FIDELITY ADVISOR SERIES VII, N-30D, 1997-03-19

FIDELITY ADVISOR SERIES VII
N-30D, 1997-03-19

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(2_FIDELITY_LOGOS)FIDELITY ADVISOR
FOCUS FUNDS
CLASS A AND CLASS T
Consumer Industries
Cyclical Industries
Financial Services
Health Care
Technology
Utilities Growth

SEMIANNUAL REPORT
JANUARY 31, 1997
CONTENTS

PERFORMANCE OVERVIEW AND 3
MARKET RECAP

CONSUMER INDUSTRIES 4 PERFORMANCE AND INVESTMENT SUMMARY
6 FUND TALK: THE MANAGERS' OVERVIEW
7 INVESTMENTS
10 FINANCIAL STATEMENTS
13 NOTES TO THE FINANCIAL STATEMENTS

CYCLICAL INDUSTRIES 16 PERFORMANCE AND INVESTMENT SUMMARY
18 FUND TALK: THE MANAGER'S OVERVIEW
19 INVESTMENTS
22 FINANCIAL STATEMENTS
25 NOTES TO THE FINANCIAL STATEMENTS

FINANCIAL SERVICES 28 PERFORMANCE AND INVESTMENT SUMMARY
30 FUND TALK: THE MANAGER'S OVERVIEW
31 INVESTMENTS
32 FINANCIAL STATEMENTS
35 NOTES TO THE FINANCIAL STATEMENTS

HEALTH CARE 38 PERFORMANCE AND INVESTMENT SUMMARY
40 FUND TALK: THE MANAGER'S OVERVIEW
41 INVESTMENTS
43 FINANCIAL STATEMENTS
46 NOTES TO THE FINANCIAL STATEMENTS

TECHNOLOGY 49 PERFORMANCE AND INVESTMENT SUMMARY
51 FUND TALK: THE MANAGER'S OVERVIEW
52 INVESTMENTS
55 FINANCIAL STATEMENTS
58 NOTES TO THE FINANCIAL STATEMENTS

UTILITIES GROWTH 61 PERFORMANCE AND INVESTMENT SUMMARY
63 FUND TALK: THE MANAGER'S OVERVIEW
64 INVESTMENTS
66 FINANCIAL STATEMENTS
69 NOTES TO THE FINANCIAL STATEMENTS

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS
NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUNDS
UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY ADVISOR FUND, INCLUDING CHARGES AND
EXPENSES, CONTACT YOUR INVESTMENT PROFESSIONAL FOR A FREE PROSPECTUS. READ
IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PERFORMANCE OVERVIEW

U.S. STOCK MARKET ENVIRONMENT
Paced by the robust performance of blue chip stocks, the U.S. stock market
posted strong gains for the period covered by this report. The Standard &
Poor's 500 Index - a broad measure of U.S. stock market performance - rose
21.57% from September 3, 1996, through January 31, 1997. The Russell 2000
Index - a measure of small stock performance - rose 20.82%. The Dow Jones
Industrial Average - an index of 30 blue-chip stocks - posted a return of
22.34%, closing above 6500 for the first time in November.
Solid corporate earnings reports, large cash inflows into mutual funds,
widespread optimism and a generally favorable interest rate environment
propelled share prices higher. The largest capitalization stocks thrived as
investors sought their lower volatility and higher degree of liquidity over
smaller-cap stocks in an environment where it was sometimes difficult to
discern the health of the economy. Stock markets experienced some
volatility in December, sparked by comments by Federal Reserve Board
Chairman Alan Greenspan about the market's exuberance, but rebounded well
and continued their upward track through the end of January.
Most industry sectors experienced positive, if not strong performance.
TECHNOLOGY proved to be one of the strongest performing sectors in the
market during the six-month period. Earnings surprises and positive
earnings projections were the main drivers of solid performance, especially
among semiconductor and disk drive manufacturers as well as software firms.
Even though consensus estimates pointed toward increases in short-term
interest rates by the Fed, FINANCE stocks - usually sensitive to changes in
interest rates - shrugged off this concern and posted solid performance
based on low interest rates and positive business prospects. Brokerage and
investment management stocks also thrived amid the backdrop of the stock
market's steady upward climb and buoyant investor sentiment.
ENERGY stocks reaped the benefits of higher-than-expected energy prices,
which resulted in part from the delayed entry of Iraq into the world
market, low inventory levels and cold weather nationwide. Uncertainty over
the direction of the economy benefited CONSUMER NONDURABLES - such as food,
beverage and tobacco companies - and traditional big-name growth stocks, as
these companies tend to post steady earnings growth in many economic
environments. Pharmaceutical companies turned in the best performance in
the HEALTH CARE sector, spurred on by new product development and strong
unit volume growth stimulated by higher drug utilization rates by managed
care providers. Biotechnology issues had a hard time recovering from a
correction in stock prices that they experienced earlier in 1996.
Most UTILITY stocks struggled during the six-month period. Uncertainty over
the direction and form of deregulation in the sector tended to diminish
investor interest. In addition, stocks in this sector tend to move in
concert with bonds, which lagged stocks due to periodic inflation fears and
mixed economic signals. Stocks in the telecommunications field especially
were affected by uncertainty over how federal legislation signed into law
in February 1996 would change the competitive landscape. However, natural
gas utilities tended to perform well, largely as a result of tight
supplies, cold weather and consolidation within the industry. CYCLICAL
stocks - those that usually rise and fall with the economy - posted mixed
results that largely depended on the outlook for individual companies in
specific sectors rather than the strength of the economy.
ADVISOR CONSUMER INDUSTRIES FUND - CLASS A
PERFORMANCE AND INVESTMENT SUMMARY

PERFORMANCE
There are several ways to evaluate historical performance. You can look at
the total percentage change in value, the average annual percentage change,
or the growth of a hypothetical $10,000 investment. Total return reflects
the change in the value of an investment, assuming reinvestment of dividend
income and capital gains (the profits earned upon the sale of securities
that have grown in value). If Fidelity had not reimbursed certain class
expenses, the total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED LIFE OF
JANUARY 31, 1997 FUND

CONSUMER INDUSTRIES - CLASS A 13.64%

CONSUMER INDUSTRIES - CLASS A 7.67%
(INCL. 5.25% SALES CHARGE)

S&P 500 (registered trademark) 21.57%

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage terms
over a set period - in this case, since the fund started on September 3,
1996. You can compare Class A's returns to the performance of the S&P 500 -
a widely recognized, unmanaged index of common stocks. This benchmark
reflects reinvestment of dividends and capital gains, if any, and excludes
the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL RETURNS take Class A shares' cumulative return and show you
what would have happened if Class A shares had performed at a constant rate
each year. Average annual total returns will appear once the fund is a year
old.

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970212 144904 S00000000000001
FA Consumer Ind -CL A SP Standard & Poor 500
00185 SP001
1996/09/03 9475.00 10000.00
1996/09/30 9996.13 10561.42
1996/10/31 10109.83 10852.70
1996/11/30 10450.93 11673.05
1996/12/31 10271.02 11441.81
1997/01/31 10766.93 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970212 144906 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Consumer Industries - Class A on September 3, 1996, when the fund started,
and the current maximum 5.25% sales charge was paid. As the chart shows, by
January 31, 1997, the value of the investment would have grown to $10,767 -
a 7.67% increase on the initial investment. For comparison, look at how the
S&P 500 did over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $12,157 - a
21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

Procter & Gamble Co. 4.5

Philip Morris Companies, Inc. 4.1

Gillette Co. 4.1

Westinghouse Electric Corp. 3.7

Coca-Cola Co. (The) 3.7

Disney (Walt) Co. 3.5

HFS, Inc. 3.2

Hilton Hotels Corp. 2.4

Mirage Resorts, Inc. 2.1

Kimberly-Clark Corp. 2.1

TOP INDUSTRIES AS OF JANUARY 31, 1997
Hotels, Motels &
Tourist Centers 8.1%
Soaps & Detergents 7.3%
Cosmetics 6.4%
Soft Drinks 5.7%
Electrical Machinery 4.7%
All Others 67.8%*
Row: 1, Col: 1, Value: 67.8
Row: 1, Col: 2, Value: 4.7
Row: 1, Col: 3, Value: 5.7
Row: 1, Col: 4, Value: 6.4
Row: 1, Col: 5, Value: 7.3
Row: 1, Col: 6, Value: 8.1
* INCLUDES SHORT-TERM INVESTMENTS
% OF FUND'S INVESTMENTS
ADVISOR CONSUMER INDUSTRIES FUND - CLASS T
PERFORMANCE AND INVESTMENT SUMMARY

CONSUMER INDUSTRIES - CLASS T 13.53%

CONSUMER INDUSTRIES - CLASS T 9.56%
(INCL. 3.50% SALES CHARGE)

S&P 500 21.57%

CUMULATIVE TOTAL RETURNS show Class T's performance in percentage terms
over a set period - in this case, since the fund started on September 3,
1996. You can compare Class T's returns to the performance of the S&P 500 -
a widely recognized, unmanaged index of common stocks. This benchmark
reflects reinvestment of dividends and capital gains, if any, and excludes
the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL RETURNS take Class T shares' cumulative return and show you
what would have happened if Class T shares had performed at a constant rate
each year. Average annual total returns will appear once the fund is a year
old.

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970212 145745 S00000000000001
FA Consumer Ind -CL T SP Standard & Poor 500
00195 SP001
1996/09/03 9650.00 10000.00
1996/09/30 10180.75 10561.42
1996/10/31 10296.55 10852.70
1996/11/30 10643.95 11673.05
1996/12/31 10451.06 11441.81
1997/01/31 10955.66 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970212 145746 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Consumer Industries - Class T on September 3, 1996, when the fund started,
and the current maximum 3.50% sales charge was paid. As the chart shows, by
January 31, 1997, the value of the investment would have grown to $10,956 -
a 9.56% increase on the initial investment. For comparison, look at how the
S&P 500 did over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $12,157 - a
21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

