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)

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

Registrant's telephone number, including area code:				(212) 922-6400

Date of fiscal year end:		09/30
Date of reporting period:		09/30/16

The following N-CSR relates only to the Registrant's series listed below and does not relate to the other series of the Registrant, which have different fiscal year end(s) and, therefore, different N-CSR reporting requirements. A separate N-CSR will be filed for those series, as appropriate.

Dreyfus Diversified Emerging Markets Fund

Dreyfus/Newton International Equity Fund

Dreyfus Tax Sensitive Total Return Bond Fund

Dreyfus/The Boston Company Small/Mid Cap Growth Fund

Dreyfus/The Boston Company Small Cap Growth Fund

Dreyfus/The Boston Company Small Cap Value Fund

FORM N-CSR

Item 1. Reports to Stockholders.

Dreyfus Diversified Emerging Markets Fund

ANNUAL REPORT

September 30, 2016

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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.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

Contents

T H E F U N D


A Letter from the
Chief Executive Officer	2
Discussion of Fund Performance	3
Fund Performance	6
Understanding Your Fund’s Expenses	8
Comparing Your Fund’s Expenses
With Those of Other Funds	8
Statement of Investments	9
Statement of Assets and Liabilities	18
Statement of Operations	19
Statement of Changes in Net Assets	20
Financial Highlights	22
Notes to Financial Statements	26
Report of Independent Registered
Public Accounting Firm	38
Important Tax Information	39
Board Members Information	40
Officers of the Fund	42

FOR MORE INFORMATION

Back Cover


	Dreyfus Diversified Emerging Markets Fund		The Fund

A LETTER FROM THE CHIEF EXECUTIVE OFFICER

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Diversified Emerging Markets Fund, covering the 12-month period from October 1, 2015 through September 30, 2016. 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.

Stocks and bonds generally produced strong returns over the reporting period in spite of heightened market volatility stemming from global economic developments. During the fourth quarter of 2015, investor sentiment deteriorated amid sluggish global economic growth, falling commodity prices, and the first increase in short-term U.S. interest rates in nearly a decade. These worries sparked particularly sharp stock market declines in January 2016, but equities soon rallied after U.S. monetary policymakers refrained from additional rate hikes, other central banks eased their monetary policies further, and commodity prices began to rebound. Stocks generally continued to climb through the summer, driving several broad measures of U.S. stock market performance to record highs in July and August. In the bond market, yields of high-quality sovereign bonds moved lower and their prices increased in response to robust investor demand for current income in a low interest rate environment.

Although a number of economic and political headwinds remain, we recently have seen evidence that investors may be shifting their focus away from macroeconomic influences and toward underlying company fundamentals. This development suggests that selectivity may become a more important determinant of investment success. As always, we encourage you to discuss the implications of our observations with your financial advisor.

Thank you for your continued confidence and support.

Sincerely,

Mark D. Santero

Chief Executive Officer

The Dreyfus Corporation

October 17, 2016

DISCUSSION OF FUND PERFORMANCE

For the period from October 1, 2015 through September 30, 2016, as provided by Elizabeth Slover, Michelle Y. Chan, CFA, Gaurav Patankar, and Julianne McHugh, Portfolio Managers of The Boston Company, Sub-Investment Adviser; William S. Cazalet, CAIA, Ronald P. Gala, CFA, and Peter D. Goslin, CFA, Portfolio Managers of Mellon Capital Management Corporation, Sub-Investment Adviser

Fund and Market Performance Overview

For the 12-month period ended September 30, 2016, Dreyfus Diversified Emerging Markets Fund’s Class A shares produced a total return of 16.20%, Class C shares returned 15.03%, Class I shares returned 16.45%, and Class Y shares returned 16.64%.¹ In comparison, the fund’s benchmark, the Morgan Stanley Capital International Emerging Markets Index (the “MSCI EM Index”), produced a total return of 16.78% for the same period.²

Emerging market equities rallied sharply over the reporting period’s second half in response to rising commodity prices and financial and political reforms, more than erasing previous losses and significantly outperforming their developed international market counterparts.

The Fund’s Investment Approach

The fund seeks long-term capital growth. To pursue its goal, the fund invests at least 80% of its assets in equity securities (or other instruments with similar economic characteristics) of companies located, organized, or with a majority of assets or business in countries considered to be emerging markets, including other investment companies that invest in such securities.

The fund uses a “manager of managers” approach by selecting one or more experienced investment managers to serve as subadvisers to the fund. The fund also uses a “fund of funds” approach by investing in one or more underlying funds. The fund currently allocates its assets among emerging market equity strategies employed by The Boston Company Asset Management, LLC (the “TBCAM Strategy”) and Mellon Capital Management Corporation (the “Mellon Capital Strategy”), each an affiliate of Dreyfus, and two affiliated underlying funds, Dreyfus Global Emerging Markets Fund (the “Newton Fund”), which is sub-advised by Newton Investment Management (North America) Limited, an affiliate of Dreyfus, and Dreyfus Strategic Beta Emerging Markets Equity Fund (the “Mellon Capital Fund”), which is sub-advised by Mellon Capital Management Corporation.

Improved Sentiment Bolstered Emerging Markets

Emerging markets struggled with various global economic headwinds over the first half of the reporting period. Concerns regarding an economic slowdown in China, falling commodity prices, and a strengthening U.S. dollar depressed investor sentiment toward developing nations in the Asia Pacific region. Meanwhile, natural resources exporters in Latin American economies struggled with low commodity prices, and the region’s largest economy, Brazil, saw recessionary conditions amid intensifying government and

DISCUSSION OF FUND PERFORMANCE (continued)

corporate scandals. These developments drove the MSCI EM Index sharply lower between the beginning of the reporting period and late January 2016.

The remainder of the reporting period brought dramatic reversals of these trends. Commodity prices strengthened and stabilized in response to improving Chinese economic prospects, and many emerging-market currencies gained value against the U.S. dollar. Economic reforms made progress in developing countries such as India and Indonesia. Brazil saw a change in government as the former president was impeached on corruption charges in May 2016 and formally ousted three months later. Although United Kingdom’s vote to leave the European Union in June and a failed coup in Turkey in August increased concerns about global instability, the MSCI EM Index rose substantially from its earlier lows to end the reporting period with double-digit gains for the reporting period overall.

Underlying Strategies Produced Mixed Results

The fund’s results over the reporting period roughly matched those of the MSCI EM Index. The fund received particularly strong contributions from the Newton Fund and the TBCAM Strategy, but the Mellon Capital Strategy and the Mellon Capital Fund generally lagged market averages.

The Newton Fund benefited during the reporting period from strong stock selections, particularly in China where the Newton Fund successfully avoided weakness in the financials sector. Casino stocks in Hong Kong also fared quite well when authorities relaxed conditions on visa applications to Macau. In the TBCAM Strategy, favorable stock selections in China, Thailand, India, and Mexico supported relative performance, as did favorable results in the Internet software and services, machinery, semiconductors, and oil-and-gas industries.

Although the fund’s other underlying investments participated in the emerging markets’ gains, their relative performance was hindered by the impact of sudden swings in investor sentiment on their quantitative security selection processes. The Mellon Capital Strategy was hampered by shortfalls in the financials and telecommunication services sectors, while the Mellon Capital Fund lagged in the consumer discretionary and financials sectors.

Valuations Remain Attractive

Despite recent gains posted by many emerging-market equities, the asset class has remained attractively valued compared to other segments of the global stock market. As investor sentiment and the global economic environment continue to improve, companies that can grow their earnings appear likely to support richer valuations. While

each of the fund’s four underlying strategies employs its own distinctive approach to investing in emerging-markets-equities, all report that they have continued to find ample opportunities meeting their investment criteria.

October 17, 2016

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. The securities of companies located in emerging markets are often subject to rapid and large changes in price. An investment in this fund should be considered only as a supplement to a complete investment program for those investors willing to accept the greater risks associated with investing in emerging market countries.

The ability of the fund to achieve its investment goal depends, in part, on the ability of Dreyfus to allocate effectively the fund’s assets among investment strategies, subadvisers, and underlying funds. There can be no assurance that the actual allocations will be effective in achieving the fund’s investment goal or that an investment strategy, subadviser, or underlying fund will achieve its particular investment objective.

Each subadviser makes investment decisions independently, and it is possible that the investment styles of the subadvisers may not complement one another. As a result, the fund’s exposure to a given stock, industry, sector, market capitalization, geographic area, or investment style could unintentionally be greater or smaller than it would have been if the fund had a single adviser or investment strategy.

The risks of investing in other investment companies, including ETFs, typically reflect the risks associated with the types of instruments in which the investment companies and ETFs invest. When the fund or an underlying fund invests in another investment company or ETF, shareholders of the fund will bear indirectly their proportionate share of the expenses of the other investment company or ETF (including management fees) in addition to the expenses of the fund. ETFs are exchange-traded investment companies that are, in many cases, designed to provide investment results corresponding to an index. The value of the underlying securities can fluctuate in response to activities of individual companies or in response to general market and/or economic conditions.

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 charge 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, 2018, 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 (MSCI) 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 select designated 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.

FUND PERFORMANCE

Comparison of change in value of $10,000 investment in Dreyfus Diversified Emerging Markets Fund Class A shares, Class C shares, Class I shares and Class Y shares and the Morgan Stanley Capital International Emerging Markets Index

^† Source: Lipper Inc.
^†† The total return figures presented for Class A and Class C shares of the fund reflect the performance of the fund’s Class I shares for the period prior to 3/31/09 (the inception date for Class A and Class C shares), adjusted to reflect the applicable sales load for Class A shares. The total return figures presented for Class Y shares of the fund reflect the performance of the fund’s Class I shares for the period prior to 1/31/14 (the inception date for Class Y shares).

Past performance is not predictive of future performance.

The above graph compares a $10,000 investment made in each of the Class A, Class C, Class I and Class Y shares of Dreyfus Diversified Emerging Markets Fund on 9/30/06 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.

The fund’s performance shown in the line graph above takes into account the maximum initial sales charge on Class A shares and all other applicable fees and expenses on all classes. 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 9/30/16*
	Inception	1 Year	5 Years	10 Years
	Date	1 Year	5 Years	10 Years
Class A shares
with maximum sales charge (5.75%)	3/31/09	9.52%	2.01%	3.62%^††
without sales charge	3/31/09	16.20%	3.22%	4.23%^††
Class C shares
with applicable redemption charge ^†	3/31/09	14.03%	2.43%	3.63%^††
without redemption	3/31/09	15.03%	2.43%	3.63%^††
Class I shares	7/10/06	16.45%	3.65%	4.61%
Class Y shares	1/31/14	16.64%	3.72%^††	4.64%^††
Morgan Stanley Capital International
Emerging Markets Index		16.78%	3.03%	3.94%

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. In addition to the performance of Class A shares shown with and without a maximum sales charge, the fund’s performance shown in the table takes into account all other applicable fees and expenses on all classes.

^† 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 the period prior to 3/31/09 (the inception date for Class A and Class C shares), adjusted to reflect the applicable sales load for Class A shares. The total return performance figures presented for Class Y shares of the fund reflect the performance of the fund’s Class I shares for the period prior to 1/31/14 (the inception date for Class Y shares).

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 Diversified Emerging Markets Fund from April 1, 2016 to September 30, 2016. 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, 2016

	Class A		Class C		Class I		Class Y
Expenses paid per $1,000^†		$7.69		$12.50		$6.43		$5.64
Ending value (after expenses)		$1,107.90		$1,101.60		$1,108.90		$1,109.90

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, 2016

	Class A		Class C		Class I		Class Y
Expenses paid per $1,000^†		$7.36		$11.98		$6.16		$5.40
Ending value (after expenses)		$1,017.70		$1,013.10		$1,018.90		$1,019.65

^† Expenses are equal to the fund’s annualized expense ratio of 1.46% for Class A, 2.38% for Class C, 1.22% for Class I and 1.07% for Class Y, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).

