BNY Mellon Advantage Funds 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- 7123

	Advantage Funds, Inc.
	(Exact name of Registrant as specified in charter)

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

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

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

Date of fiscal year end:		10/31
Date of reporting period:		10/31/2010

ADVANTAGE FUNDS, INC.

- Dreyfus Global Absolute Return Fund

- Dreyfus Global Real Return Fund

- Dreyfus Total Return Advantage Fund

- Global Alpha Fund

FORM N-CSR

Item 1. Reports to Stockholders.

Dreyfus

Global Absolute

Return Fund

ANNUAL REPORT October 31, 2010

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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.

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

Dreyfus

Global Absolute

Return Fund

The Fund

A LETTER FROM THE CHAIRMAN AND CEO

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Global Absolute Return Fund, covering the 12-month period from November 1, 2009, through October 31, 2010.

Although a double-dip recession has recently become an increasingly unlikely scenario in our view, persistent uncertainty regarding the breadth and strength of the U.S. and global economic recoveries led to bouts of heightened volatility for U.S. stocks during most of 2010.The spending power of the U.S. consumer, long an important catalyst for economic growth, has been diminished by concerns over job security and an inability to generate cash from home equity.The second major driver of sustainable growth, corporate investment, has been stunted to a similar extent by tight credit conditions. However, the recent announcement of additional quantitative easing (QE2) measures by the Federal Reserve Board, as well as improved fundamentals across many developing nations, have helped support moderate global economic growth.

Uncertainty will probably remain in the broader financial markets until we see more evidence of robust economic growth, but we remain optimistic regarding the prospects for equities. Many stocks of quality companies with healthy balance sheets, higher credit ratings and strong cash flows appear to be currently priced at a discount.With that, we strongly suggest that you meet with your financial advisor to discuss the potential opportunities which may exist in the global markets, as well as to evaluate your portfolio to help meet your individual investment needs and your future goals relative to your risk-tolerance level.

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

Thank you for your continued confidence and support.

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

DISCUSSION OF FUND PERFORMANCE

For the period of November 1, 2009, through October 31, 2010, as provided by Vassilis Dagioglu, James Stavena, Torrey Zaches and Joseph Miletich, Portfolio Managers

Fund and Market Performance Overview

For the 12-month period ended October 31, 2010, Dreyfus Global Absolute Return Fund’s Class A shares produced a total return of 6.89%, Class C shares returned 6.11% and Class I shares returned 7.20%.¹In comparison, the fund’s benchmark, the Citibank 30-Day Treasury Bill Index, produced a total return of 0.11% for the same period.²

Relative mispricing across global markets converged during the reporting period as a result of improved market liquidity and a recovering global economy.The fund produced higher returns than its benchmark, as it successfully adopted various equity, bond and currency positions that were designed to take fuller advantage of the global economic recovery and changes in relative valuations across asset classes and geographic regions.

The Fund’s Investment Approach

The fund seeks total return through investments in securities and instruments that provide exposure to global stock, bond and currency markets. For allocation among equity markets, the portfolio managers employ a bottom-up valuation approach using proprietary models to derive market level expected returns. For allocation among bond markets, the portfolio managers use proprietary models to identify temporary mispricings among the long-term government bond markets. The most relevant long-term bond yield within each country serves as the expected return for each bond market. Our quantitative investment approach is designed to identify and exploit relative misvaluations across and within major developed capital markets such as the United States, Japan and the larger Western European countries.

Global Economic Concerns Sparked Market Volatility

Although the reporting period began in the midst of an economic recovery that propelled many financial markets higher through the first quarter

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

of 2010, investor confidence was shaken in the spring by a sovereign debt crisis in Europe. Greece found itself unable to refinance a heavy debt load, leading to devaluation of the euro against most other major currencies. Meanwhile, inflation-fighting measures in China caused investors to worry that a major engine of global growth might be derailed. In the United States, mixed housing and employment data and a catastrophic oil spill in the Gulf of Mexico added to global and domestic economic uncertainty. As investor sentiment deteriorated during the spring and summer, global financial markets generally declined sharply.

However, investors’ fears at the time may have been overblown. Earnings among multinational companies generally continued to improve, and the U.S. and global economies remained on mildly upward trajectories through the fall. In addition, anticipation of a second round of quantitative easing of U.S. monetary policy helped support certain stocks, bonds and currencies in September and October, helping to erase the reporting period’s previous losses.

Stock, Bond and Currency Strategies Supported Fund Results

The fund proved to be well positioned in advance of the European sovereign debt crisis, enabling it to participate fully in the devaluation of the euro and rally in U.S. bonds as global investors sought traditional safe havens in the face of market instability and a potential economic downturn in Europe. Later in the reporting period, when the Federal Reserve Board announced the second round of quantitative easing in the United States, the fund further benefited from a short position in the U.S. dollar, which shed some of its value relative to other currencies, such as the Australian dollar. However, the fund received its strongest contributions to performance during the reporting period from global equity markets, where a bearish position in Japanese equities and a bullish position in the United Kingdom produced above-average results with below-average levels of volatility.

Although the fund encountered relatively few disappointments during the reporting period, its relative performance was undermined to a mild degree by short positions in the British pound and European equities. In particular, the fund suffered from its long exposure to the stock market of France.

Seeking Opportunities in Currency and Equity Markets

Despite the financial markets’ recent positive responses to signs of potential improvement in the global economy, we expect uncertainty to persist into 2011 as investors “wait and see” regarding the efficacy of current monetary stimulus efforts in the face of persistent headwinds.Therefore, the fund has adopted a generally market-neutral investment posture, without taking directional bets regarding the overall performance of global stock and bond markets.We see more opportunity for returns in the currency markets, where we anticipate further devaluation of the U.S. dollar against other major currencies. We also have identified valuation disparities across regional equity markets, as stock prices in the United Kingdom appear more attractive to us than they do in North American markets. In our judgment, these strategies position the fund to participate in global financial markets while effectively man aging the risks of heightened market volatility as economic conditions change.

November 15, 2010


	Investing in foreign companies involves special risks, including changes in currency rates, political,
	economic and social instability, a lack of comprehensive company information, differing auditing
	and legal standards, and less market liquidity.
	Equity securities 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. Bond securities are subject generally to interest rate, credit,
	liquidity, call, sector and market risks, to varying degrees, all of which are more fully described in
	the fund’s prospectus.
	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.
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, yield and investment return fluctuate such that upon redemption,
	fund shares may be worth more or less than their original cost. Return figures provided reflect
	the absorption of certain fund expenses by The Dreyfus Corporation pursuant to an agreement
	in effect until March 1, 2012. Had these expenses not been absorbed, the fund’s returns would
	have been lower.
2	SOURCE: FactSet – Citigroup 30-Day Treasury Bill Index is a market value-weighted index
	of public obligations of the U.S.Treasury with maturities of 30 days. Investors cannot invest
	directly in any index.

The Fund 5

FUND PERFORMANCE

Comparison of change in value of $10,000 investment in Dreyfus Global Absolute Return Fund Class A shares, Class C shares and Class I shares and the Citibank 30-Day Treasury Bill Index

^†Source: Bloomberg L.P.

Past performance is not predictive of future performance.

The above graph compares a $10,000 investment made in Class A, Class C and Class I shares of Dreyfus Global Absolute Return Fund on 12/18/07 (inception date) to a $10,000 investment made in the Citibank 30-Day Treasury Bill Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. For comparative purposes, the value of the Index on 12/31/07 is used as the beginning value on 12/18/07.

The fund’s performance shown in the line graph 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 market value-weighted index of public obligations of the U.S.Treasury with maturities of 30 days. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. 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 10/31/10

	Inception		From
	Date	1 Year	Inception
Class A shares
with maximum sales charge (5.75%)	12/18/07	0.71%	–0.88%
without sales charge	12/18/07	6.89%	1.18%
Class C shares
with applicable redemption charge ^†	12/18/07	5.11%	0.42%
without redemption	12/18/07	6.11%	0.42%
Class I shares	12/18/07	7.20%	1.51%
Citibank 30-Day Treasury Bill Index^††	12/31/07	0.11%	0.54%

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


†	The maximum contingent deferred sales charge for Class C shares is 1% for shares redeemed within one year of the
	date of purchase.
^††	For comparative purposes, the value of the Index as of 12/31/07 is used as the beginning value on 12/18/07.

The Fund 7

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

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

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Global Absolute Return Fund from May 1, 2010 to October 31, 2010. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended October 31, 2010


	Class A	Class C	Class I
Expenses paid per $1,000^†	$ 7.79	$ 11.66	$ 6.50
Ending value (after expenses)	$1,060.80	$1,056.60	$1,062.30

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 October 31, 2010


	Class A	Class C	Class I
Expenses paid per $1,000^†	$ 7.63	$ 11.42	$ 6.36
Ending value (after expenses)	$1,017.64	$1,013.86	$1,018.90

† Expenses are equal to the fund’s annualized expense ratio of 1.50% for Class A, 2.25% for Class C and 1.25%

for Class I , multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half

year period).

STATEMENT OF INVESTMENTS

October 31, 2010


	Principal
Short-Term Investments—71.0%	Amount ($)		Value ($)
U.S. Treasury Bills:
0.12%, 11/26/10	660,000		659,945
0.13%, 12/23/10	635,000	^a	634,872
0.13%, 1/27/11	1,030,000		1,029,733
0.14%, 12/16/10	2,100,000		2,099,672
0.14%, 1/13/11	1,638,000		1,637,667
0.15%, 11/4/10	400,000		399,995
0.15%, 11/12/10	2,590,000		2,589,920
0.15%, 11/18/10	600,000		599,971
Total Short-Term Investments
(cost $9,651,505)			9,651,775

	Face Amount
	Covered by
Options Purchased—3.8%	Contracts ($)		Value ($)
Call Options;
U.S. Treasury 10 Year Notes
November 2010 @ $114
(cost $471,276)	4,200,000	^b	515,813

Other Investment—23.7%	Shares		Value ($)
Registered Investment Company;
Dreyfus Institutional Preferred
Plus Money Market Fund
(cost $3,225,000)	3,225,000	^c	3,225,000

Total Investments (cost $13,347,781)	98.5%		13,392,588
Cash and Receivables (Net)	1.5%		198,920
Net Assets	100.0%		13,591,508


a	Held by a broker as collateral for open financial futures positions.
b	Non-income producing security.
c	Investment in affiliated money market mutual fund.


Portfolio Summary (Unaudited)^†
	Value (%)		Value (%)
Short-Term/		Options Purchased	3.8
Money Market Investments	94.7		98.5
† Based on net assets.
See notes to financial statements.