Procter & Gamble Co. 4.5

Philip Morris Companies, Inc. 4.1

Gillette Co. 4.1

Westinghouse Electric Corp. 3.7

Coca-Cola Co. (The) 3.7

Disney (Walt) Co. 3.5

HFS, Inc. 3.2

Hilton Hotels Corp. 2.4

Mirage Resorts, Inc. 2.1

Kimberly-Clark Corp. 2.1

NOTE TO SHAREHOLDERS: Effective January 7, 1997, Paul Antico became
Portfolio Manager of Fidelity Advisor Consumer Industries Fund. The
following is an interview with Katherine Collins, who managed the fund
during most of the period covered by the report, and Paul Antico, who
discusses his investment approach and outlook.
Q. KATHERINE, HOW DID THE FUND PERFORM?
K.C. Since its inception on September 3, 1996 through January 31, 1997, the
fund's Class A and Class T shares had returns of 13.64% and 13.53%,
respectively. By comparison, the Standard & Poor's 500 Index returned
21.57% during the same period.
Q. WHAT WERE THE REASONS BEHIND THE FUND'S PERFORMANCE?
K.C. As with any sector fund, performance versus the broader market can
vary significantly, especially over a short time frame. If I had to choose
the biggest contributor to the fund's performance, it would be the fund's
weighting in large-capitalization, blue chip consumer issues. They had
exceptionally strong performance at the end of the year, and I was able to
find good opportunities in companies such as Procter & Gamble, Coca-Cola
and Gillette, as well as large-cap entertainment stocks such as Walt
Disney. The heavier weighting in personal care stocks also helped the
fund's performance. Newspaper stocks did quite well, primarily due to a
decline in newsprint prices that helped boost earnings. The fund also was
helped by limiting its exposure to restaurant, cable and cellular
communications stocks, which performed poorly during the period.
Q. WERE THERE ANY DISAPPOINTMENTS?
K.C. Sure. Gaming and broadcasting stocks did not perform well during the
period. Several gaming companies have been adding capacity, and I believe
when their new facilities open they will be in a better position to
increase their earnings. While we've purchased some of these companies in
advance of these events, the capacity additions have caused some
disruptions in the industry, leading to a lowering of short-term earnings
expectations. The fund's radio broadcasting investments were affected by a
sharp correction in October and November, stemming from the Justice
Department's investigation into some of the recent consolidation in the
industry. However, it now appears that the positive effects of the
industry's consolidation will continue, and current business remains
strong.
Q. TURNING TO YOU, PAUL, WHAT IS YOUR INVESTMENT PHILOSOPHY?
P.A. Like Katherine, I'm a common sense investor, managing the fund from
the bottom up - evaluating the merits of individual companies rather than
solely looking at industries or economic trends. I like to buy growth at
the right price, and I am sensitive to valuations, but I'm not afraid to
pay more for a great company such as Gillette or Coca-Cola. I look at each
company on its own merits, and I look at valuation the same way. There are
always some great buying opportunities in the sector because of its
breadth. Let me give you an example. If consumers are staying away from
high-priced restaurants, they instead may go to low-priced ones such as
McDonald's. If they stay away altogether, they will purchase products for
home consumption. Within each industry of this sector, I believe there are
always companies that have the potential for strong performance and are
establishing or building their market niche.
Q. HAVING RECENTLY TAKEN THE HELM, WHAT IS YOUR OUTLOOK?
P.A. The outlook for consumer stocks is, of course, tied to general
economic health. At the same time, I think the fund can do well in
virtually any economic environment because of investment opportunities
opening up through changing trends. If I feel the need to position the fund
more defensively, I will purchase more traditional consumer companies. If I
see hot new trends, I can take advantage of the higher appreciation
potential growing companies can provide. This is a broad sector with a huge
number of companies to choose from. My team of analysts and I will call on
as many companies as possible, trying to find the best buying
opportunities.

FUND FACTS
START DATE: September 3, 1996
SIZE: as of January 31, 1997, more than
$6 million
MANAGER: Paul Antico, since January 1997;
joined Fidelity in 1991
(checkmark)
ADVISOR CONSUMER INDUSTRIES FUND
INVESTMENTS JANUARY 31, 1997 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 94.6%
SHARES VALUE (NOTE 1)
ADVERTISING - 2.2%
ADVERTISING - 0.3%
Cordiant PLC sponsored ADR 3,000 $ 14,994
ADVERTISING AGENCIES - 1.9%
Interpublic Group of Companies, Inc. 1,000 49,375
Omnicom Group, Inc. 1,400 68,075
117,450
TOTAL ADVERTISING 132,444
APPAREL STORES - 5.0%
CHILDREN'S & INFANTS WEAR STORES - 0.3%
Baby Superstore, Inc. (a) 1,000 20,125
FOOTWEAR - WHOLESALE - 0.2%
Kenneth Cole Productions, Inc. Class A 700 13,563
GENERAL APPAREL STORES - 3.5%
Gymboree Corp. 3,300 75,900
Ross Stores, Inc. 1,400 57,400
TJX Companies, Inc. 2,000 79,500
212,800
SHOE STORES - 0.1%
Footstar, Inc. (a) 115 2,602
WOMEN'S CLOTHING STORES - 0.9%
AnnTaylor Stores Corp. 1,500 25,875
Talbots, Inc. 1,000 28,125
54,000
TOTAL APPAREL STORES 303,090
AUTOS, TIRES, & ACCESSORIES - 1.3%
AUTO PARTS - RETAIL - 1.0%
Monro Muffler Brake, Inc. 3,200 59,200
MOTOR VEHICLE DEALERS (NEW & USED) - 0.3%
Cross-Continent Auto Retailers, Inc. (a) 1,000 21,875
TOTAL AUTOS, TIRES, & ACCESSORIES 81,075
BEVERAGES - 7.9%
DISTILLED & BLENDED LIQUOR - 0.4%
Seagram Co. Ltd. 700 27,750
MALT BEVERAGE - 1.8%
Anheuser-Busch Companies, Inc. 1,500 63,750
Coors (Adolph) Co. Class B 2,400 44,700
108,450
SOFT DRINKS - 5.7%
Coca-Cola Co. (The) 3,900 225,713
PepsiCo, Inc. 3,500 122,063
347,776
TOTAL BEVERAGES 483,976
BROADCASTING - 4.5%
CABLE TV OPERATORS - 0.4%
Time Warner, Inc. 600 23,100
RADIO BROADCASTING - 3.3%
Clear Channel Communications, Inc. (a) 2,000 85,250
Evergreen Media Corp. Class A (a) 2,200 68,200
Metro Networks, Inc. (a) 1,000 23,500
Univision Communications, Inc.,
Class A (a) 800 28,800
205,750

SHARES VALUE (NOTE 1)
TELEVISION BROADCASTING - 0.8%
HSN, Inc. (a) 1,695 $ 34,324
Young Broadcasting, Inc. Class A (a) 500 15,375
49,699
TOTAL BROADCASTING 278,549
CELLULAR - 0.8%
CELLULAR & COMMUNICATION SERVICES - 0.8%
AirTouch Communications, Inc. (a) 800 20,700
Palmer Wireless, Inc. 2,600 26,975
47,675
COMPUTER SERVICES & SOFTWARE - 1.7%
COMPUTER SERVICES - 1.7%
America Online, Inc. 2,000 73,750
Computer Learning Centers, Inc. (a) 700 20,300
Midway Games, Inc. (a) 500 9,875
103,925
PREPACKAGED COMPUTER SOFTWARE - 0.0%
Spectrum Holobyte, Inc. 100 950
TOTAL COMPUTER SERVICES & SOFTWARE 104,875
CONSUMER ELECTRONICS - 0.5%
APPLIANCES - 0.5%
Newell Co. 900 29,700
CREDIT & OTHER FINANCE - 0.9%
BUSINESS CREDIT - 0.9%
PHH Corp. 1,200 57,750
DRUG STORES - 1.2%
CVS Corp. 500 21,625
Revco (D.S.), Inc. (a) 300 11,250
Rite Aid Corp. 1,000 40,000
72,875
DRUGS & PHARMACEUTICALS - 0.2%
PHARMACEUTICAL PREPARATIONS - 0.2%
Twinlab Corp. (a) 1,000 14,375
ELECTRICAL EQUIPMENT - 4.7%
ELECTRICAL MACHINERY - 4.7%
General Electric Co. 600 61,800
Westinghouse Electric Corp. 12,307 226,141
287,941
ELECTRONICS - 1.0%
ELECTRONIC PARTS - WHOLESALE - 1.0%
Brightpoint, Inc. 2,100 59,588
ENTERTAINMENT - 3.9%
MOTION PICTURE PRODUCTION - 3.9%
Disney (Walt) Co. 2,900 212,425
Viacom, Inc. Class B (non-vtg.) (a) 700 23,975
236,400
FOODS - 3.5%
CANNED SPECIALTIES - 1.8%
Campbell Soup Co. 1,300 107,900
FOOD - 1.5%
General Mills, Inc. 700 47,425
Kellogg Co. 600 41,775
89,200
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FOODS - CONTINUED
GRAIN MILL PRODUCTS - 0.2%
Ralston Purina Co. 200 $ 15,725
TOTAL FOODS 212,825
GENERAL MERCHANDISE STORES - 3.9%
DEPARTMENT STORES - 2.0%
Federated Department Stores, Inc. (a) 2,600 85,475
Neiman-Marcus Group, Inc. (a) 900 21,600
Nordstrom, Inc. 500 18,563
125,638
GENERAL MERCHANDISE STORES - 1.7%
Wal-Mart Stores, Inc. 4,400 104,500
VARIETY STORES - 0.2%
Hot Topic, Inc. (a) 500 9,875
TOTAL GENERAL MERCHANDISE STORES 240,013
GROCERY STORES - 1.0%
GROCERY - RETAIL - 1.0%
Dominick's Supermarkets, Inc. (a) 1,000 20,000
Food Lion, Inc. Class A 1,600 13,700
Safeway, Inc. (a) 600 28,650
62,350
HOME FURNISHINGS - 1.9%
FURNITURE - 0.5%
Rowe Furniture Corp. 3,000 26,625
FURNITURE STORES - 1.4%
Ethan Allen Interiors, Inc. 2,000 87,750
TOTAL HOME FURNISHINGS 114,375
HOUSEHOLD PRODUCTS - 13.7%
COSMETICS - 6.4%
Avon Products, Inc. 1,800 112,950
Estee Lauder Companies, Inc. 600 28,725
Gillette Co. 3,050 248,575
390,250
SOAPS & DETERGENTS - 7.3%
Clorox Co. 600 71,175
Procter & Gamble Co. 2,390 276,045
Unilever NV ADR 600 98,700
445,920
TOTAL HOUSEHOLD PRODUCTS 836,170
INDUSTRIAL MACHINERY & EQUIPMENT - 1.2%
ACCESS & MEASURING CUTTING TOOLS - 1.2%
Stanley Works 2,000 76,000
LEISURE DURABLES & TOYS - 4.0%
MOTORCYCLES - 0.7%
Harley-Davidson, Inc. 1,000 44,250
SPORTING & ATHLETIC GOODS - 1.1%
Callaway Golf Co. 2,000 66,750
TOYS & GAMES - 2.2%
ERO, Inc. 3,500 30,188
Hasbro, Inc. 2,200 86,900
Nintendo Co. Ltd. Ord. 300 19,666
136,754
TOTAL LEISURE DURABLES & TOYS 247,754