STATEMENT OF INVESTMENTS

September 30, 2016



Common Stocks - 52.9%	Shares		Value ($)
Brazil - 2.0%
Ambev	14,000		85,322
BM&FBovespa	87,000		449,693
BR Malls Participacoes	3,770	^a	14,259
CCR	6,500		33,858
Cia de Saneamento Basico do Estado de Sao Paulo	25,600		237,647
Cosan Industria e Comercio	7,500		86,966
EcoRodovias Infraestrutura e Logistrica	210,400	^a	575,144
EDP - Energias do Brasil	44,300		195,881
Embraer	17,500		75,389
Embraer, ADR	6,042		104,285
Equatorial Energia	7,800		120,688
Fibria Celulose	3,500		24,764
Petroleo Brasileiro, ADR	23,234	^a	216,773
Petroleo Brasileiro, ADR	74,113	^a	615,879
Qualicorp	35,000		206,417
			3,042,965
Chile - .8%
Cia Cervecerias Unidas	2,968		30,058
Empresa Nacional de Electricidad	241,400		158,211
Empresa Nacional de Telecomunicaciones	65,815	^a	645,004
Itau CorpBanca	34,136,631		308,443
SACI Falabella	12,400		90,885
			1,232,601
China - 13.8%
AAC Technologies Holdings	54,500		551,881
Air China, Cl. H	346,000		232,937
Alibaba Group Holding, ADR	23,096	^a	2,443,326
Anhui Conch Cement, Cl. H	183,500		506,502
ANTA Sports Products	134,000		367,279
Baidu, ADR	1,000	^a	182,070
Bank of China, Cl. H	2,804,000		1,292,976
Beijing Capital International Airport, Cl. H	192,000		218,874
China Construction Bank, Cl. H	2,105,000		1,571,120
China Evergrande Group	44,000		29,914
China Galaxy Securities, Cl. H	337,500		308,597
China Lodging Group, ADR	11,996		540,900
China Medical System Holdings	101,000		169,983

STATEMENT OF INVESTMENTS (continued)



Common Stocks - 52.9% (continued)	Shares		Value ($)
China - 13.8% (continued)
China Merchants Bank, Cl. H	12,000		30,354
China Pacific Insurance Group, Cl. H	8,000		29,731
China Railway Construction, Cl. H	488,000		556,911
China Shenhua Energy, Cl. H	25,500		50,585
China Southern Airlines, Cl. H	352,000		198,918
China Vanke, Cl. H	11,700		30,573
Chongqing Rural Commercial Bank, Cl. H	535,000		330,918
Country Garden Holdings	30,000		15,902
Ctrip.com International, ADR	16,101	^a	749,824
Geely Automobile Holdings	410,000		369,021
Great Wall Motor, Cl. H	65,500		64,473
Huadian Power International, Cl. H	114,000		51,415
Huaneng Renewables, Cl. H	832,000		291,040
Industrial & Commercial Bank of China, Cl. H	599,000		377,838
Jiangsu Expressway, Cl. H	50,000		69,398
Longfor Properties	7,500		11,576
People's Insurance Company Group of China, Cl. H	812,000		331,460
PICC Property & Casualty, Cl. H	534,000		892,908
Ping An Insurance Group Company of China, Cl. H	222,000		1,161,943
Shanghai Pharmaceuticals Holding, Cl. H	267,500		726,561
Sino-Ocean Land Holdings	23,500		10,919
Sinopec Shanghai Petrochemical, Cl. H	288,000		146,691
Sinopharm Group, Cl. H	73,600		356,971
Tencent Holdings	177,400		4,915,431
Weichai Power, Cl. H	346,000		466,389
			20,654,109
Hong Kong - 1.6%
China Everbright	170,000		350,224
China Mobile	129,500		1,589,982
China Overseas Land & Investment	30,000		102,777
China Resources Land	20,000		56,400
China Taiping Insurance Holdings	129,800	^a	258,254
Nine Dragons Paper Holdings	77,000		72,512
Shimao Property Holdings	10,500		14,293
			2,444,442
Hungary - .4%
Richter Gedeon	31,913		648,486
India - 5.4%
Bajaj Finance	21,000		334,773



Common Stocks - 52.9% (continued)	Shares		Value ($)
India - 5.4% (continued)
Bank of India	69,025	^a	117,350
Bharat Petroleum	39,872		367,706
Canara Bank	85,201	^a	396,772
Dr. Reddy's Laboratories	670		31,262
Hero MotoCorp	4,300		221,567
Hindustan Petroleum	88,423		564,589
ICICI Bank	72,797		277,281
Infosys	8,020		125,142
ITC	116,439		423,084
Larsen & Toubro	7,214		155,859
Mahindra & Mahindra	17,368		367,745
Petronet	39,883		207,216
Power Finance	136,686		247,968
Power Grid Corporation of India	204,285		542,341
Praj Industries	133,431		163,449
Reliance Industries	30,622		499,600
Tata Consultancy Services	4,275		156,517
Tata Motors	51,848		415,846
Tata Power	198,400		224,161
Tube Investments of India	16,012		142,613
Union Bank of India	94,489		195,889
UPL	87,604		890,195
Vedanta	384,677		997,449
			8,066,374
Indonesia - 1.6%
Bank Negara Indonesia	597,600		255,475
Bank Rakyat Indonesia	984,300		923,476
Bumi Serpong Damai	2,183,400		371,409
Telekomunikasi Indonesia	2,078,300		688,433
United Tractors	80,000		108,735
			2,347,528
Malaysia - .6%
Astro Malaysia Holdings	75,100		49,469
British American Tobacco Malaysia	6,600		78,421
DiGi.Com	52,300		62,877
Hong Leong Financial Group	6,100		22,724
Petronas Dagangan	10,400		59,194
Petronas Gas	20,000		105,513
Public Bank	89,200		427,899

STATEMENT OF INVESTMENTS (continued)



Common Stocks - 52.9% (continued)	Shares		Value ($)
Malaysia - .6% (continued)
Tenaga Nasional	21,400		74,079
Westports Holdings	56,100		59,599
			939,775
Mexico - 1.3%
Alfa, Cl. A	27,900		43,455
Arca Continental	107,200		638,011
Fibra Uno Administracion	13,100		23,951
Gruma, Cl. B	26,640		349,498
Grupo Financiero Interacciones, Cl. O	69,900		329,857
Grupo Lala	80,500		153,612
OHL Mexico	49,000	^a	65,022
Promotora y Operadora de Infraestructura	27,695		298,150
Wal-Mart de Mexico	31,600		69,182
			1,970,738
Netherlands - .0%
Steinhoff International Holdings	11,020		63,252
Panama - .3%
Copa Holdings, Cl. A	4,413		388,035
Peru - .2%
Credicorp	1,911		290,892
Philippines - .7%
Ayala Land	542,600		439,925
Globe Telecom	2,295		96,788
Metropolitan Bank & Trust	240,550		423,528
SM Prime Holdings	46,300		27,004
			987,245
Poland - .7%
Orange Polska	354,830		558,029
Polski Koncern Naftowy ORLEN	6,409		109,462
Polskie Gornictwo Naftowe i Gazownictwo	237,986		315,205
Powszechny Zaklad Ubezpieczen	11,862		75,876
			1,058,572
Qatar - .2%
Ooredoo	9,985		263,223
Russia - 2.3%
Gazprom, ADR	129,613		546,061
Lukoil, ADR	17,471		849,260
Rosneft, GDR	120,248		657,069
Sberbank of Russia, ADR	62,141		581,703



Common Stocks - 52.9% (continued)	Shares		Value ($)
Russia - 2.3% (continued)
Severstal, GDR	5,488		66,215
Sistema, GDR	6,159		45,698
Surgutneftegas, ADR	12,760		61,415
Tatneft, ADR	6,590		202,934
Yandex, Cl. A	24,512	^a	515,978
			3,526,333
South Africa - 2.7%
AngloGold Ashanti, ADR	23,438	^a	373,133
Barclays Africa Group	67,701		746,544
Clicks Group	38,897		360,655
FirstRand	24,943		86,496
Gold Fields	23,000		112,069
Growthpoint Properties	17,287		31,941
Liberty Holdings	34,855		296,409
Mediclinic International	16,695		201,823
Naspers, Cl. N	1,700		294,622
Redefine Properties	20,861		17,407
Resilient REIT	2,384		19,922
Sappi	65,900	^a	341,460
SPAR Group	7,004		98,169
Telkom	68,873		303,861
Tsogo Sun Holdings	145,900		331,622
Woolworths Holdings	73,579		415,026
			4,031,159
South Korea - 7.8%
Amorepacific	410		61,649
BGF retail	914		160,965
Com2uS	5,420	^a	493,598
Coway	4,898		423,785
DGB Financial Group	10,211		83,850
E-MART	3,111		446,209
Hana Financial Group	22,102		562,093
Hankook Tire	11,060		597,840
Hanwha Techwin	7,773		449,525
Hyosung	2,473		292,651
Hyundai Development Co-Engineering & Construction	6,625		309,497
Hyundai Heavy Industries	4,449	^a	559,377
Hyundai Mobis	2,072		518,759
Kangwon Land	4,667		166,771

STATEMENT OF INVESTMENTS (continued)



Common Stocks - 52.9% (continued)	Shares	Value ($)
South Korea - 7.8% (continued)
KB Financial Group	13,100	450,037
Korea Electric Power	1,123	54,996
KT	1,200	34,764
KT&G	8,456	963,075
KT, ADR	20,908	335,573
LG Display	12,322	314,297
LG Electronics	3,900	169,942
LG Household & Health Care	499	432,883
Lotte Chemical	1,276	346,910
NCSoft	1,043	281,276
POSCO	2,164	445,680
Samsung Electronics	902	1,314,617
Samsung Fire & Marine Insurance	1,783	453,024
SK Holdings	1,079	208,024
SK Hynix	9,133	334,253
SK Innovation	488	72,121
Woori Bank	36,000	372,939
		11,710,980
Taiwan - 6.9%
Advanced Semiconductor Engineering	465,000	558,206
Airtac International Group	80,000	715,166
Catcher Technology	18,000	147,011
Cathay Financial Holding	432,000	555,232
China Life Insurance	827,400	760,644
Chunghwa Telecom	96,000	338,844
Compal Electronics	97,000	59,919
E.Sun Financial Holding	58,627	33,401
First Financial Holding	322,905	172,196
Himax Technologies, ADR	57,188	491,245
Hon Hai Precision Industry	253,250	641,175
Hua Nan Financial Holdings	254,000	130,395
Nan Ya Plastics	96,000	190,302
Nanya Technology	199,000	250,187
Pou Chen	211,000	298,528
Powertech Technology	136,000	354,760
Taiwan Mobile	23,000	82,875
Taiwan Semiconductor Manufacturing	738,000	4,328,190
Uni-President Enterprises	70,000	131,863



Common Stocks - 52.9% (continued)	Shares	Value ($)
Taiwan - 6.9% (continued)
Zhen Ding Technology Holding	80,000	176,789
		10,416,928
Thailand - 1.5%
Glow Energy	30,000	69,203
Kasikornbank	54,600	296,831
PTT	19,400	191,177
Siam Cement	13,050	195,700
Siam Cement, NVDR	3,450	51,470
Star Petroleum Refining	767,700	240,183
Thai Beverage	579,900	412,909
Thai Oil	88,300	175,508
Thai Union Group, NVDR	363,900	225,650
Thanachart Capital	299,600	351,297
		2,209,928
Turkey - 1.2%
Arcelik	36,830	259,725
Emlak Konut Gayrimenkul Yatirim Ortakligi	285,375	289,721
Eregli Demir ve Celik Fabrikalari	189,952	262,134
Haci Omer Sabanci Holding	63,000	195,630
KOC Holding	6,330	27,193
TAV Havalimananlari Holding	43,300	179,265
Tupras Turkiye Petrol Rafinerileri	1,700	32,241
Turkiye Garanti Bankasi	168,776	448,324
Turkiye Vakiflar Bankasi, Cl. D	20,700	31,757
		1,725,990
United Arab Emirates - .9%
Abu Dhabi Commercial Bank	357,803	627,670
Dubai Islamic Bank	99,747	147,114
Emaar Properties	291,583	563,031
		1,337,815
United States - .0%
iShares MSCI Emerging Markets ETF	100	3,745
Total Common Stocks (cost $69,585,317)		79,361,115

