BNP Paribas	4,150		295,152
France Telecom	13,110		283,275
GDF Suez	6,143		219,913
Legrand	2,960		100,114
Rhodia	6,100		146,151
Sanofi-Aventis	3,378		225,073
Societe Generale	4,210		242,485
Technip	1,070		86,048
Total	7,020		361,795
Valeo	3,250 ^a		150,573
			2,110,579
Germany—3.8%
BASF	2,110		133,051
E.ON	3,330		98,192
Lanxess	1,760		96,429


Common Stocks (continued)	Shares	Value ($)
Germany (continued)
Metro	4,550	296,184
SAP	2,650	131,084
		754,940
Hong Kong—1.0%
Hongkong Land Holdings	33,000	204,930
Ireland—.8%
CRH	5,205	85,291
Dragon Oil	11,790 ^a	81,538
		166,829
Italy—2.2%
Enel	18,200	97,012
ENI	10,020	216,234
UniCredit	48,010	122,587
		435,833
Japan—18.7%
Asahi Kasei	19,000	104,696
Canon	5,300	247,287
Central Japan Railway	24	176,521
Daihatsu Motor	10,000	133,804
Daito Trust Construction	1,900	113,572
Fujitsu	31,000	217,609
Hino Motors	33,000	159,308
Hitachi	57,000	249,221
Honda Motor	6,100	216,511
JFE Holdings	1,900	58,106
Kaneka	15,000	90,022
Keihin	7,900	162,580
Lawson	2,300	105,385
Makita	3,900	123,662
Miraca Holding	3,800	134,511
Mitsubishi	9,400	223,064
Mitsubishi UFJ Financial Group	26,400	123,019
Sankyo	1,100	58,241
SMC	1,300	171,454

The Fund 9

STATEMENT OF INVESTMENTS (continued)


Common Stocks (continued)	Shares		Value ($)
Japan (continued)
Softbank	4,000		130,858
Sumitomo Mitsui Financial Group	4,800		139,837
Sumitomo Trust & Banking	10,000		50,072
Tokai Rika	3,900		65,966
Tokyo Gas	26,000		118,040
Toyo Suisan Kaisha	8,000		164,926
Yahoo! Japan	248		85,677
Yamada Denki	1,840		114,173
			3,738,122
Luxembourg—1.7%
ArcelorMittal	3,170		104,408
L’Occitane International	45,250		125,972
Millicom International Cellular, SDR	1,090		103,981
			334,361
Netherlands—4.0%
ING Groep	22,410 ^a		232,489
Koninklijke Ahold	7,250		97,729
Koninklijke Philips Electronics	6,380		200,522
TNT	6,350		170,623
Unilever	3,360		100,428
			801,791
Norway—1.6%
Petroleum Geo-Services	5,400	^a	61,564
Subsea 7	4,757	^a	92,937
Telenor	10,600		165,998
			320,499
Spain—4.3%
Amadeus IT Holding, Cl. A	5,250		96,585
Banco Bilbao Vizcaya Argentaria	19,660		265,469
Banco Santander	39,050		495,990
			858,044
Sweden—2.7%
Atlas Copco, Cl. A	11,600		223,899
Electrolux, Ser. B	6,320		155,648
Sandvik	10,030		153,716
			533,263


Common Stocks (continued)	Shares		Value ($)
Switzerland—8.1%
Adecco	2,570		134,300
Credit Suisse Group	4,750		203,022
Nestle	4,819		256,729
Novartis	3,046		174,673
Petroplus Holdings	7,580	^a	91,949
Roche Holding	1,704		232,714
Sulzer	1,152		133,647
Transocean	2,780 ^a		180,071
Zurich Financial Services	860		201,555
			1,608,660
United Kingdom—19.5%
Anglo American	5,518		218,915
Barclays	52,280		246,051
Berkeley Group Holdings	12,000	^a	155,707
British American Tobacco	8,450		315,193
BT Group	30,680		67,473
Compass Group	14,890		124,087
Cookson Group	22,296 ^a		191,585
GlaxoSmithKline	21,970		432,960
HSBC Holdings	20,440		207,104
IMI	13,450		162,161
Imperial Tobacco Group	4,180		124,563
Kingfisher	45,570		167,654
Legal & General Group	60,380		98,170
Old Mutual	59,910		130,628
Rio Tinto	5,100		298,110
Royal Dutch Shell, Cl. B	9,000		262,544
Smith & Nephew	9,560		87,178
Thomas Cook Group	63,360		170,996
Unilever	10,270		297,010
WPP	10,560		116,867
			3,874,956
United States—1.0%
Transocean	3,150	^a	202,513
Total Common Stocks
(cost $15,178,946)			17,828,556