SHARES VALUE (NOTE 1)
LODGING & GAMING - 9.8%
HOTELS, MOTELS, & TOURIST CENTERS - 8.1%
HFS, Inc. (a) 2,800 $ 196,000
Hilton Hotels Corp. 5,200 148,200
ITT Corp. (a) 300 17,138
La Quinta Motor Inns, Inc. 200 3,900
Mirage Resorts, Inc. (a) 5,200 130,650
495,888
LODGING PLACES, OTHER THAN HOT - 1.2%
Anchor Gaming 2,000 74,000
RACING & GAMING - 0.5%
WMS Industries, Inc. (a) 1,200 28,500
TOTAL LODGING & GAMING 598,388
PAPER & FOREST PRODUCTS - 2.1%
PAPER - 2.1%
Kimberly-Clark Corp. 1,300 126,750
PHOTOGRAPHIC EQUIPMENT - 1.0%
Eastman Kodak Co. 700 60,725
PUBLISHING - 1.8%
BOOK PUBLISHING & PRINTING - 0.7%
Dun & Bradstreet Corp. 1,900 45,600
NEWSPAPERS - 1.1%
Knight-Ridder, Inc. 200 7,675
Times Mirror Co. Class A 1,200 56,700
64,375
TOTAL PUBLISHING 109,975
RESTAURANTS - 2.9%
Brinker International, Inc. 900 9,788
Cooker Restaurant Corp. 200 2,325
Logan's Roadhouse, Inc. 2,000 53,000
Starbucks Corp. (a) 3,300 113,025
178,138
RETAIL & WHOLESALE, MISCELLANEOUS - 3.2%
HOBBY, TOY, & GAME SHOPS - 0.3%
Toys "R" Us, Inc. (a) 850 21,250
LUMBER & BUILDING MATERIALS - RETAIL - 0.8%
Lowe's Companies, Inc. 1,500 49,688
RETAIL STORES - 0.6%
Gadzooks, Inc. (a) 1,200 33,750
RETAIL, GENERAL - 1.5%
Pier 1 Imports, Inc. 5,000 92,500
TOTAL RETAIL & WHOLESALE, MISCELLANEOUS 197,188
TEXTILES & APPAREL - 4.7%
APPAREL - 0.1%
Liz Claiborne, Inc. 200 8,425
COTTON MILLS - 1.2%
Galey & Lord, Inc. 4,000 73,000
FOOTWEAR - 2.1%
NIKE, Inc. Class B 1,000 67,875
Reebok International Ltd. 1,300 61,750
129,625
KNIT OUTERWEAR MILLS - 0.3%
Tultex Corp. (a) 3,000 21,000
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TEXTILES & APPAREL - CONTINUED
MEN'S & BOYS' CLOTHING - 1.0%
Cutter & Buck, Inc. (a) 500 $ 7,000
Tommy Hilfiger 1,000 51,250
58,250
TOTAL TEXTILES & APPAREL 290,300
TOBACCO - 4.1%
TOBACCO MANUFACTURERS - 4.1%
Philip Morris Companies, Inc. 2,100 249,638
TOTAL COMMON STOCKS
(Cost $5,413,067) 5,790,902
CASH EQUIVALENTS - 5.4%
Taxable Central Cash Fund (b)
(Cost $331,059) 331,059 331,059
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $5,744,126) $ 6,121,961
LEGEND
1. Non-income producing
2. At period end, the seven-day yield on the Taxable Central Cash Fund was
5.39%. The yield refers to the income earned by investing in the fund over
the seven-day period, expressed as an annual percentage.
INCOME TAX INFORMATION
At January 31, 1997, the aggregate cost of investment securities for income
tax purposes was $5,744,126. Net unrealized appreciation aggregated
$377,835, of which $476,981 related to appreciated investment securities
and $99,146 related to depreciated investment securities.
ADVISOR CONSUMER INDUSTRIES FUND
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1997 (UNAUDITED)

ASSETS

Investment in securities, at value $ 6,121,961
(cost $5,744,126) - See accompanying schedule

Receivable for investments sold 126,727

Receivable for fund shares sold 11,279

Dividends receivable 2,991

Interest receivable 3,383

Prepaid expenses 34,673

Receivable from investment adviser for expense reductions 24,111

TOTAL ASSETS 6,325,125

LIABILITIES

Payable for investments purchased $ 238,457

Payable for fund shares redeemed 15,783

Distribution fees payable 1,685

Other payables and accrued expenses 17,456

TOTAL LIABILITIES 273,381

NET ASSETS $ 6,051,744

Net Assets consist of:

Paid in capital $ 5,663,156

Accumulated net investment loss (1,906
)

Accumulated undistributed net realized gain (loss) on investments 12,659

Net unrealized appreciation (depreciation) on investments 377,835

NET ASSETS $ 6,051,744

CALCULATION OF MAXIMUM $11.29
OFFERING PRICE
CLASS A:
NET ASSET VALUE and redemption
price per share ($880,164 (divided by)
77,946 shares)

Maximum offering price per share $11.92
(100/94.75 of $11.29)

CLASS T: $11.29
NET ASSET VALUE and redemption
price per share ($3,873,958 (divided by)
343,241 shares)

Maximum offering price per share $11.70
(100/96.50 of $11.29)

INSTITUTIONAL CLASS: $11.31
NET ASSET VALUE, offering price
and redemption price per share
($1,297,622 (divided by) 114,751 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SEPTEMBER 3, 1996 (COMMENCEMENT OF OPERATIONS) TO
JANUARY 31, 1997 (UNAUDITED)

INVESTMENT INCOME $ 14,912
Dividends

Interest 13,869

TOTAL INCOME 28,781

EXPENSES

Management fee $ 9,458

Transfer agent fees 888
Class A

Class T 3,147

Institutional Class 806

Distribution fees 542
Class A

Class T 4,619

Accounting fees and expenses 25,206

Non-interested trustees' compensation 6

Custodian fees and expenses 6,298

Registration fees 12,889
Class A

Class T 10,960

Institutional Class 11,246

Audit 7,563

Legal 635

Total expenses before reductions 94,263

Expense reductions (65,329 28,934
)

NET INVESTMENT INCOME (LOSS) (153
)

REALIZED AND UNREALIZED GAIN (LOSS) 39,927
Net realized gain (loss) on investment securities

Change in net unrealized appreciation (depreciation) on investment securities 377,835

NET GAIN (LOSS) 417,762

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 417,609

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
Operations $ (153)
Net investment income (loss)

Net realized gain (loss) 39,927

Change in net unrealized appreciation (depreciation) 377,835

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 417,609

Distributions to shareholders (704)
From net investment income
Class A

Institutional Class (1,049)

From net realized gain (4,223)
Class A

Class T (16,752)

Institutional Class (6,293)

TOTAL DISTRIBUTIONS (29,021)

Share transactions - net increase (decrease) 5,663,156

TOTAL INCREASE (DECREASE) IN NET ASSETS 6,051,744

NET ASSETS

Beginning of period -

End of period (including accumulated net investment loss of $1,906) $ 6,051,744

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income -

Net realized and unrealized gain (loss) 1.36

Total from investment operations 1.36

Less Distributions

From net investment income (.01)

From net realized gain (.06)

Total distributions (.07)

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.29

TOTAL RETURN B, C 13.64%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 880

Ratio of expenses to average net assets 1.75% A
, E

Ratio of net investment income to average net assets .07% A

Portfolio turnover 72% A

Average commission rate F $ .0282

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD
SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING
THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES
DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN
HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F A FUND IS
REQUIRED TO DISCLOSE ITS
AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH
COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD
AND FUND TO FUND DEPENDING
ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES
AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS T
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.01)

Net realized and unrealized gain (loss) 1.36

Total from investment operations 1.35

Less Distributions

From net realized gain (.06)

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.29

TOTAL RETURN B, C 13.53%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 3,874

Ratio of expenses to average net assets 2.00% A
, E

Ratio of net investment income (loss) to average net assets (.18)%
A

Portfolio turnover 72% A

Average commission rate F $ .0282

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES
TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET
INVESTMENT INCOME (LOSS) PER
SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING
THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F A FUND
IS REQUIRED TO DISCLOSE ITS
AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH
COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD
AND FUND TO FUND DEPENDING
ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES
AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income .01

Net realized and unrealized gain (loss) 1.37

Total from investment operations 1.38

Less Distributions

From net investment income (.01)

From net realized gain (.06)

Total distributions (.07)

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.31

TOTAL RETURN B, C 13.84%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 1,298