STATEMENT OF INVESTMENTS (continued)



Preferred Stocks - 1.7%	Shares		Value ($)
Brazil - 1.6%
Banco Bradesco	35,112		320,334
Banco do Estado do Rio Grande do Sul, Cl. B	77,000		247,658
Cia Energetica de Minas Gerais	115,200		303,927
Cia Paranaense de Energia, Cl. B	38,200		395,020
Gerdau	15,100		41,138
Itau Unibanco Holding	50,390		550,360
Vale	118,600		561,610
			2,420,047
Colombia - .0%
Grupo Aval Acciones y Valores	130,123		56,863
South Korea - .1%
Samsung Electronics	69		81,456
Total Preferred Stocks (cost $2,192,510)			2,558,366
Registered Investment Companies - 44.4%
United States - 44.4%
Dreyfus Global Emerging Markets Fund, Cl. Y	3,724,162	^a,b,c	54,484,482
Dreyfus Strategic Beta Emerging Markets Fund, Cl. Y	1,087,828	^c	12,259,823
(cost $58,733,980)			66,744,305
Total Investments (cost $130,511,807)	99.0%		148,663,786
Cash and Receivables (Net)	1.0%		1,481,900
Net Assets	100.0%		150,145,686

ADR—American Depository Receipt
ETF—Exchange-Traded Fund
GDR—Global Depository Receipt
NVDR—Non-Voting Depository Receipt
REIT—Real Estate Investment Trust

^aNon-income producing security.
^b The fund’s investment in the Dreyfus Global Emerging Markets Fund, Cl. Y represents 36.3% of net assets. The Dreyfus Global Emerging Markets Fund, Cl. Y seeks to provide long-term capital appreciation.
^c Investment in affiliated mutual fund.


Portfolio Summary (Unaudited) ^†	Value (%)
Mutual Fund: Foreign	44.4
Financials	15.1
Information Technology	13.0
Industrials	4.2
Energy	4.1
Consumer Discretionary	4.0
Materials	3.9
Consumer Staples	3.4
Telecommunications	3.4
Utilities	1.9
Health Care	1.6
Exchange-Traded Funds	.0
	99.0

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

STATEMENT OF ASSETS AND LIABILITIES

September 30, 2016



	Cost	Value
Assets ($):
Investments in securities—See Statement of Investments:
Unaffiliated issuers	71,777,827	81,919,481
Affiliated issuers	58,733,980	66,744,305
Cash		1,091,849
Cash denominated in foreign currency	708,903	706,876
Receivable for investment securities sold		992,259
Dividends receivable		120,683
Receivable for shares of Beneficial Interest subscribed		14,050
Prepaid expenses		22,658
		151,612,161
Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(c)		264,718
Payable for investment securities purchased		1,075,767
Payable for shares of Beneficial Interest redeemed		86,357
Accrued expenses		39,633
		1,466,475
Net Assets ($)		150,145,686
Composition of Net Assets ($):
Paid-in capital		161,898,416
Accumulated undistributed investment income—net		477,060
Accumulated net realized gain (loss) on investments		(30,380,208)
Accumulated net unrealized appreciation (depreciation) on investments and foreign currency transactions		18,150,418
Net Assets ($)		150,145,686

					��
Net Asset Value Per Share	Class A	Class C	Class I	Class Y
Net Assets ($)	948,649	64,481	1,206,815	147,925,741
Shares Outstanding	47,633	3,397	60,752	7,434,146
Net Asset Value Per Share ($)	19.92	18.98	19.86	19.90

See notes to financial statements.

STATEMENT OF OPERATIONS

Year Ended September 30, 2016




Investment Income ($):
Income:
Cash dividends (net of $273,145 foreign taxes withheld at source):
Unaffiliated issuers					1,992,304
Affiliated issuers					135,958
Total Income					2,128,262
Expenses:
Investment advisory fee—Note 3(a)					902,997
Custodian fees—Note 3(c)					318,769
Administration fee—Note 3(a)					82,006
Registration fees					63,960
Professional fees					60,975
Trustees’ fees and expenses—Note 3(d)					10,162
Shareholder servicing costs—Note 3(c)					7,801
Prospectus and shareholders’ reports					7,171
Loan commitment fees—Note 2					2,486
Interest expense—Note 2					1,913
Distribution fees—Note 3(b)					1,789
Miscellaneous					56,092
Total Expenses					1,516,121
Less—reduction in fees due to earnings credits—Note 3(c)					(41)
Net Expenses					1,516,080
Investment Income—Net					612,182
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments and foreign currency transactions:
Unaffiliated issuers					(15,464,568)
Affiliated issuers					(2,940,252)
Net realized gain (loss) on forward foreign currency exchange contracts					(25,717)
Net Realized Gain (Loss)					(18,430,537)
Net unrealized appreciation (depreciation) on investments and foreign currency transactions:
Unaffiliated issuers					24,073,371
Affiliated issuers					15,275,890
Net unrealized appreciation (depreciation) on forward foreign currency exchange contracts					(641)
Net Unrealized Appreciation (Depreciation)					39,348,620
Net Realized and Unrealized Gain (Loss) on Investments					20,918,083
Net Increase in Net Assets Resulting from Operations					21,530,265

See notes to financial statements.

STATEMENT OF CHANGES IN NET ASSETS


	Year Ended September 30,
	2016	2015
Operations ($):
Investment income—net	612,182	1,669,183
Net realized gain (loss) on investments	(18,430,537)	(11,004,182)
Net unrealized appreciation (depreciation) on investments	39,348,620	(29,734,823)
Net Increase (Decrease) in Net Assets Resulting from Operations	21,530,265	(39,069,822)
Dividends to Shareholders from ($):
Investment income—net:
Class A	(5,152)	(1,232)
Class I	(5,449)	(16,426)
Class Y	(1,057,347)	(1,538,438)
Net realized gain on investments:
Class A	-	(1,947)
Class C	-	(673)
Class I	-	(18,839)
Class Y	-	(1,764,369)
Total Dividends	(1,067,948)	(3,341,924)
Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Class A	319,297	1,342,600
Class C	23,636	296,721
Class I	1,075,725	4,261,358
Class Y	65,099,939	110,725,943
Dividends reinvested:
Class A	5,152	3,179
Class C	-	673
Class I	4,990	27,489
Class Y	170,335	1,232,674
Cost of shares redeemed:
Class A	(676,922)	(183,344)
Class C	(274,249)	(10,139)
Class I	(2,949,941)	(1,781,281)
Class Y	(121,057,786)	(74,465,022)
Increase (Decrease) in Net Assets from Beneficial Interest Transactions	(58,259,824)	41,450,851
Total Increase (Decrease) in Net Assets	(37,797,507)	(960,895)
Net Assets ($):
Beginning of Period	187,943,193	188,904,088
End of Period	150,145,686	187,943,193
Undistributed investment income—net	477,060	939,779


	Year Ended September 30,
	2016	2015
Capital Share Transactions (Shares):
Class A
Shares sold	18,059	66,158
Shares issued for dividends reinvested	296	157
Shares redeemed	(37,669)	(9,169)
Net Increase (Decrease) in Shares Outstanding	(19,314)	57,146
Class C
Shares sold	1,450	14,765
Shares issued for dividends reinvested	-	35
Shares redeemed	(15,716)	(492)
Net Increase (Decrease) in Shares Outstanding	(14,266)	14,308
Class I^a
Shares sold	59,285	218,705
Shares issued for dividends reinvested	289	1,371
Shares redeemed	(164,331)	(89,902)
Net Increase (Decrease) in Shares Outstanding	(104,757)	130,174
Class Y^a
Shares sold	3,702,351	5,632,680
Shares issued for dividends reinvested	9,840	61,388
Shares redeemed	(6,966,813)	(3,865,948)
Net Increase (Decrease) in Shares Outstanding	(3,254,622)	1,828,120

^aDuring the period ended September 30, 2016, 51,105 Class Y shares representing $928,807 were exchanged for 51,169 Class I shares.

See notes to financial statements.

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	2016	2015	2014	2013	2012
Per Share Data ($):
Net asset value, beginning of period	17.23	21.34	20.58	19.78	21.86
Investment Operations:
Investment income—net^a	.02	.09	.05	.23	.07
Net realized and unrealized gain (loss) on investments	2.72	(3.88)	.98	.57	2.15
Total from Investment Operations	2.74	(3.79)	1.03	.80	2.22
Distributions:
Dividends from investment income—net	(.08)	(.13)	(.28)	–	(.08)
Dividends from net realized gain on investments	—	(.20)	—	—	(4.22)
Total Distributions	(.08)	(.33)	(.28)	—	(4.30)
Proceeds from redemption fees^b	.03	.01	.01	—	—
Net asset value, end of period	19.92	17.23	21.34	20.58	19.78
Total Return (%)^c	16.20	(18.00)	5.14	3.99	12.48
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	1.39^d	1.42^d	4.80^d	6.20	5.55
Ratio of net expenses to average net assets	1.39^d	1.42^d	1.60^d	1.60	2.25
Ratio of net investment income to average net assets	.10^d	.47^d	.22^d	1.10	.36
Portfolio Turnover Rate	62.91	78.32	128.76	67.74	70.79
Net Assets, end of period ($ x 1,000)	949	1,153	209	130	107

^a Based on average shares outstanding.
^b See Note 3(e).
c Exclusive of sales charge.
^d Amount does not include the expenses of the underlying funds.
See notes to financial statements.




	Year Ended September 30,
Class C Shares	2016	2015	2014	2013	2012
Per Share Data ($):
Net asset value, beginning of period	16.50	20.44	19.60	18.98	21.23
Investment Operations:
Investment income (loss)—net^a	(.13)	.04	(.16)	.04	(.14)
Net realized and unrealized gain (loss) on investments	2.58	(3.79)	.99	.58	2.14
Total from Investment Operations	2.45	(3.75)	.83	.62	2.00
Distributions:
Dividends from investment income—net	—	—	—	—	(.03)
Dividends from net realized gain on investments	—	(.20)	—	—	(4.22)
Total Distributions	—	(.20)	—	—	(4.25)
Proceeds from redemption fees^b	.03	.01	.01	—	—
Net asset value, end of period	18.98	16.50	20.44	19.60	18.98
Total Return (%)^c	15.03	(18.44)	4.34	3.21	11.63
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	2.23^d	2.08^d	6.10^d	6.62	5.79
Ratio of net expenses to average net assets	2.23^d	2.08^d	2.35^d	2.35	3.00
Ratio of net investment income (loss) to average net assets	(.74)^d	.22^d	(.77)^d	.22	(.69)
Portfolio Turnover Rate	62.91	78.32	128.76	67.74	70.79
Net Assets, end of period ($ x 1,000)	64	291	69	76	91

^a Based on average shares outstanding.
^b See Note 3(e).
c Exclusive of sales charge.
^d Amount does not include the expenses of the underlying funds.
See notes to financial statements.

