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)

	John Pak, 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:		8/31
Date of reporting period:		8/31/2014

FORM N-CSR

Item 1. Reports to Stockholders.

Dreyfus

International

Value Fund

ANNUAL REPORT August 31, 2014

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

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

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

Dreyfus
International Value Fund

The Fund

A LETTER FROM THE PRESIDENT

Dear Shareholder:

We are pleased to present this annual report for Dreyfus International Value Fund, covering the 12-month period from September 1, 2013, through August 31, 2014. 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.

For the 12-month reporting period overall, international stock prices generally advanced as positive reactions to aggressively accommodative monetary policies in Europe and Japan more than offset concerns regarding intensifying geopolitical tensions and sluggish growth in emerging markets. However, most of the market’s advance was achieved during the first half of the reporting period, while the second half generally produced flat returns.

Low inflation has enabled the European Central Bank to reduce short-term interest rates further, and value-added tax hikes in Japan did not shake confidence in the nation’s economic recovery. Meanwhile, China’s economic slowdown appears increasingly unlikely to devolve into a more severe financial crisis, and India’s stock market has surged in anticipation of a more business-friendly government. While these developments may portend well for stock prices over the foreseeable future, our portfolio managers are aware that some regions and industry groups have reached richer valuations. Therefore, selectivity and a long-term perspective seem likely to become more important determinants of investment success. As always, we suggest you talk regularly with your financial advisor to assess the potential impact of these and other developments on your investments.

Thank you for your continued confidence and support.

J. Charles Cardona
President
The Dreyfus Corporation
September 15, 2014

DISCUSSION OF FUND PERFORMANCE

For the period of September 1, 2013, through August 31, 2014, as provided by D. Kirk Henry, Portfolio Manager

Fund and Market Performance Overview

For the 12-month period ended August 31, 2014, Dreyfus InternationalValue Fund’s Class A shares produced a total return of 12.58%, Class C shares returned 11.68%, and Class I shares returned 13.01%.¹In comparison, the fund’s benchmark, the Morgan Stanley Capital International Europe, Australasia, Far East Index (“MSCI EAFE Index”), produced a total return of 16.43% for the same period.²

Developed international stock markets generally rallied over the reporting period in response to improving economic conditions in Europe and the United States. The fund produced lower returns than its benchmark, mainly due to disappointing security selections in the United Kingdom, Australia, and Hong Kong.

The Fund’s Investment Approach

The fund seeks long-term capital growth.The fund ordinarily invests most of its assets in securities of foreign companies which Dreyfus considers to be value companies.

The fund’s investment approach is value-oriented and research-driven. In selecting stocks, we attempt to identify potential investments through extensive quantitative and fundamental research. Emphasizing individual stock selection over economic or industry trends, the fund focuses on three key factors: value, or how a stock is valued relative to its intrinsic worth based on traditional value measures; business health, or overall efficiency and profitability as measured by return on assets and return on equity; and business momentum, or the presence of a catalyst (such as corporate restructuring, change in management, or spin-off) that will trigger a price increase near term to midterm.

The fund typically sells a stock when it is no longer considered a value company, appears less likely to benefit from the current market and economic environment, shows deteriorating fundamentals or declining momentum, or falls short of our expectations.

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

Developed Markets Advanced Along with Economic Prospects

Western European equity markets gained ground from September 2013 through May 2014 as economic growth appeared to pick up in some core countries, such as Germany, and long-awaited signs of recovery emerged in some of the region’s more troubled economies, including Italy and Spain. Investors also responded positively to an unexpected reduction in short-term interest rates by the European Central Bank. In June and July 2014, however, many European stocks came under pressure due to disappointing second quarter economic growth rates and uncertainties regarding the impact of geopolitical instability in Ukraine and the Middle East. Nevertheless, European equity markets ended the reporting period with strong gains.

Most developed markets in Asia produced more modestly positive returns. The Japanese stock market was constrained by reports of stalling industrial production and the fading benefits of the government’s aggressively stimulative monetary and fiscal policies. Other developed Asian markets, such as Hong Kong and Australia, were hampered by slowing growth in China. However, some emerging markets, such as India, produced robust gains in response to domestic political and economic reforms.

Security Selection Strategy Produced Mixed Results

While the fund participated in most of the market’s gains, a few holdings detracted from relative returns. In the United Kingdom, business outsourcing services provider Serco Group issued profit warnings and faced a slowing new business pipeline.The fund also held overweight exposure to relatively weak performing U.K. financial institutions, including banks Barclays and Standard Chartered. In Australia, QBE Insurance Group suffered declines due to struggles in its U.S. and Latin American markets, while grocery chain Metcash encountered difficulty in translating a major business purchase into higher earnings and market share. In China, mobile phone and consumer electronics assembler FIH Mobile lost ground.

On a more positive note, the fund delivered relatively strong returns in several countries. In France, a diverse group of good individual stock selections were led by utilities, such as GDF Suez and Electricite de France; energy providers, such as Total; and pharmaceutical companies, such as Sanofi. Likewise, in Japan, top performers included technology companies, such as Fujitsu and Tokyo Electron; energy producers, such as INPEX; telecommunications services providers, such as Nippon Telegraph

& Telephone; and industrial gas producer Taiyo Nippon Sanso.The fund also benefited from the rebounding Indian market through investments in State Bank of India as well as petrochemical and petroleum refiner Reliance Industries.

Continuing to Find Attractive Investments

Despite the recent gains in some international equity markets, we currently see opportunities for further gains stemming from positive prospects for gradual economic recovery in Japan, quantitative easing in Europe, and additional asset appreciation in the emerging markets.We believe the fund is currently well positioned to benefit from these positive potential market trends through balanced exposure across most of the major countries we cover. After trimming some technology and consumer staples investments that reached higher valuations, the fund ended the reporting period with mildly overweighted exposure to the financials, industrials, and, to a lesser degree, information technology sectors.

September 15, 2014

Please note, the position in any security highlighted with italicized typeface was sold during the reporting period. Equity funds are subject generally to market, market sector, market liquidity, issuer, and investment style risks, among other factors, to varying degrees, all of which are more fully described in the fund’s prospectus.

The fund’s performance will be influenced by political, social, and economic factors affecting investments in foreign companies. Special risks associated with investments in foreign companies include exposure to currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability, and differing auditing and legal standards.These risks are enhanced in emerging market countries. Please read the prospectus for further discussion of these risks.

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.The fund’s returns reflect the absorption of

certain fund expenses by The Dreyfus Corporation pursuant to an agreement in effect through September 30, 2015.

Had these expenses not been absorbed, the fund’s returns would have been lower.

2 SOURCE: LIPPER INC. — Reflects reinvestment of net dividends and, where applicable, capital gain

distributions.The Morgan Stanley Capital International Europe,Australasia, Far East (MSCI EAFE) Index is an

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

Basin countries.The Index does not take into account fees and expenses to which the fund is subject. Investors cannot

invest directly in any index.

The Fund 5

FUND PERFORMANCE

† Source: Lipper Inc.

Past performance is not predictive of future performance.

The above graph compares a $10,000 investment made in each of the Class A, Class C and Class I shares of Dreyfus International Value Fund on 8/31/04 to a $10,000 investment made in the Morgan Stanley Capital International Europe, Australasia, Far East Index (the “Index”) on that date. All dividends and capital gain distributions are reinvested. The fund’s performance shown in the line graph above takes into account the maximum initial sales charge on Class A shares and all other applicable fees and expenses on all classes.The Index is an unmanaged index composed of a sample of companies representative of the market structure of European and Pacific Basin countries. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. 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 8/31/14
	1 Year		5 Years		10 Years
Class A shares
with maximum sales charge (5.75%)	6.14	%	3.71	%	4.11	%
without sales charge	12.58	%	4.94	%	4.73	%
Class C shares
with applicable redemption charge^†	10.68	%	4.11	%	3.93	%
without redemption	11.68	%	4.11	%	3.93	%
Class I shares	13.01	%	5.35	%	5.18	%
Morgan Stanley Capital
International Europe,
Australasia, Far East Index	16.43	%	8.21	%	7.01	%

Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. In addition to the performance of Class A shares shown with and without a maximum sales charge, the fund’s performance shown in the table takes into account all other applicable fees and expenses on all classes.

† The maximum contingent deferred sales charge for Class C shares is 1% for shares redeemed within one year of the

date of purchase.

The 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 International Value Fund from March 1, 2014 to August 31, 2014. 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 August 31, 2014


		Class A		Class C		Class I
Expenses paid per $1,000^†	$	7.61	$	11.27	$	5.45
Ending value (after expenses)	$	999.20	$	995.30	$	1,001.60

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 August 31, 2014


		Class A		Class C		Class I
Expenses paid per $1,000^†	$	7.68	$	11.37	$	5.50
Ending value (after expenses)	$	1,017.59	$	1,013.91	$	1,019.76

† Expenses are equal to the fund’s annualized expense ratio of 1.51% for Class A, 2.24% for Class C and 1.08%

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

August 31, 2014


Common Stocks—95.3%	Shares		Value ($)
Australia—2.9%
Australia & New Zealand Banking Group	30,841		962,917
Metcash	434,206		1,139,531
QBE Insurance Group	182,752		1,966,250
			4,068,698
Austria—.7%
Erste Group Bank	39,460		1,012,606
Belgium—.7%
bpost	38,370		945,058
Brazil—1.0%
Petroleo Brasileiro, ADR	75,380		1,475,187
China—2.5%
Beijing Capital International Airport, Cl. H	1,250,000		977,413
CNOOC	625,000		1,256,444
FIH Mobile	842,000	^a	474,776
Guangzhou Automobile Group, Cl. H	734,000		763,355
			3,471,988
Denmark—.9%
Carlsberg, Cl. B	13,230		1,206,567
France—10.1%
BNP Paribas	17,500		1,181,444
Bouygues	37,493		1,376,195
Carrefour	27,098		939,454
Cie de St-Gobain	16,032		813,755
Danone	15,210		1,062,018
Electricite de France	22,569		733,805
GDF Suez	56,854		1,400,321
Sanofi	31,831		3,492,351
Total	49,760		3,281,547
			14,280,890
Germany—5.2%
Aixtron	87,540	^a	1,148,512
Deutsche Bank	77,944		2,666,888
E.ON	49,640		902,059
LANXESS	18,290		1,132,280
Muenchener Rueckversicherungs	2,570		515,310

The Fund 9

STATEMENT OF INVESTMENTS (continued)


Common Stocks (continued)	Shares		Value ($)
Germany (continued)
Siemens	7,130		893,194
			7,258,243
Hong Kong—4.2%
BOC Hong Kong Holdings	436,000		1,465,513
CITIC Pacific	493,000		959,276
COSCO Pacific	555,298		778,129
Esprit Holdings	824,430		1,338,227
Pacific Basin Shipping	714,000		438,531
Yue Yuen Industrial Holdings	287,000		890,620
			5,870,296
India—1.8%
Reliance Industries, GDR	42,074	^b	1,400,223
State Bank of India, GDR	14,100		1,151,970
			2,552,193
Ireland—.8%
CRH	46,436		1,076,949
Israel—.9%
Teva Pharmaceutical Industries, ADR	25,100		1,318,252
Italy—4.0%
Assicurazioni Generali	80,350		1,642,769
Finmeccanica	104,776	^a	980,219
Saras	513,780	^a	613,652
Telecom Italia	1,205,720	^a	1,387,023
UniCredit	131,820		1,020,182
			5,643,845
Japan—19.1%
Aisin Seiki	20,000		739,103
Credit Saison	71,000		1,410,515
East Japan Railway	17,600		1,367,301
Fujitsu	137,000		939,756
Honda Motor	58,900		1,988,714
INPEX	75,800		1,085,511
Matsumotokiyoshi Holdings	31,710		1,001,176
Mitsubishi UFJ Financial Group	575,900		3,311,100