Ratio of expenses to average net assets 1.50% A
, E

Ratio of net investment income to average net assets .32% A

Portfolio turnover 72% A

Average commission rate F $ .0282

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES
TO FINANCIAL
STATEMENTS). C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED. D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED
BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A
PORTION OF THE CLASS' EXPENSES DURING THE PERIOD. WITHOUT THIS
REIMBURSEMENT, THE CLASS'
EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS). F A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE
COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY
FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES
EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES
MAY DIFFER.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1997 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Consumer Industries Fund (the fund) is a fund of Fidelity
Advisor Series VII (the trust) and is authorized to issue an unlimited
number of shares. The trust is registered under the Investment Company Act
of 1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust.
The fund offers Class A, Class T, and Institutional Class shares, each of
which has equal rights as to assets and voting privileges. Each class has
exclusive voting rights with respect to its distribution plan. Investment
income, realized and unrealized capital gains and losses, redemption fees,
the common expenses of the fund, and certain fund-level expense reductions
are allocated on a pro rata basis to each class based on the relative net
assets of each class to the total net assets of the fund. Each class of
shares differs in its respective distribution, transfer agent,
registration, and certain other class-specific fees, expenses, and expense
reductions.
On November 14, 1996, the Board of Trustees approved the creation of an
additional class of shares, Class B shares. Offering of the new class
commences on March 3, 1997. Class B shares are subject to an annual
distribution and service fee of 1.00% (of which .75% represents a
distribution fee and .25% represents a shareholder service fee) of the
class' average net assets, and a contingent deferred sales charge levied on
Class B share redemptions. This charge is based on a declining scale that
ranges from 5% to 1% on Class B shares redeemed within six years of
purchase.
The financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. Securities for which exchange quotations are not readily
available (and in certain cases debt securities which trade on an exchange)
are valued primarily using dealer-supplied valuations or at their fair
value as determined in good faith under consistently applied procedures
under the general supervision of the Board of Trustees. Short-term
securities with remaining maturities of sixty days or less for which
quotations are not readily available are valued at amortized cost or
original cost plus accrued interest, both of which approximate current
value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Income receipts
and expense payments are translated into U.S. dollars at the prevailing
exchange rate on the respective dates of the transactions. Purchases and
sales of securities are translated into U.S. dollars at the contractual
currency exchange rates established at the time of each trade.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, and the difference between
the amount of net investment income accrued and the U.S. dollar amount
actually received. The effects of changes in foreign currency exchange
rates on investments in securities are included with the net realized and
unrealized gain or loss on investment securities.
INCOME TAXES. The fund intends to qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code. By so qualifying, the fund
will not be subject to income taxes to the extent that it distributes
substantially all of its taxable income for its fiscal year. The schedule
of investments includes information regarding income taxes under the
caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Non-cash dividends included in dividend income, if any,
are recorded at the fair market value of the securities received. Interest
income is accrued as earned. Investment income is recorded net of foreign
taxes withheld where recovery of such taxes is uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
PREPAID EXPENSES. Fidelity Management & Research Company (FMR) bears all
organizational expenses except for registering and qualifying each class
and shares of each class for distribution under federal and state
securities law. These expenses are borne by each class and amortized over
one year.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date. Income dividends and capital gain distributions are
declared separately for each class.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences may result in distribution reclassifications.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Accumulated net investment loss and accumulated undistributed net realized
gain (loss) on investments may include temporary book and tax basis
differences which will reverse in a subsequent period. Any taxable income
or gain remaining at fiscal year end is distributed in the following year.
REDEMPTION FEES. Shares held in the fund less than 60 days are subject to a
redemption fee equal to 1% of the proceeds of the redeemed shares. The fee,
which is retained by the fund, is accounted for as an addition to paid in
capital.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FOREIGN CURRENCY CONTRACTS. The fund generally uses foreign currency
contracts to facilitate transactions in foreign-denominated securities.
Losses may arise from changes in the value of the foreign currency or if
the counterparties do not perform under the contracts' terms. The U.S.
dollar value of foreign currency contracts is determined using contractual
currency exchange rates established at the time of each trade. The cost of
the foreign currency contracts is included in the cost basis of the
associated investment.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission(the SEC), the fund, along with other
affiliated entities of FMR, may transfer uninvested cash balances into one
or more joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
TAXABLE CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by the
SEC, the fund may invest in the Taxable Central Cash Fund (the Cash Fund)
managed by FMR Texas, an affiliate of FMR. The Cash Fund is an open-end
money market fund available only to investment companies and other accounts
managed by FMR and its affiliates. The Cash Fund seeks preservation of
capital, liquidity, and current income by investing in U.S. Treasury
securities and repurchase agreements for these securities, and may be
utilized by the fund as an additional cash management option. Dividends
from the Cash Fund are declared daily and paid monthly from net interest
income. Income distributions received by the fund are recorded as interest
income.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $6,510,770 and $1,137,630, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .2500% to .5200% for the period. In the event that these
rates were lower than the contractual rates in effect during the period,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .30%. For
the period, the management fee was equivalent to an annualized rate of .60%
of average net assets.
DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the 1940
Act, the Trustees have adopted separate distribution plans with respect to
the fund's Class A shares (Class A Plan), Class T shares (Class T Plan),
and Institutional Class shares (collectively referred to as "the Plans").
Under the Class A and Class T Plans, the fund pays Fidelity Distributors
Corporation (FDC), an affiliate of FMR, a distribution and service fee.
This fee is based on annual rates of .25% and .50% of the average net
assets of the Class A and Class T shares, respectively. For the period, the
fund paid FDC $542 and $4,619 under the Class A and Class T Plans, all of
which was paid to securities dealers, banks and other financial
institutions for the distribution of Class A and Class T shares, and
providing shareholder support services.
Under the Plans, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's Class A, Class T,
and Institutional Class shares. The Plans also authorize payments to third
parties that assist in the sale of the fund's shares or render shareholder
support services.
SALES LOAD. FDC receives a front-end sales charge of up to 5.25% and 3.50%
for selling Class A and Class T shares of the fund, respectively.
For the period, FDC received sales charges of $23,845 and $36,029 on sales
of Class A and Class T shares of the fund, of which $19,182 and $31,192
were paid to securities dealers, banks, and other financial institutions.
TRANSFER AGENT FEES. Fidelity Investments Institutional Operations Company,
Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing,
and shareholder servicing agent for the fund's Class A, Class T and
Institutional Class shares. Prior to January 1, 1997, State Street Bank and
Trust Company acted in that capacity for the fund's Class T shares, and
delegated certain of these services to FIIOC, for which FIIOC received its
allocable share of all such fees. FIIOC receives account fees and
asset-based fees that vary according to account size and type of account of
the shareholders of the respective classes of the fund. FIIOC pays for
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
typesetting, printing and mailing of all shareholder reports, except proxy
statements. For the period, the transfer agent fees were equivalent to
annualized rates of .41%, .34%, and .19% of the average net assets of Class
A, Class T, and Institutional Class, respectively.
ACCOUNTING FEES. Fidelity Service Company, Inc. (FSC), an affiliate of FMR,
maintains the fund's accounting records. The fee is based on the level of
average net assets for the month plus out-of-pocket expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $715 for the period.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding interest,
taxes, brokerage commissions and extraordinary expenses) above annual rates
of 1.75%, 2.00%, and 1.50% of average net assets for Class A, Class T, and
Institutional Class, respectively. For the period, the reimbursement
reduced expenses by $17,290, $29,420, and $18,544 for Class A, Class T, and
Institutional Class, respectively.
FMR has also directed certain portfolio trades to brokers who paid a
portion of the fund's expenses. For the period, the fund's expenses were
reduced by $75 under this arrangement.
6. BENEFICIAL INTEREST.
At the end of the period, FMR and its affiliates were record owners of
approximately 16.9% of the total outstanding shares of the fund.
7. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:
SHARES DOLLARS

PERIOD ENDED PERIOD ENDED
JANUARY 31, JANUARY 31,

1997 A 1997 A

CLASS A 77,937 $ 830,694
Shares sold

Reinvestment of distributions 458 4,926

Shares redeemed (449) (4,910)

Redemption fees - 124

Net increase (decrease) 77,946 $ 830,834

CLASS T 383,305 $ 4,100,121
Shares sold

Reinvestment of distributions 1,491 16,025

Shares redeemed (41,555) (456,388)

Redemption fees - 558

Net increase (decrease) 343,241 $ 3,660,316

INSTITUTIONAL CLASS 114,527 $ 1,169,504
Shares sold

Reinvestment of distributions 682 7,342

Shares redeemed (458) (5,027)

Redemption fees - 187

Net increase (decrease) 114,751 $ 1,172,006

A SHARE TRANSACTIONS FOR EACH CLASS ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO JANUARY 31, 1997.
ADVISOR CYCLICAL INDUSTRIES FUND - CLASS A
PERFORMANCE AND INVESTMENT SUMMARY

CYCLICAL INDUSTRIES - CLASS A 15.53%

CYCLICAL INDUSTRIES - CLASS A 9.46%
(INCL. 5.25% SALES CHARGE)

S&P 500 21.57%

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970228 163614 S00000000000001
FA Cyclical Ind -CL A SP Standard & Poor 500
00184 SP001
1996/09/03 9475.00 10000.00
1996/09/30 9835.05 10561.42
1996/10/31 10119.30 10852.70
1996/11/30 10725.70 11673.05
1996/12/31 10669.00 11441.81
1997/01/31 10946.00 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970228 163616 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Cyclical Industries - Class A on September 3, 1996, when the fund started,
and the current maximum 5.25% sales charge was paid. As the chart shows, by
January 31, 1997, the value of the investment would have grown to $10,946 -
a 9.46% increase on the initial investment. For comparison, look at how the
S&P 500 did over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $12,157 - a
21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

General Electric Co. 5.5

Quanex Corp. 3.5

McDonnell Douglas Corp. 3.5

du Pont (E.I.) de Nemours & Co. 3.2

Emerson Electric Co. 2.8

Aluminum Co. of America 2.8

General Motors Corp. 2.7

Westinghouse Electric Corp. 2.6

Monsanto Co. 2.3

Boeing Co. 2.1

TOP INDUSTRIES AS OF JANUARY 31, 1997
Electrical Machinery 10.9%
Chemicals 7.3%
Paper 7.1%
Aircraft 6.6%
Prime Nonferrous
Smelting 6.0%
All Others 62.1%*
Row: 1, Col: 1, Value: 62.1
Row: 1, Col: 2, Value: 6.0
Row: 1, Col: 3, Value: 6.6
Row: 1, Col: 4, Value: 7.1
Row: 1, Col: 5, Value: 7.3
Row: 1, Col: 6, Value: 10.9
* INCLUDES SHORT-TERM INVESTMENTS
% OF FUND'S INVESTMENTS
ADVISOR CYCLICAL INDUSTRIES FUND - CLASS T
PERFORMANCE AND INVESTMENT SUMMARY

CYCLICAL INDUSTRIES - CLASS T 15.43%

CYCLICAL INDUSTRIES - CLASS T 11.39%
(INCL. 3.50% SALES CHARGE)

S&P 500 21.57%

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970212 162237 S00000000000001
FA Cyclical Ind -CL T SP Standard & Poor 500
00194 SP001
1996/09/03 9650.00 10000.00
1996/09/30 10016.70 10561.42
1996/10/31 10306.20 10852.70
1996/11/30 10923.80 11673.05
1996/12/31 10846.68 11441.81
1997/01/31 11138.52 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970212 162238 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Cyclical Industries - Class T on September 3, 1996, when the fund started,
and the current maximum 3.50% sales charge was paid. As the chart shows, by
January 31, 1997, the value of the investment would have grown to $11,139 -
a 11.39% increase on the initial investment. For comparison, look at how
the S&P 500 did over the same period. With dividends and capital gains, if
any, reinvested, the same $10,000 investment would have grown to $12,157 -
a 21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

General Electric Co. 5.5

Quanex Corp. 3.5

McDonnell Douglas Corp. 3.5

du Pont (E.I.) de Nemours & Co. 3.2

Emerson Electric Co. 2.8

Aluminum Co. of America 2.8

General Motors Corp. 2.7

Westinghouse Electric Corp. 2.6

Monsanto Co. 2.3

Boeing Co. 2.1

An interview with
Albert Ruback, Portfolio Manager of Fidelity Advisor Cyclical Industries
Fund
Q. ALBERT, HOW HAS THE FUND PERFORMED?
A. For the period from September 3, 1996 - when the fund started - through
January 31, 1997, the fund's Class A and Class T shares returned 15.53% and
15.43%, respectively. By comparison, the Standard & Poor's 500 Index
returned 21.57% over the same period.
Q. WHY DID THE FUND'S PERFORMANCE LAG THAT OF THE S&P 500?
A. The fund did well; it's just that the S&P 500 has continued to set
records. The S&P 500 posted very strong numbers, for two reasons, I
believe. First, because of the solid performance of technology stocks.
Second, the trend we've seen over the past two years or so of
outperformance of the large-capitalization growth stocks continued through
the end of the period. While the cyclical group of stocks performed well,
they were not favored as much as alternative investments. Over the course
of the second half of 1996, there was uncertainty about the health of the
economy, including some concerns that the economy may indeed turn down.
This backdrop caused investors to be worried that cyclical stocks - which
rise and fall with the economy - would underperform if we were headed
toward a cyclical downturn.
Q. HAVE YOU BEEN PURSUING ANY PARTICULAR INVESTMENT THEMES?
A. Yes, three of them. One theme involved companies that produce aluminum,
such as Alcoa and Inco. Aluminum inventories have remained at low levels,
and the production outlook across the industry is attractive. If we get
increases in demand and operating rates, we'll reach what is known as a
"pinch point," where concern among aluminum users could cause the price of
the commodity to escalate sharply. A second strategy involved the aerospace
and defense sector. The outlook for commercial aircraft orders, including a
significant backlog, is strong and should translate into extraordinary cash
flow for aircraft companies. In addition, the U.S. defense budget has been
declining every year for the past several years. Now it appears that this
movement has bottomed, and there is some impetus in Congress to increase
defense spending. During the period, McDonnell Douglas and Boeing were two
stocks that performed well due to these trends. Finally, there was paper
and forest products. This area has lagged significantly due to high
inventories. Lately, it appeared that inventories were much more under
control and the outlook for capacity additions was much more favorable. If
the economy remains stable, we should see price increases and inventory
reductions that should increase the earnings of these companies.
Q. WHAT ARE SOME OF THE BASICS OF CYCLICAL INVESTING?
A. With steady growth companies, growth and earnings are predictable within
a range. Conversely, cyclical companies can go from posting tremendous
profits to significant losses during the course of the economic cycle. It's
important to remain closely attuned to a company's orders, backlogs and
production prowess and to have a feeling for a company's earnings before it
reports them. One of the keys is to invest in a cyclical company well
before it posts positive results, and to sell a cyclical stock before you
see an earnings downturn. Also, it's important to recognize that some
companies tend to do better early in a business cycle, some do well in the
middle and others perform well toward the end, even within the same
industry.
Q. ARE THERE ANY OTHER IMPORTANT ASPECTS TO YOUR INVESTMENT APPROACH?
A. I am a value oriented investor. It's important to me that I buy a stock
at an attractive valuation - a stock's price relative to other measures
such as earnings or cash flow - relative to the historical norm of its
growth potential. While I like to buy stocks when they're selling in the
middle or bottom half of their historical price range, I will pay more for
a stock that has extraordinary growth prospects. At the same time, I won't
buy a stock just because it's cheap; there has to be some sort of catalyst
for the company's business.
Q. WHAT'S YOUR OUTLOOK FOR 1997?
A. Valuations in the stock market have reached very high levels. As a
result, I'm trying to be even more sensitive to a stock's valuation,
because we could be entering a period when the market will become much more
stock selective, rather than continuing its focus on the largest stocks in
the S&P. At the same time, I'll do what I always do: focus on companies one
at a time, looking for stocks selling at attractive valuations that I
believe will appreciate in price because of some sort of catalyst.