The Fund 9

STATEMENT OF FINANCIAL FUTURES

October 31, 2010


				Unrealized
		Market Value		Appreciation
		Covered by		(Depreciation)
Contracts		Contracts ($)	Expiration	at 10/31/2010 ($)
Financial Futures Long
CAC 40 10 Euro	12	636,209	November 2010	2,720
DAX	1	230,010	December 2010	12,923
Euro-Bond	12	2,155,390	December 2010	(11,409)
Euro-Bond Options	23	472,160	November 2010	99,904
FTSE 100	29	2,624,730	December 2010	55,842
Japanese 10 Year Mini Bond	9	1,600,335	December 2010	4,346
U.S. Treasury 10 Year Notes	12	1,515,375	December 2010	(1,353)
Financial Futures Short
Long Gilt	19	(3,747,326)	December 2010	45,756
Japanese 10 Year Bond	1	(1,777,778)	December 2010	(26,453)
S & P 500 Emini	34	(2,005,490)	December 2010	(109,881)
Gross Unrealized Appreciation				221,491
Gross Unrealized Depreciation				(149,096)

See notes to financial statements.

STATEMENT OF ASSETS AND LIABILITIES

October 31, 2010


		Cost	Value
Assets ($):
Investments in securities—See Statement of Investments:
Unaffiliated issuers		10,122,781	10,167,588
Affiliated issuers		3,225,000	3,225,000
Cash			74,866
Unrealized appreciation on forward foreign
currency exchange contracts—Note 4			231,481
Receivable for investment securities sold			141,895
Receivable for shares of Common Stock subscribed			58,302
Dividends and interest receivable			444
Prepaid expenses			9,407
			13,908,983
Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(c)			12,778
Payable for investment securities purchased			129,586
Unrealized depreciation on forward foreign
currency exchange contracts—Note 4			109,705
Payable for futures variation margin—Note 4			25,888
Accrued expenses			39,518
			317,475
Net Assets ($)			13,591,508
Composition of Net Assets ($):
Paid-in capital			12,686,852
Accumulated net realized gain (loss) on investments			668,697
Accumulated net unrealized appreciation (depreciation) on investments,
options transactions and foreign currency transactions (including
$72,395 net unrealized appreciation on financial futures)			235,959
Net Assets ($)			13,591,508


Net Asset Value Per Share
	Class A	Class C	Class I
Net Assets ($)	7,995,129	1,242,719	4,353,660
Shares Outstanding	628,084	99,316	340,164
Net Asset Value Per Share ($)	12.73	12.51	12.80

See notes to financial statements.

The Fund 11


STATEMENT OF OPERATIONS
Year Ended October 31, 2010




Investment Income ($):
Income:
Interest	12,273
Cash dividends;
Affiliated issuers	4,498
Total Income	16,771
Expenses:
Management fee—Note 3(a)	148,181
Auditing fees	37,331
Registration fees	37,249
Shareholder servicing costs—Note 3(c)	35,304
Distribution fees—Note 3(b)	10,851
Prospectus and shareholders’ reports	9,846
Custodian fees—Note 3(c)	2,352
Legal fees	1,122
Directors’ fees and expenses—Note 3(d)	813
Loan commitment fees—Note 2	313
Miscellaneous	10,570
Total Expenses	293,932
Less—reduction in management fee due to undertaking—Note 3(a)	(88,267)
Less—reduction in fees due to earnings credits—Note 3(c)	(14)
Net Expenses	205,651
Investment (Loss)—Net	(188,880)
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments and foreign currency transactions	(53,499)
Net realized gain (loss) on options transactions	364,511
Net realized gain (loss) on financial futures	218,250
Net realized gain (loss) on forward foreign currency exchange contracts	552,542
Net Realized Gain (Loss)	1,081,804
Net unrealized appreciation (depreciation) on
investments and foreign currency transactions	(3,599)
Net unrealized appreciation (depreciation) on options transactions	44,537
Net unrealized appreciation (depreciation) on financial futures	12,362
Net unrealized appreciation (depreciation) on
forward foreign currency exchange contracts	(2,214)
Net Unrealized Appreciation (Depreciation)	51,086
Net Realized and Unrealized Gain (Loss) on Investments	1,132,890
Net Increase in Net Assets Resulting from Operations	944,010

See notes to financial statements.

STATEMENT OF CHANGES IN NET ASSETS


	Year Ended October 31,
	2010	2009^a
Operations ($):
Investment (loss)—net	(188,880)	(152,401)
Net realized gain (loss) on investments	1,081,804	1,027,496
Net unrealized appreciation
(depreciation) on investments	51,086	432,432
Net Increase (Decrease) in Net Assets
Resulting from Operations	944,010	1,307,527
Dividends to Shareholders from ($):
Investment income—net:
Class A Shares	—	(84,905)
Class C Shares	—	(11,770)
Class I Shares	—	(59,541)
Class T Shares	—	(8,028)
Total Dividends	—	(164,244)
Capital Stock Transactions ($):
Net proceeds from shares sold:
Class A Shares	3,509,994	6,479,947
Class C Shares	293,608	407,275
Class I Shares	3,588,104	1,402,557
Class T Shares	—	119
Dividends reinvested:
Class A Shares	—	16,538
Class C Shares	—	3,853
Class I Shares	—	11,442
Class T Shares	—	412
Cost of shares redeemed:
Class A Shares	(5,059,714)	(3,024,381)
Class C Shares	(575,688)	(92,410)
Class I Shares	(1,168,350)	(3,753,216)
Class T Shares	—	(648,088)
Increase (Decrease) in Net Assets
from Capital Stock Transactions	587,954	804,048
Total Increase (Decrease) in Net Assets	1,531,964	1,947,331
Net Assets ($):
Beginning of Period	12,059,544	10,112,213
End of Period	13,591,508	12,059,544

The Fund 13

STATEMENT OF CHANGES IN NET ASSETS (continued)


	Year Ended October 31,
	2010	2009^a
Capital Share Transactions:
Class A^b
Shares sold	289,548	588,765
Shares issued for dividends reinvested	—	1,523
Shares redeemed	(409,873)	(272,603)
Net Increase (Decrease) in Shares Outstanding	(120,325)	317,685
Class C
Shares sold	24,481	36,918
Shares issued for dividends reinvested	—	356
Shares redeemed	(47,291)	(8,506)
Net Increase (Decrease) in Shares Outstanding	(22,810)	28,768
Class I
Shares sold	292,013	126,472
Shares issued for dividends reinvested	—	1,055
Shares redeemed	(94,870)	(341,811)
Net Increase (Decrease) in Shares Outstanding	197,143	(214,284)
Class T^b
Shares sold	—	11
Shares issued for dividends reinvested	—	38
Shares redeemed	—	(59,078)
Net Increase (Decrease) in Shares Outstanding	—	(59,029)

a Effective as of the close of business on February 4, 2009, the fund no longer offers Class T shares.

b On the close of business on February 4, 2009, 59,078 Class T shares representing $648,088 were converted to

59,132 Class A 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 October 31,
Class A Shares	2010	2009	2008^a
Per Share Data ($):
Net asset value, beginning of period	11.91	10.75	12.50
Investment Operations:
Investment income (loss)—net^b	(.17)	(.15)	.12
Net realized and unrealized
gain (loss) on investments	.99	1.48	(1.87)
Total from Investment Operations	.82	1.33	(1.75)
Distributions:
Dividends from investment income—net	—	(.17)	—
Net asset value, end of period	12.73	11.91	10.75
Total Return (%)^c	6.89	12.52	(14.00)^d
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	2.15	2.65	3.04^e
Ratio of net expenses to average net assets	1.50	1.50	1.48^e
Ratio of net investment income
(loss) to average net assets	(1.37)	(1.29)	1.14^e
Portfolio Turnover Rate	—	—	—
Net Assets, end of period ($ x 1,000)	7,995	8,911	4,630


a	From December 18, 2007 (commencement of operations) to October 31, 2008.
b	Based on average shares outstanding at each month end.
c	Exclusive of sales charge.
^d	Not annualized.
e	Annualized.

See notes to financial statements.

The Fund 15

FINANCIAL HIGHLIGHTS (continued)


		Year Ended October 31,
Class C Shares	2010	2009	2008^a
Per Share Data ($):
Net asset value, beginning of period	11.79	10.68	12.50
Investment Operations:
Investment income (loss)—net^b	(.26)	(.22)	.03
Net realized and unrealized
gain (loss) on investments	.98	1.45	(1.85)
Total from Investment Operations	.72	1.23	(1.82)
Distributions:
Dividends from investment income—net	—	(.12)	—
Net asset value, end of period	12.51	11.79	10.68
Total Return (%)^c	6.11	11.64	(14.56)^d
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	2.96	3.32	4.00^e
Ratio of net expenses to average net assets	2.25	2.25	2.23^e
Ratio of net investment income
(loss) to average net assets	(2.13)	(2.03)	.35^e
Portfolio Turnover Rate	—	—	—
Net Assets, end of period ($ x 1,000)	1,243	1,440	997


a	From December 18, 2007 (commencement of operations) to October 31, 2008.
b	Based on average shares outstanding at each month end.
c	Exclusive of sales charge.
^d	Not annualized.
e	Annualized.

See notes to financial statements.


		Year Ended October 31,
Class I Shares	2010	2009	2008^a
Per Share Data ($):
Net asset value, beginning of period	11.94	10.78	12.50
Investment Operations:
Investment income (loss)—net^b	(.14)	(.11)	.09
Net realized and unrealized
gain (loss) on investments	1.00	1.48	(1.81)
Total from Investment Operations	.86	1.37	(1.72)
Distributions:
Dividends from investment income—net	—	(.21)	—
Net asset value, end of period	12.80	11.94	10.78
Total Return (%)	7.20	12.91	(13.76)^c
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	1.89	2.57	3.12^d
Ratio of net expenses to average net assets	1.25	1.25	1.23^d
Ratio of net investment income
(loss) to average net assets	(1.12)	(1.07)	1.03^d
Portfolio Turnover Rate	—	—	—
Net Assets, end of period ($ x 1,000)	4,354	1,708	3,851


a	From December 18, 2007 (commencement of operations) to October 31, 2008.
b	Based on average shares outstanding at each month end.
c	Not annualized.
^d	Annualized.

See notes to financial statements.

The Fund 17

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Global Absolute Return Fund (the “fund”) is a separate diversified series of Advantage Funds, Inc. (the “Company”), 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 that offers eleven series, including the fund. The fund’s investment objective is to seek total return by investing in instruments that provide investment exposure to global equity, bond and currency markets, and in fixed-income securities. 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”), a subsidiary of BNY Mellon, serves as the fund’s sub-investment adviser.

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 100 million shares of $.001 par value Common Stock in each of the following classes of shares: Class A, Class C and Class I. Class A shares are subject to a sales charge imposed at the time of purchase. Class C shares are subject to a contingent deferred sales charge (“CDSC”) imposed on Class C shares redeemed within one year of purchase. Class I shares are sold at net asset value per share only to institutional investors. 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 a re allocated to each class of shares based on its relative net assets.

