SUPPLEMENT TO THE
FIDELITY CAPITAL & INCOME FUND
JUNE 26, 1998 PROSPECTUS
The following information supplements information found under the
heading "FMR and Its Affiliates" in the "Fund in Detail" section
beginning on page 11:
In August 1998, the NGC Asbestos Diseases and Property Damage
Settlement Trust commenced an action in the state District Court of
Dallas County, Texas, against FMR and other unrelated parties. The
complaint alleges that during the reorganization of National Gypsum
Company, the defendants (including FMR acting on behalf of Capital &
Income and another Fidelity fund) failed to disclose information
material to the valuation of the reorganized entity. The complaint
seeks actual and punitive damages, plus costs and interest, and the
imposition of a constructive trust. FMR denies the allegations and
intends to defend the lawsuit vigorously.