FUND FACTS
START DATE: September 3, 1996
SIZE: as of January 31, 1997, more than
$6 million
MANAGER: Paul Antico, since January 1997;
joined Fidelity in 1991
(checkmark)
ADVISOR CYCLICAL INDUSTRIES FUND
INVESTMENTS JANUARY 31, 1997 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 93.7%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 8.1%
AIRCRAFT - 6.6%
Boeing Co. 1,500 $ 160,675
Lockheed Martin Corp. 657 60,444
McDonnell Douglas Corp. 3,900 262,275
Northrop Grumman Corp. 200 15,625
499,019
AIRCRAFT & PARTS - 0.9%
Precision Castparts Corp. 500 25,625
Rohr Industries, Inc. (a) 500 10,750
Sundstrand Corp. 500 21,438
Wyman-Gordon Co. (a) 500 9,688
67,501
AIRCRAFT EQUIPMENT - 0.2%
Aviall, Inc. 1,400 15,925
MISSILES & SPACE VEHICLES - 0.4%
Orbital Sciences Corp. (a) 600 10,350
Thiokol Corp. 300 16,800
27,150
TOTAL AEROSPACE & DEFENSE 609,595
AIR TRANSPORTATION - 2.3%
AIR TRANSPORT, MAJOR NATIONAL - 2.3%
AMR Corp. (a) 1,500 120,750
America West Holding Corp. Class B (a) 1,900 28,263
Northwest Airlines Corp. Class A (a) 600 20,400
169,413
AUTOS, TIRES, & ACCESSORIES - 7.7%
AUTO & TRUCK PARTS - 2.5%
Borg-Warner Automotive, Inc. 600 23,925
Eaton Corp. 400 28,000
SPX Corp. 1,600 65,000
TRW, Inc. 1,200 60,900
Wynn's International, Inc. 600 12,150
189,975
MOTOR VEHICLES & CAR BODIES - 5.2%
Chrysler Corp. 3,300 115,088
General Motors Corp. 3,400 200,600
Honda Motor Co., Ltd. ADR 300 16,200
Lear Corp. (a) 700 26,163
PACCAR, Inc. 500 32,688
390,739
TOTAL AUTOS, TIRES, & ACCESSORIES 580,714
BUILDING MATERIALS - 1.5%
AIRCONDITIONING EQUIPMENT - 0.3%
York International Corp. 500 25,875
PAINT & VARNISH - 0.8%
Lilly Industrial Coatings, Inc. Class A 2,000 39,750
Sherwin-Williams Co. 400 22,200
61,950
PLUMBING SUPPLIES - WHOLESALE - 0.4%
Masco Corp. 800 27,600
TOTAL BUILDING MATERIALS 115,425
CHEMICALS & PLASTICS - 10.6%
AGRICULTURAL CHEMICALS - 0.7%
FMC Corp. (a) 400 28,050
OM Group, Inc. 900 26,550
54,600

SHARES VALUE (NOTE 1)
CHEMICALS - 7.3%
Cytec Industries, Inc. (a) 700 $ 27,913
du Pont (E.I.) de Nemours & Co. 2,200 241,175
Hercules, Inc. 900 39,713
Monsanto Co. 4,500 170,438
NL Industries, Inc. 2,300 27,600
Quaker Chemical Corp. 1,000 16,375
Witco Corp. 800 23,800
547,014
CHEMICALS, GENERAL - 0.5%
Grace (WR) & Co. 700 34,825
INDUSTRIAL GASES - 1.5%
Air Products & Chemicals, Inc. 900 64,238
Praxair, Inc. 1,100 51,013
115,251
PLASTICS - 0.4%
Sealed Air Corp. (a) 600 25,650
PLASTICS & SYNTHETIC RESINS - 0.2%
Spartech Corp. 1,500 16,313
TOTAL CHEMICALS & PLASTICS 793,653
COMMUNICATIONS EQUIPMENT - 0.2%
TELEPHONE EQUIPMENT - 0.2%
Perceptron, Inc. (a) 400 14,300
COMPUTERS & OFFICE EQUIPMENT - 0.8%
OFFICE AUTOMATION - 0.8%
Pitney Bowes, Inc. 1,000 57,625
CONGLOMERATES - 4.2%
AlliedSignal, Inc. 1,100 77,275
American Standard Companies, Inc. (a) 1,000 40,625
Harris Corp. 200 15,225
Textron, Inc. 400 38,950
Tyco International Ltd. 1,100 62,838
United Technologies Corp. 1,200 83,700
318,613
CONSTRUCTION - 0.4%
GENERAL BUILDING - 0.2%
D.R. Horton, Inc. 1,300 15,438
OPERATIVE BUILDERS - 0.2%
Kaufman & Broad Home Corp. 1,000 14,125
TOTAL CONSTRUCTION 29,563
CONSUMER DURABLES - 1.9%
MANUFACTURING INDUSTRIES - 1.9%
Minnesota Mining & Manufacturing Co. 1,700 144,925
CONSUMER ELECTRONICS - 0.6%
APPLIANCES - 0.6%
Maytag Co. 1,300 26,650
Whirlpool Corp. 300 15,263
41,913
DEFENSE ELECTRONICS - 1.1%
Litton Industries, Inc. (a) 1,000 45,000
Raytheon Co. 900 41,288
86,288
ELECTRICAL EQUIPMENT - 10.9%
ELECTRICAL MACHINERY - 10.9%
Emerson Electric Co. 2,100 207,375
General Electric Co. 4,000 412,000
Westinghouse Electric Corp. 10,800 198,450
817,825
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
ENERGY SERVICES - 0.4%
OIL & GAS SERVICES - 0.4%
Dresser Industries, Inc. 800 $ 27,100
ENGINEERING - 0.7%
ARCHITECTS & ENGINEERS - 0.7%
EG & G, Inc. 1,200 25,500
Fluor Corp. 400 28,450
53,950
HOLDING COMPANIES - 0.7%
HOLDING COMPANY OFFICES- 0.7%
Norfolk Southern Corp. 600 53,175
HOUSEHOLD PRODUCTS - 0.2%
MANUFACTURED PRODUCTS - 0.2%
Memtec Ltd. sponsored ADR 400 11,600
INDUSTRIAL MACHINERY & EQUIPMENT - 3.9%
ACCESS & MEASUREMENT CUTTING TOOLS - 0.4%
Stanley Works 800 30,400
CONSTRUCTION EQUIPMENT - 1.0%
Caterpillar, Inc. 1,000 77,625
FARM MACHINERY & EQUIPMENT - 0.9%
New Holland NV (a) 3,000 66,000
GENERAL INDUSTRIAL MACHINERY - 1.6%
Illinois Tool Works, Inc. 700 57,138
Ingersoll-Rand Co. 1,100 50,188
TRINOVA Corp. 400 15,400
122,726
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 296,751
IRON & STEEL - 5.5%
BLAST FURNACES - 0.5%
AK Steel Holding Corp. 300 12,075
Steel Dynamics, Inc. (a) 1,000 23,250
35,325
FABRICATED METAL PRODUCTS - 0.5%
SPS Technologies, Inc. (a) 600 38,400
IRON & STEEL BLAST FURN, MILLS - 4.3%
Inland Steel Industries, Inc. 1,000 19,125
Nucor Corp. 800 41,600
Quanex Corp. 10,000 265,000
325,725
METAL FORGINGS & STAMPINGS - 0.2%
TriMas Corp. 500 11,125
TOTAL IRON & STEEL 410,575
MEDICAL EQUIPMENT & SUPPLIES - 0.1%
MEDICAL TECHNOLOGY - 0.1%
Pall Corp. 500 11,188
METALS & MINING - 10.9%
ALUMINUM, EXTRUDED PRODUCTS - 1.5%
Alumax, Inc. (a) 3,300 115,500
COPPER ORES - 0.3%
Freeport McMoRan Copper & Gold, Inc.
Class A 800 21,900
METAL MINING - 0.4%
Phelps Dodge Corp. 400 27,950