The Fund 11

STATEMENT OF INVESTMENTS (continued)


Preferred Stocks—1.4%	Shares	Value ($)
Germany
Volkswagen
(cost $207,386)	2,370	286,032

Total Investments (cost $15,386,332)	90.8%	18,114,588
Cash and Receivables (Net)	9.2%	1,827,100
Net Assets	100.0%	19,941,688

SDR—Swedish Depository Receipts
a Non-income producing security.
b Purchased on a delayed delivery basis.


Portfolio Summary (Unaudited)^†

	Value (%)		Value (%)
Financial	23.0	Health Care	6.5
Industrial	11.6	Information Technology	5.2
Consumer Discretionary	11.1	Telecommunication Services	3.8
Consumer Staples	9.7	Utilities	3.8
Energy	8.2
Materials	7.9		90.8

† Based on net assets.
See notes to financial statements.

STATEMENT OF ASSETS AND LIABILITIES

September 30, 2010


	Cost	Value
Assets ($):
Investments in securities—See Statement of Investments	15,386,332	18,114,588
Cash		31,337
Cash denominated in foreign currencies	41,577	42,199
Dividends and interest receivable		1,552,157
Receivable for investment securities sold		433,852
Unrealized appreciation on forward foreign
currency exchange contracts—Note 4		273
Prepaid expenses		8,288
		20,182,694
Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(b)		25,994
Payable for investment securities purchased		157,664
Payable for shares of Beneficial Interest redeemed		3,084
Interest Payable—Note 2		70
Accrued expenses		54,194
		241,006
Net Assets ($)		19,941,688
Composition of Net Assets ($):
Paid-in capital		125,380,145
Accumulated undistributed investment income—net		134,330
Accumulated net realized gain (loss) on investments		(108,562,337)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions		2,989,550
Net Assets ($)		19,941,688
Class I Shares Outstanding
(unlimited number of $.001 par value shares of Beneficial Interest authorized)		1,223,841
Net Asset Value, offering and redemption price per share—Note 3(d) ($)		16.29

See notes to financial statements.

The Fund 13


STATEMENT OF OPERATIONS
Year Ended September 30, 2010




Investment Income ($):
Income:
Cash dividends (net of $77,971 foreign taxes withheld at source):
Unaffiliated issuers	815,346
Affiliated issuers	171
Total Income	815,517
Expenses:
Investment advisory fee—Note 3(a)	282,049
Custodian fees—Note 3(b)	87,341
Shareholder servicing costs—Note 3(b)	69,168
Accounting and administration fees—Note 3(a)	46,500
Auditing fees	32,170
Registration fees	23,372
Legal fees	12,892
Prospectus and shareholders’ reports	7,626
Interest expense—Note 2	2,924
Trustees’ fees and expenses—Note 3(c)	1,958
Miscellaneous	18,666
Total Expenses	584,666
Less—reduction in investment advisory fee
due to undertaking—Note 3(a)	(223,975)
Less—reduction in fees due to earnings credits—Note 3(b)	(1)
Net Expenses	360,690
Investment Income—Net	454,827
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments and foreign currency transactions	8,095,443
Net realized gain (loss) on financial futures	376,614
Net realized gain (loss) on forward foreign currency exchange contracts	(89,376)
Net Realized Gain (Loss)	8,382,681
Net unrealized appreciation (depreciation)
on investments and foreign currency transactions	(7,566,187)
Net unrealized appreciation (depreciation)
on forward foreign currency exchange contracts	1,091
Net Unrealized Appreciation (Depreciation)	(7,565,096)
Net Realized and Unrealized Gain (Loss) on Investments	817,585
Net Increase in Net Assets Resulting from Operations	1,272,412

See notes to financial statements.