FINANCIAL HIGHLIGHTS (continued)




	Year Ended September 30,
Class I Shares	2016	2015	2014	2013	2012
Per Share Data ($):
Net asset value, beginning of period	17.16	21.16	20.45	19.60	21.82
Investment Operations:
Investment income (loss)—net^a	.02	.16	(.30)	.26	.24
Net realized and unrealized gain (loss) on investments	2.75	(3.79)	1.34	.59	2.10
Total from Investment Operations	2.77	(3.63)	1.04	.85	2.34
Distributions:
Dividends from investment income—net	(.10)	(.18)	(.34)	—	(.34)
Dividends from net realized gain on investments	—	(.20)	—	—	(4.22)
Total Distributions	(.10)	(.38)	(.34)	—	(4.56)
Proceeds from redemption fees^b	.03	.01	.01	—	—
Net asset value, end of period	19.86	17.16	21.16	20.45	19.60
Total Return (%)	16.45	(17.44)	5.32	4.23	13.36
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	1.11^c	.99^c	3.57^c	5.39	4.66
Ratio of net expenses to average net assets	1.11^c	.99^c	1.35^c	1.35	1.50
Ratio of net investment income (loss) to average net assets	.12^c	.83^c	(.63)^c	1.27	1.19
Portfolio Turnover Rate	62.91	78.32	128.76	67.74	70.79
Net Assets, end of period ($ x 1,000)	1,207	2,840	748	3,359	4,291

^a Based on average shares outstanding.
^b See Note 3(e).
^cAmount does not include the expenses of the underlying funds.
See notes to financial statements.




	Year Ended September 30,
Class Y Shares	2016	2015	2014^a
Per Share Data ($):
Net asset value, beginning of period	17.18	21.20	19.03
Investment Operations:
Investment income—net^b	.07	.17	.14
Net realized and unrealized gain (loss) on investments	2.74	(3.82)	2.02
Total from Investment Operations	2.81	(3.65)	2.16
Distributions:
Dividends from investment income—net	(.12)	(.18)	—
Dividends from net realized gain on investments	—	(.20)	—
Total Distributions	(.12)	(.38)	—
Proceeds from redemption fees^c	.03	.01	.01
Net asset value, end of period	19.90	17.18	21.20
Total Return (%)	16.64	(17.44)	11.40^d
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets^e	1.01	.93	1.29^f
Ratio of net expenses to average net assets^e	1.01	.93	1.29^f
Ratio of net investment income to average net assets^e	.42	.84	1.03^f
Portfolio Turnover Rate	62.91	78.32	128.76
Net Assets, end of period ($ x 1,000)	147,926	183,659	187,879

^a From the close of business on January 31, 2014 (commencement of initial offering) to September 30, 2014.
^b Based on average shares outstanding.
^cSee Note 3(e).
^d Not annualized.
^e Amount does not include the expenses of the underlying funds.
^f Annualized.
See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Diversified Emerging Markets 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 seven 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. Mellon Capital Management Corporation (“Mellon Capital”) and The Boston Company Asset Management, LLC (“TBCAM”), each a wholly-owned subsidiary of BNY Mellon and an affiliate of Dreyfus, serve as the fund’s sub-investment advisers.

MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, 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, Class I and Class Y. Class A and Class C shares are sold primarily to retail investors through financial intermediaries and bear Distribution and/or Shareholder Services Plan fees. Class A shares generally are subject to a sales charge imposed at the time of purchase. Class C shares are subject to a contingent deferred sales charge (“CDSC”) imposed 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 New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, and its affiliates), acting on behalf of customers having a qualified trust or an investment account or relationship at such institution, and bear no Distribution or Shareholder Services Plan fees. Class Y shares are sold at net asset value per share generally to institutional investors, and bear no Distribution or Shareholder Services Plan fees. Class I and Class Y shares are offered without a front-end sales charge or CDSC. Other differences between the classes include the services offered to and 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.

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

NOTES TO FINANCIAL STATEMENTS (continued)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:

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. For open short positions, asked prices are 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. All of the preceding securities are generally categorized within Level 1 of the fair value hierarchy.

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. These securities are generally categorized within Level 2 of the fair value hierarchy.

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 ADRs and financial futures. Utilizing these techniques may result in transfers between Level 1 and Level 2 of the fair value hierarchy.

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 Trust’s Board of Trustees (the “Board”). Certain factors may be considered when fair valuing investments 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. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are generally categorized within Level 3 of the fair value hierarchy.

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 and are generally categorized within Level 2 of the fair value hierarchy.

The following is a summary of the inputs used as of September 30, 2016 in valuing the fund’s investments:


	Level 1 - Unadjusted Quoted Prices	Level 2 - Other Significant Observable Inputs		Level 3 - Significant Unobservable Inputs	Total
Assets ($)
Investments in Securities:
Equity Securities – Foreign Common Stocks^†	7,247,913	72,109,457	^††	—	79,357,370
Equity Securities - Foreign Preferred Stocks^†	—	2,558,366	^††	—	2,558,366
Exchange-Traded Funds	3,745	—		—	3,745
Mutual Funds	66,744,305	—		—	66,744,305

^† See Statement of Investments for additional detailed categorizations.
^†† Securities classified within Level 2 at period end as the values were determined pursuant to the fund’s fair valuation procedures. See note above for additional information.

At September 30, 2015, $97,194,611 of exchange traded foreign equity securities were classified within Level 2 of the fair value hierarchy pursuant to the fund’s fair valuation procedures.

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine the fair value:


	Equity Securities - Foreign Common Stocks ($)
Balance as of 9/30/2015	743,037
Realized gain (loss)	—
Change in unrealized appreciation (depreciation)	(197,295)
Purchases/issuances	—
Sales/dispositions	—
Transfer into Level 3	—
Transfer out of Level 3^†	(545,742)
Balance as of 9/30/2016	—
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to investments still held at 9/30/2016	—

^† The transfer out of Level 3 for the current period was due to the resumption of trading of a security.

NOTES TO FINANCIAL STATEMENTS (continued)

in the 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 foreign currency transactions are also 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” under the Act. Investments in affiliated investment companies during the period ended September 30, 2016 were as follows:


Affiliated Investment Company	Value 9/30/2015 ($)	Purchases ($)	^†	Sales ($)	Net Realized Gain (Loss) ($)
Dreyfus Global Emerging Markets Fund, Cl. Y	63,777,089	4,801,054		24,729,508	(2,767,165)
Dreyfus Strategic Beta Emerging Markets Fund, Cl. Y	15,406,187	1,336,222		6,182,377	(173,087)
Total	79,183,276	6,137,276		30,911,885	(2,940,252)


Affiliated Investment Company	Change in Net Unrealized Appreciation (Depreciation) ($)	Value 9/30/2016 ($)	Net Assets (%)	Dividends/ Distributions ($)
Dreyfus Global Emerging Markets Fund, Cl. Y	13,403,012	54,484,482	36.3	—
Dreyfus Strategic Beta Emerging Markets Fund, Cl. Y	1,872,878	12,259,823	8.1	135,958
Total	15,275,890	66,744,305	44.4	135,958

^† Includes reinvested dividends/distributions.

(e) Risk: 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.

(f) 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”). 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.

(g) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the 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, 2016, 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 ended September 30, 2016, the fund did not incur any interest or penalties.

Each tax year in the four-year period ended September 30, 2016 remains subject to examination by the Internal Revenue Service and state taxing authorities.

NOTES TO FINANCIAL STATEMENTS (continued)

At September 30, 2016, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $564,230, accumulated capital losses $27,601,431 and unrealized appreciation $15,284,471.

The tax character of distributions paid to shareholders during the fiscal periods ended September 30, 2016 and September 30, 2015 were as follows: ordinary income $1,067,948 and $3,181,778, and long term capital gains $0 and $160,146, respectively.

During the period ended September 30, 2016, as a result of permanent book to tax differences, primarily due to the tax treatment for foreign currency gains and losses and passive foreign investment companies, the fund decreased accumulated undistributed investment income-net by $6,953 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 $555 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. Prior to January 11, 2016, the unsecured credit facility with Citibank, N.A. was $480 million and prior to October 7, 2015, the unsecured credit facility with Citibank, N.A. was $430 million. 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, 2016 was approximately $144,300 with a related weighted average annualized interest rate of 1.33%.

NOTE 3—Investment Advisory Fee, Sub-Investment Advisory Fee, Administration Fee and Other Transactions with Affiliates:

(a) Pursuant to an investment advisory agreement with Dreyfus, the fund has agreed to pay an investment advisory fee at the annual rate of 1.10% of the value of the fund’s average daily net assets other than assets allocated to investments in other investment companies (other underlying funds, which may consist of affiliated funds, mutual funds and exchange traded funds) and is payable monthly. Dreyfus has contractually agreed, from October 1, 2015 through February 1, 2017, to waive receipt of its fees

and/or assume the direct expenses of the fund, so that the expenses of Class A, C, I and Y shares (excluding Rule 12b-1 Distribution Plan fees, Shareholder Services Plan fees, taxes, interest expense, brokerage commissions, commitment fees on borrowings, acquired fund fees and expenses of the underlying fund and extraordinary expenses) do not exceed 1.35%, 1.35%, 1.35% and 1.30% of the value of the respective class’ average daily net assets. During the period ended September 30, 2016, there was no reduction in expenses pursuant to the undertaking.

Pursuant to separate sub-investment advisory agreements between Dreyfus, TBCAM and Mellon Capital, each serves as the fund’s sub-investment adviser responsible for the day-to-day management of a portion of the fund’s portfolio. Dreyfus pays each sub-investment adviser a monthly fee at an annual percentage of the value of the fund’s average daily net assets. Dreyfus has obtained an exemptive order from the SEC (the “Order”), upon which the fund may rely, to use a manager of managers approach that permits Dreyfus, subject to certain conditions and approval by the Board, to enter into and materially amend sub-investment advisory agreements with one or more sub-investment advisers who are either unaffiliated with Dreyfus or are wholly-owned subsidiaries (as defined under the Act) of Dreyfus’ ultimate parent company, BNY Mellon, without obtaining shareholder approval. The Order also allows the fund to disclose the sub-investment advisory fee paid by Dreyfus to any unaffiliated sub-investment adviser in the aggregate with other unaffiliated sub-investment advisers in documents filed with the SEC and provided to shareholders. In addition, pursuant to the Order, it is not necessary to disclose the sub-investment advisory fee payable by Dreyfus separately to a sub-investment adviser that is a wholly-owned subsidiary of BNY Mellon in documents filed with the SEC and provided to shareholders; such fees are to be aggregated with fees payable to Dreyfus. Dreyfus has ultimate responsibility (subject to oversight by the Board) to supervise any sub-investment adviser and recommend the hiring, termination, and replacement of any sub-investment adviser to the Board.

The fund has a Fund Accounting and Administrative Services Agreement (the “Administration Agreement”) with Dreyfus, whereby Dreyfus performs administrative, accounting and recordkeeping services for the fund. The fund has agreed to compensate Dreyfus for providing accounting and recordkeeping services, administration, compliance monitoring, regulatory and shareholder reporting, as well as related facilities, equipment and clerical help. The fee is based on the fund’s average daily net assets and computed at the following annual rates: .10% of the first $500 million, .065% of the next $500 million and .02% in excess of $1 billion.

NOTES TO FINANCIAL STATEMENTS (continued)

In addition, after applying any expense limitations or fee waivers that reduce the fees paid to Dreyfus for this service, Dreyfus has contractually agreed in writing to waive any remaining fees for this service to the extent that they exceed both Dreyfus’ costs in providing these services and a reasonable allocation of the costs incurred by Dreyfus and its affiliates related to the support and oversight of these services. The fund also reimburses Dreyfus for the out-of-pocket expenses incurred in performing this service for the fund. Pursuant to the Administration Agreement, the fund was charged $82,006 during the period ended September 30, 2016.

During the period ended September 30, 2016, the Distributor retained $10 from commissions earned on sales of the fund’s Class A shares.

(b) Under the Distribution 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 its average daily net assets. During the period ended September 30, 2016, Class C shares were charged $1,789 pursuant to the Distribution Plan.