Common Stocks (continued)	Shares		Value ($)
Japan (continued)
Nippon Express	249,890		1,143,233
Nippon Shokubai	119,000		1,443,395
Nippon Telegraph & Telephone	17,800		1,194,137
Nippon Telegraph & Telephone, ADR	3,300		111,012
Nissan Motor	82,900		795,974
Nomura Real Estate Holdings	75,100		1,354,824
Ricoh	122,400		1,324,054
Sawai Pharmaceutical	18,200		1,037,301
Shimamura	15,100		1,361,315
Sumco	108,100		930,920
Sumitomo Electric Industries	73,100		1,070,030
Sumitomo Mitsui Financial Group	31,000		1,251,531
Sumitomo Mitsui Trust Holdings	232,560		954,201
Yamada Denki	330,000		1,059,349
			26,874,452
Netherlands—4.0%
Aegon	109,081		862,260
ING Groep	74,800	^a	1,028,542
Koninklijke Philips	68,224		2,078,830
NN Group	12,810		374,255
Randstad Holding	27,351		1,327,731
			5,671,618
Norway—.3%
Norsk Hydro	73,008		428,769
Russia—.5%
Gazprom, ADR	91,520		654,368
Singapore—.5%
DBS Group Holdings	51,101		733,141
South Africa—.2%
Murray & Roberts Holdings	100,393	^a	248,388
South Korea—2.1%
KB Financial Group	4,000		163,913
KB Financial Group, ADR	35,564		1,447,099
Korea Electric Power	12,110		504,011

The Fund 11

STATEMENT OF INVESTMENTS (continued)


Common Stocks (continued)	Shares		Value ($)
South Korea (continued)
Samsung Electronics	740		900,597
			3,015,620
Spain—.5%
Banco Popular Espanol	118,270		738,313
Sweden—3.1%
Electrolux, Ser. B	53,880		1,366,802
Ericsson, Cl. B	141,490		1,764,260
Getinge, Cl. B	44,910		1,173,954
			4,305,016
Switzerland—7.7%
ABB	74,710	^a	1,695,125
Credit Suisse Group	81,970	^a	2,310,750
Holcim	12,660	^a	1,006,677
Novartis	41,046		3,681,867
Roche Holding	4,010		1,169,301
UBS	52,288	^a	937,488
			10,801,208
United Kingdom—21.6%
Anglo American	38,823		986,108
ArcelorMittal	82,370		1,198,654
Barclays	387,699		1,444,635
BHP Billiton	42,440		1,343,952
BP	416,008		3,326,420
esure Group	358,870		1,578,799
Friends Life Group	171,046		870,905
GlaxoSmithKline	112,902		2,763,696
Home Retail Group	424,988		1,292,546
HSBC Holdings	270,585		2,928,837
Royal Bank of Scotland Group	203,190	^a	1,223,809
Royal Dutch Shell, Cl. A	80,949		3,276,341
Serco Group	253,454		1,306,065
Standard Chartered	141,657		2,852,612
Tesco	452,260		1,726,496
Unilever	51,633		2,279,237
			30,399,112
Total Common Stocks
(cost $150,371,196)			134,050,777


Preferred Stocks—1.4%	Shares		Value ($)
Germany
Volkswagen
(cost $2,203,997)	9,100		2,042,855

Other Investment—3.4%
Registered Investment Company;
Dreyfus Institutional Preferred Plus
Money Market Fund
(cost $4,790,000)	4,790,000	^c	4,790,000
Total Investments (cost $157,365,193)	100.1	%	140,883,632
Liabilities, Less Cash and Receivables	(.1	%)	(173,119	)
Net Assets	100.0	%	140,710,513

ADR—American Depository Receipts
GDR—Global Depository Receipts

a Non-income producing security.

b Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933.This security may be

resold in transactions exempt from registration, normally to qualified institutional buyers.At August 31, 2014, this

security was valued at $1,400,223 or 1.0% of net assets.

c Investment in affiliated money market mutual fund.


Portfolio Summary (Unaudited)^†

	Value (%)		Value (%)
Financial	29.4	Materials	6.1
Industrial	13.1	Information Technology	5.3
Energy	11.6	Money Market Investment	3.4
Health Care	10.4	Utilities	2.5
Consumer Discretionary	9.7	Telecommunication Services	1.9
Consumer Staples	6.7		100.1

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

The Fund 13

STATEMENT OF ASSETS AND LIABILITIES

August 31, 2014


		Cost	Value
Assets ($):
Investments in securities—See Statement of Investments:
Unaffiliated issuers		152,575,193	136,093,632
Affiliated issuers		4,790,000	4,790,000
Cash denominated in foreign currencies		656,272	654,383
Dividends receivable			539,359
Receivable for shares of Common Stock subscribed			464
Prepaid expenses			14,618
			142,092,456
Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(c)			169,211
Cash overdraft due to Custodian			146,997
Payable for shares of Common Stock redeemed			667,565
Payable for investment securities purchased			309,883
Interest payable—Note 2			1,212
Unrealized depreciation on forward foreign
currency exchange contracts—Note 4			163
Accrued expenses			86,912
			1,381,943
Net Assets ($)			140,710,513
Composition of Net Assets ($):
Paid-in capital			237,806,947
Accumulated undistributed investment income—net			1,898,353
Accumulated net realized gain (loss) on investments			(82,504,907	)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions			(16,489,880	)
Net Assets ($)			140,710,513


Net Asset Value Per Share
	Class A	Class C	Class I
Net Assets ($)	48,052,237	7,287,811	85,370,465
Shares Outstanding	3,754,225	576,914	6,701,585
Net Asset Value Per Share ($)	12.80	12.63	12.74
See notes to financial statements.


STATEMENT OF OPERATIONS
Year Ended August 31, 2014




Investment Income ($):
Income:
Cash dividends (net of $332,475 foreign taxes withheld at source):
Unaffiliated issuers	3,765,254
Affiliated issuers	2,867
Total Income	3,768,121
Expenses:
Management fee—Note 3(a)	1,419,222
Shareholder servicing costs—Note 3(c)	282,347
Custodian fees—Note 3(c)	86,574
Professional fees	70,104
Distribution fees—Note 3(b)	59,904
Registration fees	43,805
Directors’ fees and expenses—Note 3(d)	17,122
Prospectus and shareholders’ reports	16,898
Interest expense—Note 2	3,491
Loan commitment fees—Note 2	1,318
Miscellaneous	30,587
Total Expenses	2,031,372
Less—reduction in expenses due to undertaking—Note 3(a)	(141,922	)
Less—reduction in fees due to earnings credits—Note 3(c)	(70	)
Net Expenses	1,889,380
Investment Income—Net	1,878,741
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments and foreign currency transactions	9,923,611
Net realized gain (loss) on forward foreign currency exchange contracts	(136,664	)
Net Realized Gain (Loss)	9,786,947
Net unrealized appreciation (depreciation) on
investments and foreign currency transactions	4,341,953
Net unrealized appreciation (depreciation) on
forward foreign currency exchange contracts	(18	)
Net Unrealized Appreciation (Depreciation)	4,341,935
Net Realized and Unrealized Gain (Loss) on Investments	14,128,882
Net Increase in Net Assets Resulting from Operations	16,007,623

See notes to financial statements.

The Fund 15

STATEMENT OF CHANGES IN NET ASSETS


	Year Ended August 31,
	2014		2013
Operations ($):
Investment income—net	1,878,741		2,276,509
Net realized gain (loss) on investments	9,786,947		3,117,463
Net unrealized appreciation
(depreciation) on investments	4,341,935		25,123,949
Net Increase (Decrease) in Net Assets
Resulting from Operations	16,007,623		30,517,921
Dividends to Shareholders from ($):
Investment income—net:
Class A	(877,464	)	(1,779,844	)
Class C	(70,871	)	(98,693	)
Class I	(1,320,570	)	(1,603,998	)
Total Dividends	(2,268,905	)	(3,482,535	)
Capital Stock Transactions ($):
Net proceeds from shares sold:
Class A	23,744,575		12,719,514
Class C	459,266		146,329
Class I	24,670,716		3,686,507
Dividends reinvested:
Class A	833,178		1,718,394
Class C	40,444		54,020
Class I	1,184,689		1,424,443
Cost of shares redeemed:
Class A	(51,790,279	)	(54,174,851	)
Class C	(1,711,841	)	(1,916,922	)
Class I	(6,058,957	)	(19,133,866	)
Increase (Decrease) in Net Assets
from Capital Stock Transactions	(8,628,209	)	(55,476,432	)
Total Increase (Decrease) in Net Assets	5,110,509		(28,441,046	)
Net Assets ($):
Beginning of Period	135,600,004		164,041,050
End of Period	140,710,513		135,600,004
Undistributed investment income—net	1,898,353		2,259,459


	Year Ended August 31,
	2014		2013
Capital Share Transactions:
Class A^a
Shares sold	1,865,718		1,206,880
Shares issued for dividends reinvested	67,464		169,634
Shares redeemed	(4,139,037	)	(4,951,509	)
Net Increase (Decrease) in Shares Outstanding	(2,205,855	)	(3,574,995	)
Class C^a
Shares sold	36,863		13,612
Shares issued for dividends reinvested	3,299		5,364
Shares redeemed	(135,371	)	(176,471	)
Net Increase (Decrease) in Shares Outstanding	(95,209	)	(157,495	)
Class I
Shares sold	1,948,730		332,712
Shares issued for dividends reinvested	96,710		141,454
Shares redeemed	(485,579	)	(1,796,033	)
Net Increase (Decrease) in Shares Outstanding	1,559,861		(1,321,867	)

a During the period ended August 31, 2013, 12,494 Class C shares representing $147,433 were exchanged for

12,389 Class A shares.

See notes to financial statements.

The Fund 17

FINANCIAL HIGHLIGHTS

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


			Year Ended August 31,
Class A Shares	2014		2013		2012		2011		2010
Per Share Data ($):
Net asset value, beginning of period	11.54		9.76		10.69		10.37		11.02
Investment Operations:
Investment income—net^a	.15		.15		.17		.20		.15
Net realized and unrealized
gain (loss) on investments	1.30		1.85		(.80	)	.26		(.65	)
Total from Investment Operations	1.45		2.00		(.63	)	.46		(.50	)
Distributions:
Dividends from investment income—net	(.19	)	(.22	)	(.30	)	(.14	)	(.15	)
Net asset value, end of period	12.80		11.54		9.76		10.69		10.37
Total Return (%)^b	12.58		20.76		(5.89	)	4.32		(4.66	)
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.59		1.61		1.63		1.54		1.54
Ratio of net expenses
to average net assets	1.49		1.51		1.53		1.49		1.54
Ratio of net investment income
to average net assets	1.17		1.40		1.74		1.70		1.29
Portfolio Turnover Rate	65.25		43.35		40.93		60.72		55.35
Net Assets, end of period ($ x 1,000)	48,052		68,771		93,078		102,606		112,716


a	Based on average shares outstanding.
b	Exclusive of sales charge.

See notes to financial statements.