SHARES VALUE (NOTE 1)
METAL ORES - 0.8%
Falconbridge Ltd. 1,600 $ 36,702
Pechiney SA Class A 600 24,260
60,962
METALS & MINERALS - WHOLESALE - 0.3%
Elkem ASA 1,600 25,161
METALS SERVICE CENTERS - WHOLESALE - 0.2%
Ryerson Tull, Inc. Class A (a) 1,000 15,375
NON-METALLIC MINERAL MINING - 0.6%
Freeport McMoRan, Inc. par $0.01 800 23,100
Martin Marietta Materials, Inc. 674 17,945
41,045
PRIMARY PRODUCTION OF ALUMINUM - 0.6%
Reynolds Metals Co. 800 48,300
PRIME NONFERROUS SMELTING - 6.0%
Alcan Aluminium Ltd. 3,300 116,610
Aluminum Co. of America 3,000 207,000
Inco Ltd. 3,700 125,801
449,411
SECONDARY NONFERROUS SMELTING - 0.2%
IMCO Recycling, Inc. 800 11,900
TOTAL METALS & MINING 817,504
OIL & GAS - 0.2%
OIL & GAS EXPLORATION - 0.2%
Union Pacific Resources Group, Inc. 592 16,798
PACKAGING & CONTAINERS - 2.0%
GLASS CONTAINERS - 1.6%
Owens-Illinois, Inc. (a) 5,000 118,750
METAL CANS & SHIPPING CONTAINERS - 0.4%
Crown Cork & Seal Co., Inc. 500 28,750
TOTAL PACKAGING & CONTAINERS 147,500
PAPER & FOREST PRODUCTS - 10.0%
CONVERTED PAPER & PAPERBOARD - 0.7%
Boise Cascade Corp. 1,500 51,750
PAPER - 7.1%
Champion International Corp. 1,100 46,063
Georgia-Pacific Corp. 600 44,175
International Paper Co. 2,300 94,013
James River Corp. 1,800 57,825
Stone Container Corp. 3,400 45,900
Temple-Inland, Inc. 1,000 55,250
Union Camp Corp. 1,000 47,375
Westvaco Corp. 1,700 49,725
Weyerhaeuser Co. 1,100 50,050
Willamette Industries, Inc. 700 44,013
534,389
PAPERBOARD MILLS - 1.4%
Jefferson Smurfit Corp. (a) 3,900 60,938
Mead Corp. 800 45,000
105,938
SANITARY PAPER PRODUCTS - 0.8%
Fort Howard Corp. (a) 1,900 60,325
TOTAL PAPER & FOREST PRODUCTS 752,402
PHOTOGRAPHIC EQUIPMENT - 0.3%
Imation Corp. (a) 900 26,213
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
POLLUTION CONTROL - 2.8%
POLLUTION EQUIPMENT & DESIGN - 0.3%
Ogden Corp. 1,200 $ 24,300
REFUSE SYSTEMS - 2.1%
Browning-Ferris Industries, Inc. 1,400 45,500
United Waste Systems, Inc. (a) 800 30,300
WMX Technologies, Inc. 2,200 80,575
156,375
SANITARY SERVICES - 0.4%
USA Waste Services, Inc. (a) 800 29,200
TOTAL POLLUTION CONTROL 209,875
PRINTING - 0.5%
COMMERCIAL PRINTING - 0.5%
Deluxe Corp. 1,300 39,975
RAILROADS - 1.4%
RAILROAD EQUIPMENT - 0.5%
Bombardier, Inc. Class B 1,800 34,743
RAILROADS - 0.9%
Conrail, Inc. 272 29,172
Union Pacific Corp. 400 24,000
Wisconsin Central Transportation Corp. (a) 450 16,706
69,878
TOTAL RAILROADS 104,621
RETAIL & WHOLESALE, MISCELLANEOUS - 0.1%
RETAIL, GENERAL - 0.1%
Office Depot, Inc. (a) 300 6,225
Officemax, Inc. (a) 300 3,600
9,825
SERVICES - 0.3%
PERSONNEL SUPPLY SERVICES - 0.3%
Manpower, Inc. 700 22,400
SHIP BUILDING & REPAIR - 1.7%
SHIP BUILDERS - 1.4%
Avondale Industries, Inc. (a) 2,200 49,500
General Dynamics Corp. 800 56,500
106,000
SHIP BUILDING & REPAIRING - 0.3%
Newport News Shipbuilding, Inc. 1,200 19,200
TOTAL SHIP BUILDING & REPAIR 125,200
TEXTILES & APPAREL - 0.5%
TEXTILE MILL PRODUCTS - 0.5%
Burlington Industries, Inc. (a) 900 10,800
Westpoint Stevens, Inc. Class A (a) 900 28,125
38,925
TRUCKING & FREIGHT - 1.2%
FREIGHT FORWARDING - 0.4%
Air Express International Corp. 400 12,675
Expeditors International of
Washington, Inc. 600 12,975
25,650
TRUCKING, LOCAL & LONG DISTANCE - 0.2%
Consolidated Freightways Corp. 50 438
Consolidated Freightways, Inc. 100 2,538
Werner Enterprises, Inc. 700 12,600
15,576

SHARES VALUE (NOTE 1)
TRUCKING, LONG DISTANCE - 0.6%
USFreightways Corp. 1,200 $ 30,450
Yellow Corp. (a) 900 15,413
45,863
TOTAL TRUCKING & FREIGHT 87,089
TOTAL COMMON STOCKS
(Cost $6,379,066) 7,042,518
CASH EQUIVALENTS - 6.3%
Taxable Central Cash Fund (b)
(Cost $473,315) 473,315 473,315
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $6,852,381) $ 7,515,833
LEGEND
1. Non-income producing
2. At period end, the seven-day yield on the Taxable Central Cash Fund was
5.39%. The yield refers to the income earned by investing in the fund over
the seven-day period, expressed as an annual percentage.
INCOME TAX INFORMATION
At January 31, 1997, the aggregate cost of investment securities for income
tax purposes was $6,852,381. Net unrealized appreciation aggregated
$663,452, of which $732,990 related to appreciated investment securities
and $69,538 related to depreciated investment securities.
ADVISOR CYCLICAL INDUSTRIES FUND
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1997 (UNAUDITED)

ASSETS

Investment in securities, at value $ 7,515,833
(cost $6,852,381) - See accompanying schedule

Receivable for investments sold 110,032

Receivable for fund shares sold 22,146

Dividends receivable 2,932

Interest receivable 3,070

Prepaid expenses 34,673

Receivable from investment adviser for expense reductions 20,660

TOTAL ASSETS 7,709,346

LIABILITIES

Payable for investments purchased $ 72,166

Payable for fund shares redeemed 4,818

Distribution fees payable 464

Other payables and accrued expenses 16,046

TOTAL LIABILITIES 93,494

NET ASSETS $ 7,615,852

Net Assets consist of:

Paid in capital $ 6,893,562

Distributions in excess of net investment income (5,150
)

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions 63,988

Net unrealized appreciation (depreciation) on investments 663,452

NET ASSETS $ 7,615,852

CALCULATION OF MAXIMUM $11.46
OFFERING PRICE
CLASS A:
NET ASSET VALUE and redemption
price per share ($269,407 (divided by)
23,504 shares)

Maximum offering price per share $12.09
(100/94.75 of $11.46)

CLASS T: $11.45
NET ASSET VALUE and redemption
price per share ($1,286,336 (divided by)
112,334 shares)

Maximum offering price per share $11.87
(100/96.50 of $11.45)

INSTITUTIONAL CLASS: $11.46
NET ASSET VALUE, offering price
and redemption price per share
($6,060,109 (divided by) 528,638 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SEPTEMBER 3, 1996 (COMMENCEMENT OF OPERATIONS) TO
JANUARY 31, 1997 (UNAUDITED)

INVESTMENT INCOME $ 33,072
Dividends

Interest 9,201

TOTAL INCOME 42,273

EXPENSES

Management fee $ 14,428

Transfer agent fees 547
Class A

Class T 923

Institutional Class 3,195

Distribution fees 219
Class A

Class T 1,027

Accounting fees and expenses 25,104

Non-interested trustees' compensation 10

Custodian fees and expenses 4,912

Registration fees 12,568
Class A

Class T 10,711

Institutional Class 10,950

Audit 7,563

Legal 639

Total expenses before reductions 92,796

Expense reductions (56,063 36,733
)

NET INVESTMENT INCOME 5,540

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 109,972

Foreign currency transactions (2 109,970
)

Change in net unrealized appreciation (depreciation) on investment securities 663,452

NET GAIN (LOSS) 773,422

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 778,962

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
Operations $ 5,540
Net investment income

Net realized gain (loss) 109,970

Change in net unrealized appreciation (depreciation) 663,452

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 778,962

Distributions to shareholders (109)
From net investment income
Class A

Class T (309)

Institutional Class (5,122)

In excess of net investment income (101)
Class A

Class T (287)

Institutional Class (4,762)

From net realized gain (1,679)
Class A

Class T (4,766)

Institutional Class (39,537)

TOTAL DISTRIBUTIONS (56,672)

Share transactions - net increase (decrease) 6,893,562

TOTAL INCREASE (DECREASE) IN NET ASSETS 7,615,852

NET ASSETS -
Beginning of period

End of period (including distributions in excess of net investment income of $5,150) $ 7,615,852

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income -

Net realized and unrealized gain (loss) 1.55

Total from investment operations 1.55

Less Distributions

From net investment income (.01)

In excess of net investment income -

From net realized gain (.08)

Total distributions (.09)

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.46

TOTAL RETURN B, C 15.53%

RATIOS AND SUPPLEMENTAL DATA $ 269
Net assets, end of period (000 omitted)

Ratio of expenses to average net assets 1.75% A
, E

Ratio of expenses to average net assets after expense reductions 1.74% A
, F

Ratio of net investment income to average net assets - A

Portfolio turnover 43% A

Average commission rate G $ .0210

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF
NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D
NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING
THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES
DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN
HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F FMR OR THE
FUND HAS ENTERED INTO
VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A
PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS). G A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY
TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM
PERIOD TO PERIOD AND
FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS
WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS T
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.01)

Net realized and unrealized gain (loss) 1.55

Total from investment operations 1.54

Less Distributions

From net investment income (.01)

In excess of net investment income -

From net realized gain (.08)

Total distributions (.09)

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.45

TOTAL RETURN B, C 15.43%

RATIOS AND SUPPLEMENTAL DATA $ 1,286
Net assets, end of period (000 omitted)

Ratio of expenses to average net assets 2.00% A,
E

Ratio of expenses to average net assets after expense reductions 1.99% A,
F

Ratio of net investment income (loss) to average net assets (.24)%
A

Portfolio turnover 43% A

Average commission rate G $ .0210

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES
TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET
INVESTMENT INCOME (LOSS)
PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING
DURING THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'
EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F FMR
OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED
A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS). G A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY
TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD
TO PERIOD AND
FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS
WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income .01

Net realized and unrealized gain (loss) 1.55

Total from investment operations 1.56

Less Distributions

From net investment income (.01)

In excess of net investment income (.01)

From net realized gain (.08)

Total distributions (.10)

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.46

TOTAL RETURN B, C 15.63%

RATIOS AND SUPPLEMENTAL DATA $ 6,060
Net assets, end of period (000 omitted)