STATEMENT OF CHANGES IN NET ASSETS


	Year Ended September 30,
	2010	2009^a
Operations ($):
Investment income—net	454,827	1,737,991
Net realized gain (loss) on investments	8,382,681	(81,102,204)
Net unrealized appreciation
(depreciation) on investments	(7,565,096)	48,787,858
Net Increase (Decrease) in Net Assets
Resulting from Operations	1,272,412	(30,576,355)
Dividends to Shareholders from ($):
Investment income—net	(1,075,025)	(585,331)
Beneficial Interest Transactions ($):
Net proceeds from shares sold	3,935,707	16,123,438
Dividends reinvested	676,715	492,304
Cost of shares redeemed	(59,371,916)	(85,828,572)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions	(54,759,494)	(69,212,830)
Total Increase (Decrease) in Net Assets	(54,562,107)	(100,374,516)
Net Assets ($):
Beginning of Period	74,503,795	174,878,311
End of Period	19,941,688	74,503,795
Undistributed investment income—net	134,330	617,903
Capital Share Transactions (Shares):
Shares sold	250,745	1,199,137
Shares issued for dividends reinvested	42,295	36,440
Shares redeemed	(3,638,683)	(6,786,945)
Net Increase (Decrease) in Shares Outstanding	(3,345,643)	(5,551,368)

a Effective September 1, 2009, the fund’s shares were redesignated as Class I shares.
See notes to financial statements.

The Fund 15

FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.


		Year Ended September 30,
Class I Shares	2010	2009^a	2008	2007	2006
Per Share Data ($):
Net asset value, beginning of period	16.30	17.28	46.03	39.01	34.34
Investment Operations:
Investment income—net^b	.20	.25	.49	.78	.71
Net realized and unrealized
gain (loss) on investments	.31	(1.13)	(10.82)	7.82	5.59
Total from Investment Operations	.51	(.88)	(10.33)	8.60	6.30
Distributions:
Dividends from
investment income—net	(.52)	(.10)	(.44)	(.60)	(.40)
Dividends from net realized
gain on investments	—	—	(17.98)	(.98)	(1.23)
Total Distributions	(.52)	(.10)	(18.42)	(1.58)	(1.63)
Net asset value, end of period	16.29	16.30	17.28	46.03	39.01
Total Return (%)	3.18	(4.97)	(35.03)	22.37	19.01
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.66	1.27	1.07	.78^c	.88^c
Ratio of net expenses
to average net assets	1.02	1.21	.87	.77^c	.88^c
Ratio of net investment income
to average net assets	1.29	1.88	1.70	1.78	1.91
Portfolio Turnover Rate	79.27	163.94	98	83^d	51^d
Net Assets, end of period
($ x 1,000)	19,942	74,504	174,878	1,257,378	2,015,088

a Effective September 1, 2009, the fund’s shares were redesignated as Class I shares.

b Based on average shares outstanding at each month end.

c Includes the fund’s share of the The Boston Company International Core Equity Portfolio’s (the “Portfolio”)

allocated income and expenses.

d On September 19, 2007, the fund, which owned 100% of the Portfolio on such date, withdrew entirely from the

Portfolio and received the Portfolio’s securities and cash in exchange for its interest in the Portfolio. Effective

September 20, 2007, the fund began investing directly in the securities in which the Portfolio had invested. Portfolio

turnover represents activity of both the fund and the Portfolio for 2007.The amount shown for 2006 is the turnover

rate for the Portfolio.