(c) Under the Shareholder Services Plan, Class A and Class C shares pay the Distributor at an 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 (securities dealers, financial institutions or other industry professionals) with respect to these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended September 30, 2016, Class A and Class C shares were charged $2,827 and $596, respectively, pursuant to the Shareholder Services Plan.

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

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

The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing transfer agency and cash management services for the fund. The majority of transfer agency fees are comprised of amounts paid on a per account basis, while cash management fees are related to fund subscriptions and redemptions. During the period ended September 30, 2016, the fund was charged $2,596 for transfer agency services and $107 for cash management services. These fees are included in Shareholder servicing costs in the Statement of Operations. Cash management fees were partially offset by earnings credits of $41.

The fund compensates The Bank of New York Mellon under a custody agreement for providing custodial services for the fund. These fees are determined based on net assets, geographic region and transaction activity. During the period ended September 30, 2016, the fund was charged $318,769 pursuant to the custody agreement.

During the period ended September 30, 2016, the fund was charged $9,919 for services performed by the Chief Compliance Officer and his staff.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: investment advisory fees $74,946, administration fees $6,819, Distribution Plan fees $40, Shareholder Services Plan fees $211, custodian fees $174,966, Chief Compliance Officer fees $7,217 and transfer agency fees $519.

(d) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund 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 certain exceptions, including redemptions made through use of the fund’s exchange privilege. During the period ended September 30, 2016, redemption fees charged and retained by the fund amounted to $240,190.

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, 2016, amounted to $93,778,014 and $149,959,418, respectively.

NOTES TO FINANCIAL STATEMENTS (continued)

the-counter (“OTC”) derivative contract counterparties in order to, among other things, reduce its credit risk to counterparties. Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under a Master Agreement, the fund may offset with the counterparty certain derivative financial instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment in the event of default or termination.

Each type of derivative instrument that was held by the fund during the period ended September 30, 2016 is discussed below.

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 or unrealized gains or losses which occurred during the period are 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 generally limited to the unrealized gain on each open contract. This risk may be mitigated by Master Agreements, if any, between the fund and the counterparty and the posting of collateral, if any, by the counterparty to the fund to cover the fund’s exposure to the counterparty. At September 30, 2016, there were no forward contracts outstanding.

The following summarizes the average market value of derivatives outstanding during the period ended September 30, 2016:


		Average Market Value ($)
Forward contracts		421,758

At September 30, 2016, the cost of investments for federal income tax purposes was $133,377,754; accordingly, accumulated net unrealized

appreciation on investments was $15,286,032, consisting of $20,423,439 gross unrealized appreciation and $5,137,407 gross unrealized depreciation.

REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of
Dreyfus Investment Funds

We have audited the accompanying statement of assets and liabilities of Dreyfus Diversified Emerging Markets Fund (the “Fund”), a series of Dreyfus Investment Funds, including the statement of investments, as of September 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-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.

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, 2016, by correspondence with the custodian and brokers or by other appropriate auditing procedures. 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 Diversified Emerging Markets Fund as of September 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York
November 23, 2016

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 reports the maximum amount allowable but not less than $2,316,404 as income sourced from foreign countries for the fiscal year ended September 30, 2016 in accordance with Section 853(c)(2) of the Internal Revenue Code and also the fund reports the maximum amount allowable but not less than $278,912 as taxes paid from foreign countries for the fiscal year ended September 30, 2016 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 2016 calendar year with Form 1099-DIV which will be mailed in early 2017. Also the fund reports the maximum amount allowable, but not less than $1,067,948 as ordinary income dividends paid during the fiscal year ended September 30, 2016 as qualified dividend income in accordance with Section 854(b)(1)(B) Section 852(b)(3)(C) of the Internal Revenue Code.

BOARD MEMBERS INFORMATION (Unaudited)

INDEPENDENT BOARD MEMBERS

Joseph S. DiMartino (72)

Chairman of the Board (2008)

Principal Occupation During Past 5 Years:

· Corporate Director and Trustee (1995-present)

Other Public Company Board Memberships During Past 5 Years:

· CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small and medium size companies, Director (1997-present)

No. of Portfolios for which Board Member Serves: 136

———————

Francine J. Bovich (65)

Board Member (2011)

Principal Occupation During Past 5 Years:

· Trustee, The Bradley Trusts, private trust funds (2011-present)

Other Public Company Board Memberships During Past 5 Years:

· Annaly Capital Management, Inc., Board Member (May 2014-present)

No. of Portfolios for which Board Member Serves: 77

———————

Kenneth A. Himmel (70)

Board Member (2008)

Principal Occupation During Past 5 Years:

· Managing Partner, Gulf Related, an international real estate development company (2010-present)

· President and CEO, Related Urban Development, a real estate development company (1996-present)

· President and CEO, Himmel & Company, a real estate development company (1980-present)

· CEO, American Food Management, a restaurant company (1983-present)

No. of Portfolios for which Board Member Serves: 28

———————

Stephen J. Lockwood (69)

Board Member (2008)

Principal Occupation During Past 5 Years:

· Chairman of the Board, Stephen J. Lockwood and Company LLC, a real estate investment company (2000-present)

No. of Portfolios for which Board Member Serves: 28

———————

Roslyn M. Watson (66)

Board Member (2008)

Principal Occupation During Past 5 Years:

· Principal, Watson Ventures, Inc., a real estate investment company (1993-present)

No. of Portfolios for which Board Member Serves: 63

———————

Benaree Pratt Wiley (70)

Board Member (2008)

Principal Occupation During Past 5 Years:

· Principal, The Wiley Group, a firm specializing in strategy and business development (2005-present)

Other Public Company Board Memberships During Past 5 Years:

· CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small and medium size companies, Director (2008-present)

No. of Portfolios for which Board Member Serves: 87

———————

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 c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 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-DREYFUS.

James M. Fitzgibbons, Emeritus Board Member

OFFICERS OF THE FUND (Unaudited)

BRADLEY J. SKAPYAK, President since January 2010.

Chief Operating Officer and a director of the Manager since June 2009, Chairman of Dreyfus Transfer, Inc., an affiliate of the Manager and the transfer agent of the funds, since May 2011 and Executive Vice President of the Distributor since June 2007. 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 65 investment companies (comprised of 136 portfolios) managed by the Manager. He is 57 years old and has been an employee of the Manager since February 1988.

BENNETT A. MACDOUGALL, Chief Legal Officer since October 2015.

Chief Legal Officer of the Manager since June 2015; from June 2005 to June 2015, he served in various capacities with Deutsche Bank – Asset & Wealth Management Division, including as Director and Associate General Counsel, and Chief Legal Officer of Deutsche Investment Management Americas Inc. from June 2012 to May 2015. He is an officer of 66 investment companies (comprised of 161 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since June 2015.

JANETTE E. FARRAGHER, Vice President and Secretary since December 2011.

Assistant General Counsel of BNY Mellon, and an officer of 66 investment companies (comprised of 161 portfolios) managed by the Manager. She is 53 years old and has been an employee of the Manager since February 1984.

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

Managing Counsel of BNY Mellon and Secretary of the Manager, and an officer of 66 investment companies (comprised of 161 portfolios) managed by the Manager. He is 50 years old and has been an employee of the Manager since December 1996.

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

Managing Counsel of BNY Mellon, and an officer of 66 investment companies (comprised of 161 portfolios) managed by the Manager. She is 60 years old and has been an employee of the Manager since October 1988.

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

Managing Counsel of BNY Mellon, and an officer of 66 investment companies (comprised of 161 portfolios) managed by the Manager. He is 54 years old and has been an employee of the Manager since June 2000.

MAUREEN E. KANE, Vice President and Assistant Secretary since April 2015.

Managing Counsel of BNY Mellon since July 2014; from October 2004 until July 2014, General Counsel, and from May 2009 until July 2014, Chief Compliance Officer of Century Capital Management. She is an officer of 66 investment companies (comprised of 161 portfolios) managed by the Manager. She is 54 years old and has been an employee of the Manager since July 2014.

SARAH S. KELLEHER, Vice President and Assistant Secretary since April 2014.

Senior Counsel of BNY Mellon, and an officer of 66 investment companies (comprised of 161 portfolios) managed by the Manager; from August 2005 to March 2013, Associate General Counsel of Third Avenue Management. She is 41 years old and has been an employee of the Manager since March 2013.

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

Senior Managing Counsel of BNY Mellon, and an officer of 66 investment companies (comprised of 161 portfolios) managed by the Manager. He is 51 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 66 investment companies (comprised of 161 portfolios) managed by the Manager. He is 58 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, Municipal Bond and Equity Funds of the Manager, and an officer of 66 investment companies (comprised of 161 portfolios) managed by the Manager. He is 57 years old and has been an employee of the Manager since September 1982.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 66 investment companies (comprised of 161 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since April 1991.

ROBERT S. ROBOL, Assistant Treasurer since December 2008.

Senior Accounting Manager of the Manager, and an officer of 66 investment companies (comprised of 161 portfolios) managed by the Manager. He is 52 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 of the Manager, and an officer of 66 investment companies (comprised of 161 portfolios) managed by the Manager. He is 49 years old and has been an employee of the Manager since June 1989.

ROBERT SVAGNA, Assistant Treasurer since December 2008.

Senior Accounting Manager – Fixed Income and Equity Funds of the Manager, and an officer of 66 investment companies (comprised of 161 portfolios) managed by the Manager. He is 49 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 (66 investment companies, comprised of 161 portfolios). He is 59 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.

CARIDAD M. CAROSELLA, Anti-Money Laundering Compliance Officer since January 2016

Anti-Money Laundering Compliance Officer of the Dreyfus Family of Funds and BNY Mellon Funds Trust since January 2016; from May 2015 to December 2015, Interim Anti-Money Laundering Compliance Officer of the Dreyfus Family of Funds and BNY Mellon Funds Trust and the Distributor; from January 2012 to May 2015, AML Surveillance Officer of the Distributor and from 2007 to December 2011, Financial Processing Manager of the Distributor. She is an officer of 61 investment companies (comprised of 156 portfolios) managed by the Manager. She is 48 years old and has been an employee of the Distributor since 1997.

NOTES

For More Information

Dreyfus Diversified Emerging Markets Fund

200 Park Avenue
New York, NY 10166

Manager

The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Sub-Investment Adviser

Mellon Capital Management Corporation
50 Fremont Street, Suite 3900
San Francisco, CA 94105

The Boston Company Asset Management, LLC
BNY Mellon Center One Boston Place
Boston, MA 02108

Custodian

The Bank of New York Mellon
225 Liberty Street
New York, NY 10286

Transfer Agent &
Dividend Disbursing Agent

Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166

Distributor

MBSC Securities Corporation
200 Park Avenue
New York, NY 10166


Ticker Symbols: Class A: DBEAX Class C: DBECX Class I: SBCEX Class Y: SBYEX

Telephone Call your financial representative or 1-800-DREYFUS

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

E-mail Send your request to info@dreyfus.com

Internet Information can be viewed online or downloaded at www.dreyfus.com

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 www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. (phone 1-800-SEC-0330 for information).

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 www.dreyfus.com and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-DREYFUS.


© 2016 MBSC Securities Corporation 6919AR0916

Dreyfus/Newton International Equity Fund

ANNUAL REPORT

September 30, 2016

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

Contents

T H E F U N D


A Letter from the
Chief Executive Officer	2
Discussion of Fund Performance	3
Fund Performance	5
Understanding Your Fund’s Expenses	7
Comparing Your Fund’s Expenses
With Those of Other Funds	7
Statement of Investments	8
Statement of Assets and Liabilities	12
Statement of Operations	13
Statement of Changes in Net Assets	14
Financial Highlights	16
Notes to Financial Statements	20
Report of Independent Registered
Public Accounting Firm	32
Important Tax Information	33
Board Members Information	34
Officers of the Fund	36

FOR MORE INFORMATION

Back Cover


	Dreyfus/Newton International Equity Fund		The Fund

A LETTER FROM THE CHIEF EXECUTIVE OFFICER

Dear Shareholder:

We are pleased to present this annual report for Dreyfus/Newton International Equity Fund, covering the 12-month period from October 1, 2015 through September 30, 2016. 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.