			Year Ended August 31,
Class C Shares	2014		2013		2012		2011		2010
Per Share Data ($):
Net asset value, beginning of period	11.41		9.64		10.51		10.19		10.84
Investment Operations:
Investment income—net^a	.04		.06		.10		.11		.06
Net realized and unrealized
gain (loss) on investments	1.29		1.83		(.79	)	.25		(.65	)
Total from Investment Operations	1.33		1.89		(.69	)	.36		(.59	)
Distributions:
Dividends from investment income—net	(.11	)	(.12	)	(.18	)	(.04	)	(.06	)
Net asset value, end of period	12.63		11.41		9.64		10.51		10.19
Total Return (%)^b	11.68		19.82		(6.55	)	3.48		(5.49	)
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	2.37		2.39		2.38		2.31		2.33
Ratio of net expenses
to average net assets	2.27		2.29		2.28		2.26		2.33
Ratio of net investment income
to average net assets	.35		.60		.99		.91		.56
Portfolio Turnover Rate	65.25		43.35		40.93		60.72		55.35
Net Assets, end of period ($ x 1,000)	7,288		7,667		7,998		11,573		14,604


a	Based on average shares outstanding.
b	Exclusive of sales charge.

See notes to financial statements.

The Fund 19

FINANCIAL HIGHLIGHTS (continued)


			Year Ended August 31,
Class I Shares	2014		2013		2012		2011		2010
Per Share Data ($):
Net asset value, beginning of period	11.51		9.74		10.67		10.36		11.02
Investment Operations:
Investment income—net^a	.20		.19		.23		.28		.22
Net realized and unrealized
gain (loss) on investments	1.29		1.84		(.81	)	.22		(.68	)
Total from Investment Operations	1.49		2.03		(.58	)	.50		(.46	)
Distributions:
Dividends from investment income—net	(.26	)	(.26	)	(.35	)	(.19	)	(.20	)
Net asset value, end of period	12.74		11.51		9.74		10.67		10.36
Total Return (%)	13.01		21.27		(5.41	)	4.67		(4.37	)
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.20		1.21		1.19		1.15		1.22
Ratio of net expenses
to average net assets	1.10		1.11		1.09		1.09		1.22
Ratio of net investment income
to average net assets	1.56		1.76		2.29		2.29		1.93
Portfolio Turnover Rate	65.25		43.35		40.93		60.72		55.35
Net Assets, end of period ($ x 1,000)	85,370		59,161		62,965		91,998		97,429
a Based on average shares outstanding.
See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus International Value 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 currently offering eleven series, including the fund. The fund’s investment objective is to seek long-term capital growth. The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser.

MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares. The fund is authorized to issue 500 million shares of $.001 par value Common Stock.The fund currently offers three classes of shares: Class A (200 million shares authorized), Class C (100 million shares authorized) and Class I (200 million shares authorized). Class A shares generally are subject to a sales charge imposed at the time of purchase. Class C shares are subject to a contingent deferred sales charge (“CDSC”) imposed on Class C shares redeemed within one year of purchase. Class I shares are sold at net asset value per share generally 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 are allocated to each class of shares based on its relative net assets.

The Company accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are

The Fund 21

NOTES TO FINANCIAL STATEMENTS (continued)

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

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

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

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

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

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

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

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

Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is available. Registered investment companies that are not traded on an exchange are valued at their net asset value.All of the preceding securities are generally categorized within Level 1 of the fair value hierarchy.

The Fund 23

NOTES TO FINANCIAL STATEMENTS (continued)

Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADRs and financial futures. Utilizing these techniques may result in transfers between Level 1 and Level 2 of the fair value hierarchy.

When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Company’s Board of Directors (the “Board”). Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

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

Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange.

Forward foreign currency exchange contracts (“forward contracts”) are valued at the forward rate and are generally categorized within Level 2 of the fair value hierarchy.

The following is a summary of the inputs used as of August 31, 2014 in valuing the fund's investments:


		Level 2—Other	Level 3—
	Level 1—	Significant	Significant
	Unadjusted	Observable	Unobservable
	Quoted Prices	Inputs	Inputs	Total
Assets ($)
Investments in Securities:
Equity Securities—
Foreign
Common Stocks^†	134,050,777	—	—	134,050,777
Equity Securities—
Foreign
Preferred Stocks^†	2,042,855	—	—	2,042,855
Mutual Funds	4,790,000	—	—	4,790,000
Liabilities ($)
Other Financial
Instruments:
Forward Foreign
Currency Exchange
Contracts^††	—	(163)	—	(163	)


†	See Statement of Investments for additional detailed categorizations.
^††	Amount shown represents unrealized (depreciation) at period end.

At August 31, 2014, there were no transfers between Level 1 and Level 2 of the fair value hierarchy.

(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

The Fund 25

NOTES TO FINANCIAL STATEMENTS (continued)

between trade and settlement date, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments resulting from changes in exchange rates. Foreign currency gains and losses on foreign currency transactions are also included with net realized and unrealized gain or loss on investments.

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

(d) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as “affiliated” under the Act. Investments in affiliated investment companies during the period ended August 31, 2014 were as follows:


Affiliated
Investment	Value			Value	Net
Company	8/31/2013 ($)	Purchases ($)	Sales ($)	8/31/2014 ($)	Assets (%)
Dreyfus
Institutional
Preferred
Plus Money
Market Fund	1,870,000	62,840,000	59,920,000	4,790,000	3.4

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

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

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

As of and during the period ended August 31, 2014, the fund did not have any liabilities for any uncertain tax positions.The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended August 31, 2014, the fund did not incur any interest or penalties.

Each tax year in the four-year period ended August 31, 2014 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At August 31, 2014, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $1,900,466, accumulated capital losses $81,346,849 and unrealized depreciation $17,650,051.

The Fund 27

NOTES TO FINANCIAL STATEMENTS (continued)

(“post-enactment losses”) for an unlimited period. Furthermore, post-enactment capital loss carryovers retain their character as either short-term or long-term capital losses rather than short-term as they were under previous statute.The 2010 Act requires post-enactment losses to be utilized before the utilization of losses incurred in taxable years prior to the effective date of the 2010 Act (“pre-enactment losses”).As a result of this ordering rule, pre-enactment losses may be more likely to expire unused.

The accumulated capital loss carryover is available for federal income tax purposes to be applied against future net realized capital gains, if any, realized subsequent to August 31, 2014. If not applied, $24,770,979 of the carryover expires in fiscal year 2017 and $41,505,182 expires in fiscal year 2018. The fund has $15,070,688 of post-enactment long-term capital losses which can be carried forward for an unlimited period.

The tax character of distributions paid to shareholders during the fiscal periods ended August 31, 2014 and August 31, 2013 were as follows: ordinary income $2,268,905 and $3,482,535, respectively.

During the period ended August 31, 2014, as a result of permanent book to tax differences, primarily due to the tax treatment for foreign exchange gains and losses and passive foreign investment companies, the fund increased accumulated undistributed investment income-net by $29,058 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 $265 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. Prior to October 9,

2013, the unsecured credit facility with Citibank, N.A. was $210 million. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing.

The average amount of borrowings outstanding under the Facilities during the period ended August 31, 2014 was approximately $315,900 with a related weighted average annualized interest rate of 1.11%.

NOTE 3—Management Fee and Other Transactions with Affiliates:

(a) Pursuant to a management agreement with the Manager, the management fee is computed at the annual rate of 1% of the value of the fund’s average daily net assets and is payable monthly.The Manager has agreed to waive receipt of a portion of the fund’s management fee, in the amount of .10% of the value of the fund’s average daily net assets from September 1, 2013 through September 30, 2015. The reduction in expenses, pursuant to the undertaking, amounted to $141,922 during the period ended August 31, 2014.

During the period ended August 31, 2014, the Distributor retained $1,557 from commissions earned on sales of the fund’s Class A shares and $1,526 from CDSCs on redemptions of the fund’s Class C shares.

(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act, Class C shares pay the Distributor for distributing its shares at an annual rate of .75% of the value of its average daily net assets. During the period ended August 31, 2014, Class C shares were charged $59,904 pursuant to the Distribution Plan.

The Fund 29

NOTES TO FINANCIAL STATEMENTS (continued)

and providing reports and other information, and services related to the maintenance of shareholder accounts.The Distributor may make payments to Service Agents (securities dealers, financial institutions or other industry professionals) with respect to these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended August 31, 2014, Class A and Class C shares were charged $152,164 and $19,968, respectively, pursuant to the Shareholder Services Plan.

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

The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing transfer agency and cash management services for the fund.The majority of transfer agency fees are comprised of amounts paid on a per account basis, while cash management fees are related to fund subscriptions and redemptions. During the period ended August 31, 2014, the fund was charged $12,769 for transfer agency services and $944 for cash management services.These fees are included in Shareholder servicing costs in the Statement of Operations. Cash management fees were partially offset by earnings credits of $70.

The fund compensates The Bank of NewYork Mellon under a custody agreement for providing custodial services for the fund.These fees are determined based on net assets, geographic region and transaction activity. During the period ended August 31, 2014, the fund was charged $86,574 pursuant to the custody agreement.

agreement, which is included in Shareholder servicing costs in the Statement of Operations.

During the period ended August 31, 2014, the fund was charged $8,296 for services performed by the Chief Compliance Officer and his staff.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $121,040, Distribution Plan fees $4,650, Shareholder Services Plan fees $12,339, custodian fees $37,527, Chief Compliance Officer fees $1,154 and transfer agency fees $4,666, which are offset against an expense reimbursement currently in effect in the amount of $12,165.

(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 and forward contracts, during the period ended August 31, 2014 amounted to $89,611,126 and $100,417,478, respectively.

Derivatives: A derivative is a financial instrument whose performance is derived from the performance of another asset. Each type of derivative instrument that was held by the fund during the period ended August 31, 2014 is discussed below.

Forward Foreign Currency Exchange Contracts: The fund enters into forward contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to settle foreign currency transactions or as a part of its investment strat-egy.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

The Fund 31

NOTES TO FINANCIAL STATEMENTS (continued)

is opened and the date the forward contract is closed.The fund realizes a gain if the value of the contract decreases between those dates.With respect to purchases of forward contracts, the fund incurs a loss if the value of the contract decreases between the date the forward contract is opened and the date the forward contract is closed.The fund realizes a gain if the value of the contract increases between those dates. Any realized or unrealized gains or losses which occurred during the period are reflected in the Statement of Operations. The fund is exposed to foreign currency risk as a result of changes in value of underlying financial instruments. The fund is also exposed to credit risk associated with counterparty nonperformance on these forward contracts, which is generally limited to the unrealized gain on each open contract. The following summarizes open forward contracts at August 31, 2014:


Forward Foreign Currency	Currency			Unrealized
Exchange Contracts	Amounts	Cost ($)	Value ($)	(Depreciation) ($)
Purchases:
British Pound,
Expiring
9/2/2014^a	33,908	56,319	56,292	(27	)
Danish Krone,
Expiring
9/2/2014^b	249,969	44,230	44,094	(136	)
Gross Unrealized
Depreciation				(163	)

Counterparties:


a	Northern Trust
b	Goldman Sachs International

In December 2011, with clarification in January 2013, FASB issued guidance that expands disclosure requirements with respect to the offsetting of certain assets and liabilities. The fund adopted these disclosure provisions during the current reporting period. These disclosures are required for certain investments, including derivative financial instruments subject to master netting arrangements (“MNA”) or

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

At August 31, 2014, derivative assets and liabilities (by type) on a gross basis are as follows:


Derivative Financial Instruments:	Assets ($)	Liabilities ($)
Forward contracts	—	(163	)
Total gross amount of derivative assets
and liabilities in the Statement of
Assets and Liabilities	—	(163	)
Derivatives not subject to
MNA or similar agreements	—	—
Total gross amount of assets and liabilities
subject to MNA or similar agreements	—	(163	)

The following table presents derivative assets and liabilities net of amounts available for offsetting under MNA and net of related collateral pledged, if any, as of August 31, 2014:


			Financial
			Instruments
			and
			Derivatives
	Gross Amount of		Available	Collateral	Net Amount of
Counterparties	Liabilities ($)¹		for Offset ($)	Pledged ($)²	Liabilities ($)
Goldman Sachs
International	(136	)	—	—	(136	)
Northern Trust	(27	)	—	—	(27	)
Total	(163	)	—	—	(163	)


1	Absent a default event or early termination, over-the-counter derivative assets and liabilities are
	presented at gross amounts and are not offset in the Statement of Assets and Liabilities.
2	In some instances, the actual collateral pledged may be more than the amount shown due to
	overcollateralization.