See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus/The Boston Company International Core Equity Fund (the “fund”) is a separate diversified series of Dreyfus Investment Funds (the “Trust”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering twelve series, including the fund.The fund’s investment objective is to seek long-term growth of capital. The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares, which are sold without a sales charge.

The Fund 17

NOTES TO FINANCIAL STATEMENTS (continued)

that day, at the last sales price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is available. Registered investment companies that are not traded on an exchange are valued at their net asset value.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board ofTrustees. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant American Depository Receipts and futures contracts. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. Forward foreign currency exchange contracts (“forward contracts”) are valued at the forward rate.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements.These inputs are summarized in the three broad levels listed below:

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of September 30, 2010 in valuing the fund’s investments:


	Level 1—	Level 2—Other	Level 3—
	Unadjusted	Significant	Significant
	Quoted	Observable	Unobservable
	Prices	Inputs	Inputs	Total
Assets ($)
Investments in Securities:
Equity Securities—
Domestic^†	202,513	—	—	202,513
Equity Securities—
Foreign^†	17,912,075	—	—	17,912,075
Other Financial
Instruments:
Forward Foreign
Currency Exchange
Contracts^††	—	273	—	273


†	See Statement of Investments for country and industry classification.
^††	Amount shown represents unrealized appreciation at period end.

The Fund 19

NOTES TO FINANCIAL STATEMENTS (continued)

In January 2010, FASB issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about Fair Value Measurements”. The portions of ASU No. 2010-06 which require reporting entities to prepare new disclosures surrounding amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3 have been adopted by the fund. No significant transfers between Level 1 or Level 2 fair value measurements occurred at September 30, 2010. The remaining portion of ASU No. 2010-06 requires reporting entities to make new disclosures about information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements.These new and r evised disclosures are required to be implemented for fiscal years beginning after December 15, 2010. Management is currently evaluating the impact that the adoption of this remaining portion of ASU No. 2010-06 may have on the fund’s financial statement disclosures.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized on securities transactions between trade and settlement date and the difference between the amounts 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, resulting from changes in exchange rates. Foreign currency gains and losses on investments are included with net realized and unrealized gain or loss on investments.

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses

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, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

(d) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as “affiliated” in the Act.


Affiliated
Investment	Value			Value	Net
Company	9/30/2009 ($)	Purchases ($)	Sales ($)	9/30/2010 ($)	Assets (%)
Dreyfus
Institutional
Preferred
Plus Money
Market Fund	207,323	15,379,507	15,586,830	—	—

(e) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gains, 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 of 1986, as amended (the “Code”). Prior to January 1, 2010, the fund paid dividends from investment income-net semi-annually.To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

The Fund 21

NOTES TO FINANCIAL STATEMENTS (continued)

Each of the tax years in the four-year period ended September 30, 2010 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At September 30, 2010, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $254,202, accumulated capital losses $107,434,722 and unrealized appreciation $1,742,063.

The accumulated capital loss carryover is available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to September 30, 2010. If not applied, $49,294,163 of the carryover expires in fiscal 2017 and $58,140,559 expires in fiscal 2018.

The tax character of distributions paid to shareholders during the fiscal periods ended September 30, 2010 and September 30, 2009 were as follows: ordinary income $1,075,025 and $585,331.

During the period ended September 30, 2010, as a result of permanent book to tax differences, primarily due to the tax treatment for foreign currency gains and losses, passive foreign investment companies and recognition of book to tax differences resulting from prior year fund restructure, the fund increased accumulated undistributed investment income-net by $136,625, decreased accumulated net realized gain (loss) on investments by $155,014 and increased paid-in capital by $18,389. Net assets and net asset value per share were not affected by this reclassification.

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed funds in a $225 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, (each, a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing.

The average amount of borrowings outstanding under the Facilities during the period ended September 30, 2010 was approximately $211,200, with a related weighted average annualized interest rate of 1.38%.