As of October 31, 2010, MBC Investments Corp., an indirect subsidiary of BNY Mellon, held 224,025 Class A, 28,000 Class C and 28,000 Class I shares of the fund.

The Company 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.

The Company enters into contracts that contain a variety of indemnifications.The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in equity securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is available. Registered investment companies that are not traded on an exchange are valued at their net asset valu e.When market quotations or official closing prices are not readily available, or are determined not to reflect accu-

The Fund 19

NOTES TO FINANCIAL STATEMENTS (continued)

rately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board of Directors. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant American Depository Receipts and futures contracts. For other securities that are fair valued by the Board of Directors, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers.

Directors, or are determined by the fund not to reflect accurately fair value, are valued at fair value as determined in good faith under the direction of the Board of Directors.The factors that may be considered when fair valuing a security include 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. Short-term investments, excluding U.S.Treasury Bills, are carried at amortized cost, which approximates value. Financial futures and options, which are traded on an exchange, are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day. Options traded over-the-counter are valued at t he mean between the bid and asked price. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. Forward contracts are valued at the forward rate.

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

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

The Fund 21

NOTES TO FINANCIAL STATEMENTS (continued)

Various inputs are used in determining the value of the fund’s invest ments 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.

The following is a summary of the inputs used as of October 31, 2010 in valuing the fund’s investments:


		Level 2—Other	Level 3—
	Level 1—	Significant	Significant
	Unadjusted	Observable	Unobservable
Quoted Prices		Inputs	Inputs	Total
Assets ($)
Investments in Securities:
Mutual Funds	3,225,000	—	—	3,225,000
Options Purchased	515,813	—	—	515,813
U.S. Treasury	—	9,651,775	—	9,651,775
Other Financial
Instruments:
Forward Foreign
Exchange Contracts^†	—	231,481	—	231,481
Futures^†	221,491	—	—	221,491
Liabilities ($)
Other Financial
Instruments:
Forward Foreign
Exchange Contracts^†	—	(109,705)	—	(109,705)
Futures^†	(149,096)	—	—	(149,096)


†	Amount shown represents unrealized appreciation (depreciation) at period end.

In January 2010, FASB issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about Fair Value Measurements”. The portions of ASU No. 2010-06 which require reporting entities to prepare new disclosures surrounding amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3 have been adopted by the fund. No significant transfers between Level 1 or Level 2 fair value measurements occurred at October 31, 2010. The remaining portion of ASU No. 2010-06 requires reporting entities to make new disclosures about information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements.These new and rev ised disclosures are required to be implemented for fiscal years beginning after December 15, 2010. Management is currently evaluating the impact that the adoption of this remaining portion of ASU No. 2010-06 may have on the fund’s financial statement disclosures.

(b) Foreign currency transactions: The fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in 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 investments are included with net realized and unrealized gain or loss on investments.

The Fund 23

NOTES TO FINANCIAL STATEMENTS (continued)

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

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

The fund may invest in shares of certain affiliated investment companies also advised or managed by Dreyfus. Investments in affiliated investment companies for the period ended October 31, 2010 were as follows:


Affiliated
Investment	Value			Value	Net
Company	10/31/2009 ($)	Purchases ($)	Sales ($)	10/31/2010 ($)	Assets (%)
Dreyfus
Institutional
Preferred
Plus Money
Market Fund	2,434,000	10,713,000	9,922,000	3,225,000	23.7

(e) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

(f) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

As of and during the period ended October 31, 2010, the fund did not have any liabilities for any uncertain tax positions.The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period, the fund did not incur any interest or penalties.

Each of the tax years in the three-year period ended October 31, 2010 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At October 31, 2010, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $91,843, undistributed capital gains $731,240 and unrealized appreciation $81,573.

The tax character of distributions paid to shareholders during the fiscal periods ended October 31, 2010 and October 31, 2009 were as follows: ordinary income $0 and $164,244, respectively.

During the period ended October 31, 2010, as a result of permanent book to tax differences, primarily due to the tax treatment for foreign currency gains and losses and net operating losses, the fund increased accumulated undistributed investment income-net by $188,880 and decreased accumulated net realized gain (loss) on investments by the same amount. Net assets and net asset value per share were not affected by this reclassification.

NOTE 2—Bank Lines of Credit:

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

The Fund 25

NOTES TO FINANCIAL STATEMENTS (continued)

determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended October 31, 2010, the fund did not borrow under the Facilities.

NOTE 3—Management Fee, Sub-Investment Advisory Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement with Dreyfus, the management fee is computed at the annual rate of 1.10% of the value of the fund’s average daily net assets and is payable monthly. Dreyfus has agreed, to waive receipt of its fees and/or assume the expenses of the fund, until March 1, 2012, so that the expenses of none of the classes, (exclusive of taxes, brokerage fees, Rule 12b-1 distribution plan fees, interest on borrowings, shareholder services plan fees, commitment fees and extraordinary expenses) exceed an annual rate of 1.25% of the value of the average daily net assets of their class. The reduction in management fee, pursuant to the undertaking, amounted to $88,267 during the period ended October 31, 2010.

Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Mellon Capital, Dreyfus pays Mellon Capital an annual fee of .65% of the value of the fund’s average daily net assets, payable monthly.

During the period ended October 31, 2010, the Distributor retained $1,613 from commissions earned on sales of the fund’s Class A shares.

(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Class C shares pay the Distributor for distributing its shares at an annual rate of .75% of the value of the average daily net assets of Class C shares. During the period ended October 31, 2010, Class C shares were charged $10,851 pursuant to the Plan.

answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts.The Distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended October 31, 2010, Class A and Class C shares were charged $23,083 and $3,617, 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 personnel and facilities to perform transfer agency services for the fund. During the period ended October 31, 2010, the fund was charged $1,459 pursuant to the transfer agency agreement, which is included in Shareholder servicing costs in the Statement of Operations.

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

The fund compensates The Bank of New York Mellon under a cash management agreement for performing cash management services related to fund subscriptions and redemptions. During the period ended October 31, 2010, the fund was charged $220 pursuant to the cash management agreement which is included in Shareholder servicing costs in the Statement of Operations.These fees were partially offset by earnings credits of $14.

The fund also compensates The Bank of New York Mellon under a custody agreement for providing custodial services for the fund. During the period ended October 31, 2010, the fund was charged $2,352 pursuant to the custody agreement.

The Fund 27

NOTES TO FINANCIAL STATEMENTS (continued)

During the period ended October 31, 2010, the fund was charged $6,114 for services performed by the Chief Compliance Officer.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $12,132, Rule 12b-1 distribution plan fees $785, shareholder services plan fees $1,958, custodian fees $527, chief compliance officer fees $2,248 and transfer agency per account fees $351, which are offset against an expense reimbursement currently in effect in the amount of $5,223.

(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:

During the period ended October 31, 2010, there were no purchases and sales of investment securities, excluding short-term securities, financial futures, options transactions and forward contracts.

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

Fair value of derivative instruments as of October 31, 2010 is shown below:


	Derivative		Derivative
	Assets ($)		Liabilities ($)
Equity risk¹	71,485	Equity risk¹	(109,881)
Interest rate risk^1,2	194,543	Interest rate risk¹	(39,215)
Foreign exchange risk³	231,481	Foreign exchange risk⁴	(109,705)
Gross fair value of
derivative contracts	497,509		(258,801)


Statement of Assets and Liabilities location:
1	Includes cumulative appreciation (depreciation) on futures contracts as reported in the Statement of
	Financial Futures, but only the unpaid variation margin is reported in the Statement of Assets
	and Liabilities.
2	Options purchased are included in investments in securities of unaffiliated issuers.
3	Unrealized appreciation on forward foreign currency exchange contracts.
4	Unrealized depreciation on forward foreign currency exchange contracts.

The effect of derivative instruments in the Statement of Operations during the period ended October 31, 2010 is shown below:


	Amount of realized gain or (loss) on derivatives recognized in income ($)
			Forward
Underlying risk	Futures⁵	Options⁶	Contracts⁷	Total
Equity	364,882	—	—	364,882
Interest rate	(146,632)	364,511	—	217,879
Foreign exchange	—	—	552,542	552,542
Total	218,250	364,511	552,542	1,135,303


Change in unrealized appreciation or (depreciation) on derivatives recognized in income ($)
			Forward
Underlying risk	Futures⁸	Options⁹	Contracts¹⁰	Total
Equity	(10,958)	—	—	(10,958)
Interest rate	23,320	44,537	—	67,857
Foreign exchange	—	—	(2,214)	(2,214)
Total	12,362	44,537	(2,214)	54,685


Statement of Operations location:
5	Net realized gain (loss) on financial futures.
6	Net realized gain (loss) on options transactions.
7	Net realized gain (loss) on forward foreign currency exchange contracts.
8	Net unrealized appreciation (depreciation) on financial futures.
9	Net unrealized appreciation (depreciation) on options transactions.
10	Net unrealized appreciation (depreciation) on forward foreign currency exchange contracts.

The Fund 29

NOTES TO FINANCIAL STATEMENTS (continued)

The following summarizes the average market value of derivatives outstanding during the period ended October 31, 2010:


	Value ($)
Equity futures contracts	5,555,083
Interest rate futures contracts	15,303,236
Interest rate options contracts	250,974
Forward contracts	10,744,332

Futures Contracts: In the normal course of pursuing its investment objective, the fund is exposed to market risk, including equity price risk and interest rate risk as a result of changes in value of underlying financial instruments.The fund invests in financial futures contracts in order to manage its exposure to or protect against changes in the market. A futures contract represents a commitment for the future purchase or a sale of an asset at a specified date. Upon entering into such contracts, these investments require initial margin deposits with a broker, which consist of cash or cash equivalents. The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Accordingly, variation margin payments are received or made to reflect daily unrealized ga ins or losses which are recorded in the Statement of Operations. Futures contracts are valued daily at the last sales price established by the Board of Trade or exchange upon which they are traded.When the contracts are closed, the fund recognizes a realized gain or loss.There is minimal counterparty credit risk to the fund with futures since futures are exchange traded, and the exchange’s clearinghouse guarantees the futures against default. Contracts open at October 31, 2010 are set forth in the Statement of Financial Futures.

rity or securities at the exercise price at any time during the option period, or at a specified date. Conversely, a put option gives the purchaser of the option the right (but not the obligation) to sell, and obligates the writer to buy the underlying security or securities at the exercise price at any time during the option period, or at a specified date.

As a writer of call options, the fund receives a premium at the outset and then bears the market risk of unfavorable changes in the price of the financial instrument underlying the option. Generally, the fund realizes a gain, to the extent of the premium, if the price of the underlying financial instrument decreases between the date the option is written and the date on which the option is terminated. Generally, the fund incurs a loss, if the price of the financial instrument increases between those dates.