Sincerely,

Mark D. Santero

Chief Executive Officer

The Dreyfus Corporation

October 17, 2016

DISCUSSION OF FUND PERFORMANCE

For the period from October 1, 2015 through September 30, 2016, as provided by Paul Markham and Jeff Munroe, Lead Portfolio Managers of Newton Investment Management (North America) Limited, Sub-Investment Adviser

Fund and Market Performance Overview

For the 12-month period ended September 30, 2016, Dreyfus/Newton International Equity Fund’s Class A shares produced a total return of 3.27%, Class C shares returned 2.50%, Class I shares returned 3.66%, and Class Y shares returned 3.68%.1,2 In comparison, the fund’s benchmark, the Morgan Stanley Capital International Europe, Australasia, Far East Index (“MSCI EAFE Index”), produced a total return of 6.52% for the same period.3

International equity markets delivered moderately positive returns during the reporting period amid changing global economic and political conditions. The fund lagged its benchmark, in part due to limited exposure to the materials and energy sectors.

The Fund’s Investment Approach

The fund normally invests at least 80% of its assets in common stocks, securities convertible into common stocks of foreign companies, and in depositary receipts evidencing ownership in such securities. The process of selecting investments begins with a core list of global investment themes from Newton Investment Management (North America) Limited (“Newton”), the fund’s sub-investment adviser. These themes, which are reviewed and updated regularly by Newton, are based on observable economic, industrial, or social trends (typically global) that Newton believes will positively or negatively affect certain sectors or industries.

As examples of themes followed during the period, for instance, Newton’s Debt Burden theme asserts that excessive debt is weighing on economic activity, and that the way in which deleveraging occurs is critical to the outlook for economics and financial markets. In addition, Newton’s Net Effects theme focuses upon the opportunities and risks inherent in the growth of information technology networks around the world.

Markets Demonstrate Resilience despite Global Uncertainty

Global equities rallied in October 2015, led by more economically sensitive and resource-related companies that advanced from previous weakness. However, these stocks subsequently gave up their gains when commodity prices declined amid sluggish international growth. Stocks and commodities pulled back particularly sharply in January 2016 due to renewed fears regarding an economic slowdown in China and softer economic data in the United States. The Bank of Japan’s move to negative interest rates at the end of January backfired spectacularly, when many investors feared that such a policy would hurt Japanese banks and local economic growth.

In contrast, monetary easing by other central banks had the desired outcome, sparking a rally in riskier assets in mid-February. The market rally continued through the spring when U.S. monetary policymakers refrained from expected interest rate hikes, China adopted measures to stimulate its economy, and commodity prices rebounded. However, market volatility resumed in June in anticipation of United Kingdom’s referendum on European Union membership. The surprising decision to leave the European Union caused investors to flock to traditional safe havens, but global equities recovered quickly when investors looked forward to fresh rounds of monetary intervention. Indeed, the Bank of England reduced short-term interest rates and increased its quantitative easing program. Consequently, most broad measures of global stock market performance ended the reporting period with positive returns.

DISCUSSION OF FUND PERFORMANCE (continued)

Fund Strategies Produced Mixed Results

Although the fund participated in the MSCI EAFE Index’s moderate gains for the reporting period, its relative performance was undermined by relatively weak results in Europe outside of the Eurozone. Overweighted exposure to and disappointing stock selections in the United Kingdom proved especially counterproductive, as did a relatively heavy position in Switzerland. From a market sector perspective, underweighted exposure to the energy and materials sectors, as well as security selection shortfalls in the industrials and telecommunications services sector, weighed on relative results. Individual stocks that detracted most of the fund’s relative performance during the reporting period included financial companies Credit Suisse Group, Barclays, and Royal Bank of Scotland Group. Food producer Associated British Foods and U.K. retailer Next also lost significant value.

The fund achieved better relative performance in the European Union, particularly the Netherlands, Germany, Spain, and Portugal. In Asia, the fund achieved strong results in China and Japan. Our security selection strategy proved especially effective in the information technology sector and, to a lesser degree, the health care sector. The fund’s top performers for the reporting period included semiconductors maker Infineon Technologies, information services provider Wolters Kluwer, technician dispatcher TechnoPro Holdings, Japan Tobacco, and medical-related Internet services provider M3.

A Cautious Investment Posture

Central bank policy has continued to drive the financial markets, and unorthodox measures that were meant to be temporary have turned out to be continuous. As a result, we have seen distortions across asset classes, where market valuations appear to be inconsistent with a weak outlook for global economic activity. In our view, companies that are able to grow without the need for support from a more robust economy may continue to command premium valuations. Therefore, the fund ended the reporting period with an emphasis on the consumer discretionary, industrials, and information technology sectors, but we have identified fewer companies meeting our investment criteria in the financials, materials, and energy sectors.

October 17, 2016

Equities 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.

Investing internationally involves special risks, including changes in currency exchange rates, political, economic and social instability, a lack of comprehensive company information, differing auditing and legal standards, and less market liquidity. The use of derivatives involves risks different from, or possibly greater than, the risks associated with investing directly in the underlying assets. Derivatives can be highly volatile, illiquid, difficult to value, and there is the risk that changes in the value of a derivative held by the fund will not correlate with the underlying instruments or the fund’s other investments.

¹The Dreyfus Corporation (Dreyfus) serves as the investment adviser for the fund. Newton Investment Management North America Limited (Newton) is the fund’s sub-investment adviser. Newton’s comments are provided as a general market overview and should not be considered investment advice or predictive of any future market performance. Newton’s views are current as of the date of this communication and are subject to change rapidly as economic and market conditions dictate

²Total 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 charge 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, yield, and investment return fluctuate such that upon redemption, fund shares may be worth more or less than their original cost.

³Source: 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. The Index does not take into account fees and expenses to which the fund is subject. Investors cannot invest directly in any index.

FUND PERFORMANCE

Comparison of change in value of $10,000 investment in Dreyfus/Newton International Equity Fund Class A shares, Class C shares, Class I shares and Class Y shares and the Morgan Stanley Capital International Europe Australasia Far East Index

^†Source: Lipper Inc.
^††The total return figures presented for Class A and Class C shares of the fund reflect the performance of the fund’s Class I shares for the period prior to 3/31/08 (the inception date for Class A and Class C shares), adjusted to reflect the applicable sales load for Class A shares. The total return figures presented for Class Y shares of the fund reflect the performance of the fund’s Class I shares for the period prior to 7/1/13 (the inception date for Class Y shares).

Past performance is not predictive of future performance.

The above graph compares a $10,000 investment made in each of the Class A, Class C, Class I and Class Y shares of Dreyfus/Newton International Equity Fund on 9/30/06 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 above takes into account the maximum initial sales charge on Class A shares and all other applicable fees and expenses on all classes. 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.

FUND PERFORMANCE (continued)


Average Annual Total Returns as of 9/30/16
	Inception
	Date	1 Year	5 Years	10 Years
Class A shares
with maximum sales charge (5.75%)	3/31/08	-2.66%	6.21%	1.07%^††
without sales charge	3/31/08	3.27%	7.48%	1.67%^††
Class C shares
with applicable redemption charge^†	3/31/08	1.50%	6.64%	1.07%^††
without redemption	3/31/08	2.50%	6.64%	1.07%^††
Class I shares	12/21/05	3.66%	7.82%	1.91%
Class Y shares	7/1/13	3.68%	7.86%^††	1.93%^††
Morgan Stanley Capital International Europe Australasia Far East Index		6.52%	7.39%	1.82%

^† 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 the period prior to 3/31/08 (the inception date for Class A and Class C shares), adjusted to reflect the applicable sales load for Class A shares. The total return performance figures presented for Class Y shares of the fund reflect the performance of the fund’s Class I shares for the period prior to 7/1/13 (the inception date for Class Y shares).

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/Newton International Equity Fund from April 1, 2016 to September 30, 2016. 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, 2016
	Class A	Class C	Class I	Class Y
Expenses paid per $1,000^†	$6.28	$10.35	$4.86	$4.46
Ending value (after expenses)	$1,024.30	$1,019.90	$1,025.60	$1,026.30

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, 2016
	Class A	Class C	Class I	Class Y
Expenses paid per $1,000^†	$6.26	$10.33	$4.85	$4.45
Ending value (after expenses)	$1,018.80	$1,014.75	$1,020.20	$1,020.60

^†Expenses are equal to the fund's annualized expense ratio of 1.24% for Class A, 2.05% for Class C, .96% for Class I and .88% for Class Y, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).

STATEMENT OF INVESTMENTS

September 30, 2016



Common Stocks - 99.5%	Shares		Value ($)
Australia - .8%
Dexus Property Group	1,285,262		9,037,642
Belgium - 2.4%
Anheuser-Busch InBev	202,958		26,643,199
China - 2.4%
Baidu, ADR	82,889	^a	15,091,600
China Biologic Products	100,084	^a	12,458,456
			27,550,056
France - 4.0%
Air Liquide	99,543		10,666,245
L'Oreal	86,340		16,300,652
Vivendi	883,534		17,804,153
			44,771,050
Georgia - .9%
TBC Bank Group	610,760	^a	10,053,728
Germany - 11.5%
Bayer	122,806		12,335,177
Hella KGaA Hueck & Co.	354,677		14,050,174
Infineon Technologies	1,681,454		30,002,709
LEG Immobilien	344,309	^a	32,957,130
MTU Aero Engines Holding	83,930		8,490,826
SAP	193,854		17,638,481
Telefonica Deutschland Holding	3,618,790		14,546,972
			130,021,469
Hong Kong - 3.7%
AIA Group	3,642,912		24,407,915
Man Wah Holdings	27,882,800		17,961,854
			42,369,769
India - 1.7%
HDFC Bank, ADR	161,504		11,610,523
Indiabulls Housing Finance	588,936		7,302,548
			18,913,071
Ireland - 2.1%
CRH	728,595		24,159,524
Israel - 1.2%
Teva Pharmaceutical Industries, ADR	289,693		13,328,775
Italy - 1.7%
Atlantia	761,205		19,327,230



Common Stocks - 99.5% (continued)	Shares		Value ($)
Japan - 24.8%
Bridgestone	419,100		15,457,453
Don Quijote Holdings	825,900		30,270,035
FANUC	86,100		14,572,154
Japan Airlines	582,886		17,159,577
Japan Tobacco	853,600		34,873,873
M3	312,500		10,642,452
Recruit Holdings	453,471		18,447,578
Skylark	1,465,500		19,721,989
SoftBank Group	246,600		15,975,211
Sugi Holdings	449,700		24,389,336
Suntory Beverage & Food	474,000		20,565,462
TechnoPro Holdings	672,200		25,321,375
Topcon	1,001,700		14,292,823
Toyota Motor	317,800		18,430,410
			280,119,728
Mexico - 2.1%
Fomento Economico Mexicano, ADR	153,897		14,164,680
Grupo Financiero Santander Mexico, Cl. B, ADR	1,138,418		10,018,078
			24,182,758
Netherlands - 9.8%
Intertrust	515,665	^b	12,370,284
Koninklijke Ahold Delhaize	448,872		10,225,032
RELX	1,117,828		20,073,065
Unilever	615,525		28,394,551
Wolters Kluwer	931,691		39,871,003
			110,933,935
Norway - 1.9%
DNB	1,609,982		21,151,605
Portugal - .9%
Galp Energia	784,306		10,722,574
Switzerland - 10.4%
Actelion	62,017	^a	10,736,831
Credit Suisse Group	933,892	^a	12,217,980
Nestle	348,728		27,477,544
Novartis	346,874		27,278,614
Roche Holding	117,884		29,204,122
Swisscom	23,325		11,073,260
			117,988,351

STATEMENT OF INVESTMENTS (continued)



Common Stocks - 99.5% (continued)	Shares		Value ($)
United Kingdom - 17.2%
Associated British Foods	482,774		16,269,344
Barclays	6,661,145		14,523,812
British American Tobacco	319,652		20,442,397
Centrica	5,829,192		17,241,570
Diageo	658,373		18,877,478
GlaxoSmithKline	781,232		16,648,302
Just Eat	922,619	^a	6,409,734
Next	145,982		9,051,549
Prudential	645,641		11,459,083
Royal Bank of Scotland Group	6,778,801	^a	15,741,579
Vodafone Group	9,473,859		27,164,979
Wolseley	360,909		20,343,388
			194,173,215
Total Common Stocks (cost $991,599,811)			1,125,447,679
Rights - .0%	Number of Rights		Value ($)
France - .0%
Air Liquide (cost $0)	99,536	^a	270,951
Other Investment - .3%	Shares		Value ($)
Registered Investment Company;
Dreyfus Institutional Preferred Government Plus Money Market Fund (cost $2,777,060)	2,777,060	^c	2,777,060
Total Investments (cost $994,376,871)	99.8%		1,128,495,690
Cash and Receivables (Net)	.2%		2,466,940
Net Assets	100.0%		1,130,962,630

ADR—American Depository Receipt
^a Non-income producing security.
^b Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2016, this security was valued at $12,370,284 or 1.09% of net assets.
^c Investment in affiliated money market mutual fund.