The Fund 33

NOTES TO FINANCIAL STATEMENTS (continued)

The following summarizes the average market value of derivatives outstanding during the period ended August 31, 2014:


	Average Market Value ($)
Forward contracts	588,046

At August 31, 2014, the cost of investments for federal income tax purposes was $158,525,364; accordingly, accumulated net unrealized depreciation on investments was $17,641,732, consisting of $5,546,930 gross unrealized appreciation and $23,188,662 gross unrealized depreciation.

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

Shareholders and Board of Directors
Dreyfus International Value Fund

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus International Value Fund (one of the series comprising Advantage Funds, Inc.) as of August 31, 2014, 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 the financial highlights for each of the five years in the period then ended.These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with 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 principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of August 31, 2014 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 International Value Fund at August 31, 2014, 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 five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York
October 28, 2014

The Fund 35

IMPORTANT TAX INFORMATION (Unaudited)

In accordance with federal tax law, the fund elects to provide each shareholder with their portion of the fund’s foreign taxes paid and the income sourced from foreign countries. Accordingly, the fund hereby reports the following information regarding its fiscal year ended August 31, 2014:

—the total amount of taxes paid to foreign countries was $319,528.

—the total amount of income sourced from foreign countries was $4,107,490.

Where required by federal tax law rules, shareholders will receive notification of their proportionate share of foreign taxes paid and foreign sourced income for the 2014 calendar year with Form 1099-DIV which will be mailed in early 2015.Also, certain dividends paid by the fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal year, $2,268,905 represents the maximum amount that may be considered qualified dividend income.

INFORMATION ABOUT THE RENEWAL OF THE

FUND’S MANAGEMENT AGREEMENT (Unaudited)

At a meeting of the fund’s Board of Directors held on March 4-5, 2014, the Board considered the renewal of the fund’s Management Agreement pursuant to which Dreyfus provides the fund with investment advisory and administrative services (the “Agreement”). 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 Dreyfus representatives. In considering the renewal of the Agreement, the Board considered all factors that it believed to be relevant, including those discussed below.The Board did not identify any one factor as dispositive, and each Board member may have attributed different weights to the factors considered.

Analysis of Nature, Extent, and Quality of Services Provided to the Fund.The Board considered information provided to them at the meeting and in previous presentations from Dreyfus representatives regarding the nature, extent, and quality of the services provided to funds in the Dreyfus fund complex. Dreyfus provided the number of open accounts in the fund, the fund’s asset size and the allocation of fund assets among distribution channels. Dreyfus also had previously provided information regarding the diverse intermediary relationships and distribution channels of funds in the Dreyfus fund complex (such as retail direct or intermediary, in which intermediaries typically are paid by the fund and/or Dreyfus) and Dreyfus’ corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each intermediary or distribution channel, as applicable to the fund.

The Board also considered research support available to, and portfolio management capabilities of, the fund’s portfolio management personnel and that Dreyfus also provides oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements. The Board also considered Dreyfus’ extensive administrative, accounting, and compliance infrastructures. The Board also considered portfolio management’s brokerage policies and practices (including policies and practices regarding soft dollars) and the standards applied in seeking best execution.

The Fund 37

INFORMATION ABOUT THE RENEWAL OF THE FUND’S

MANAGEMENT AGREEMENT (Unaudited) (continued)

Comparative Analysis of the Fund’s Performance and Management Fee and Expense Ratio. The Board reviewed reports prepared by Lipper, Inc. (“Lipper”), an independent provider of investment company data, which included information comparing (1) the fund’s performance with the performance of a group of comparable funds (the “Performance Group”) and with a broader group of funds (the “Performance Universe”), all for various periods ended December 31, 2013, and (2) the fund’s actual and contractual management fees and total expenses with those of a group of comparable funds (the “Expense Group”) and with a broader group of funds (the “Expense Universe”), the information for which was derived in part from fund financial statements available to Lipper as of the date of its analysis. Dreyfus previously had furnished the Board with a description of the methodology Lipper used to select the Performance Group and Performance Universe and the Expense Group and Expense Universe.

Dreyfus representatives stated that the usefulness of performance comparisons may be affected by a number of factors, including different investment limitations that may be applicable to the fund and comparison funds. The Board discussed the results of the comparisons and noted that the fund’s total return performance was at or below the Performance Group and Performance Universe medians for the various periods, except for the one-year period when the fund’s performance was above the Performance Group and Performance Universe medians. The Board noted that Dreyfus had added the fund’s current lead portfolio manager to the fund in 2011 and that he was appointed lead portfolio manager in 2013. Dreyfus also provided a comparison of the fund’s calendar year total returns to the returns of the fund’s benchmark index.

The Board also reviewed the range of actual and contractual management fees and total expenses of the Expense Group and Expense Universe funds and discussed the results of the comparisons.The Board noted that the fund’s contractual management fee was above the Expense Group median and the fund’s actual management fee and total expenses were above the Expense Group and Expense Universe medians.

Dreyfus representatives noted that Dreyfus has agreed to waive receipt of a portion of the fund’s management fee in the amount of .10% of the value of the fund’s average daily net assets until September 30, 2014. On or after September 30, 2014, Dreyfus may terminate this expense waiver at any time.

Dreyfus representatives reviewed with the Board the management or investment advisory fees (1) paid by funds advised or administered by Dreyfus that are in the same Lipper category as the fund and (2) paid to Dreyfus or the Dreyfus-affiliated primary employer of the fund’s primary portfolio manager(s) for advising any separate accounts and/or other types of client portfolios that are considered to have similar investment strategies and policies as the fund (the “Similar Clients”), and explained the nature of the Similar Clients. They discussed differences in fees paid and the relationship of the fees paid in light of any differences in the services provided and other relevant factors. The Board considered the relevance of the fee information provided for the Similar Clients to evaluate the appropriateness and reasonableness of the fund’s management fee.

Analysis of Profitability and Economies of Scale. Dreyfus representatives reviewed the expenses allocated and profit received by Dreyfus and the resulting profitability percentage for managing the fund and the aggregate profitability percentage to Dreyfus of managing the funds in the Dreyfus fund complex, and the method used to determine the expenses and profit. The Board concluded that the profitability results were not unreasonable, given the services rendered and service levels provided by Dreyfus.The Board also noted the fee waiver arrangement and its effect on Dreyfus’ profitability.The Board also had been provided with information prepared by an independent consulting firm regarding Dreyfus’ approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus fund complex.The consulting firm also had analyzed where any economies of scale might emerge in connection with the management of a fund.

The Fund 39

INFORMATION ABOUT THE RENEWAL OF THE FUND’S

MANAGEMENT AGREEMENT (Unaudited) (continued)

The Board considered on the advice of its counsel the profitability analysis (1) as part of its evaluation of whether the fees under the Agreement bear a reasonable relationship to the mix of services provided by Dreyfus, including the nature, extent and quality of such services, and (2) in light of the relevant circumstances for the fund and the extent to which economies of scale would be realized if the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders. Dreyfus representatives noted that a discussion of economies of scale is predicated on a fund having achieved a substantial size with increasing assets and that, if a fund’s assets had been stable or decreasing, the possibility that Dreyfus may have realized any economies of scale would be less. Dreyfus representatives also noted that, as a result of shared and allocated costs among funds in the Dreyfus fund complex, the extent of economies of scale could depend substantially on the level of assets in the complex as a whole, so that increases and decreases in complex-wide assets can affect potential economies of scale in a manner that is disproportionate to, or even in the opposite direction from, changes in the fund’s asset level. The Board also considered potential benefits to Dreyfus from acting as investment adviser and noted the soft dollar arrangements in effect for trading the fund’s investments.

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 the renewal of the Agreement. Based on the discussions and considerations as described above, the Board concluded and determined as follows.

The Board concluded that the nature, extent and quality of the services provided by Dreyfus are adequate and appropriate.
The Board noted Dreyfus’ efforts to improve performance and the fund’s improved performance and agreed to continue to closely monitor performance.
The Board concluded that the fee paid to Dreyfus was reasonable in light of the considerations described above.

The Board determined that the economies of scale which may accrue to Dreyfus and its affiliates in connection with the management of the fund had been adequately considered by Dreyfus in connection with the fee rate charged to the fund pursuant to the Agreement and that, to the extent in the future it were determined that material economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.

In evaluating the Agreement, the Board considered these conclusions and determinations and also relied on its previous knowledge, gained through meetings and other interactions with Dreyfus and its affiliates, of the fund and the services provided to the fund by Dreyfus. The Board also relied on information received on a routine and regular basis throughout the year relating to the operations of the fund and the investment management and other services provided under the Agreement, including information on the investment performance of the fund in comparison to similar mutual funds and benchmark performance indices; general market outlook as applicable to the fund; and compliance reports. In addition, the Board’s consideration of the contractual fee arrangements for this fund had the benefit of a number of years of reviews of prior or similar agreements during which lengthy discussions took place between the Board and Dreyfus representatives. Certain aspects of the arrangements may receive greater scrutiny in some years than in others, and the Board’s conclusions may be based, in part, on their consideration of the same or similar arrangements in prior years. The Board determined that renewal of the Agreement was in the best interests of the fund and its shareholders.