As a writer of put options, the fund receives a premium at the outset and then bears the market risk of unfavorable changes in the price of the financial instrument underlying the option. Generally, the fund realizes a gain, to the extent of the premium, if the price of the underlying financial instrument increases between the date the option is written and the date on which the option is terminated. Generally, the fund incurs a loss, if the price of the financial instrument decreases between those dates.

As a writer of an option, the fund has no control over whether the underlying securities may be sold (called) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option.There is a risk of loss from a change in value of such options which may exceed the related premiums received. One risk of holding a put or a call option is that if the option is not sold or exercised prior to its expiration, it becomes worthless. However, this risk is limited to the premium paid by the fund. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statement of Operations.

The Fund 31

NOTES TO FINANCIAL STATEMENTS (continued)

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 for ward contract is opened and the date the forward contract is closed.The fund realizes a gain if the value of the contract increases between those dates. Any realized gain or loss which occurred during the period is reflected in the Statement of Operations.The fund is exposed to foreign currency risk as a result of changes in value of underlying financial instruments. The fund is also exposed to credit risk associated with counterparty nonperformance on these forward contracts, which is typically limited to the unrealized gain on each open contract.The following summarizes open forward contracts at October 31, 2010:


	Foreign			Unrealized
Forward Foreign Currency	Currency			Appreciation
Exchange Contracts	Amounts	Cost ($)	Value ($) (Depreciation) ($)
Purchases:
Australian Dollar,
Expiring 12/15/2010	1,035,989	941,227	1,008,885	67,658
Australian Dollar,
Expiring 12/15/2010	420,875	389,667	409,864	20,197
Australian Dollar,
Expiring 12/15/2010	197,862	187,983	192,686	4,703
British Pound,
Expiring 12/15/2010	46,831	73,393	75,011	1,618
British Pound,
Expiring 12/15/2010	145,400	230,023	232,895	2,872
British Pound,
Expiring 12/15/2010	17,600	27,847	28,191	344
British Pound,
Expiring 12/15/2010	70,400	111,358	112,763	1,405


	Foreign			Unrealized
Forward Foreign Currency	Currency			Appreciation
Exchange Contracts	Amounts	Cost ($)	Value ($) (Depreciation) ($)
Purchases (continued):
Canadian Dollar,
Expiring 12/15/2010	37,263	36,135	36,494	359
Canadian Dollar,
Expiring 12/15/2010	120,625	117,184	118,135	951
Canadian Dollar,
Expiring 12/15/2010	113,689	110,546	111,342	796
Canadian Dollar,
Expiring 12/15/2010	10,296	10,011	10,083	72
Canadian Dollar,
Expiring 12/15/2010	110,015	106,973	107,744	771
Euro,
Expiring 12/15/2010	152,753	208,298	212,475	4,177
Euro,
Expiring 12/15/2010	37,600	51,262	52,301	1,039
Euro,
Expiring 12/15/2010	94,000	128,190	130,751	2,561
Euro,
Expiring 12/15/2010	95,800	131,634	133,255	1,621
Euro,
Expiring 12/15/2010	383,200	526,538	533,020	6,482
Euro,
Expiring 12/15/2010	26,900	37,191	37,417	226
Euro,
Expiring 12/15/2010	4,000	5,582	5,564	(18)
Euro,
Expiring 12/15/2010	347,594	485,234	483,494	(1,740)
Japanese Yen,
Expiring 12/15/2010	129,019,539	1,539,456	1,604,051	64,595
Japanese Yen,
Expiring 12/15/2010	6,705,100	81,988	83,362	1,374
Swiss Franc,
Expiring 12/15/2010	1,512,158	1,498,536	1,537,273	38,737
Swiss Franc,
Expiring 12/15/2010	21,300	21,132	21,653	521
Sales:		Proceeds ($)
Australian Dollar,
Expiring 12/15/2010	142,049	138,261	138,332	(71)
Australian Dollar,
Expiring 12/15/2010	99,000	96,768	96,410	358
Australian Dollar,
Expiring 12/15/2010	246,000	238,055	239,564	(1,509)
Australian Dollar,
Expiring 12/15/2010	98,400	95,149	95,826	(677)

The Fund 33

NOTES TO FINANCIAL STATEMENTS (continued)


	Foreign			Unrealized
Forward Foreign Currency	Currency			Appreciation
Exchange Contracts	Amounts	Proceeds ($)	Value ($) (Depreciation) ($)
Sales (continued):
Australian Dollar,
Expiring 12/15/2010	49,200	47,467	47,913	(446)
British Pound,
Expiring 12/15/2010	584	905	935	(30)
British Pound,
Expiring 12/15/2010	991,600	1,529,364	1,588,297	(58,933)
British Pound,
Expiring 12/15/2010	134,000	209,224	214,634	(5,410)
British Pound,
Expiring 12/15/2010	84,350	133,144	135,107	(1,963)
British Pound,
Expiring 12/15/2010	24,600	38,622	39,403	(781)
British Pound,
Expiring 12/15/2010	339,150	537,039	543,234	(6,195)
Euro,
Expiring 12/15/2010	80,922	112,299	112,560	(261)
Japanese Yen,
Expiring 12/15/2010	2,421,950	28,920	30,111	(1,191)
Japanese Yen,
Expiring 12/15/2010	22,810,338	267,131	283,592	(16,461)
Japanese Yen,
Expiring 12/15/2010	630,201	7,473	7,835	(362)
Japanese Yen,
Expiring 12/15/2010	6,733,832	79,904	83,719	(3,815)
Japanese Yen,
Expiring 12/15/2010	20,564,000	251,526	255,665	(4,139)
Japanese Yen,
Expiring 12/15/2010	2,478,000	30,348	30,818	(470)
Japanese Yen,
Expiring 12/15/2010	4,957,600	60,673	61,636	(963)
Japanese Yen,
Expiring 12/15/2010	12,394,000	151,795	154,090	(2,295)
Swiss Franc,
Expiring 12/15/2010	475,300	481,219	483,194	(1,975)
Swiss Franc,
Expiring 12/15/2010	110,773	112,748	112,613	135


	Foreign			Unrealized
Forward Foreign Currency	Currency			Appreciation
Exchange Contracts	Amounts	Proceeds ($)	Value ($) (Depreciation) ($)
Sales (continued):
Swiss Franc,
Expiring 12/15/2010	52,150	53,439	53,016	423
Swiss Franc,
Expiring 12/15/2010	36,900	37,642	37,513	129
Swiss Franc,
Expiring 12/15/2010	162,450	169,263	165,148	4,115
Swiss Franc,
Expiring 12/15/2010	101,844	106,446	103,535	2,911
Swiss Franc,
Expiring 12/15/2010	312,000	317,513	317,182	331
Gross Unrealized Appreciation				231,481
Gross Unrealized Depreciation				(109,705)

At October 31, 2010, the cost of investments for federal income tax purposes was $13,347,781; accordingly, accumulated net unrealized appreciation on investments was $44,807, consisting of $44,818 gross unrealized appreciation and $11 gross unrealized depreciation.

The Fund 35

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

Shareholders and Board of Directors
Dreyfus Global Absolute Return Fund

We have audited the accompanying statement of assets and liabilities, including the statements of investments and financial futures, of Dreyfus Global Absolute Return Fund (one of the series comprising Advantage Funds, Inc.) as of October 31, 2010, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended and financial highlights for each of the periods indicated therein.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.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting p rinciples used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2010 by correspondence with the custodian and others. 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 Global Absolute Return Fund at October 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the indicated periods, in conformity with U.S. generally accepted accounting principles.

New York, New York
December 28, 2010

BOARD MEMBERS INFORMATION (Unaudited)

The Fund 37

BOARD MEMBERS INFORMATION (Unaudited) (continued)

OFFICERS OF THE FUND (Unaudited)

BRADLEY J. SKAPYAK, President since
January 2010.

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

PHILLIP N. MAISANO, Executive Vice
President since July 2007.

Chief Investment Officer,Vice Chair and a director of the Manager, and an officer of 76 investment companies (comprised of 170 portfolios) managed by the Manager.

Mr. Maisano also is an officer and/or Board member of certain other investment management subsidiaries of The Bank of New York Mellon Corporation, each of which is an affiliate of the Manager. He is 63 years old and has been an employee of the Manager since November 2006. Prior to joining the Manager, Mr. Maisano served as Chairman and Chief Executive Officer of EACM Advisors, an affiliate of the Manager, since August 2004.

MICHAEL A. ROSENBERG, Vice President
and Secretary since August 2005.

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

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

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

JAMES BITETTO, Vice President and
Assistant Secretary since August 2005.

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

JONI LACKS CHARATAN, Vice President
and Assistant Secretary since
August 2005.

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

JOSEPH M. CHIOFFI, Vice President and
Assistant Secretary since August 2005.

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

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

Senior Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. She is 36 years old and has been an employee of the Manager since February 2001.

JANETTE E. FARRAGHER, Vice President
and Assistant Secretary since
August 2005.

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

The Fund 39

OFFICERS OF THE FUND (Unaudited) (continued)

JOHN B. HAMMALIAN, Vice President and
Assistant Secretary since August 2005.

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

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

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

ROBERT R. MULLERY, Vice President and
Assistant Secretary since August 2005.

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

JEFF PRUSNOFSKY, Vice President and
Assistant Secretary since August 2005.

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

JAMES WINDELS, Treasurer since
November 2001.

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

RICHARD CASSARO, Assistant Treasurer
since January 2008.

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

GAVIN C. REILLY, Assistant Treasurer
since December 2005.

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

ROBERT ROBOL, Assistant Treasurer
since August 2005.

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

ROBERT SALVIOLO, Assistant Treasurer
since July 2007.

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

ROBERT SVAGNA, Assistant Treasurer
since December 2002.

JOSEPH W. CONNOLLY, Chief Compliance
Officer since October 2004.

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (77 investment companies, comprised of 195 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients.

He is 53 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

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

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

The Fund 41

For More Information

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

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

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

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

Dreyfus

Global Real

Return Fund

ANNUAL REPORT October 31, 2010

	Contents
	THE FUND
2	A Letter from the Chairman and CEO
3	Discussion of Fund Performance
6	Understanding Your Fund’s Expenses
6	Comparing Your Fund’s Expenses With Those of Other Funds
7	Statement of Investments
12	Statement of Options Written
13	Statement of Assets and Liabilities
14	Statement of Operations
15	Statement of Changes in Net Assets
16	Financial Highlights
17	Notes to Financial Statements
33	Report of Independent Registered Public Accounting Firm
34	Information About the Review and Approval of the Fund’s Management Agreement
38	Board Members Information
40	Officers of the Fund
	FOR MORE INFORMATION
	Back Cover

Dreyfus

Global Real

Return Fund

The Fund

A LETTER FROM THE CHAIRMAN AND CEO

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Global Real Return Fund, covering the period from the fund’s inception on May 12, 2010, through October 31, 2010.