Portfolio Summary (Unaudited) ^†	Value (%)
Consumer Staples	22.9
Industrials	16.3
Financials	15.9
Health Care	13.0
Consumer Discretionary	11.9
Information Technology	7.8
Telecommunication Services	6.1
Materials	3.1
Utilities	1.5
Energy	1.0
Money Market Investment	.3
	99.8

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

STATEMENT OF ASSETS AND LIABILITIES

September 30, 2016



	Cost	Value
Assets ($):
Investments in securities—See Statement of Investments:
Unaffiliated issuers	991,599,811	1,125,718,630
Affiliated issuers	2,777,060	2,777,060
Cash		342,902
Cash denominated in foreign currency	803,926	802,267
Dividends receivable		3,024,035
Receivable for shares of Beneficial Interest subscribed		532,778
Unrealized appreciation on forward foreign currency exchange contracts—Note 4		413
Prepaid expenses		26,342
		1,133,224,427
Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(c)		954,927
Payable for shares of Beneficial Interest redeemed		1,139,327
Unrealized depreciation on forward foreign currency exchange contracts—Note 4		84,138
Accrued expenses		83,405
		2,261,797
Net Assets ($)		1,130,962,630
Composition of Net Assets ($):
Paid-in capital		1,073,484,896
Accumulated undistributed investment income—net		10,851,977
Accumulated net realized gain (loss) on investments		(87,365,386)
Accumulated net unrealized appreciation (depreciation) on investments and foreign currency transactions		133,991,143
Net Assets ($)		1,130,962,630


Net Asset Value Per Share	Class A	Class C	Class I	Class Y
Net Assets ($)	5,838,855	1,470,124	80,458,255	1,043,195,396
Shares Outstanding	307,735	79,459	4,268,860	55,574,409
Net Asset Value Per Share ($)	18.97	18.50	18.85	18.77

See notes to financial statements.

STATEMENT OF OPERATIONS

Year Ended September 30, 2016




Investment Income ($):
Income:
Cash dividends (net of $2,165,471 foreign taxes withheld at source):
Unaffiliated issuers					25,446,713
Affiliated issuers					67,030
Total Income					25,513,743
Expenses:
Investment advisory fee—Note 3(a)					8,605,113
Custodian fees—Note 3(c)					304,260
Administration fee—Note 3(a)					198,770
Registration fees					85,790
Trustees’ fees and expenses—Note 3(d)					79,918
Professional fees					79,529
Shareholder servicing costs—Note 3(c)					68,434
Prospectus and shareholders’ reports					19,223
Loan commitment fees—Note 2					16,111
Distribution fees—Note 3(b)					11,349
Interest expense—Note 2					426
Miscellaneous					61,960
Total Expenses					9,530,883
Less—reduction in fees due to earnings credits—Note 3(c)					(69)
Net Expenses					9,530,814
Investment Income—Net					15,982,929
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments and foreign currency transactions					(52,773,220)
Net realized gain (loss) on forward foreign currency exchange contracts					(4,713,634)
Net Realized Gain (Loss)					(57,486,854)
Net unrealized appreciation (depreciation) on investments and foreign currency transactions					81,453,202
Net unrealized appreciation (depreciation) on forward foreign currency exchange contracts					(91,407)
Net Unrealized Appreciation (Depreciation)					81,361,795
Net Realized and Unrealized Gain (Loss) on Investments					23,874,941
Net Increase in Net Assets Resulting from Operations					39,857,870

See notes to financial statements.

STATEMENT OF CHANGES IN NET ASSETS


	Year Ended September 30,
	2016	2015
Operations ($):
Investment income—net	15,982,929	11,342,544
Net realized gain (loss) on investments	(57,486,854)	(20,825,922)
Net unrealized appreciation (depreciation) on investments	81,361,795	(49,956,650)
Net Increase (Decrease) in Net Assets Resulting from Operations	39,857,870	(59,440,028)
Dividends to Shareholders from ($):
Investment income—net:
Class A	(66,686)	(45,244)
Class C	(4,742)	(19,617)
Class I	(610,971)	(826,604)
Class Y	(11,120,282)	(24,124,094)
Net realized gain on investments:
Class A	-	(41,568)
Class C	-	(18,505)
Class I	-	(540,048)
Class Y	-	(13,319,218)
Total Dividends	(11,802,681)	(38,934,898)
Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Class A	2,976,546	6,034,240
Class C	530,889	730,359
Class I	61,333,937	35,984,384
Class Y	328,405,779	319,351,626
Dividends reinvested:
Class A	65,675	84,769
Class C	4,742	38,122
Class I	569,133	1,248,485
Class Y	4,475,809	19,737,631
Cost of shares redeemed:
Class A	(4,321,694)	(786,295)
Class C	(508,161)	(436,089)
Class I	(26,725,447)	(18,271,886)
Class Y	(210,851,108)	(114,873,841)
Increase (Decrease) in Net Assets from Beneficial Interest Transactions	155,956,100	248,841,505
Total Increase (Decrease) in Net Assets	184,011,289	150,466,579
Net Assets ($):
Beginning of Period	946,951,341	796,484,762
End of Period	1,130,962,630	946,951,341
Undistributed investment income—net	10,851,977	9,763,942


	Year Ended September 30,
	2016	2015
Capital Share Transactions (Shares):
Class A
Shares sold	162,010	297,171
Shares issued for dividends reinvested	3,418	4,536
Shares redeemed	(233,471)	(39,761)
Net Increase (Decrease) in Shares Outstanding	(68,043)	261,946
Class C
Shares sold	28,824	36,131
Shares issued for dividends reinvested	252	2,073
Shares redeemed	(27,912)	(22,382)
Net Increase (Decrease) in Shares Outstanding	1,164	15,822
Class I^a
Shares sold	3,324,543	1,796,337
Shares issued for dividends reinvested	29,892	67,340
Shares redeemed	(1,452,541)	(943,910)
Net Increase (Decrease) in Shares Outstanding	1,901,894	919,767
Class Y^a
Shares sold	17,940,974	16,257,122
Shares issued for dividends reinvested	236,191	1,070,951
Shares redeemed	(11,482,175)	(5,902,266)
Net Increase (Decrease) in Shares Outstanding	6,694,990	11,425,807

^aDuring the period ended September 30, 2016, 442,280 Class Y shares representing $8,075,787 were exchanged for 440,353 Class I shares.

See notes to financial statements.

FINANCIAL HIGHLIGHTS



	Year Ended September 30,
Class A Shares	2016	2015	2014	2013	2012
Per Share Data ($):
Net asset value, beginning of period	18.54	20.41	20.15	16.96	14.74
Investment Operations:
Investment income—net^a	.22	.19	.47	.21	.18
Net realized and unrealized gain (loss) on investments	.39	(1.33)	.10	3.19	2.52
Total from Investment Operations	.61	(1.14)	.57	3.40	2.70
Distributions:
Dividends from investment income—net	(.18)	(.38)	(.31)	(.21)	(.23)
Dividends from net realized gain on investments	–	(.35)	–	–	(.25)
Total Distributions	(.18)	(.73)	(.31)	(.21)	(.48)
Net asset value, end of period	18.97	18.54	20.41	20.15	16.96
Total Return (%)^b	3.27	(5.58)	2.88	20.24	18.92
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	1.23	1.19	1.30	1.34	1.32
Ratio of net expenses to average net assets	1.23	1.19	1.30	1.34	1.32
Ratio of net investment income to average net assets	1.16	.97	2.22	1.11	1.14
Portfolio Turnover Rate	34.87	36.37	39.45	55.27	57.88
Net Assets, end of period ($ x 1,000)	5,839	6,965	2,324	9,404	7,300

^aBased on average shares outstanding.
^bExclusive of sales charge.
See notes to financial statements.



	Year Ended September 30,
Class C Shares	2016	2015	2014	2013	2012
Per Share Data ($):
Net asset value, beginning of period	18.10	20.10	19.90	16.70	14.54
Investment Operations:
Investment income—net^a	.07	.02	.29	.05	.07
Net realized and unrealized gain (loss) on investments	.38	(1.30)	.14	3.17	2.47
Total from Investment Operations	.45	(1.28)	.43	3.22	2.54
Distributions:
Dividends from investment income—net	(.05)	(.37)	(.23)	(.02)	(.13)
Dividends from net realized gain on investments	–	(.35)	–	–	(.25)
Total Distributions	(.05)	(.72)	(.23)	(.02)	(.38)
Net asset value, end of period	18.50	18.10	20.10	19.90	16.70
Total Return (%)^b	2.50	(6.39)	2.18	19.31	17.92
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	2.02	2.01	2.04	2.13	2.16
Ratio of net expenses to average net assets	2.02	2.01	2.04	2.13	2.16
Ratio of net investment income to average net assets	.37	.10	1.43	.28	.42
Portfolio Turnover Rate	34.87	36.37	39.45	55.27	57.88
Net Assets, end of period ($ x 1,000)	1,470	1,417	1,256	979	722

^aBased on average shares outstanding.
^bExclusive of sales charge.
See notes to financial statements.

FINANCIAL HIGHLIGHTS (continued)



	Year Ended September 30,
Class I Shares	2016	2015	2014	2013	2012
Per Share Data ($):
Net asset value, beginning of period	18.39	20.37	20.10	16.92	14.77
Investment Operations:
Investment income—net^a	.27	.26	.61	.26	.24
Net realized and unrealized gain (loss) on investments	.41	(1.35)	.03	3.18	2.49
Total from Investment Operations	.68	(1.09)	.64	3.44	2.73
Distributions:
Dividends from investment income—net	(.22)	(.54)	(.37)	(.26)	(.33)
Dividends from net realized gain on investments	–	(.35)	–	–	(.25)
Total Distributions	(.22)	(.89)	(.37)	(.26)	(.58)
Net asset value, end of period	18.85	18.39	20.37	20.10	16.92
Total Return (%)	3.66	(5.37)	3.25	20.62	19.27
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.94	.90	.96	1.01	1.04
Ratio of net expenses to average net assets	.94	.90	.96	1.01	1.04
Ratio of net investment income to average net assets	1.44	1.32	2.95	1.42	1.54
Portfolio Turnover Rate	34.87	36.37	39.45	55.27	57.88
Net Assets, end of period ($ x 1,000)	80,458	43,538	29,479	535,265	430,297

^aBased on average shares outstanding.
See notes to financial statements.