The Fund 41

BOARD MEMBERS INFORMATION (Unaudited)

INDEPENDENT BOARD MEMBERS

Joseph S. DiMartino (70)

Chairman of the Board (1995)

Principal Occupation During Past 5Years:

• Corporate Director and Trustee (1995-present)

Other Public Company Board Memberships During Past 5Years:

• CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small

and medium size companies, Director (1997-present)

• The Newark Group, a provider of a national market of paper recovery facilities, paperboard

mills and paperboard converting plants, Director (2000-2010)

• Sunair Services Corporation, a provider of certain outdoor-related services to homes and

businesses, Director (2005-2009)

No. of Portfolios for which Board Member Serves: 142

———————

Peggy C. Davis (71)

Board Member (2006)

Principal Occupation During Past 5Years:

• Shad Professor of Law, New York University School of Law (1983-present)

No. of Portfolios for which Board Member Serves: 52

———————

David P. Feldman (74)

Board Member (1996)

Principal Occupation During Past 5Years:

• Corporate Director and Trustee (1985-present)

Other Public Company Board Membership During Past 5Years:

• BBH Mutual Funds Group (5 registered mutual funds), Director (1992-present)

No. of Portfolios for which Board Member Serves: 38

———————

Ehud Houminer (74)

Board Member (1993)

Principal Occupation During Past 5Years:

• Executive-in-Residence at the Columbia Business School, Columbia University (1992-present)

Other Public Company Board Membership During Past 5Years:

• Avnet Inc., an electronics distributor, Director (1993-2012)

No. of Portfolios for which Board Member Serves: 62

Lynn Martin (74)

Board Member (2012)

Principal Occupation During Past 5Years:

• President of The Martin Hall Group LLC, a human resources consulting firm (2005-2012)

Other Public Company Board Memberships During Past 5Years:

• AT&T Inc., a telecommunications company, Director (1999-2012)

• Ryder System, Inc., a supply chain and transportation management company, Director (1993-2012)

• The Proctor & Gamble Co., a consumer products company, Director (1994-2009)

• Constellation Energy Group Inc., Director (2003-2009)

No. of Portfolios for which Board Member Serves: 38

———————

Robin A. Melvin (50)

Board Member (2012)

Principal Occupation During Past 5Years:

• Board Member, Illinois Mentoring Partnership, non-profit organization dedicated to increasing

the quantity and quality of mentoring services in Illinois (2013-present)

• Director, Boisi Family Foundation, a private family foundation that supports youth-serving orga-

nizations that promote the self sufficiency of youth from disadvantaged circumstances (1995-2012)

No. of Portfolios for which Board Member Serves: 109

———————

Dr. Martin Peretz (75)

Board Member (2006)

Principal Occupation During Past 5Years:

• Editor-in-Chief Emeritus of The New Republic Magazine (2010-2011) (previously,

Editor-in-Chief, 1974-2010)

• Director of TheStreet.com, a financial information service on the web (1996-2010)

No. of Portfolios for which Board Member Serves: 38

———————

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

James F. Henry, Emeritus Board Member
Dr. Paul A. Marks, Emeritus Board Member
Philip L.Toia, Emeritus Board Member

The Fund 43

OFFICERS OF THE FUND (Unaudited)

BRADLEY J. SKAPYAK, President since January 2010.

Chief Operating Officer and a director of the Manager since June 2009, Chairman of Dreyfus Transfer, Inc., an affiliate of the Manager and the transfer agent of the funds, since May 2011 and Executive Vice President of the Distributor since June 2007. From April 2003 to June 2009, Mr. Skapyak was the head of the Investment Accounting and Support Department of the Manager. He is an officer of 69 investment companies (comprised of 142 portfolios) managed by the Manager. He is 55 years old and has been an employee of the Manager since February 1988.

JOHN PAK, Chief Legal Officer since March 2013.

Deputy General Counsel, Investment Management, of BNY Mellon since August 2014; Chief Legal Officer of the Manager since August 2012; from March 2005 to July 2012, Managing Director of Deutsche Bank, Deputy Global Head of Deutsche Asset Management Legal and Regional Head of Deutsche Asset Management Americas Legal. He is an officer of 70 investment companies (comprised of 167 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since August 2012.

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

Assistant General Counsel of BNY Mellon, and an officer of 70 investment companies (comprised of 167 portfolios) managed by the Manager. She is 51 years old and has been an employee of the Manager since February 1984.

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

Counsel of BNY Mellon, and an officer of 70 investment companies (comprised of 167 portfolios) managed by the Manager. She is 41 years old and has been an employee of the Manager since July 1995.

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

Managing Counsel of BNY Mellon and Secretary of the Manager, and an officer of 70 investment companies (comprised of 167 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since December 1996.

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

Managing Counsel of BNY Mellon, and an officer of 70 investment companies (comprised of 167 portfolios) managed by the Manager. She is 58 years old and has been an employee of the Manager since October 1988.

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

Managing Counsel of BNY Mellon, and an officer of 70 investment companies (comprised of 167 portfolios) managed by the Manager. He is 52 years old and has been an employee of the Manager since June 2000.

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

Senior Managing Counsel of BNY Mellon, and an officer of 70 investment companies (comprised of 167 portfolios) managed by the Manager. He is 51 years old and has been an employee of the Manager since February 1991.

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

Senior Counsel of BNY Mellon, and an officer of 70 investment companies (comprised of 167 portfolios) managed by the Manager; from August 2005 to March 2013, Associate General Counsel of Third Avenue Management. She is 38 years old and has been an employee of the Manager since March 2013.

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

Senior Managing Counsel of BNY Mellon, and an officer of 70 investment companies (comprised of 167 portfolios) managed by the Manager. He is 49 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 70 investment companies (comprised of 167 portfolios) managed by the Manager. He is 55 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 70 investment companies (comprised of 167 portfolios) managed by the Manager. He is 55 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 70 investment companies (comprised of 167 portfolios) managed by the Manager. He is 46 years old and has been an employee of the Manager since April 1991.

ROBERT S. ROBOL, Assistant Treasurer since August 2005.

Senior Accounting Manager – Fixed Income Funds of the Manager, and an officer of 70 investment companies (comprised of 167 portfolios) managed by the Manager. He is 50 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 70 investment companies (comprised of 167 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since June 1989.

ROBERT SVAGNA, Assistant Treasurer since August 2005.

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

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (70 investment companies, comprised of 167 portfolios).

He is 57 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.

MATTHEW D. CONNOLLY, Anti-Money Laundering Compliance Officer since April 2012.

Anti-Money Laundering Compliance Officer of the Distributor since October 2011; from March 2010 to September 2011, Global Head, KYC Reviews and Director of UBS Investment Bank; until March 2010, AML Compliance Officer and Senior Vice President of Citi Global Wealth Management. He is an officer of 65 investment companies (comprised of 162 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Distributor since October 2011.

The Fund 45

For More Information

Telephone Call your financial representative or 1-800-DREYFUS

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-DREYFUS.

Dreyfus

Opportunistic

Midcap Value Fund

ANNUAL REPORT August 31, 2014

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

	Contents
	THE FUND
2	A Letter from the President
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
13	Statement of Assets and Liabilities
14	Statement of Operations
15	Statement of Changes in Net Assets
17	Financial Highlights
21	Notes to Financial Statements
31	Report of Independent Registered Public Accounting Firm
32	Important Tax Information
33	Information About the Renewal of the Fund’s Management Agreement
38	Board Members Information
40	Officers of the Fund
	FOR MORE INFORMATION
	Back Cover

Dreyfus
Opportunistic
Midcap Value Fund

The Fund

A LETTER FROM THE PRESIDENT

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Opportunistic MidcapValue Fund, covering the 12-month period from September 1, 2013, through August 31, 2014. 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.

Despite occasional bouts of heightened volatility, U.S. stocks generally gained ground steadily over the reporting period as the domestic economy rebounded. As a result, most broad measures of equity market performance established a series of new record highs over the past 12 months. Growth-oriented and more economically sensitive stocks generally fared well over the reporting period’s first half, but value-oriented stocks rallied more strongly over the second half.

We remain cautiously optimistic regarding the U.S. stock market’s prospects. We currently expect the economy to continue to accelerate as several long-standing drags, including tight fiscal policies and private sector deleveraging, fade from the scene. Of course, a number of risks remain, including the possibilities of higher short-term interest rates and intensifying geopolitical turmoil.Therefore, we suggest you talk regularly with your financial advisor to assess the potential impact of these and other macroeconomic developments on your investments.

Thank you for your continued confidence and support.

J. Charles Cardona
President
The Dreyfus Corporation
September 15, 2014

DISCUSSION OF FUND PERFORMANCE

For the period of September 1, 2013, through August 31, 2014, as provided by David A. Daglio, Primary Portfolio Manager

Fund and Market Performance Overview

For the 12-month period ended August 31, 2014, Dreyfus Opportunistic Midcap Value Fund’s Class A shares produced a total return of 25.32%, Class C shares returned 24.35%, Class I shares returned 25.62%, and Class Y shares returned 26.02%.¹In comparison, the fund’s benchmark, the Russell Midcap^®Value Index (the “Index”), produced a 27.20% total return for the same period.²

Midcap stocks climbed during the reporting period in an environment of improving economic growth.The fund produced strong absolute returns but lagged its benchmark due to security selection shortfalls in the consumer staples and information technology sectors as well as the impact of fund fees and expenses that are not reflected in the benchmark’s results.

The Fund’s Investment Approach

The fund seeks to surpass the performance of the Index by investing in midcap companies with market capitalizations between $1 billion and $25 billion at the time of purchase. The fund’s portfolio managers identify potential investments through extensive quantitative and fundamental research conducted by the team’s dedicated sector specialists.

The fund focuses on individual stock selection (a “bottom-up” approach), emphasizing three key factors: relative value, business health, and business momentum.

The portfolio managers use an opportunistic value style in an attempt to benefit from valuation inefficiencies and underappreciated fundamental prospects present in the marketplace.To do this, the portfolio managers use mid-cycle estimates, growth prospects, the identification of a revaluation catalyst, and competitive advantages as some of the factors in the valuation assessment.

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

Midcap Stocks Advanced Strongly in a Broad Market Rally

Stocks generally gained value over the fall of 2013 in response to encouraging economic data, enabling several broad measures of U.S. stock market performance to end 2013 near record highs. The market relinquished some of its gains in January 2014 amid concerns regarding economic slowdowns in the world’s emerging markets, but stocks rebounded in February when those worries proved to be overblown.Another bout of weakness in the spring stemmed from the adverse impact of unusually harsh winter weather on economic activity. The market downturn hit the information technology and biotechnology industry groups particularly hard, triggering a shift in market leadership from more aggressive growth stocks to their better established, value-oriented counterparts. It became clear in the spring that the economic recovery had resumed, driving stocks of all capitalization ranges to a series of new record highs over the reporting period’s final three months.

While large-, mid-, and small-cap stocks produced double-digit returns, on average, in this constructive environment, the shift in market leadership to more conservative companies caused midcap stocks to modestly trail their large-cap counterparts for the reporting period overall. However, midcap stocks produced higher returns than small-cap stocks, and midcap value-oriented stocks generally outperformed midcap growth stocks.

Fund Strategies Produced Mixed Results

Although the fund participated in most of the value-oriented midcap stock market’s gains, its relative performance was constrained by a handful of disappointments in the consumer staples and information technology sectors. Most notably, beauty products seller Avon Products failed to execute an expected turnaround in its business. In the information technology sector, Xilinx suffered when Chinese telecommunications companies began to move away from the programmable devices maker’s technologies. These developments prompted the elimination of Avon Products and Xilinx from the fund’s portfolio.

Another technology holding, communications equipment producer JDS Uniphase, trailed market averages despite improved fundamental prospects, which we expect to boost future financial results. Likewise, electronic components distributors Avnet and Arrow Electronics disappointed when pent-up enterprise demand failed to materialize, but we recently have seen hints of greater capital spending as the economy improves.

The fund achieved better relative performance in the financials sector, where online brokers E*TRADE Financial and TD Ameritrade Holding saw rising trading volumes and asset growth when financial markets rallied. Better-than-expected growth in key product areas fueled higher profit margins for investment manager Invesco. Insurer Hartford Financial Services Group achieved strongly positive asset flows and a higher market share. Voya Financial, formerly known as ING U.S., fared well as investors increasingly recognized its attractive valuation and rising profits. Among industrial companies, Ingersoll-Rand rallied from previous weakness and appears poised to benefit from greater enterprise spending.

Continuing to Find Attractive Midcap Opportunities

We recently have been encouraged by improved U.S. economic activity, including a stronger labor market. In our judgment, an extended economic recovery should be good for midcap stocks. However, valuations have climbed and interest rates may rise, suggesting that selectivity is likely to become more critical to investment success. Our top-down analyses and bottom-up security selection process have identified an ample number of midcap opportunities meeting our value-oriented criteria in the information technology, financials, industrials, and health care sectors, but fewer in the consumer staples, utilities, and telecommunications services sectors.