Although a double-dip recession has recently become an increasingly unlikely scenario in our analysis, persistent uncertainty regarding the breadth and strength of the U.S. and global economic recoveries led to bouts of heightened volatility in some of the international bond market’s riskier sectors over the past year. However, on average, emerging markets and sovereign debt have generally outperformed bonds from many developed markets, largely due to the relative underlying fundamental strength of these sovereign entities and solid demand from investors seeking higher levels of income in a low interest-rate environment.

Uncertainty will probably remain in the broader financial markets until we see more robust global economic growth, but record low short-term interest rates in many developed markets such as the U.S., improving corporate balance sheets, and investors’ global search for income could continue to support prices of higher yielding sovereign and corporate bonds, especially if today’s economic concerns prove to be overstated.With that, we strongly suggest that you meet with your financial advisor to discuss the potential opportunities which may exist in the global investment universe, as well as to evaluate your portfolio to help meet your individual investment needs and your future goals relative to your risk-tolerance level.

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

Thank you for your continued confidence and support.

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

DISCUSSION OF FUND PERFORMANCE

For the period of May 12, 2010, through October 31, 2010, as provided by Suzanne Hutchins and James Harries, Portfolio Managers of Newton Capital Management Limited, Sub-Investment Adviser

Fund and Market Performance Overview

For the period between the fund’s inception on May 12, 2010, and the end of its annual reporting period on October 31, 2010, Dreyfus Global Real Return Fund’s Class A shares produced a total return of 7.52%, Class C shares returned 7.20% and Class I shares returned 7.68%.¹In comparison, the fund’s performance baseline benchmark, the U.S.$ 1-Month London Interbank Offered Rate (LIBOR), and its broad-based securities market index, the Citibank 30-Day Treasury Bill Index, produced total returns of .15% and 0.08%, respectively, for the same period.²Despite bouts of market volatility, a recovering global economy lifted most stock and bond prices over the reporting period, while low interest rates continued to limit returns from cash. The fund produced higher returns than its target objective, primarily due to its exposure to individual equities with specific characteristics and higher yielding bonds.

The Fund’s Investment Approach

To pursue its goal, the fund uses an actively-managed multi-asset strategy to produce absolute or real returns with less volatility than major equity markets over a complete market cycle, typically a period of five years.The fund is not managed to a benchmark index. Rather than managing to track a benchmark index, the fund seeks to provide returns that are largely independent of market moves.

The fund allocates its investments among global equities, bonds and cash, and, generally to a lesser extent, other asset classes, including real estate, commodities, currencies and alternative or non-traditional asset classes and strategies.The fund obtains investment exposure to these asset classes by investing in securities and through derivative instruments.

The fund’s portfolio managers combine a top-down approach, emphasizing economic trends and current investment themes on a global basis, with bottom-up security selection based on fundamental research to allocate the fund’s investments among and within asset classes. In choosing investments, the portfolio managers consider: key trends in global economic variables, such as gross domestic product, inflation and interest rates; investment themes, such as changing demographics, the impact of new technologies and the globalization of industries and brands; relative valuations of equity securities, bonds and cash; long-term trends in currency movements; and company fundamentals.Within markets and sectors determined to be attractive in absolute terms, the fund’s portfolio managers seek what are believed to be attractively priced companies that possess a sustainable competitive advantage in their market or s ector and invest in such companies across their capital structures.

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

Markets Advanced in a Slow-Growth Economy

The fund began operations as the global economy emerged from the financial crisis. Robust economic growth in the emerging markets helped support global manufacturing activity, fueling improved confidence among businesses, consumers and investors worldwide. Specifically, it was the unconventional approach of quantitative easing in the developed economies that drove financial assets higher. However, investor sentiment in the developed markets soon deteriorated owing to the sovereign debt crisis in Europe. In addition, an appreciating yen hurt exports in Japan, and high unemployment levels weighed on the United States.

The market viewed these concerns as temporary, and with improving corporate earnings with some signs of gradual economic improvement in developed markets combined with further stimulative programs from certain central banks, markets headed higher in the reporting period. Consequently, equities generally produced higher returns than bonds during the reporting period, and cash provided relatively meager returns in a low interest-rate environment.

Multi-Asset Approach Boosted Fund’s Results

In addition to participating in the real return from equities, bonds and commodities, the fund’s results benefited during the reporting period from a security selection strategy rooted in our “All Change” investment theme, which postulates that consumer consumption can no longer be supported by elevated debt levels.The result of the world’s move to a new financial paradigm has seen the start of a huge deleveraging cycle both at the government, corporate and consumer level while interest rates (in the US) have been anchored at historic lows.Through greater government interference especially through regulation of the financial sector and harsh austerity measures, lending growth and the ability to spend has added to the pressures of the developed economies. As a result, our security selection strategy has focused on companies that we believe will remain relatively insulated from these forces. For example, the fund’s equity holdings have emphasized large, traditionally defensive health care and telecommunications companies that have a track record of generating revenues and decent cash flow in all economic environments while supported by healthy balance sheets and cheap valuations. These stocks provided the reporting period’s strongest contribution to the fund’s total return.

Among bonds, we focused on corporate asset-backed securities with credit ratings toward the lower end of the investment-grade range.This strategy enabled us to capture higher levels of income compared to government securities or higher rated corporate debt, while extensive credit analysis helped the fund avoid credit pitfalls.We also found income-oriented opportunities in the convertible bond market.These fixed-income securities helped bolster the fund’s results during the reporting period.

Finally, we employed cash, inflation-protected bonds, gold and gold equities to dampen volatility and protect loss of capital. Gold-related

investments generally added value to the fund’s results while cash was a negligible source of income. We also used derivatives, including put options on the S&P 500 and certain currency hedges, to help provide insurance and protect the U.S. dollar return to our underlying investors.

Managing Risks in Unsettled Markets

We expect the subpar global economic recovery to persist, with generally sluggish growth in developed markets and more robust expansion in emerging markets.As of the reporting period’s end, equities seem poised to advance in response to new economic stimulus programs. Since these efforts could also cause an acceleration of inflation, we have increased the inflation protection in the fund by investing in gold ETFs (Exchange Traded Funds) and other commodities including agriculture and index linked Treasuries. Over the longer term, we believe that the “All Change” investment theme will continue to prevail, potentially sparking heightened volatility.

November 15, 2010


	Equity funds are subject generally to market, market sector, market liquidity, issuer and investment
	style risks, among other factors, to varying degrees, all of which are more fully described in the
	prospectus of the fund and that of each underlying fund.
	The fund’s performance will be influenced by political, social and economic factors affecting
	investments in foreign companies. Special risks associated with such companies include exposure to
	currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of
	comprehensive company information, political instability and differing auditing and legal standards.
	Because the fund seeks to provide exposure to alternative or non-traditional (i.e., satellite) asset
	categories or investment strategies, the fund’s performance will be linked to the performance of these
	highly volatile asset categories and strategies.Accordingly, investors should consider purchasing
	shares of the fund only as part of an overall diversified portfolio and should be willing to assume
	the risks of potentially significant fluctuations in the value of fund shares.
	The fund may, but is not required to, use derivative instruments, such as options, futures and options
	on futures, forward contracts and other credit derivatives.A small investment in derivatives could have
	a potentially large impact on the fund’s performance.The use of derivatives involves risks different
	from, or possibly greater than, the risks associated with investing directly in the underlying assets.
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. Dreyfus has contractually agreed, until May
	1, 2011, to waive receipt of its fees and/or assume the direct expenses of the fund so that the
	expenses of none of the classes (excluding the fund's Rule 12b-1 fees, shareholder services fees,
	taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses)
	exceed 1.25% of the fund’s average daily net assets. 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.
2	SOURCE: FactSet – Citigroup 30-Day Treasury Bill Index is a market value-weighted index
	of public obligations of the U.S.Treasury with maturities of 30 days. Investors cannot invest
	directly in any index.
	London Interbank Offered Rate ( LIBOR ).The rate of interest at which banks borrow funds, in
	marketable size, from other banks in the London interbank market. LIBOR, is the most widely
	used benchmark or reference rate for short term interest rates, and is an international rate.The
	London Interbank Offered Rate is fixed each morning at 11 a.m. London time, by the British
	Bankers’ Association (BBA).The rate is an average derived from 16 quotations provided by
	banks determined by the British Bankers’ Association, the four highest and lowest are then
	eliminated and an average of the remaining eight is calculated to arrive at the fix, Eurodollar
	Libor is calculated on an ACT/360 day count basis and settlement is for 2 days hence.
	For comparative purposes, the value of the Index on 04/30/10 is used as the beginning value.

The Fund 5

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 Global Real Return Fund from May 12, 2010 (commencement of operations) to October 31, 2010. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended October 31, 2010


	Class A	Class C	Class I
Expenses paid per $1,000^†	$ 7.38	$ 11.05	$ 6.15
Ending value (after expenses)	$1,075.20	$1,072.00	$1,076.80

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 October 31, 2010


	Class A	Class C	Class I
Expenses paid per $1,000^†††	$ 7.63	$ 11.42	$ 6.36
Ending value (after expenses)	$1,017.64	$1,013.86	$1,018.90


†	Expenses are equal to the fund’s annualized expense ratio of 1.50% for Class A, 2.25% for Class C and 1.25%
	for Class I, multiplied by the average account value over the period, multiplied by 173/365 (to reflect the actual days
	in the period).
††	Please note that while Class A, Class C and Class I shares commenced operations on May 12, 2010, the
	hypothetical expenses paid during the period reflect projected activity for the full six month period for purposes of
	comparability.This projection assumes that annualized expense ratios were in effect during the period May 1, 2010
	to October 31, 2010.
^†††Expenses are equal to the fund’s annualized expense ratio of 1.50% for Class A, 2.25% for Class C and 1.25%
	for Class I, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half
	year period).

