SUPPLEMENT TO THE
FIDELITY CAPITAL
APPRECIATION FUND
PROSPECTUS
DATED DECEMBER 20, 1995
On July 11, 1994, a lawsuit was commenced against the fund and over 5,000
other defendants as a defendants' class action suit in the United States
Bankruptcy Court for the District of Colorado by Jeffrey A. Weinman as
Trustee for the Integra Unsecured Creditors' Trust. Plaintiff claims that a
December 1988 spin-off (the "Spin Off") in which Integra distributed to its
shareholders (including the fund) its 90% interest in ShowBiz Pizza Time,
Inc. ("ShowBiz") was a fraudulent conveyance and an unlawful dividend.
Through the Spin-Off, the fund received 377,520 shares of ShowBiz common
stock with an initial market value of approximately $2.1 million. The fund
believes that the claims are without merit and intends to defend the
proceedings vigorously; however, on June 27, 1996, the Bankruptcy Court
denied the defendants' motion to dispose of the case based on certain
threshold issues.
The following information replaces that found in the section entitled "FMR
and Its Affiliates" on page 9.
Harry Lange is manager of Capital Appreciation, which he has managed since
March 1996. Previously, Mr. Lange managed other Fidelity funds, and he
served as director of research for Fidelity Management & Research (Far
East) Inc. from 1988 to 1992. Mr. Lange joined Fidelity in 1987 as an
analyst.
The following information supplements that found in the "Securities and
Investment Practices" section beginning on page 10.
CASH MANAGEMENT. The fund may invest in money market securities, in a
pooled account of repurchase agreements, and in a money market fund
available only to funds and accounts managed by FMR or its affiliates,
whose goal is to seek a high level of current income while maintaining a
stable $1.00 share price. A major change in interest rates or a default on
the money market fund's investments could cause its share price to change.
The following information replaces the similar information under "Waivers"
in the "Sales Charge Reductions and Waivers" section beginning on page 29.
The fund's sales charge will not apply:
2. To shares in a Fidelity account purchased with the proceeds of a
distribution from an employee benefit plan, provided that at the time of
the distribution, the employer or its affiliate maintained a plan that both
qualified for waiver (1) above and had at least some of its assets invested
in Fidelity-managed products. (Distributions transferred to an IRA account
must be transferred within 60 days from the date of the distribution. All
other distributions must be transferred directly into a Fidelity
account.)
SUPPLEMENT TO THE FIDELITY CAPITAL APPRECIATION FUND
STATEMENT OF ADDITIONAL INFORMATION
DATED DECEMBER 20, 1995
THE FOLLOWING INFORMATION REPLACES THAT FOUND IN LIMITATION (VII) ON PAGE
3.
The fund does not currently intend to (a) purchase securities of other
investment companies, except in the open market where no commission except
the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b), do not apply (i) to securities received as dividends, through
offers of exchange, or as a result of a reorganization, consolidation or
merger, or (ii) to securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC.
THE FOLLOWING INFORMATION REPLACES THE SIMILAR INFORMATION FOUND IN THE
SECTION ENTITLED "ADDITIONAL PURCHASE AND REDEMPTION INFORMATION" BEGINNING
ON PAGE 14.
The sales charge will not apply:
3. to shares in a Fidelity account purchased (including purchases by
exchange) with the proceeds of a distribution from an employee benefit plan
provided that: (i) at the time of the distribution, the employer, or an
affiliate (as described in exemption 1 above) of such employer, maintained
at least one employee benefit plan that qualified for exemption 1 and that
had at least some portion of its assets invested in one or more mutual
funds advised by FMR, or in one or more accounts or pools advised by
Fidelity Management Trust Company; and (ii) either (a) the distribution is
transferred from the plan to a Fidelity IRA account within 60 days from the
date of the distribution, or (b) the distribution is transferred directly
from the plan into another Fidelity account.