September 15, 2014

Equity funds are subject generally to market, market sector, market liquidity, issuer, and investment style risks, among other factors, to varying degrees, all of which are more fully described in the fund’s prospectus.

Stocks of small- and/or midcap companies often experience sharper price fluctuations than stocks of large-cap companies.

1 Total return includes reinvestment of dividends and any capital gains paid and does not take into consideration the

maximum initial sales charge in the case of Class A shares, or the applicable contingent deferred sales charge imposed

on redemptions in the case of Class C shares. Had these charges been reflected, returns would have been lower. Past

performance is no guarantee of future results. Share price and investment return fluctuate such that upon redemption

fund shares may be worth more or less than their original cost.

2 SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital gain distributions.

The Russell Midcap^®Value Index is a widely accepted, unmanaged index of medium-cap stock market performance

and measures the performance of those Russell midcap companies with lower price-to-book ratios and lower forecasted

growth values. Investors cannot invest directly in any index.

The Fund 5

FUND PERFORMANCE


†	Source: Lipper Inc.
^††	The total return figures presented for Class C shares of the fund reflect the performance of the fund’s Class A shares
	for the period prior to 5/30/08 (the inception date for Class C shares), not reflecting the applicable sales charges for
	Class A shares.
	The total return figures presented for Class I shares of the fund reflect the performance of the fund’s Class A shares
	for the period prior to 5/30/08 (the inception date for Class I shares), not reflecting the applicable sales charges for
	Class A shares.
	The total return figures presented for ClassY shares of the fund reflect the performance of the fund’s Class A shares
	for the period prior to 7/1/13 (the inception date for ClassY shares), not reflecting the applicable sales charges for
	Class A shares.

Past performance is not predictive of future performance.

The above graph compares a $10,000 investment made in each of the Class A, Class C, Class I and Class Y shares of Dreyfus Opportunistic Midcap Value Fund on 8/31/04 to a $10,000 investment made in the Russell Midcap Value Index (the “Index”) on that date. All dividends and capital gain distributions are reinvested.

The fund’s performance shown in the line graph above takes into account the maximum initial sales charge on Class A shares and all other applicable fees and expenses on all classes.The Index is a widely accepted, unmanaged index of medium-cap stock market performance and measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. 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 8/31/14
	Inception
	Date	1 Year		5 Years		10 Years
Class A shares
with maximum sales charge (5.75%)	9/29/95	18.13	%	17.80	%	11.25	%
without sales charge	9/29/95	25.32	%	19.21	%	11.91	%
Class C shares
with applicable redemption charge^†	5/30/08	23.35	%	18.25	%	11.34	%^††
without redemption	5/30/08	24.35	%	18.25	%	11.34	%^††
Class I shares	5/30/08	25.62	%	19.49	%	12.06	%^††
Class Y shares	7/1/13	26.02	%	19.25	%^††	11.93	%^††
Russell Midcap Value Index		27.20	%	19.45	%	10.92	%


†	The maximum contingent deferred sales charge for Class C shares is 1% for shares redeemed within one year of the
	date of purchase.
^††	The total return performance figures presented for Class C shares of the fund reflect the performance of the fund’s
	Class A shares for the period prior to 5/30/08 (the inception date for Class C shares), not reflecting the applicable
	sales charges for Class A shares.
	The total return performance figures presented for Class I shares of the fund reflect the performance of the fund’s
	Class A shares for the period prior to 5/30/08 (the inception date for Class I shares), not reflecting the applicable
	sales charges for Class A shares.
	The total return performance figures presented for ClassY shares of the fund reflect the performance of the fund’s
	Class A shares for the period prior to 7/1/13 (the inception date for ClassY shares), not reflecting the applicable
	sales charges for Class A shares.

The Fund 7

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 Opportunistic Midcap Value Fund from March 1, 2014 to August 31, 2014. 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 August 31, 2014


		Class A		Class C		Class I		Class Y
Expenses paid per $1,000^†	$	6.01	$	9.79	$	4.47	$	4.27
Ending value (after expenses)	$	1,036.50	$	1,032.60	$	1,037.90	$	1,040.50

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 August 31, 2014


		Class A		Class C		Class I		Class Y
Expenses paid per $1,000^†	$	5.96	$	9.70	$	4.43	$	4.23
Ending value (after expenses)	$	1,019.31	$	1,015.58	$	1,020.82	$	1,021.02

† Expenses are equal to the fund’s annualized expense ratio of 1.17% for Class A, 1.91% for Class C, .87% for Class I

and .83% for ClassY, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-

half year period).

STATEMENT OF INVESTMENTS

August 31, 2014


Common Stocks—99.2%	Shares		Value ($)
Automobiles & Components—3.5%
BorgWarner	220,040		13,684,288
Lear	391,490		39,591,384
TRW Automotive Holdings	467,918	^a	45,055,824
			98,331,496
Banks—5.6%
Comerica	1,859,050		93,584,577
Fifth Third Bancorp	1,198,990		24,465,391
SunTrust Banks	1,073,860		40,892,589
			158,942,557
Capital Goods—12.8%
Graco	361,880		27,814,097
IDEX	294,020		22,621,899
Ingersoll-Rand	871,710		52,476,942
MSC Industrial Direct, Cl. A	507,450		45,741,543
PACCAR	417,050		26,194,911
Parker Hannifin	674,660		77,923,230
Regal-Beloit	899,778		63,947,222
Trinity Industries	938,100		45,385,278
			362,105,122
Commercial & Professional Services—1.4%
Equifax	506,580		39,898,241
Consumer Durables & Apparel—1.8%
Newell Rubbermaid	1,485,320		49,787,926
Diversified Financials—17.3%
Blackstone Group	451,290		15,131,754
Discover Financial Services	1,282,750		80,005,117
E*TRADE Financial	3,205,950	^a	71,364,447
FNFV Group	552,354		8,274,263
Invesco	1,450,480		59,237,603
Raymond James Financial	845,930		46,221,615
SLM	4,783,430		42,381,190
TD Ameritrade Holding	2,999,880		99,326,027
Voya Financial	1,795,384		70,181,561
			492,123,577

The Fund 9

STATEMENT OF INVESTMENTS (continued)


Common Stocks (continued)	Shares		Value ($)
Energy—5.8%
Antero Resources	230,278		13,321,582
CONSOL Energy	647,140		26,066,799
HollyFrontier	274,830		13,749,745
Range Resources	435,420		34,219,658
Tesoro	494,860		32,037,236
Weatherford International	1,862,050	^a	44,111,965
			163,506,985
Exchange-Traded Funds—1.2%
Standard & Poor’s Depository
Receipts S&P MidCap 400 ETF Trust	128,210		33,557,685
Health Care Equipment & Services—7.0%
Catamaran	977,670	^a	46,067,810
Cigna	447,910		42,372,286
MEDNAX	1,332,210	^a	76,269,022
Varian Medical Systems	406,500	^a	34,560,630
			199,269,748
Insurance—3.1%
FNF Group	1,657,230		46,916,181
Hartford Financial Services Group	1,134,690		42,040,265
			88,956,446
Materials—6.7%
New Gold	2,374,490	^a	15,410,440
Newmont Mining	1,325,638		35,911,533
Sherwin-Williams	132,540		28,908,299
Valspar	670,470		54,147,157
Yamana Gold	6,714,933		57,076,931
			191,454,360
Media—.9%
Omnicom Group	354,890		25,555,629


Common Stocks (continued)	Shares		Value ($)
Pharmaceuticals, Biotech & Life Sciences—8.4%
Agilent Technologies	1,232,930		70,474,279
Covance	642,830	^a	53,290,607
Cubist Pharmaceuticals	1,119,400	^a	77,272,182
Salix Pharmaceuticals	240,450	^a	38,258,000
			239,295,068
Real Estate—2.7%
Realogy Holdings	1,896,230	^a	77,309,297
Retailing—.6%
Williams-Sonoma	251,020		16,509,585
Semiconductors & Semiconductor Equipment—3.2%
Applied Materials	3,925,060		90,688,511
Software & Services—.8%
DST Systems	243,145		22,566,287
Technology Hardware & Equipment—13.1%
Arrow Electronics	512,920	^a	31,929,270
Avnet	2,194,643		97,683,560
FLIR Systems	570,660		19,282,601
Ingram Micro, Cl. A	993,620	^a	28,646,065
JDS Uniphase	4,025,083	^a	46,489,709
Juniper Networks	2,394,120		55,519,643
Seagate Technology	1,181,960		73,967,057
Western Digital	191,750		19,752,167
			373,270,072
Transportation—2.2%
Kirby	524,721	^a	62,593,968
Utilities—1.1%
Great Plains Energy	1,231,971		31,624,696
Total Common Stocks
(cost $2,183,080,786)			2,817,347,256

The Fund 11

STATEMENT OF INVESTMENTS (continued)


Other Investment—.8%	Shares		Value ($)
Registered Investment Company;
Dreyfus Institutional Preferred
Plus Money Market Fund
(cost $21,752,291)	21,752,291	^b	21,752,291
Total Investments (cost $2,204,833,077)	100.0	%	2,839,099,547
Cash and Receivables (Net)	.0	%	339,575
Net Assets	100.0	%	2,839,439,122

ETF—Exchange-Traded Fund


a	Non-income producing security.
b	Investment in affiliated money market mutual fund.


Portfolio Summary (Unaudited)^†

	Value (%)		Value (%)
Diversified Financials	17.3	Insurance	3.1
Technology Hardware & Equipment	13.1	Real Estate	2.7
Capital Goods	12.8	Transportation	2.2
Pharmaceuticals,		Consumer Durables & Apparel	1.8
Biotech & Life Sciences	8.4	Commercial & Professional Services	1.4
Health Care Equipment & Services	7.0	Exchange-Traded Funds	1.2
Materials	6.7	Utilities	1.1
Energy	5.8	Media	.9
Banks	5.6	Money Market Investment	.8
Automobiles & Components	3.5	Software & Services	.8
Semiconductors &		Retailing	.6
Semiconductor Equipment	3.2		100.0

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

STATEMENT OF ASSETS AND LIABILITIES

August 31, 2014


			Cost	Value
Assets ($):
Investments in securities—See Statement of Investments:
Unaffiliated issuers		2,183,080,786 2,817,347,256
Affiliated issuers			21,752,291	21,752,291
Cash				7,287,421
Dividends receivable				3,331,072
Receivable for shares of Common Stock subscribed				1,662,906
Prepaid expenses				79,349
			2,851,460,295
Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(c)				2,228,280
Payable for shares of Common Stock redeemed				9,088,334
Accrued expenses				704,559
				12,021,173
Net Assets ($)			2,839,439,122
Composition of Net Assets ($):
Paid-in capital			2,033,562,171
Accumulated undistributed investment income—net				4,982,126
Accumulated net realized gain (loss) on investments				166,628,355
Accumulated net unrealized appreciation
(depreciation) on investments				634,266,470
Net Assets ($)			2,839,439,122


Net Asset Value Per Share
	Class A	Class C	Class I	Class Y
Net Assets ($)	1,417,535,350 114,179,313		1,282,577,703	25,146,756
Shares Outstanding	32,834,204	2,815,702	29,821,791	583,114
Net Asset Value Per Share ($)	43.17	40.55	43.01	43.12
See notes to financial statements.