	Year Ended September 30,
Class Y Shares		2016	2015	2014	2013^a
Per Share Data ($):
Net asset value, beginning of period		18.31	20.38	20.11	18.74
Investment Operations:
Investment income—net^b		.28	.26	.22	.06
Net realized and unrealized gain (loss) on investments		.40	(1.34)	.43	1.31
Total from Investment Operations		.68	(1.08)	.65	1.37
Distributions:
Dividends from investment income—net		(.22)	(.64)	(.38)	–
Dividends from net realized gain on investments		–	(.35)	–	–
Total Distributions		(.22)	(.99)	(.38)	–
Net asset value, end of period		18.77	18.31	20.38	20.11
Total Return (%)		3.68	(5.32)	3.33	6.29^c
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets		.88	.89	.91	.94^d
Ratio of net expenses to average net assets		.88	.89	.91	.94^d
Ratio of net investment income to average net assets		1.49	1.32	1.10	1.19^d
Portfolio Turnover Rate		34.87	36.37	39.45	55.27
Net Assets, end of period ($ x 1,000)		1,043,195	895,031	763,426	1

^a From July 1, 2013, (commencement of initial offering) to September 30, 2013.
^b Based on average shares outstanding.
^c Not annualized.
^dAnnualized.
See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus/Newton International 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 seven 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. Newton Investment Management (North America) Limited (“Newton”), formerly, Newton Capital Management Limited, a wholly-owned subsidiary of BNY Mellon and an affiliate of Dreyfus, serves as the fund’s sub-investment adviser.

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.

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

NOTES TO FINANCIAL STATEMENTS (continued)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:

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 Trust's Board of Trustees (the “Board”). Certain factors may be considered when fair valuing investments 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. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are generally categorized within Level 3 of the fair value hierarchy.

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 and are generally categorized within Level 2 of the fair value hierarchy.

The following is a summary of the inputs used as of September 30, 2016 in valuing the fund’s investments:


	Level 1 – Unadjusted Quoted Prices	Level 2 –Other Significant Observable Inputs		Level 3 – Significant Unobservable Inputs	Total
Assets ($)
Investments in Securities:
Equity Securities - Foreign Common Stocks^†	76,672,112	1,048,775,567	^††	–	1,125,447,679
Mutual Funds	2,777,060	–		–	2,777,060
Rights^†	–	270,951	^††	–	270,951
Other Financial Instruments:
Forward Foreign Currency Exchange Contracts^†††	–	413		–	413
Liabilities ($)
Other Financial Instruments:
Forward Foreign Currency Exchange Contracts^†††	–	(84,138)		–	(84,138)

^†See Statement of Investments for additional detailed categorizations.
^††Securities classified within Level 2 at period end as the values were determined pursuant to the fund’s fair valuation procedures. See note above for additional information.
^†††Amount shown represents unrealized appreciation (depreciation) at period end.

At September 30, 2015, $882,706,617 of exchange traded foreign equity securities were classified within Level 2 of the fair value hierarchy pursuant to the fund’s fair valuation procedures.

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

NOTES TO FINANCIAL STATEMENTS (continued)

on foreign currency transactions are also included with net realized and unrealized gain or loss on investments.


Affiliated Investment Company	Value 9/30/2015($)	Purchases($)	Sales($)	Value 9/30/2016($)	Net Assets(%)
Dreyfus Institutional Preferred Government Plus Money Market Fund^†	45,994,333	380,385,538	423,602,811	2,777,060	.3

^† Formerly Dreyfus Institutional Preferred Plus Money Market Fund.

(g) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the

best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

Each tax year in the four-year period ended September 30, 2016 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At September 30, 2016, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $12,198,198, accumulated capital losses $79,675,737 and unrealized appreciation $124,955,273.

Under the Regulated Investment Company Modernization Act of 2010, the fund is permitted to carry forward capital losses for an unlimited period. Furthermore, capital loss carryovers retain their character as either short-term or long-term capital losses.

The accumulated capital loss carryover is available for federal income tax purposes to be applied against future net realized capital gains, if any, realized subsequent to September 30, 2016. The fund has $32,370,062 of short-term capital losses and $47,305,675 of long-term capital losses which can be carried forward for an unlimited period.

The tax character of distributions paid to shareholders during the fiscal periods ended September 30, 2016 and September 30, 2015 were as follows: ordinary income $11,802,681 and $27,721,796, and long-term capital gains $0 and $11,213,102, respectively.

During the period ended September 30, 2016, as a result of permanent book to tax differences, primarily due to the tax treatment for foreign currency gains and losses, the fund decreased accumulated undistributed investment income-net by $3,092,213 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:

NOTES TO FINANCIAL STATEMENTS (continued)

a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. Prior to January 11, 2016, the unsecured credit facility with Citibank, N.A. was $480 million and prior to October 7, 2015, the unsecured credit facility with Citibank, N.A. was $430 million. 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, 2016, was approximately $32,000 with a related weighted average annualized interest rate of 1.33%.

NOTE 3—Investment Advisory Fee, Sub-Investment Advisory Fee, Administration Fee and Other Transactions with Affiliates:

(a) Pursuant to an investment advisory agreement with Dreyfus, the investment advisory fee is computed at the annual rate of .80% of the value of the fund’s average daily net assets and is payable monthly.

Pursuant to a sub-investment advisory agreement between Dreyfus and Newton, Dreyfus pays Newton a monthly fee at an annual percentage rate of the value of the fund’s average daily net assets.

(c) Under the Shareholder Services Plan, Class A and Class C shares pay the Distributor at an 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 (securities dealers, financial institutions or other industry professionals) with respect to these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended September 30, 2016, Class A and Class C shares were charged $17,271 and $3,783, respectively, pursuant to the Shareholder Services Plan.

The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing transfer agency and cash management services for the fund. The majority of transfer agency fees are comprised of amounts paid on a per account basis, while cash management fees are related to fund subscriptions and redemptions. During the period ended September 30, 2016, the fund was charged $4,697 for transfer agency services and $173 for cash management services. These fees are included in Shareholder servicing costs in the Statement of Operations. Cash management fees were partially offset by earnings credits of $69.

The fund compensates The Bank of New York Mellon under a custody agreement for providing custodial services for the fund. These fees are

NOTES TO FINANCIAL STATEMENTS (continued)

determined based on net assets, geographic region and transaction activity. During the period ended September 30, 2016, the fund was charged $304,260 pursuant to the custody agreement.

During the period ended September 30, 2016, the fund was charged $9,919 for services performed by the Chief Compliance Officer and his staff.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: investment advisory fees $739,597, administration fees $23,279, Distribution Plan fees $904, Shareholder Services Plan fees $1,547, custodian fees $178,609, Chief Compliance Officer fees $7,217 and transfer agency fees $3,774.

(d) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

Derivatives: A derivative is a financial instrument whose performance is derived from the performance of another asset. The fund enters into International Swaps and Derivatives Association, Inc. Master Agreements or similar agreements (collectively, “Master Agreements”) with its over-the-counter (“OTC”) derivative contract counterparties in order to, among other things, reduce its credit risk to counterparties. Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under a Master Agreement, the fund may offset with the counterparty certain derivative financial instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment in the event of default or termination.

Each type of derivative instrument that was held by the fund during the period ended September 30, 2016 is discussed below.

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 or unrealized gains or losses which occurred during the period are 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 generally limited to the unrealized gain on each open contract. This risk may be mitigated by Master Agreements, if any, between the fund and the counterparty and the posting of collateral, if any, by the counterparty to the fund to cover the fund’s exposure to the counterparty. The following summarizes open forward contracts at September 30, 2016:


Forward Foreign Currency Exchange Contracts	Foreign Currency Amounts	Cost/ Proceeds ($)	Value ($)	Unrealized Appreciation (Depreciation)($)
Purchases:
JP Morgan Chase Bank
Japanese Yen,
Expiring
10/14/2016	2,187,297,000	21,595,041	21,582,457	(12,584)
Sales:
JP Morgan Chase Bank
Euro,
Expiring
10/4/2016	201,088	225,644	225,893	(249)
State Street Bank and Trust Co.
British Pound,
Expiring
10/3/2016	83,481	108,617	108,204	413
Japanese Yen,
Expiring
10/14/2016	2,187,297,000	21,511,152	21,582,457	(71,305)
Gross Unrealized Appreciation				413
Gross Unrealized Depreciation				(84,138)

The provisions of ASC Topic 210 “Disclosures about Offsetting Assets and Liabilities” require disclosure on the offsetting of financial assets and liabilities. These disclosures are required for certain investments, including derivative financial instruments subject to Master Agreements which are

NOTES TO FINANCIAL STATEMENTS (continued)

eligible for offsetting in the Statement of Assets and Liabilities and require the fund to disclose both gross and net information with respect to such investments. For financial reporting purposes, the fund does not offset derivative assets and derivative liabilities that are subject to Master Agreements in the Statement of Assets and Liabilities.

At September 30, 2016, derivative assets and liabilities (by type) on a gross basis are as follows:


Derivative Financial Instruments:	Assets ($)	Liabilities ($)
Forward contracts	413	(84,138)
Total gross amount of derivative
assets and liabilities in the
Statement of Assets and Liabilities	413	(84,138)
Derivatives not subject to
Master Agreements	-	-
Total gross amount of assets
and liabilities subject to
Master Agreements	413	(84,138)

The following tables present derivative assets and liabilities net of amounts available for offsetting under Master Agreements and net of related collateral received or pledged, if any, as of September 30, 2016:


			Financial
			Instruments
			and Derivatives
	Gross Amount of		Available	Collateral	Net Amount of
Counterparty	Assets ($)	¹	for Offset ($)	Received ($)	Assets ($)
State Street Bank and Trust Co.	413		-	-	413
Total	413		-	-	413

			Financial
			Instruments
			and Derivatives
	Gross Amount of		Available	Collateral	Net Amount of
Counterparty	Liabilities ($)	¹	for Offset ($)	Pledged ($)	Liabilities ($)
JP Morgan Chase Bank	(12,833)		-	-	(12,833)
State Street Bank and Trust Co.	(71,305)		413	-	(70,892)
Total	(84,138)		413	-	(83,725)

¹Absent a default event or early termination, OTC derivative assets and liabilities are presented at gross amounts and are not offset in the Statement of Assets and Liabilities.

The following summarizes the average market value of derivatives outstanding during the period ended September 30, 2016:


		Average Market Value ($)
Forward contracts		23,988,479

At September 30, 2016, the cost of investments for federal income tax purposes was $1,003,496,630; accordingly, accumulated net unrealized appreciation on investments was $124,999,060, consisting of $194,485,509 gross unrealized appreciation and $69,486,449 gross unrealized depreciation.

REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of
Dreyfus Investment Funds

We have audited the accompanying statement of assets and liabilities of Dreyfus/Newton International Equity Fund (the “Fund”), a series of Dreyfus Investment Funds, including the statement of investments, as of September 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-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.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus/Newton International Equity Fund as of September 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York
November 23, 2016

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 reports the maximum amount allowable but not less than $27,679,438 as income sourced from foreign countries for the fiscal year ended September 30, 2016 in accordance with Section 853(c)(2) of the Internal Revenue Code and also the fund reports the maximum amount allowable but not less than $2,016,576 as taxes paid from foreign countries for the fiscal year ended September 30, 2016 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 2016 calendar year with Form 1099-DIV which will be mailed in early 2017. Also the fund reports the maximum amount allowable, but not less than $11,802,681 as ordinary income dividends paid during the fiscal year ended September 30, 2016 as qualified dividend income in accordance with Section 854(b)(1)(B) Section 852(b)(3)(C) of the Internal Revenue Code.