STATEMENT OF INVESTMENTS

October 31, 2010


Common Stocks—69.4%	Shares	Value ($)
Australia—2.8%
Newcrest Mining	3,960	155,005
Brazil—2.1%
Petroleo Brasileiro, ADR	2,181	68,025
Tele Norte Leste Participacoes, ADR	3,100	47,554
		115,579
Canada—3.1%
Barrick Gold	1,960	94,256
Yamana Gold	6,750	74,257
		168,513
France—1.0%
Thales	1,400	57,082
Germany—4.6%
Bayer	1,685	125,749
Deutsche Telekom	8,650	125,327
		251,076
Japan—.7%
Nomura Holdings	7,000	36,361
Netherlands—3.1%
Koninklijke KPN	3,480	58,122
Reed Elsevier	4,000	52,120
Royal Dutch Shell, Cl. A	1,856	59,155
		169,397
Norway—.9%
Statoil	2,185	47,717
Peru—1.3%
Cia de Minas Buenaventura, ADR	1,350	71,604
Poland—1.2%
Telekomunikacja Polska	10,475	66,703
South Africa—1.7%
MTN Group	5,130	92,274
South Korea—.4%
LG Uplus	3,450	22,382
Sweden—1.2%
TeliaSonera	7,800	65,101

The Fund 7

STATEMENT OF INVESTMENTS (continued)


Common Stocks (continued)	Shares	Value ($)
Switzerland—6.3%
Actelion	690 ^a	34,435
Novartis	1,501	87,020
Roche Holding	800	117,474
Syngenta	215	59,472
Zurich Financial Services	205	50,185
		348,586
Thailand—1.2%
Advanced Info Service	22,000	66,044
United Kingdom—13.1%
BAE Systems	8,350	46,120
BP	8,860	60,450
Centrica	10,750	57,223
GlaxoSmithKline	4,770	93,324
RSA Insurance Group	25,115	52,719
RWC Global Convertibles Fund	95	109,028
Scottish & Southern Energy	3,270	60,414
Smith & Nephew	6,060	53,310
Vodafone Group	68,430	186,240
		718,828
United States—24.7%
AT&T	3,615	103,028
Chevron	1,000	82,610
Coca-Cola	925	56,721
iShares Nasdaq Biotechnology Index Fund	490	43,757
Kroger	3,731	82,082
Medtronic	1,382	48,660
Merck & Co.	2,136	77,494
Newmont Mining	1,059	64,461
PDL BioPharma	8,000	41,840
Pfizer	4,570	79,518
PowerShares DB Agriculture Fund	5,720 ^a	169,941
PowerShares DB Gold Fund	4,270 ^a	205,302
Raytheon	890	41,011
Reynolds American	900	58,410
Sprint Nextel	13,764 ^a	56,708


Common Stocks (continued)				Shares	Value ($)
United States (continued)
Wal-Mart Stores				1,536	83,205
Wisconsin Energy				1,000	59,540
					1,354,288
Total Common Stocks
(cost $3,328,247)					3,806,540

		Coupon	Maturity	Principal
Bonds and Notes—20.7%		Rate (%)	Date	Amount ($)^b	Value ($)
Germany—1.6%
Fresenius Finance Jersey,
Sr. Unscd. Bonds , Ser. FME	EUR	5.63	8/14/11	50,000	86,988
Netherlands—.6%
Cable & Wireless
International Finance,
Gtd. Bonds	GBP	8.63	3/25/19	20,000	33,489
Norway—4.7%
Norwegian Government,
Bonds	NOK	3.75	5/25/21	530,000	93,669
Norwegian Government,
Bonds, Ser. 473	NOK	4.50	5/22/19	868,000	163,647
					257,316
Spain—1.3%
Campofrio Food,
Gtd. Notes	EUR	8.25	10/31/16	50,000	73,591
United Kingdom—6.1%
BP Capital Markets,
Gtd. Notes		5.25	11/7/13	56,000	61,298
BP Capital Markets,
Gtd. Notes	GBP	5.75	11/8/10	50,000	80,266
Bupa Finance,
Sr. Unscd. Notes	GBP	7.50	7/4/16	50,000	92,112
Co-Operative Bank,
Sub. Notes	GBP	5.63	11/16/21	50,000	74,983
Prudential,
Jr. Sub. Notes		11.75	12/23/14	22,000	26,183
					334,842

The Fund 9

STATEMENT OF INVESTMENTS (continued)


	Coupon	Maturity	Principal
Bonds and Notes (continued)	Rate (%)	Date	Amount ($)^b	Value ($)
United States—6.1%
Altria Group,
Gtd. Notes	10.20	2/6/39	18,000	26,546
Cemex Finance,
Sr. Scd. Bonds	9.50	12/14/16	100,000	101,625
Consol Energy,
Gtd. Notes	8.00	4/1/17	25,000	27,125
Nextel Communications,
Gtd. Notes, Ser. D	7.38	8/1/15	25,000	25,219
U.S. Treasury Inflation
Protected Securities,
Notes	1.88	7/15/13	71,785 ^d	76,838
U.S. Treasury Inflation
Protected Securities,
Notes	2.50	1/15/29	61,001 ^d	75,237
				332,590
Venezuela—.3%
Petroleos De Venezuela,
Sr. Unscd. Bonds, Ser. 2011	0.00	7/10/11	20,000 ^e	18,850
Total Bonds and Notes
(cost $1,018,906)				1,137,666
			Face Amount
			Covered by
Options Purchased—.5%			Contracts ($)	Value ($)
Call Options—.0%
U.S. Treasury 30 Year Bonds,
December 2010 @ $137			400,000 ^a	1,375
Put Options—.5%
Australian Dollar,
December 2010 @ $88			200,000 ^a	260
Australian Dollar,
December 2010 @ $89			100,000 ^a	180
Australian Dollar,
December 2010 @ $93.5			400,000 ^a	2,680

			Number of
			Contracts
CBOE SPX Volatility Index
December 2010 @ $27.5			2 ^a	1,000
S&P 500 Index,
December 2010 @ $1,100			8 ^a	9,040


	Number of
Options Purchased (continued)	Contracts	Value ($)
Put Options (continued)
S&P 500 Index,
March 2011 @ $1,050	6 ^a	15,420
		28,580
Total Options Purchased
(cost $71,792)		29,955

Other Investment—12.8%	Shares	Value ($)
Registered Investment Company;
Dreyfus Institutional Preferred
Plus Money Market Fund
(cost $700,000)	700,000 ^f	700,000
Total Investments (cost $5,118,945)	103.4%	5,674,161
Liabilities, Less Cash and Receivables	(3.4%)	(186,338)
Net Assets	100.0%	5,487,823

ADR—American Depository Receipts

a Non-income producing security.

b Principal amount stated in U.S. Dollars unless otherwise noted.

EUR—Euro

GBP— British Pound

NOK—Norwegian Krone

c Variable rate security—interest rate subject to periodic change.

d Principal amount for accrual purposes is periodically adjusted based on changes in the Consumer Price Index.

e Security issued with a zero coupon. Income is recognized through the accretion of discount.

f Investment in affiliated money market mutual fund.


Portfolio Summary (Unaudited)^†

	Value (%)		Value (%)
Telecommunications	17.3	Consumer Staples	3.9
Materials	13.6	Utilities	3.2
Health Care	13.1	U.S. Government Securities	2.8
Money Market Investment	12.8	Industrial	2.6
Oil & Gas	8.7	Mutual Fund	2.0
Exchange Traded Funds	7.6	Energy	.5
Financial	6.1	Options Purchased	.5
Foreign/Governmental	4.7
Consumer Discretionary	4.0		103.4

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

The Fund 11


STATEMENT OF OPTIONS WRITTEN
October 31, 2010



	Number of
	Contracts	Value ($)
Call Options:
S&P 500 Index,
December 2010 @ $1,250	7	(4,410)
S&P 500 Index,
December 2010 @ $1,235	4	(4,040)
Put Options:
S&P 500 Index,
December 2010 @ $1,040	8	(4,080)
S&P 500 Index,
March 2011 @ $1,000	6	(10,800)
(Premiums received $46,910)		(23,330)

See notes to financial statements.

STATEMENT OF ASSETS AND LIABILITIES

October 31, 2010


		Cost	Value
Assets ($):
Investments in securities—See Statement of Investments:
Unaffiliated issuers		4,418,945	4,974,161
Affiliated issuers		700,000	700,000
Due from broker			141,933
Cash denominated in foreign currencies		2,763	2,837
Dividends and interest receivable			32,372
Unrealized appreciation on forward foreign
currency exchange contracts—Note 4			17,087
Other assets			66,703
			5,935,093
Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(c)			27,404
Cash overdraft due to custodian			76,667
Unrealized depreciation on forward foreign
currency exchange contracts—Note 4			200,799
Outstanding options written, at value (premiums received
$46,910)—See Statement of Options Written—Note 4			23,330
Accrued expenses and other liabilities			119,070
			447,270
Net Assets ($)			5,487,823
Composition of Net Assets ($):
Paid-in capital			4,908,028
Accumulated undistributed investment income—net			182,675
Accumulated net realized gain (loss) on investments			988
Accumulated net unrealized appreciation (depreciation) on investments,
options transactions and foreign currency transactions			396,132
Net Assets ($)			5,487,823


Net Asset Value Per Share
	Class A	Class C	Class I
Net Assets ($)	3,339,919	1,071,420	1,076,484
Shares Outstanding	248,511	80,000	80,000
Net Asset Value Per Share ($)	13.44	13.39	13.46

See notes to financial statements.

The Fund 13

STATEMENT OF OPERATIONS

From May 12, 2010 (commencement of operations) to October 31, 2010


Investment Income ($):
Income:
Cash dividends (net of $2,386 foreign taxes withheld at source):
Unaffiliated issuers	43,824
Affiliated issuers	924
Interest	14,697
Total Income	59,445
Expenses:
Management fee—Note 3(a)	21,980
Legal fees	40,318
Auditing fees	35,210
Registration fees	25,399
Custodian fees—Note 3(c)	7,807
Shareholder servicing costs—Note 3(c)	5,536
Distribution fees—Note 3(b)	3,643
Prospectus and shareholders’ reports	850
Directors’ fees and expenses—Note 3(d)	506
Miscellaneous	6,304
Total Expenses	147,553
Less—expense reimbursement from The Dreyfus
Corporation due to undertaking—Note 3(a)	(108,638)
Net Expenses	38,915
Investment Income—Net	20,530
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments and foreign currency transactions	49,474
Net realized gain (loss) on options transactions	(42,785)
Net realized gain (loss) on forward foreign currency exchange contracts	(48,401)
Net Realized Gain (Loss)	(41,712)
Net unrealized appreciation (depreciation) on
investments and foreign currency transactions	598,101
Net unrealized appreciation (depreciation) on options transactions	(18,257)
Net unrealized appreciation (depreciation) on
forward foreign currency exchange contracts	(183,712)
Net Unrealized Appreciation (Depreciation)	396,132
Net Realized and Unrealized Gain (Loss) on Investments	354,420
Net Increase in Net Assets Resulting from Operations	374,950

See notes to financial statements.

STATEMENT OF CHANGES IN NET ASSETS

From May 12, 2010 (commencement of operations) to October 31, 2010


Operations ($):
Investment income—net	20,530
Net realized gain (loss) on investments	(41,712)
Net unrealized appreciation (depreciation) on investments	396,132
Net Increase (Decrease) in Net Assets
Resulting from Operations	374,950
Capital Stock Transactions ($):
Net proceeds from shares sold:
Class A Shares	3,112,873
Class C Shares	1,000,000
Class I Shares	1,000,000
Increase (Decrease) in Net Assets
from Capital Stock Transactions	5,112,873
Total Increase (Decrease) in Net Assets	5,487,823
Net Assets ($):
Beginning of Period	—
End of Period	5,487,823
Undistributed investment income—net	182,675
Capital Share Transactions (Shares):
Class A
Shares sold	248,511
Class C
Shares sold	80,000
Class I
Shares sold	80,000

See notes to financial statements.