NOTE 3—Investment Advisory Fee and Other Transactions With Affiliates:

(a) Pursuant to an investment advisory agreement with the Manager, the investment advisory fee is computed at the annual rate of .80% of the value of the fund’s average daily net assets up to $500 million, .75% of the next $500 million of such assets, .70% of the next $500 million of such assets, .60% of the next $500 million of such assets, and .50% of the fund’s average daily net assets in excess of $2 billion and is payable monthly.

The Manager has agreed to waive receipt of its fees and/or assume the expenses of the fund, from February 11, 2010 until February 1, 2011, so that the annual direct expenses of the fund (excluding taxes, interest, brokerage commissions, acquired fund fees and extraordinary expenses) do not exceed 1.00% of the value of the fund’s average daily net assets. Prior to February 11, 2010, the Manager was limiting the fund’s operating expenses or assuming all or part of the expenses of the fund, so that such expenses (exclusive of expenses as described above) did not exceed an annual rate of 1.25% of the value of the fund’s average daily net assets. The reduction in investment advisory fee, pursuant to the undertakings, amounted to $223,975 during the period ended September 30, 2010.

The Fund 23

NOTES TO FINANCIAL STATEMENTS (continued)

The Trust entered into an agreement with The Bank of New York Mellon pursuant to which The Bank of New York Mellon provides administration and fund accounting services for the fund. For these services, the fund pays The Bank of NewYork Mellon a fixed fee plus asset and transaction based fees, as well as out-of-pocket expenses. Pursuant to this agreement, the fund was charged $46,500 during the period ended September 30, 2010 for administration and fund accounting services.

(b) The fund 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 fund. During the period ended September 30, 2010, the fund was charged $2,350 pursuant to the transfer agency agreement, which is included in Shareholder servicing costs in the Statement of Operations.

The fund compensates The Bank of New York Mellon under cash management agreements for performing cash management services related to fund subscriptions and redemptions. During the period ended September 30, 2010, the fund was charged $324 pursuant to the cash management agreements, which is included in Shareholder servicing costs in the Statement of Operations.These fees were partially offset by earnings credits of $1.

During the period ended September 30, 2010, the fund was charged $6,380 for services performed by the Chief Compliance Officer.

The components of “Due toThe Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: investment advisory fees $15,433, custodian fees $16,448, chief compliance officer fees $1,783 and transfer agency per account fees $1,500, which are offset against an expense reimbursement currently in effect in the amount of $9,170.

(c) Prior to January 1, 2010, eachTrustee received $45,000 per year, plus $6,000 for each joint Board meeting of the Trust,The Dreyfus/Laurel Funds, Inc.,The Dreyfus/Laurel Funds Trust,The Dreyfus/Laurel Tax-Free Municipal Funds and Dreyfus Funds, Inc. (collectively, the “Board Group Open-End Funds”) attended, $2,000 for separate in-person committee meetings attended which were not held in conjunction with a regularly scheduled Board meeting and $1,500 for Board meetings and separate committee meetings attended that were conducted by telephone. Effective January 1, 2010, the Board Group Open-End Funds will pay each Trustee who is not an “interested person” of the Trust (as defined in the Act) $60,000 per annum, plus $7,000 per joint Board Group Open-End Funds Board meeting attended, $2,500 for separate in - -person committee meetings attended which are not held in conjunction with a regularly scheduled Board meeting and $2,000 for Board meetings and separate committee meetings attended that are conducted by telephone.The Board Group Open-End Funds also reimburse each Trustee who is not an “interested person” of theTrust (as defined in the Act) for travel and out-of-pocket expenses.With respect to Board meetings, the Chairman of the Board receives an additional 25% of such compensation (with the exception of reimbursable amounts). With respect to compensation committee meetings prior to January 1, 2010, the Chair of the compensation committee received $900 per compensation committee meeting, and, effective January 1, 2010, the Chair of each of the Board’s committees, unless the Chair also serves as Chair of the Board, will receive $1,350 per applicable committee meeting. In the event that there is an in-person joint committee meeting or a joint telephone meeting of the Board Group Open-End Funds a nd Dreyfus High

The Fund 25

NOTES TO FINANCIAL STATEMENTS (continued)

Yield Strategies Fund, the $2,000 or $1,500 fee (prior to January 1, 2010) or the $2,500 or $2,000 fee (effective January 1, 2010), as applicable, is allocated between the Board Group Open-End Funds and Dreyfus HighYield Strategies Fund.TheTrust’s portion of these fees and expenses are charged and allocated to each series based on net assets.