The Fund 13


STATEMENT OF OPERATIONS
Year Ended August 31, 2014




Investment Income ($):
Income:
Cash dividends (net of $56,254 foreign taxes withheld at source):
Unaffiliated issuers	31,667,820
Affiliated issuers	22,836
Income from securities lending—Note 1(b)	8,525
Interest	4,588
Total Income	31,703,769
Expenses:
Management fee—Note 3(a)	18,713,441
Shareholder servicing costs—Note 3(c)	6,390,627
Distribution fees—Note 3(b)	620,560
Prospectus and shareholders’ reports	188,882
Directors’ fees and expenses—Note 3(d)	179,458
Registration fees	171,493
Professional fees	118,272
Custodian fees—Note 3(c)	111,940
Loan commitment fees—Note 2	22,175
Interest expense—Note 2	6,890
Miscellaneous	45,398
Total Expenses	26,569,136
Less—reduction in fees due to earnings credits—Note 3(c)	(556	)
Net Expenses	26,568,580
Investment Income—Net	5,135,189
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments	237,409,389
Net unrealized appreciation (depreciation) on investments	280,671,141
Net Realized and Unrealized Gain (Loss) on Investments	518,080,530
Net Increase in Net Assets Resulting from Operations	523,215,719

See notes to financial statements.

STATEMENT OF CHANGES IN NET ASSETS


	Year Ended August 31,
	2014		2013	^a
Operations ($):
Investment income—net	5,135,189		1,819,759
Net realized gain (loss) on investments	237,409,389		208,288,105
Net unrealized appreciation
(depreciation) on investments	280,671,141		177,407,747
Net Increase (Decrease) in Net Assets
Resulting from Operations	523,215,719		387,515,611
Dividends to Shareholders from ($):
Investment income—net:
Class A	—		(2,250,632	)
Class I	(1,802,406	)	(712,158	)
Class Y	(3	)	—
Net realized gain on investments:
Class A	(118,254,358	)	—
Class C	(6,774,704	)	—
Class I	(100,906,266	)	—
Class Y	(114	)	—
Total Dividends	(227,737,851	)	(2,962,790	)
Capital Stock Transactions ($):
Net proceeds from shares sold:
Class A	565,392,684		586,026,538
Class C	64,484,510		23,028,774
Class I	405,469,244		709,035,073
Class Y	25,495,371		1,000
Dividends reinvested:
Class A	108,498,885		2,144,543
Class C	5,275,653		—
Class I	96,941,746		643,459
Cost of shares redeemed:
Class A	(490,387,885	)	(775,639,557	)
Class C	(10,847,723	)	(5,648,963	)
Class I	(207,643,551	)	(98,634,591	)
Class Y	(1,602,699	)	—
Increase (Decrease) in Net Assets
from Capital Stock Transactions	561,076,235		440,956,276
Total Increase (Decrease) in Net Assets	856,554,103		825,509,097
Net Assets ($):
Beginning of Period	1,982,885,019		1,157,375,922
End of Period	2,839,439,122		1,982,885,019
Undistributed investment income—net	4,982,126		1,799,151

The Fund 15

STATEMENT OF CHANGES IN NET ASSETS (continued)


	Year Ended August 31,
	2014		2013	^a
Capital Share Transactions:
Class A^b
Shares sold	13,828,910		17,059,067
Shares issued for dividends reinvested	2,823,286		67,523
Shares redeemed	(12,022,981	)	(22,163,606	)
Net Increase (Decrease) in Shares Outstanding	4,629,215		(5,037,016	)
Class C^b
Shares sold	1,668,532		659,569
Shares issued for dividends reinvested	145,335		—
Shares redeemed	(280,105	)	(176,151	)
Net Increase (Decrease) in Shares Outstanding	1,533,762		483,418
Class I^c
Shares sold	9,890,087		19,936,580
Shares issued for dividends reinvested	2,537,742		20,369
Shares redeemed	(5,083,013	)	(2,763,470	)
Net Increase (Decrease) in Shares Outstanding	7,344,816		17,193,479
Class Y^c
Shares sold	621,470		26.68
Shares redeemed	(38,383	)	—
Net Increase (Decrease) in Shares Outstanding	583,087		26.68

a Effective July 1, 2013, the fund commenced offering ClassY shares.

b During the period ended August 31, 2013, 11,964 Class C shares representing $429,516 were

exchanged for 11,414 Class A shares.

c During the period ended August 31, 2014, 146,870 Class I shares representing $6,126,885 were exchanged for

146,470 ClassY shares.

See notes to financial statements.

FINANCIAL HIGHLIGHTS


			Year Ended August 31,
Class A Shares	2014		2013		2012		2011	2010
Per Share Data ($):
Net asset value,
beginning of period	38.27		29.47		31.19		26.65	24.03
Investment Operations:
Investment income (loss)—net^a	.05		.03		.07		.22	(.01	)
Net realized and unrealized
gain (loss) on investments	9.10		8.83		3.34		4.32	2.70	^b
Total from Investment Operations	9.15		8.86		3.41		4.54	2.69
Distributions:
Dividends from
investment income—net	—		(.06	)	(.23	)	—	(.07	)
Dividends from net realized
gain on investments	(4.25	)	—		(4.90	)	—	—
Total Distributions	(4.25	)	(.06	)	(5.13	)	—	(.07	)
Net asset value, end of period	43.17		38.27		29.47		31.19	26.65
Total Return (%)^c	25.32		30.11		13.44		17.03	11.20
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.15		1.18		1.22		1.17	1.18
Ratio of net expenses
to average net assets	1.15		1.18		1.22		1.17	1.18
Ratio of net investment income
(loss) to average net assets	.12		.08		.25		.64	(.02	)
Portfolio Turnover Rate	67.49		91.31		71.25		114.02	122.17
Net Assets, end of period
($ x 1,000)	1,417,535		1,079,346		979,628		1,057,495	1,068,338

a Based on average shares outstanding.

b Amount includes litigation proceeds received by the fund amounting to $.02 per share.

c Exclusive of sales charge.

See notes to financial statements.

The Fund 17

FINANCIAL HIGHLIGHTS (continued)


			Year Ended August 31,
Class C Shares	2014		2013		2012		2011		2010
Per Share Data ($):
Net asset value,
beginning of period	36.44		28.22		30.24		26.05		23.72
Investment Operations:
Investment (loss)—net^a	(.26	)	(.24	)	(.16	)	(.16	)	(.23	)
Net realized and unrealized
gain (loss) on investments	8.62		8.46		3.20		4.35		2.67	^b
Total from Investment Operations	8.36		8.22		3.04		4.19		2.44
Distributions:
Dividends from
investment income—net	—		—		(.16	)	—		(.11	)
Dividends from net realized
gain on investments	(4.25	)	—		(4.90	)	—		—
Total Distributions	(4.25	)	—		(5.06	)	—		(.11	)
Net asset value, end of period	40.55		36.44		28.22		30.24		26.05
Total Return (%)^c	24.35		29.13		12.48		16.09		10.29
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.92		1.97		2.03		2.00		2.02
Ratio of net expenses
to average net assets	1.92		1.97		2.03		2.00		2.02
Ratio of net investment (loss)
to average net assets	(.66	)	(.72	)	(.56	)	(.48	)	(.83	)
Portfolio Turnover Rate	67.49		91.31		71.25		114.02		122.17
Net Assets, end of period ($ x 1,000)	114,179		46,708		22,538		22,343		5,218

a Based on average shares outstanding.

b Amount includes litigation proceeds received by the fund amounting to $.02 per share.

c Exclusive of sales charge.

See notes to financial statements.


			Year Ended August 31,
Class I Shares	2014		2013		2012		2011	2010
Per Share Data ($):
Net asset value,
beginning of period	38.12		29.38		31.21		26.61	23.98
Investment Operations:
Investment income—net^a	.15		.10		.14		.18	.10
Net realized and unrealized
gain (loss) on investments	9.07		8.77		3.32		4.42	2.69	^b
Total from Investment Operations	9.22		8.87		3.46		4.60	2.79
Distributions:
Dividends from
investment income—net	(.08	)	(.13	)	(.39	)	—	(.16	)
Dividends from net realized
gain on investments	(4.25	)	—		(4.90	)	—	—
Total Distributions	(4.33	)	(.13	)	(5.29	)	—	(.16	)
Net asset value, end of period	43.01		38.12		29.38		31.21	26.61
Total Return (%)	25.62		30.26		13.71		17.29	11.64
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	.90		.97		1.00		.96	.84
Ratio of net expenses
to average net assets	.90		.97		1.00		.96	.84
Ratio of net investment income
to average net assets	.37		.27		.48		.53	.38
Portfolio Turnover Rate	67.49		91.31		71.25		114.02	122.17
Net Assets, end of period ($ x 1,000)	1,282,578		856,830		155,210		80,041	16,691

a Based on average shares outstanding.

b Amount includes litigation proceeds received by the fund amounting to $.02 per share.

See notes to financial statements.

The Fund 19

FINANCIAL HIGHLIGHTS (continued)


	Year Ended August 31,
Class Y Shares	2014		2013	^a
Per Share Data ($):
Net asset value, beginning of period	38.12		37.48
Investment Operations:
Investment income—net^b	.19		.02
Net realized and unrealized
gain (loss) on investments	9.17		.62
Total from Investment Operations	9.36		.64
Distributions:
Dividends from investment income—net	(.11	)	—
Dividends from net realized gain on investments	(4.25	)	—
Total Distributions	(4.36	)	—
Net asset value, end of period	43.12		38.12
Total Return (%)	26.02		1.74	^c
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.83		.80	^d
Ratio of net expenses to average net assets	.83		.80	^d
Ratio of net investment income
to average net assets	.50		.33	^d
Portfolio Turnover Rate	67.49		91.31
Net Assets, end of period ($ x 1,000)	25,147		1


a	From July 1, 2013 (commencement of initial offering) to August 31, 2013.
b	Based on average shares outstanding.
c	Not annualized.
d	Annualized.

See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Opportunistic Midcap Value 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 currently offering eleven series, including the fund. The fund’s investment objective seeks to surpass the performance of the Russell Midcap^®Value Index. The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser.

MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares.The fund is authorized to issue 700 million shares of $.001 par value Common Stock. The fund currently offers four classes of shares: Class A (350 million shares authorized), Class C (125 million shares authorized), Class I (125 million shares authorized) and Class Y (100 million shares authorized). Class A shares generally are subject to a sales charge imposed at the time of purchase. Class C shares are subject to a contingent deferred sales charge (“CDSC”) imposed on Class C shares redeemed within one year of purchase. Class I and Class Y shares are sold at net asset value per share generally 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 are allocated to each class of shares based on its relative net assets.

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 Fund 21

NOTES TO FINANCIAL STATEMENTS (continued)

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.

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

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

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

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

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

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

Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is available. Registered investment companies that are not traded on an exchange are valued at their net asset value. All of the preceding securities are generally categorized within Level 1 of the fair value hierarchy.

Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant American Depository Receipts and financial futures. Utilizing these techniques may result in transfers between Level 1 and Level 2 of the fair value hierarchy.

The Fund 23

NOTES TO FINANCIAL STATEMENTS (continued)

as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

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

The following is a summary of the inputs used as of August 31, 2014 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:
Equity Securities—
Domestic
Common
Stocks^†	2,711,302,200		—	—	2,711,302,200
Equity Securities—
Foreign
Common Stocks^†		72,487,371	—	—	72,487,371
Exchange-
Traded Funds		33,557,685	—	—	33,557,685
Mutual Funds		21,752,291	—	—	21,752,291

† See Statement of Investments for additional detailed categorizations.

At August 31, 2014, there were no transfers between Level 1 and Level 2 of the fair value hierarchy.