The Fund 15

FINANCIAL HIGHLIGHTS

The following table describes the performance for each share class for the period from May 12, 2010 (commencement of operations) to October 31, 2010.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 the period, assuming you had reinvested all dividends and distrib-utions.These figures have been derived from the fund’s financial statements.


	Class A	Class C	Class I
	Shares	Shares	Shares
Per Share Data ($):
Net asset value, beginning of period	12.50	12.50	12.50
Investment Operations:
Investment income—net^a	.06	.01	.07
Net realized and unrealized
gain (loss) on investments	.88	.88	.89
Total from Investment Operations	.94	.89	.96
Net asset value, end of period	13.44	13.39	13.46
Total Return (%)^b	7.52^c	7.20^c	7.68
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets^d	5.96	6.75	5.75
Ratio of net expenses to average net assets^d	1.50	2.25	1.25
Ratio of net investment income
to average net assets^d	.94	.20	1.19
Portfolio Turnover Rate^b	49.61	49.61	49.61
Net Assets, end of period ($ x 1,000)	3,340	1,071	1,076


a	Based on average shares outstanding at each month end.
b	Not annualized.
c	Exclusive of sales charge.
d	Annualized.

See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Global Real Return Fund (the “fund”) is a separate diversified series of Advantage Funds, Inc. (the “Company”), 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 that offers eleven series, including the fund, which commenced operations on May 12, 2010.The fund’s investment objective is to seek total return (consisting of capital appreciation and income).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 Capital Management Limited (“Newton”) serves as the fund’s sub-investment adviser. Newton is a wholly-owned subsidiary of BNY Mellon and an affiliate of Dreyfus.

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 100 million shares of $.001 par value Common Stock in each of the following classes of shares: Class A, Class C and Class I. Class A shares are subject to a sales charge imposed at the time of purchase. Class C shares are subject to a contingent deferred sales charge (“CDSC”) imposed on Class C shares redeemed within one year of purchase. Class I shares are sold at net asset value per share only to institutional investors. 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 ar e allocated to each class of shares based on its relative net assets.

As of October 31, 2010, MBC Investments Corp., an indirect subsidiary of BNY Mellon, held 240,000 Class A, 80,000 Class C and 80,000 Class I shares of the fund.

TheFund 17

NOTES TO FINANCIAL STATEMENTS (continued)

or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board of Directors. 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 futures contracts. For other securities that are fair valued by the Board of Directors, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Financial futures and options, which are traded on an exchange, are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day. Options traded over-the-counter are valued at the mean between the bid and asked price. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. Forward foreign currency exchange contracts (“forward contracts”) are valued at the forward rate.

Investments in debt securities excluding short-term investments (other than U.S.Treasury Bills), are valued each business day by an independent pricing service (the “Service”) approved by the Board of Directors. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other debt securities are valued as determined by the Service, based on methods which include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Restricted securities, as well as securities or other assets for which re cent market quotations are not readily available, that are not valued by

The Fund19

NOTES TO FINANCIAL STATEMENTS (continued)

a pricing service approved by the Board of Directors, or are determined by the fund not to reflect accurately fair value, are valued at fair value as determined in good faith under the direction of the Board of Directors.The factors that may be considered when fair valuing a security include 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. Short-term investments, excluding U.S.Treasury Bills, are carried at amortized cost, which approximates value.

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

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

The following is a summary of the inputs used as of October 31, 2010 in valuing the fund’s investments:


		Level 2—Other	Level 3—
	Level 1—	Significant	Significant
	Unadjusted	Observable	Unobservable
	Quoted Prices	Inputs	Inputs	Total
Assets ($)
Investments in Securities:
Corporate Bonds^†	—	728,275	—	728,275
Equity Securities—
Domestic^†	935,288	—	—	935,288
Equity Securities—
Foreign^†	2,343,224	—	—	2,343,224
Foreign Government	—	257,316	—	257,316
Mutual Funds/
Exchange Traded
Funds	1,228,028	—	—	1,228,028
U.S. Treasury	—	152,075	—	152,075
Other Financial
Instruments:
Forward Foreign
Currency Exchange
Contracts^††	—	17,087	—	17,087
Options Purchased	29,955	—	—	29,955
Liabilities ($)
Other Financial
Instruments:
Forward Foreign
Currency Exchange
Contracts^††	—	(200,799)	—	(200,799)
Options Written	(23,330)	—	—	(23,330)


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

The Fund 21

NOTES TO FINANCIAL STATEMENTS (continued)

prepare new disclosures surrounding amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3 have been adopted by the fund. No significant transfers between Level 1 or Level 2 fair value measurements occurred at October 31, 2010. The remaining portion of ASU No. 2010-06 requires reporting entities to make new disclosures about information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements. These new and revised disclosures are required to be implemented for fiscal years beginning after December 15, 2010. Management is currently evaluating the impact that the adoption of this remaining portion of ASU No. 2010-06 may have o n the fund’s financial statement disclosures.

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

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.

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

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


Affiliated
Investment	Value			Value	Net
Company	5/12/2010 ($)	Purchases ($)	Sales ($)	10/31/2010 ($)	Assets (%)
Dreyfus
Institutional
Preferred
Plus Money
Market Fund	—	6,610,000	5,910,000	700,000	12.8

The Fund 23

NOTES TO FINANCIAL STATEMENTS (continued)

(f) Federal income taxes: It is the policy of the fund 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.

The tax year for the period ended October 31, 2010 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At October 31, 2010, the components of accumulated earnings on tax basis were as follows: accumulated capital losses $11,437 and unrealized appreciation $591,232.

The accumulated capital loss carryover is available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to October 31, 2010. If not applied, the carryover expires in fiscal 2018.

During the period ended October 31, 2010, as a result of permanent book to tax differences, primarily due to the tax treatment for net operating losses, foreign currency gains and losses and fund start-up costs, the fund increased accumulated undistributed investment income-net by $162,145, increased accumulated net realized gain (loss) on investments by $42,700 and decreased paid-in capital by $204,845. Net assets and net asset value per share were not affected by this reclassification.

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed funds in a $225 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York

Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus (each, a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended on October 31, 2010, the fund did not borrow under the Facilities.

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

(a) Pursuant to a management agreement with Dreyfus, the management fee is computed at the annual rate of .90% of the value of the fund’s average daily net assets and is payable monthly. Dreyfus has contractually agreed, until May 1, 2011, to waive receipt of its fees and/or assume certain expenses of the fund so that the fund’s annual operating expenses (excluding Rule 12b-1 fees, shareholder services fees, taxes, interest fees, brokerage commissions, commitment fees on borrowings and extraordinary expenses) do not exceed 1.25% of the value of the fund’s average daily net assets. The expense reimbursement, pursuant to the undertaking, amounted to $108,638 during the period ended October 31, 2010.

Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Newton, Dreyfus pays Newton an annual fee of .43% of the value of the fund’s average daily net assets, payable monthly.

(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

The Fund 25

NOTES TO FINANCIAL STATEMENTS (continued)

daily net assets for the provision of certain services.The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts.The Distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended October 31, 2010, Class A and Class C shares were charged $3,674 and $1,214, 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 personnel and facilities to perform transfer agency services for the fund. During the period ended October 31, 2010, the fund was charged $38 pursuant to the transfer agency agreement, which is included in Shareholder servicing costs in the Statement of Operations.

The fund compensates The Bank of New York Mellon under a cash management agreement for performing cash management services related to fund subscriptions and redemptions. During the period ended October 31, 2010, the fund was charged $5 pursuant to the cash management agreement, which is included in Shareholder servicing costs in the Statement of Operations.

During the period ended October 31, 2010, the fund was charged $448 for services performed by the Chief Compliance Officer.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $20,253, Rule 12b-1 distribution plan fees $680, shareholder services plan fees $926, custodian fees $5,086, chief compliance officer fees $448 and transfer agency per account fees $11.

(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:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, financial futures, options transactions and forward contracts during the period ended October 31, 2010, amounted to $6,500,699 and $2,197,879, respectively.

The Fund 27

NOTES TO FINANCIAL STATEMENTS (continued)

Fair value of derivative instruments as of October 31, 2010 is shown below:


	Derivative		Derivative
	Assets ($)		Liabilities ($)
Equity risk¹	25,460	Equity risk²	(23,330)
Interest rate risk¹	1,375
Foreign exchange risk^1,3	20,207	Foreign exchange risk⁴	(200,799)
Gross fair value of
derivatives contracts	47,042		(224,129)


Statement of Assets and Liabilities location:
1	Options purchased are included in investments in securities of unaffiliated issuers.
2	Outstanding options written, at value.
3	Unrealized appreciation on forward foreign currency exchange contracts.
4	Unrealized depreciation on forward foreign currency exchange contracts.

The effect of derivative instruments in the Statement of Operations during the period ended October 31, 2010 is shown below:


	Amount of realized gain or (loss) on derivatives recognized in income ($)
		Forward
Underlying risk	Options⁵	Contracts⁶	Total
Equity	(28,238)	—	(28,238)
Foreign exchange	(14,547)	(48,401)	(62,948)
Total	(42,785)	(48,401)	(91,186)


Change in unrealized appreciation or (depreciation) on derivatives recognized in income ($)
		Forward
Underlying risk	Options⁷	Contracts⁸	Total
Equity	(8,029)	—	(8,029)
Interest	(3,465)	—	(3,465)
Foreign exchange	(6,763)	(183,712)	(190,475)
Total	(18,257)	(183,712)	(201,969)


Statement of Operations location:
5	Net realized gain (loss) on options transactions.
6	Net realized gain (loss) on forward foreign currency exchange contracts.
7	Net unrealized appreciation (depreciation) on options transactions.
8	Net unrealized appreciation (depreciation) on forward foreign currency exchange contracts.

The following summarizes the average market value of derivatives outstanding during the period ended October 31, 2010:


	Value ($)
Equity options	65,483
Interest rate options	1,275
Currency options	3,337
Forward contracts	2,457,326

Options: The fund purchases and writes (sells) put and call options to hedge against changes in interest rates, the values of equities and foreign currencies or as a substitute for an investment. The fund is subject to interest rate risk, market risk and currency risk in the course of pursuing its investment objectives through its investments in options contracts.A call option gives the purchaser of the option the right (but not the obligation) to buy, and obligates the writer to sell, the underlying security or securities at the exercise price at any time during the option period, or at a specified date. Conversely, a put option gives the purchaser of the option the right (but not the obligation) to sell, and obligates the writer to buy the underlying security or securities at the exercise price at any time during the optio n period, or at a specified date.