(d) A 2% redemption fee was charged and retained by the fund on certain shares redeemed within sixty days following the date of issuance, subject to exceptions, including redemptions made through the use of the fund’s exchange privilege. During the period ended September 30, 2010, redemption fees charged and retained by the fund amounted to $9,630.

Effective December 15, 2010, the fund will no longer assess a redemption fee on shares that are redeemed or exchanged before the end of the required holding period. The fund reserves the right to reimpose a redemption fee in the future.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, financial futures and forward contracts, during the period ended September 30, 2010, amounted to $26,941,959 and $81,939,978, respectively.

The fund adopted the provisions of ASC Topic 815 “Derivatives and Hedging” which requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements. The disclosure requirements distinguish between derivatives, which are accounted for as “hedges” and those that do not qualify for hedge accounting. Because investment companies value their derivatives at fair value and recognize changes in fair value through the Statement of Operations, they do not qualify for such accounting.Accordingly, even though a fund’s investments in derivatives may represent economic hedges, they are considered to be non-hedge transactions for purposes of this disclosure.The following tables show the fund’s expos ure to different types of market risk as it relates to the Statement of Assets and Liabilities and the Statement of Operations, respectively.

Fair value of derivative instruments as of September 30, 2010 is shown below:


	Derivative	Derivative
	Assets ($)	Liabilities ($)
Foreign exchange risk¹	273 Foreign exchange risk	—
Gross fair value of
derivative contracts	273	—

Statement of Assets and Liabilities location:
1 Unrealized appreciation on forward foreign currency exchange contracts.

The effect of derivative instruments in the Statement of Operations during the period ended September 30, 2010 is shown below:

Amount of realized gain or (loss) on derivatives recognized in income ($)


		Forward
Underlying risk	Futures²	Contracts³	Total
Equity	376,614	—	376,614
Foreign exchange	—	(89,376)	(89,376)
Total	376,614	(89,376)	287,238

Change in unrealized appreciation or (depreciation) on derivatives recognized in income ($)


Underlying risk	Forward Contracts⁴
Foreign exchange	1,091


Statement of Operations location:
2	Net realized gain (loss) on financial futures.
3	Net realized gain (loss) on forward foreign currency exchange contracts.
4	Net unrealized appreciation on forward foreign currency exchange contracts.

The following summarizes the average market value and percentage of average net assets of derivatives outstanding for the period ended September 30, 2010:


		Average
	Value ($)	Net Assets (%)
Equity futures contracts	596,816	1.69
Forward contracts	1,064,396	3.02

The Fund 27

NOTES TO FINANCIAL STATEMENTS (continued)

fund invests in financial futures contracts in order to manage its exposure to or protect against changes in the market.A futures contract represents a commitment for the future purchase or a sale of an asset at a specified date. Upon entering into such contracts, these investments require initial margin deposits with a broker, which consist of cash or cash equivalents. 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. Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses which are recorded in the Statement of Operations. Futures contracts are valued daily at the last sales price established by the Board of Trade or exchange upon which they are traded. When the contracts are closed, the fund recognizes a realized gain or loss.There is minimal counterparty credit risk to the fund with futures since futures a re exchange traded, and the exchange’s clearinghouse guarantees the futures against default.At September 30, 2010, there were no financial futures contracts outstanding.

Forward Foreign Currency Exchange Contracts: The fund enters into forward contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to settle foreign currency transactions or as a part of its investment strategy. When executing forward 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 contracts, the fund incurs 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 contracts, the fund incurs 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. Any realized gain or loss which occurred during the period is reflected in the Statement of Operations.The fund is exposed to foreign currency risk as a result of changes in value of underlying financial instruments.