Ratio of expenses to average net assets 1.50% A,
E

Ratio of expenses to average net assets after expense reductions 1.46% A,
F

Ratio of net investment income to average net assets .28% A

Portfolio turnover 43% A

Average commission rate G $ .0210

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES
TO FINANCIAL
STATEMENTS). C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED. D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED
ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A
PORTION OF THE CLASS' EXPENSES DURING THE PERIOD. WITHOUT THIS
REIMBURSEMENT, THE CLASS'
EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS). F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE
5 OF NOTES TO FINANCIAL STATEMENTS). G A FUND IS REQUIRED TO DISCLOSE
ITS AVERAGE COMMISSION
RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED.
THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING
ON THE MIX OF TRADES
EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE
STRUCTURES MAY DIFFER.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1997 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Cyclical Industries Fund (the fund) is a fund of Fidelity
Advisor Series VII (the trust) and is authorized to issue an unlimited
number of shares. The trust is registered under the Investment Company Act
of 1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust.
The fund offers Class A, Class T, and Institutional Class shares, each of
which has equal rights as to assets and voting privileges. Each class has
exclusive voting rights with respect to its distribution plan. Investment
income, realized and unrealized capital gains and losses, redemption fees,
the common expenses of the fund, and certain fund-level expense reductions
are allocated on a pro rata basis to each class based on the relative net
assets of each class to the total net assets of the fund. Each class of
shares differs in its respective distribution, transfer agent,
registration, and certain other class-specific fees, expenses, and expense
reductions.
On November 14, 1996, the Board of Trustees approved the creation of an
additional class of shares, Class B shares. Offering of the new class
commences on March 3, 1997. Class B shares are subject to an annual
distribution and service fee of 1.00% (of which .75% represents a
distribution fee and .25% represents a shareholder service fee) of the
class' average net assets, and a contingent deferred sales charge levied on
Class B share redemptions. This charge is based on a declining scale that
ranges from 5% to 1% on Class B shares redeemed within six years of
purchase.
The financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. Securities for which exchange quotations are not readily
available (and in certain cases debt securities which trade on an exchange)
are valued primarily using dealer-supplied valuations or at their fair
value as determined in good faith under consistently applied procedures
under the general supervision of the Board of Trustees. Short-term
securities with remaining maturities of sixty days or less for which
quotations are not readily available are valued at amortized cost or
original cost plus accrued interest, both of which approximate current
value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Income receipts
and expense payments are translated into U.S. dollars at the prevailing
exchange rate on the
respective dates of the transactions. Purchases and sales of securities are
translated into U.S. dollars at the contractual currency exchange rates
established at the time of each trade.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, and the difference between
the amount of net investment income accrued and the U.S. dollar amount
actually received. The effects of changes in foreign currency exchange
rates on investments in securities are included with the net realized and
unrealized gain or loss on investment securities.
INCOME TAXES. The fund intends to qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code. By so qualifying, the fund
will not be subject to income taxes to the extent that it distributes
substantially all of its taxable income for its fiscal year. The schedule
of investments includes information regarding income taxes under the
caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Non-cash dividends included in dividend income, if any,
are recorded at the fair market value of the securities received. Interest
income is accrued as earned. Investment income is recorded net of foreign
taxes withheld where recovery of such taxes is uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
PREPAID EXPENSES. Fidelity Management & Research Company (FMR) bears all
organizational expenses except for registering and qualifying each class
and shares of each class for distribution under federal and state
securities law. These expenses are borne by each class and amortized over
one year.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date. Income dividends and capital gain distributions are
declared separately for each class.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences may result in distribution reclassifications.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Distributions in excess of net investment income and accumulated
undistributed net realized gain (loss) on investments and foreign currency
transactions may include temporary book and tax basis differences that will
reverse in a subsequent period. Any taxable income or gain remaining at
fiscal year end is distributed in the following year.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
REDEMPTION FEES. Shares held in the fund less than 60 days are subject to a
redemption fee equal to 1% of the proceeds of the redeemed shares. The fee,
which is retained by the fund, is accounted for as an addition to paid in
capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FOREIGN CURRENCY CONTRACTS. The fund generally uses foreign currency
contracts to facilitate transactions in foreign-denominated securities.
Losses may arise from changes in the value of the foreign currency or if
the counterparties do not perform under the contracts' terms. The U.S.
dollar value of foreign currency contracts is determined using contractual
currency exchange rates established at the time of each trade. The cost of
the foreign currency contracts is included in the cost basis of the
associated investment.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission(the SEC), the fund, along with other
affiliated entities of FMR, may transfer uninvested cash balances into one
or more joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
TAXABLE CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by the
SEC, the fund may invest in the Taxable Central Cash Fund (the Cash Fund)
managed by FMR Texas, an affiliate of FMR. The Cash Fund is an open-end
money market fund available only to investment companies and other accounts
managed by FMR and its affiliates. The Cash Fund seeks preservation of
capital, liquidity, and current income by investing in U.S. Treasury
securities and repurchase agreements for these securities, and may be
utilized by the fund as an additional cash management option. Dividends
from the Cash Fund are declared daily and paid monthly from net interest
income. Income distributions received by the fund are recorded as interest
income.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $7,319,971 and $1,050,876, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .2500% to .5200% for the period. In the event that these
rates were lower than the contractual rates in effect during the period,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .30%. For
the period, the management fee was equivalent to an annualized rate of .60%
of average net assets.
DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the 1940
Act, the Trustees have adopted separate distribution plans with respect to
the fund's Class A shares (Class A Plan), Class T shares (Class T Plan),
and Institutional Class shares (collectively referred to as "the Plans").
Under the Class A and Class T Plans, the fund pays Fidelity Distributors
Corporation (FDC), an affiliate of FMR, a distribution and service fee.
This fee is based on annual rates of .25% and .50% of the average net
assets of the Class A and Class T shares, respectively. For the period, the
fund paid FDC $219 and $1,027 under the Class A and Class T Plans, all of
which was paid to securities dealers, banks and other financial
institutions for the distribution of Class A and Class T shares, and
providing shareholder support services.
Under the Plans, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's Class A, Class T,
and Institutional Class shares. The Plans also authorize payments to third
parties that assist in the sale of the fund's shares or render shareholder
support services.
SALES LOAD. FDC receives a front-end sales charge of up to 5.25% and 3.50%
for selling Class A and Class T shares of the fund, respectively.
For the period, FDC received sales charges of $7,176 and $7,260 on sales of
Class A and Class T shares of the fund, of which $4,320 and $4,926 were
paid to securities dealers, banks, and other financial institutions.
TRANSFER AGENT FEES. Fidelity Investments Institutional Operations Company,
Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing,
and shareholder servicing agent for the fund's Class A, Class T and
Institutional Class shares. Prior to January 1, 1997, State Street Bank and
Trust Company acted in that capacity
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
for the fund's Class T shares, and delegated certain of these services to
FIIOC for which FIIOC received its allocable share of all such fees. FIIOC
receives account fees and asset-based fees that vary according to account
size and type of account of the shareholders of the respective classes of
the fund. FIIOC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements. For the period, the transfer
agent fees were equivalent to annualized rates of .62%, .44%, and .15% of
the average net assets of Class A, Class T, and Institutional Class,
respectively.
ACCOUNTING FEES. Fidelity Service Company, Inc. (FSC), an affiliate of FMR,
maintains the fund's accounting records. The fee is based on the level of
average net assets for the month plus out-of-pocket expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $330 for the period.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding interest,
taxes, brokerage commissions and extraordinary expenses) above annual rates
of 1.75%, 2.00%, and 1.50% of average net assets for Class A, Class T, and
Institutional Class, respectively. For the period, the reimbursement
reduced expenses by $13,453, $12,853, and $28,991 for Class A, Class T, and
Institutional Class, respectively.
FMR has also directed certain portfolio trades to brokers who paid a
portion of the fund's expenses. For the period, the fund's expenses were
reduced by $119 under this arrangement.
In addition, the fund has entered into an arrangement with each class'
transfer agent whereby interest earned on uninvested cash balances was used
to offset a portion of expenses. During the period, Institutional Class
expenses were reduced by $647 under the transfer agent arrangements.
6. BENEFICIAL INTEREST.
At the end of the period, FMR and its affiliates were record owners of
approximately 15.2% of the total outstanding shares of the fund. In
addition, one unaffiliated shareholder was record owner of more than 10% of
the total outstanding shares of the fund, totaling 67.1%.
7. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:
SHARES DOLLARS

PERIOD ENDED PERIOD ENDED
JANUARY 31, JANUARY 31,

1997 A 1997 A

CLASS A 25,653 $ 267,356
Shares sold

Reinvestment of distributions 169 1,885

Shares redeemed (2,318) (26,106)

Redemption fees - 43

Net increase (decrease) 23,504 $ 243,178

CLASS T 112,600 $ 1,241,366
Shares sold

Reinvestment of distributions 440 4,903

Shares redeemed (706) (7,967)

Redemption fees - 60

Net increase (decrease) 112,334 $ 1,238,362

INSTITUTIONAL CLASS 552,969 $ 5,677,168
Shares sold

Reinvestment of distributions 4,432 49,421

Shares redeemed (28,763) (315,638)

Redemption fees - 1,071

Net increase (decrease) 528,638 $ 5,412,022

A SHARE TRANSACTIONS FOR EACH CLASS ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO JANUARY 31, 1997.
ADVISOR FINANCIAL SERVICES FUND - CLASS A
PERFORMANCE AND INVESTMENT SUMMARY

FINANCIAL SERVICES - CLASS A 23.41%

FINANCIAL SERVICES - CLASS A 16.93%
(INCL. 5.25% SALES CHARGE)

S&P 500 21.57%

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970213 151852 S00000000000001
FA Financial Serv -CL A SP Standard & Poor 500
00183 SP001
1996/09/03 9475.00 10000.00
1996/09/30 10062.45 10561.42
1996/10/31 10602.53 10852.70
1996/11/30 11445.80 11673.05
1996/12/31 11104.41 11441.81
1997/01/31 11692.85 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970213 151853 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Financial Services - Class A on September 3, 1996, when the fund started,
and the current maximum 5.25% sales charge was paid. As the chart shows, by
January 31, 1997, the value of the investment would have grown to $11,693 -
a 16.93% increase on the initial investment. For comparison, look at how
the S&P 500 did over the same period. With dividends and capital gains, if
any, reinvested, the same $10,000 investment would have grown to $12,157 -
a 21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

American Express Co. 6.5

Citicorp 5.8

Household International, Inc. 5.5

BankAmerica Corp. 5.1

Wachovia Corp. 5.1

Barnett Banks, Inc. 5.1

First Chicago NBD Corp. 4.9

Allstate Corp. 4.9

Capital One Financial Corp. 4.6

National City Corp. 4.2

TOP INDUSTRIES AS OF JANUARY 31, 1997
National Commercial
Banks 32.6%
Personal Credit
Institutions 16.5%
Financial Services 11.8%
Property-Casualty &
Reinsurance 7.7%
Federal & Federally Sponsored
Credit Agencies 5.4%
All Others 26.0%*
Row: 1, Col: 1, Value: 26.0
Row: 1, Col: 2, Value: 5.4
Row: 1, Col: 3, Value: 7.7
Row: 1, Col: 4, Value: 11.8
Row: 1, Col: 5, Value: 16.5
Row: 1, Col: 6, Value: 32.6
* INCLUDES SHORT-TERM INVESTMENTS
% OF FUND'S INVESTMENTS
ADVISOR FINANCIAL SERVICES FUND - CLASS T
PERFORMANCE AND INVESTMENT SUMMARY

FINANCIAL SERVICES - CLASS T 23.21%

FINANCIAL SERVICES - CLASS T 18.90%
(INCL. 3.50% SALES CHARGE)

S&P 500 21.57%

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970213 152317 S00000000000001
FA Financial Serv -CL T SP Standard & Poor 500
00193 SP001
1996/09/03 9650.00 10000.00
1996/09/30 10238.65 10561.42
1996/10/31 10788.70 10852.70
1996/11/30 11647.55 11673.05
1996/12/31 11299.87 11441.81
1997/01/31 11889.52 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970213 152318 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Financial Services - Class T on September 3, 1996, when the fund started,
and the current maximum 3.50% sales charge was paid. As the chart shows, by
January 31, 1997, the value of the investment would have grown to $11,890 -
an 18.90% increase on the initial investment. For comparison, look at how
the S&P 500 did over the same period. With dividends and capital gains, if
any, reinvested, the same $10,000 investment would have grown to $12,157 -
a 21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