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

Pursuant to a securities lending agreement with The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, the fund may lend securities to qualified institutions. It is the fund’s policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by the Manager or U.S. Government and Agency securities. The fund is entitled to receive all dividends, interest and distributions on securities loaned, in addition to income earned as a result of the lending transaction. Should a borrower fail to return the securities in a timely manner, The Bank of New York Mellon is required to replace the securities for the benefit of the fund or credit the fund with the market value of the unreturned securities and is subrogated to the fund’s rights against the borrower and the collateral. During the period ended August 31, 2014, The Bank of New York Mellon earned $1,830 from lending portfolio securities, pursuant to the securities lending agreement.

(c) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as “affiliated” under the Act. Investments in affiliated investment companies during the period ended August 31, 2014 were as follows:


Affiliated
Investment	Value			Value	Net
Company	8/31/2013 ($)	Purchases ($)	Sales ($)	8/31/2014 ($)	Assets (%)
Dreyfus
Institutional
Preferred
Plus Money
Market
Fund	5,483,034	798,861,310	782,592,053	21,752,291	.8
Dreyfus
Institutional
Cash
Advantage
Fund	21,355,497	104,197,682	125,553,179	—	—
Total	26,838,531	903,058,992	908,145,232	21,752,291	.8

The Fund 25

NOTES TO FINANCIAL STATEMENTS (continued)

(d) 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.

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

Each tax year in the four-year period ended August 31, 2014 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At August 31, 2014, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $68,445,484, undistributed capital gains $110,252,581 and unrealized appreciation $627,178,886.

The tax character of distributions paid to shareholders during the fiscal periods ended August 31, 2014 and August 31, 2013 were as follows: ordinary income $27,301,657 and $2,962,790, and long-term capital gains $200,436,194 and $0, respectively.

During the period ended August 31, 2014, as a result of permanent book to tax differences, primarily due to the tax treatment for limited partnerships, the fund decreased accumulated undistributed investment income-net by $149,805 and increased accumulated net realized gain (loss) on investments by the same amount. Net assets and net asset value per share were not affected by this reclassification.

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed funds in a $265 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York Mellon (each, a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. Prior to October 9, 2013, the unsecured credit facility with Citibank, N.A. was $210 million. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing.

The average amount of borrowings outstanding under the Facilities during the period ended August 31, 2014 was approximately $620,300 with a related weighted average annualized interest rate of 1.11%.

NOTE 3—Management Fee and Other Transactions with Affiliates:

(a) Pursuant to a management agreement with the Manager, the management fee is computed at the annual rate of .75% of the value of the fund’s average daily net assets and is payable monthly.

During the period ended August 31, 2014, the Distributor retained $142,496 from commissions earned on sales of the fund’s Class A shares and $19,720 from CDSCs on redemptions of the fund’s Class C shares.

The Fund 27

NOTES TO FINANCIAL STATEMENTS (continued)

(c) Under the Shareholder Services Plan, Class A and Class C shares pay the Distributor at an annual rate of .25% of the value of their average daily net assets for the provision of certain services. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents (securities dealers, financial institutions or other industry professionals) with respect to these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended August 31, 2014, Class A and Class C shares were charged $3,236,075 and $206,853, respectively, pursuant to the Shareholder Services Plan.

charged $116,091 for transfer agency services and $7,524 for cash management services.These fees are included in Shareholder servicing costs in the Statement of Operations. Cash management fees were partially offset by earnings credits of $555.

The fund compensated The Bank of New York Mellon under a cash management agreement that was in effect until September 30, 2013 for performing certain cash management services related to fund subscriptions and redemptions. During the period ended August 31, 2014, the fund was charged $189 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 $1.

During the period ended August 31, 2014, the fund was charged $8,296 for services performed by the Chief Compliance Officer and his staff.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $1,765,780, Distribution Plan fees $70,357, Shareholder Services Plan fees $320,261, custodian fees $42,443, Chief Compliance Officer fees $1,154 and transfer agency fees $28,285.

(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.

The Fund 29

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended August 31, 2014, amounted to $1,971,011,594 and $1,658,600,858, respectively.

At August 31, 2014, the cost of investments for federal income tax purposes was $2,211,920,661; accordingly, accumulated net unrealized appreciation on investments was $627,178,886, consisting of $650,165,841 gross unrealized appreciation and $22,986,955 gross unrealized depreciation.

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

Shareholders and Board of Directors Dreyfus Opportunistic Midcap Value Fund

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Opportunistic Midcap Value Fund (one of the series comprising Advantage Funds, Inc.) as of August 31, 2014, 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 the 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 principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of August 31, 2014 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 Opportunistic Midcap Value Fund at August 31, 2014, 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
October 28, 2014

The Fund 31

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the fund hereby reports 62.44% of the ordinary dividends paid during the fiscal year ended August 31, 2014 as qualifying for the corporate dividends received deduction. Also, certain dividends paid by the fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal year, $27,301,657 represents the maximum amount that may be considered qualified dividend income. The fund also hereby reports $.4802 per share as a short-term capital gain distribution and $3.7746 per share as a long-term capital gain distribution paid on December 4, 2013. Shareholders will receive notification in early 2015 of the percentage applicable to the preparation of their 2014 income tax returns.

INFORMATION ABOUT THE RENEWAL OF THE

FUND’S MANAGEMENT AGREEMENT (Unaudited)

Analysis of Nature, Extent, and Quality of Services Provided to the Fund. The Board considered information provided to them at the meeting and in previous presentations from Dreyfus representatives regarding the nature, extent, and quality of the services provided to funds in the Dreyfus fund complex. Dreyfus provided the number of open accounts in the fund, the fund’s asset size and the allocation of fund assets among distribution channels. Dreyfus also had previously provided information regarding the diverse intermediary relationships and distribution channels of funds in the Dreyfus fund complex (such as retail direct or intermediary, in which intermediaries typically are paid by the fund and/or Dreyfus) and Dreyfus’ corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each intermediary or distribution channel, as applicable to the fund.

The Fund 33

INFORMATION ABOUT THE RENEWAL OF THE FUND’S

MANAGEMENT AGREEMENT (Unaudited) (continued)

The Board also considered portfolio management’s brokerage policies and practices (including policies and practices regarding soft dollars) and the standards applied in seeking best execution.

Dreyfus representatives stated that the usefulness of performance comparisons may be affected by a number of factors, including different investment limitations that may be applicable to the fund and comparison funds.The Board discussed the results of the comparisons and noted that the fund’s total return performance was above the Performance Group and Performance Universe medians for all periods, ranking first in the Performance Group for three of the six periods and ranking in the first quartile of the Performance Universe in all periods. Dreyfus also provided a comparison of the fund’s calendar year total returns to the returns of the fund’s benchmark index.

the Expense Group median and above the Expense Universe median and the fund’s total expenses were below the Expense Group and Expense Universe medians.

Analysis of Profitability and Economies of Scale. Dreyfus representatives reviewed the expenses allocated and profit received by Dreyfus and the resulting profitability percentage for managing the fund and the aggregate profitability percentage to Dreyfus of managing the funds in the Dreyfus fund complex, and the method used to determine the expenses and profit. The Board concluded that the profitability results were not unreasonable, given the services rendered and service levels provided by Dreyfus. The Board also had been provided with information prepared by an independent consulting firm regarding Dreyfus’ approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus fund complex.The consulting firm also had analyzed where any economies of scale might emerge in connection with the management of a fund.

The Fund 35

INFORMATION ABOUT THE RENEWAL OF THE FUND’S

MANAGEMENT AGREEMENT (Unaudited) (continued)

vided by Dreyfus, including the nature, extent and quality of such services, and (2) in light of the relevant circumstances for the fund and the extent to which economies of scale would be realized if the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders. Dreyfus representatives also noted that, as a result of shared and allocated costs among funds in the Dreyfus fund complex, the extent of economies of scale could depend substantially on the level of assets in the complex as a whole, so that increases and decreases in complex-wide assets can affect potential economies of scale in a manner that is disproportionate to, or even in the opposite direction from, changes in the fund’s asset level. The Board also considered potential benefits to Dreyfus from acting as investment adviser and noted the soft dollar arrangements in effect for trading the fund’s investments.

The Board concluded that the nature, extent and quality of the services provided by Dreyfus are adequate and appropriate.
The Board was satisfied with the fund’s performance.
The Board concluded that the fee paid to Dreyfus was reasonable in light of the considerations described above.
The Board determined that the economies of scale which may accrue to Dreyfus and its affiliates in connection with the management of the fund had been adequately considered by Dreyfus in connection with the fee rate charged to the fund pursuant to the Agreement and that, to the extent in the future it were determined that material economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.

The Fund 37

BOARD MEMBERS INFORMATION (Unaudited)

INDEPENDENT BOARD MEMBERS

Joseph S. DiMartino (70)

Chairman of the Board (1995)

Principal Occupation During Past 5Years:

• Corporate Director and Trustee (1995-present)

Other Public Company Board Memberships During Past 5Years:

• CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small

and medium size companies, Director (1997-present)

• The Newark Group, a provider of a national market of paper recovery facilities, paperboard

mills and paperboard converting plants, Director (2000-2010)

• Sunair Services Corporation, a provider of certain outdoor-related services to homes and

businesses, Director (2005-2009)

No. of Portfolios for which Board Member Serves: 142

———————

Peggy C. Davis (71)

Board Member (2006)

Principal Occupation During Past 5Years:

• Shad Professor of Law, New York University School of Law (1983-present)

No. of Portfolios for which Board Member Serves: 52

———————

David P. Feldman (74)

Board Member (1996)

Principal Occupation During Past 5Years:

• Corporate Director and Trustee (1985-present)

Other Public Company Board Membership During Past 5Years:

• BBH Mutual Funds Group (5 registered mutual funds), Director (1992-present)

No. of Portfolios for which Board Member Serves: 38

———————

Ehud Houminer (74)

Board Member (1993)

Principal Occupation During Past 5Years:

• Executive-in-Residence at the Columbia Business School, Columbia University (1992-present)

Other Public Company Board Membership During Past 5Years:

• Avnet Inc., an electronics distributor, Director (1993-2012)

No. of Portfolios for which Board Member Serves: 62


	Lynn Martin (74)
	Board Member (2012)
	Principal Occupation During Past 5Years:
	• President of The Martin Hall Group LLC, a human resources consulting firm (2005-2012)
	Other Public Company Board Memberships During Past 5Years:
	• AT&T Inc., a telecommunications company, Director (1999-2012)
	• Ryder System, Inc., a supply chain and transportation management company, Director (1993-2012)
	• The Proctor & Gamble Co., a consumer products company, Director (1994-2009)
	• Constellation Energy Group Inc., Director (2003-2009)
	No. of Portfolios for which Board Member Serves: 38
	——————
	Robin A. Melvin (50)
	Board Member (2012)
	Principal Occupation During Past 5Years:
	• Board Member, Illinois Mentoring Partnership, non-profit organization dedicated to increasing
	the quantity and quality of mentoring services in Illinois (2013-present)
	• Director, Boisi Family Foundation, a private family foundation that supports youth-serving
	organizations that promote the self sufficiency of youth from disadvantaged circumstances
	(1995-2012)
	No. of Portfolios for which Board Member Serves: 109
	——————
	Dr. Martin Peretz (75)
	Board Member (2006)
	Principal Occupation During Past 5Years:
	• Editor-in-Chief Emeritus of The New Republic Magazine (2010-2011) (previously,
	Editor-in-Chief, 1974-2010)
	• Director of TheStreet.com, a financial information service on the web (1996-2010)
	No. of Portfolios for which Board Member Serves: 38
	——————