The fund is also exposed to credit risk associated with counterparty nonperformance on these forward contracts, which is typically limited to the unrealized gain on each open contract.The following summarizes open forward contracts at September 30, 2010:


	Foreign
Forward Foreign Currency	Currency			Unrealized
Exchange Contracts	Amounts	Proceeds ($)	Value ($)	Appreciation ($)
Sales:
Euro,
Expiring 10/4/2010	85,426	116,461	116,457	4
Swiss Franc,
Expiring 10/4/2010	44,872	45,933	45,664	269
Gross Unrealized
Appreciation				273

At September 30, 2010, the cost of investments for federal income tax purposes was $16,633,819; accordingly, accumulated net unrealized appreciation on investments was $1,480,769, consisting of $3,128,939 gross unrealized appreciation and $1,648,170 gross unrealized depreciation.

NOTE 5—Plan of Liquidation and Dissolution:

At a Board meeting on July 28 and 29, 2010, the Board ofTrustees of the Trust approved a Plan of Liquidation and Dissolution (the “Plan”), subject to shareholder approval.The Plan provides for the liquidation of the fund, the pro rata distribution of the assets of the fund to its shareholders and the closing of fund shareholder accounts (the “Liquidation”). At a special meeting of shareholders of the fund held on November 17, 2010, the Liquidation was approved by fund shareholders and the Liquidation will occur on or about January 25, 2011. See Proxy Results (Unaudited). Effective September 1, 2010, in connection with the Liquidation, the fund is no longer accepting any new or subsequent investments, except that participants in group retirement plans are able to continue to invest in the fund and investments made pursuant to the fund’s automatic investment plans can continue until the Liqu idation.

The Fund 29

REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders of

Dreyfus/The Boston Company International Core Equity Fund:

We have audited the accompanying statement of assets and liabilities of Dreyfus/The Boston Company International Core Equity Fund (the “Fund”), a series of Dreyfus Investment Funds, including the statement of investments as of September 30, 2010, the related statement of operations for the year then ended, and the statements of changes in net assets and the financial highlights for each of the years in the two-year 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.The financial highlights for each of the years in the three-year period ended September 30, 2008 were audited by other independent registered public accountants whose report thereon, dated November 28, 2008, expressed an unqualified opinion on those fina ncial highlights.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus/The Boston Company International Core Equity Fund as of September 30, 2010, the results of its operations for the year then ended, and the changes in its net assets, and the financial highlights for each of the years in the two-year period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York
November 24, 2010

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the fund elects to provide each shareholder with their portion of the fund’s income sourced from foreign countries and taxes paid from foreign countries. The fund designates the maximum amount allowable but not less than $885,964 as income sourced from foreign countries for the fiscal year ended September 30, 2010 in accordance with Section 853(c)(2) of the Internal Revenue Code and also the fund designates the maximum amount allowable but not less than $68,109 as taxes paid from foreign countries for the fiscal year ended September 30, 2010 in accordance with Section 853(a) of the Internal Revenue Code.Where required by federal tax rules, shareholders will receive notification of their proportionate share of foreign sourced income and foreign taxes paid for the 2010 calendar year with Form 1099-DIV which will be mailed by early 2011. Also, the fund designates the maximum amount allo wable, but not less than $1,075,025 as ordinary income dividends paid during the fiscal year ended September 30, 2010 as qualified dividend income in accordance with Section 854(b)(1)(B) of the Internal Revenue Code.

PROXY RESULTS (Unaudited)

The Trust held a special meeting of fund shareholders on November 17, 2010.The proposal considered at the meeting, and the results, are as follows:


		Shares
	Votes For		Authority Withheld
To approve a Plan of Liquidation pursuant
to which the fund’s remaining assets will
be liquidated, known liabilities satisfied
and the remaining proceeds distributed
pro rata to fund shareholders	1,166,798		11,046

The Fund 31

BOARD MEMBERS INFORMATION (Unaudited)

J.Tomlinson Fort, Emeritus Board Member