As a writer of put options, the fund receives a premium at the outset and then bears the market risk of unfavorable changes in the price of the

The Fund 29

NOTES TO FINANCIAL STATEMENTS (continued)

financial instrument underlying the option. Generally, the fund realizes a gain, to the extent of the premium, if the price of the underlying financial instrument increases between the date the option is written and the date on which the option is terminated. Generally, the fund incurs a loss, if the price of the financial instrument decreases between those dates.

The following summarizes the fund’s call/put options written for the period ended October 31, 2010:


			Options Terminated
	Number of	Premiums		Net Realized
Options Written:	Contracts	Received ($)	Cost ($)	Gain ($)
Contracts outstanding
May 12, 2010	—	—
Contracts written	43	89,417
Contracts terminated:
Contracts closed	8	28,333	14,523	13,810
Contracts expired	10	14,174	—	14,174
Total contracts terminated	18	42,507	14,523	27,984
Contracts outstanding
October 31, 2010	25	46,910

a foreign currency at a specified rate on a certain date in the future. With respect to sales of forward contracts, the fund incurs a loss if the value of the contract increases between the date the forward contract is opened and the date the forward contract is closed.The fund realizes a gain if the value of the contract decreases between those dates.With respect to purchases of forward contracts, the fund incurs a loss if the value of the contract decreases between the date the forward contract is opened and the date the forward contract is closed.The fund realizes a gain if the value of the contract increases between those dates. Any realized gain or loss which occurred during the period is reflected in the Statement of Operations.The fund is exposed to foreign currency risk as a result of changes in value of underlying financial instruments. The fund is also exposed to credit risk associated with counterparty nonperformance on these forward contracts, which is typically limited to the unrealized gain on each open contract.The following summarizes open forward contracts at October 31, 2010:


	Foreign			Unrealized
Forward Foreign Currency	Currency			Appreciation
Exchange Contracts	Amounts	Cost ($)	Value ($) (Depreciation) ($)
Purchases:
British Pound,
Expiring 11/12/2010	17,000	26,754	27,237	483
Canadian Dollar,
Expiring 3/15/2011	82,998	80,000	81,094	1,094
Chinese Renminbi,
Expiring 1/14/2011	1,519,000	225,104	228,401	3,297
Chinese Renminbi,
Expiring 1/14/2011	174,000	25,755	26,163	408
Chinese Renminbi,
Expiring 1/14/2011	100,000	15,076	15,036	(40)
Euro,
Expiring 3/15/2011	61,000	83,110	84,726	1,616
Singapore Dollar,
Expiring 3/15/2011	106,102	80,000	81,982	1,982
South African Rand,
Expiring 12/15/2010	430,000	60,822	60,934	112

The Fund 31

NOTES TO FINANCIAL STATEMENTS (continued)


	Foreign			Unrealized
Forward Foreign Currency	Currency			Appreciation
Exchange Contracts	Amounts	Proceeds ($)	Value ($) (Depreciation) ($)
Sales:
Australian Dollar,
Expiring 11/2/2010	792	773	776	(3)
Australian Dollar,
Expiring 12/15/2010	118,000	97,793	114,913	(17,120)
Australian Dollar,
Expiring 12/15/2010	175,000	146,292	170,422	(24,130)
British Pound,
Expiring 11/12/2010	73,000	106,344	116,960	(10,616)
British Pound,
Expiring 11/12/2010	271,000	396,233	434,195	(37,962)
British Pound,
Expiring 11/12/2010	98,000	148,472	157,015	(8,543)
British Pound,
Expiring 11/12/2010	115,000	179,634	184,252	(4,618)
Euro,
Expiring 3/15/2011	566,000	719,879	786,144	(66,265)
Japanese Yen,
Expiring 4/15/2011	2,909,000	35,355	36,219	(864)
Norwegian Krone,
Expiring 2/15/2011	1,789,000	296,866	303,703	(6,837)
Polish Zloty,
Expiring 1/14/2011	145,000	44,026	50,584	(6,558)
South African Rand,
Expiring 12/15/2010	853,000	108,952	120,876	(11,924)
South African Rand,
Expiring 12/15/2010	376,000	49,923	53,282	(3,359)
South Korean Won,
Expiring 1/14/2011	27,391,000	22,305	24,265	(1,960)
Swiss Franc,
Expiring 4/15/2011	293,000	306,235	298,140	8,095
Gross Unrealized Appreciation				17,087
Gross Unrealized Depreciation				(200,799)

At October 31, 2010, the cost of investments for federal income tax purposes was $5,120,837; accordingly, accumulated net unrealized appreciation on investments was $553,324, consisting of $575,469 gross unrealized appreciation and $22,145 gross unrealized depreciation.

REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

Shareholders and Board of Directors
Dreyfus Global Real Return Fund

We have audited the accompanying statement of assets and liabilities, including the statements of investments and options written, of Dreyfus Global Real Return Fund (one of the series comprising Advantage Funds, Inc.) as of October 31, 2010, and the related statements of operations and changes in net assets and financial highlights for the period from May 12, 2010 (commencement of operations) to October 31, 2010. 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 audit.

We conducted our audit 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.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting pri nciples used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2010 by correspondence with the custodian and others.We believe that our audit provides 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 Global Real Return Fund at October 31, 2010, and the results of its operations, the changes in its net assets and the financial highlights for the period from May 12, 2010 to October 31, 2010, in conformity with U.S. generally accepted accounting principles.

New York, New York
December 28, 2010

The Fund 33

INFORMATION ABOUT THE REVIEW AND APPROVAL
OF THE FUND’S MANAGEMENT AGREEMENT (Unaudited)

At a meeting of the fund’s Board held on March 2, 2010, the Board unanimously approved the fund’s Management Agreement, pursuant to which Dreyfus (the “Manager”) will provide the fund with investment management services, and the Sub-Investment Advisory Agreement between the Manager and Newton Capital Management Limited (the “Sub-Adviser”) (together, the “Agreements”), pursuant to which the Sub-Adviser will provide day-to-day management of the Fund’s portfolio.The Board members, none of whom are “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the fund, were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Manager and Sub-Adviser. In approving the Agreements, the Board considered all factors that it believed to be relevant, including, among other things, the factors discussed below.

Analysis of Nature, Extent and Quality of Services Provided to the Fund. The Board members received a presentation from representatives of the Manager regarding services provided to other funds in the Dreyfus fund complex, and discussed the nature, extent and quality of the services to be provided by the Manager and Sub-Adviser pursuant to their Agreements.The Manager’s representatives reviewed the relationships the Manager has with various intermediaries and the different needs of each. The Manager’s representatives noted the diverse methods of distribution among other funds in the Dreyfus fund complex, and the Manager’s corresponding need for broad, deep and diverse resources to be able to provide ongoing shareholder services to each distribution channel.

The Board members also considered the Sub-Adviser’s research and portfolio management capabilities and the Manager’s oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements.The Board members also considered the Manager’s extensive administrative, accounting and compliance infrastructure, as well as the Manager’s supervisory activities over the Sub-Adviser.The Board also considered

the Manager’s and Sub-Adviser’s brokerage policies and practices, the standards applied in seeking best execution and the Manager’s and Sub-Adviser’s policies and practices regarding soft dollars.

Comparative Analysis of the Fund’s Performance and Management Fee and Expense Ratio.As the fund had not yet commenced operations, the Board members were not able to review the fund’s performance.The Board discussed with representatives of the Manager the investment strategies to be employed in the management of the fund’s assets.The Board members noted the Manager’s and Sub-Adviser’s reputation and experience relevant to managing the fund.

The Board members reviewed the fund’s management fee and anticipated expense ratio and reviewed the management fees and expense ratios of funds in the Lipper Global Flexible Portfolio Funds category (the “Category”) and the average and median management fee ranges in the Category, as well as management fees and expense ratios of funds managed by the Manager, the Sub-Adviser or their affiliates in the Category (the “Expense Group”). The Board members noted that the fund’s contractual management fee was within the average and median management fee ranges for the funds in the Category and was lower than the management fees for the applicable funds in the Expense Group.The fund’s estimated expense ratio (as limited through at least May 1, 2011 by agreement with the Manager and excluding Rule 12b-1 fees, shareholder services fees and certain other expenses) was lower than the average and median expense ratios of the funds in the Category.

Representatives of the Manager reviewed with the Board members the fees paid by other accounts managed by the Manager, the Sub-Adviser or their affiliates with similar investment objectives, policies and strategies as the fund (the “Similar Accounts”), and explained the nature of the Similar Accounts and the differences, from the Manager’s and Sub-Adviser’s perspective, as applicable, in providing services to

The Fund 35

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE
FUND’S MANAGEMENT AGREEMENT (Unaudited) (continued)

the Similar Accounts as compared to the fund. The Board members considered the relevance of the fee information provided for the Similar Accounts to evaluate the appropriateness and reasonableness of the fund’s management and sub-investment advisory fees.

Analysis of Profitability and Economies of Scale. As the fund had not yet commenced operations, the Manager’s representatives were not able to review the dollar amount of expenses allocated and profit received by the Manager, or any economies of scale.The Board members considered potential benefits to the Manager and Sub-Adviser from acting as investment adviser and sub-investment adviser, respectively, and noted the possibility of soft dollar arrangements with respect to trading the fund’s portfolio.The Board members noted the uncertainty of the estimated asset levels and discussed the renewal requirements for advisory agreements and their ability to review the management fee and related profitability and any economies of scale annually after an initial term of the Agreements.

At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to approving the Agreements. Based on the discussions and considerations as described above, the Board made the following conclusions and determinations.

The Board concluded that the nature, extent and quality of the services to be provided by the Manager and Sub-Adviser are adequate and appropriate, especially considering the Manager’s and Sub-Adviser’s experience and reputation with respect to its investment approach and its experience and reputation with respect to investing in similar funds.
The Board concluded that, since the fund had not yet commenced operations, its performance could not be measured and was not a factor. The Board considered the Manager’s and Sub-Adviser’s experience and reputation.

The Board concluded that the fees to be paid to the Manager were reasonable, in light of the services to be provided, comparative expense and advisory fee information, and benefits anticipated to be derived by the Manager and Sub-Adviser from their relationship with the fund, and that the fee to be paid by the Manager to the Sub-Adviser was reasonable and appropriate.
The Board determined that because the fund had not commenced operations, economies of scale were not a factor, but, to the extent that material economies of scale are not shared with the fund in the future, the Board would seek to do so in connection with future renewals.

The Board members considered these conclusions and determinations, and, without any one factor being dispositive, the Board determined that approval of the Agreements was in the best interests of the fund and its shareholders.

The Fund 37

BOARD MEMBERS INFORMATION (Unaudited)

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

Dr. Paul A. Marks, Emeritus Board Member
Gloria Messinger, Emeritus Board Member


The Fund	39

OFFICERS OF THE FUND (Unaudited)

BRADLEY J. SKAPYAK, President since
January 2010.

PHILLIP N. MAISANO, Executive Vice
President since July 2007.

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