American Express Co. 6.5

Citicorp 5.8

Household International, Inc. 5.5

BankAmerica Corp. 5.1

Wachovia Corp. 5.1

Barnett Banks, Inc. 5.1

First Chicago NBD Corp. 4.9

Allstate Corp. 4.9

Capital One Financial Corp. 4.6

National City Corp. 4.2

An interview with
Louis Salemy, Portfolio Manager of Fidelity Advisor Financial Services Fund
Q. LOUIS, HOW DID THE FUND PERFORM?
A. The fund did very well. While we typically look at performance over six-
and 12-month increments, this fund began on September 3, 1996. From that
date through January 31, 1997, the fund's Class A and Class T shares
produced returns of 23.41% and 23.21%, respectively. The Standard & Poor's
500 Index had a return of 21.57% over the same period.
Q. IT WAS A STRONG PERIOD FOR FINANCE-RELATED STOCKS. WHAT FACTORS WERE
CONDUCIVE TO THIS PERFORMANCE?
A. The main factor I'd point to was the friendly investing environment. The
interest rate situation stayed fairly moderate throughout the period -
rates weren't going down and they're weren't going up. This climate
typically leads to strong performance in the finance area. Additionally,
there was a decent amount of takeover activity going on, and the market
reacted favorably to that.
Q. WHY WERE COMPANIES ENGAGING IN THIS TYPE OF ACTIVITY, AND WHY DOES THE
MARKET LIKE TAKEOVERS?
A. In an economy like we've seen, scale becomes an overriding factor. By
that, I mean companies are of the mindset that bigger is better. Companies
also needed to become more competitive; if a company was to run its
business on a daily basis without doing anything proactively, its returns
would most likely be on the down slope. In seeking to get a competitive
edge, the bigger is better mentality took shape. To answer the second part
of the question, the market thinks highly of takeovers because they can
frequently be a win-win situation. Not only does the acquiring company's
stock tend to rise, but so does the stock of the company being acquired.
Q. VALUATIONS SEEMED TO BE PARTICULARLY HIGH DURING THE PERIOD. CAN YOU
SPEAK TO THAT?
A. Stocks were really expensive, and this was true of the overall market.
In that kind of environment, I try to consider the share price relative to
where the market is. On an absolute basis, I've never seen such high
valuation levels. In selecting stocks for the fund, I'm willing to pay a
higher price, but I need to see positive future return prospects.
Q. WITHIN THE FINANCE SECTOR, BANKS PERFORMED QUITE WELL. WHAT WAS GOING ON
IN THIS AREA?
A. The market didn't really differentiate between the regional banks and
the money-center banks. Overall, the performance of the
larger-capitalization banks exceeded that of the smaller caps. The fund had
more of a bias toward the large-cap banks, which worked in my favor. When
looking at bank stocks, I tend to gravitate toward the ones that are taking
proactive steps to improve their business. During the period, the larger
banks fell into this category more so than their smaller counterparts.
Q. HOW ABOUT THE INSURANCE AND CREDIT CARD SECTORS?
A. The same environment that was beneficial to bank stocks was negative for
insurance-related stocks, as negative pricing trends took hold. Overall,
insurance stocks were the weakest performing group in the finance industry.
Credit card stocks, on the other hand, went through some consolidation.
First USA, for example, was acquired by BankOne in a fairly significant
deal involving two of the fund's positions. A high level of consumer debt,
however, kept the credit card group from performing extremely well.
Q. FROM AN INDIVIDUAL INVESTMENT STANDPOINT, WHICH STOCKS PERFORMED WELL?
WHICH WOULD YOU CATEGORIZE AS DISAPPOINTMENTS?
A. American Express was a very solid contributor to the fund's returns.
There was some speculation during the period that American Express was
going to merge with Citicorp and this may have fueled an uptick in the
share price. American Express also had strong earnings growth, which the
market finally recognized. Household International, a consumer credit
company, also performed well on the heels of new management and a more
proactive business approach. In terms of disappointments, I could have
owned more bigger-cap regional banks, but valuations and my perceptions of
their fundamental characteristics kept me conservative. Mercury Finance, a
consumer credit company that the fund no longer owns, ran into accounting
problems and hurt the fund somewhat.
Q. WHAT'S YOUR OUTLOOK?
A. I'll continue to seek out stocks of companies that are willing to take a
proactive approach to increase their returns. If interest rates were to
rise and credit losses increased, this would have a negative effect on the
finance sector as a whole.

FUND FACTS
START DATE: September 3, 1996
SIZE: as of January 31, 1997, more than
$6 million
MANAGER: Paul Antico, since January 1997;
joined Fidelity in 1991
(checkmark)
ADVISOR FINANCIAL SERVICES FUND
INVESTMENTS JANUARY 31, 1997 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 92.3%
SHARES VALUE (NOTE 1)
BANKS - 37.8%
NATIONAL COMMERCIAL BANKS - 32.6%
Bank of New York Co., Inc. 23,880 $ 874,603
BankAmerica Corp. 10,000 1,116,250
Capital One Financial Corp. 25,000 1,000,000
Citicorp 10,865 1,264,414
Fleet Financial Group, Inc. 9,300 502,200
National City Corp. 19,870 901,601
NationsBank Corp. 530 57,240
U.S. Bancorp 5,000 227,813
Wachovia Corp. 19,105 1,100,926
Zions Bancorp 300 34,650
7,079,697
STATE BANKS FEDERAL RESERVE - 5.2%
Barnett Banks, Inc. 25,000 1,100,000
Crestar Financial Corp. 450 15,525
1,115,525
TOTAL BANKS 8,195,222
CREDIT & OTHER FINANCE - 28.9%
FINANCIAL SERVICES - 11.8%
American Express Co. 22,600 1,409,675
Finova Group, Inc. 280 20,160
First Chicago NBD Corp. 18,770 1,072,236
First USA, Inc. 560 28,350
Transamerica Corp. 400 32,900
2,563,321
MORTGAGE BANKERS - 0.6%
Green Tree Financial Corp. 3,035 117,986
PERSONAL CREDIT INSTITUTIONS - 16.5%
Associates First Capital Corp. 14,900 724,513
Beneficial Corp. 11,800 793,550
Household International, Inc. 12,080 1,197,430
MBNA Corp. 25,000 862,500
3,577,993
TOTAL CREDIT & OTHER FINANCE 6,259,300
FEDERAL SPONSORED CREDIT - 5.4%
FEDERAL & FEDERALLY SPONSORED CREDIT AGENCIES - 5.4%
Federal Home Loan Mortgage
Corporation 5,720 173,030
Federal National Mortgage Association 6,235 246,283
Student Loan Marketing Association 7,000 762,125
1,181,438
INSURANCE - 16.6%
ACCIDENT & HEALTH INSURANCE - 0.5%
Provident Companies, Inc. 2,250 110,531
INSURANCE BROKERS & SERVICES - 0.5%
ITT Hartford Group, Inc. 1,600 117,400
INSURANCE CARRIERS - 3.0%
AFLAC, Inc. 2,200 87,725
AMBAC, Inc. 5,800 388,600
MGIC Investment Corp. 2,200 162,250
638,575
LIFE INSURANCE - 4.5%
American Bankers Insurance Group, Inc. 2,600 144,300
Aon Corp. 2,000 129,250
Penncorp. Financial Group, Inc. 1,425 52,191
Providian Corp. 5,305 285,807

SHARES VALUE (NOTE 1)
UICI (a) 1,600 $ 47,800
UNUM Corp. 4,200 317,625
976,973
MULTI-LINE INSURANCE - 0.4%
Aetna, Inc. 600 47,400
CIGNA Corp. 200 30,325
77,725
PROPERTY-CASUALTY & REINSURANCE - 7.7%
Allstate Corp. 16,085 1,057,589
American International Group, Inc. 3,080 373,065
Berkley (W.R.) Corp. 2,000 96,500
Progressive Corp. 2,200 146,025
1,673,179
TOTAL INSURANCE 3,594,383
REAL ESTATE INVESTMENT TRUSTS - 1.1%
IRT Property Co. 20,000 240,000
SECURITIES INDUSTRY - 2.5%
SECURITY & COMMODITY BROKERS - 0.8%
Legg Mason, Inc. 2,500 113,125
Merrill Lynch & Co., Inc. 380 32,015
Morgan Stanley Group, Inc. 400 22,850
167,990
SECURITY BROKERS & DEALERS - 1.7%
Lehman Brothers Holdings, Inc. 12,000 379,500
TOTAL SECURITIES INDUSTRY 547,490
TOTAL COMMON STOCKS
(Cost $18,481,562) 20,017,833
CASH EQUIVALENTS - 7.7%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.55%, dated
1/31/97 due 2/3/97 $ 200,093 200,000

Taxable Central Cash Fund (b) 1,466,984 1,466,984
TOTAL CASH EQUIVALENTS
(Cost $1,666,984) 1,666,984
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $20,148,546) $ 21,684,817
LEGEND
1. Non-income producing
2. At period end, the seven-day yield on the Taxable Central Cash Fund was
5.39%. The yield refers to the income earned by investing in the fund over
the seven-day period, expressed as an annual percentage.
INCOME TAX INFORMATION
At January 31, 1997, the aggregate cost of investment securities for income
tax purposes was $20,148,546. Net unrealized appreciation aggregated
$1,536,271, of which $1,574,423 related to appreciated investment
securities and $38,152 related to depreciated investment securities.
ADVISOR FINANCIAL SERVICES FUND
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1997 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase agreements of $200,000) (cost $20,148,546) - See $ 21,684,817
accompanying schedule

Cash 397

Receivable for investments sold 834,757

Receivable for fund shares sold 439,124

Dividends receivable 26,364

Interest receivable 8,362

Prepaid expenses 34,673

Receivable from investment adviser for expense reductions 9,300

TOTAL ASSETS 23,037,794

LIABILITIES

Payable for investments purchased $ 327,798

Payable for fund shares redeemed 12,985

Distribution fees payable 7,041

Other payables and accrued expenses 19,863

TOTAL LIABILITIES 367,687

NET ASSETS $ 22,670,107

Net Assets consist of:

Paid in capital $ 21,091,993

Undistributed net investment income 2,554

Accumulated undistributed net realized gain (loss) on investments 39,289

Net unrealized appreciation (depreciation) on investments 1,536,271

NET ASSETS $ 22,670,107

CALCULATION OF MAXIMUM $12.32
OFFERING PRICE
CLASS A:
NET ASSET VALUE and redemption
price per share ($2,894,798 (divided by)
234,983 shares)

Maximum offering price per share $13.00
(100/94.75 of $12.32)

CLASS T: $12.30
NET ASSET VALUE and redemption
price per share ($18,681,135 (divided by)
1,519,078 shares)

Maximum offering price per share $12.75
(100/96.50 of $12.30)

INSTITUTIONAL CLASS: $12.32
NET ASSET VALUE, offering price
and redemption price per share
($1,094,174 (divided by) 88,835 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SEPTEMBER 3, 1996 (COMMENCEMENT OF OPERATIONS) TO
JANUARY 31, 1997 (UNAUDITED)

INVESTMENT INCOME $ 66,923
Dividends

Interest 29,295

TOTAL INCOME 96,218

EXPENSES

Management fee $ 24,665

Transfer agent fees 1,738
Class A

Class T 9,552

Institutional Class 850

Distribution fees 1,307
Class A

Class T 15,918

Accounting fees and expenses 25,000

Non-interested trustees' compensation 12

Custodian fees and expenses 6,250

Registration fees 12,596
Class A

Class T 10,747

Institutional Class 10,880

Audit 7,567

Legal 637

Total expenses before reductions 127,719

Expense reductions (48,745 78,974
)

NET INVESTMENT INCOME 17,244

REALIZED AND UNREALIZED GAIN (LOSS) 53,131
Net realized gain (loss) on
investment securities

Change in net unrealized appreciation (depreciation) on investment securities 1,536,271

NET GAIN (LOSS) 1,589,402

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 1,606,646

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
Operations $ 17,244
Net investment income

Net realized gain (loss) 53,131

Change in net unrealized appreciation (depreciation) 1,536,271

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 1,606,646

Distributions to shareholders (1,792)
From net investment income
Class A

Class T (11,201)

Institutional Class (1,697)

From net realized gain (1,792)
Class A

Class T (11,201)

Institutional Class (849)

TOTAL DISTRIBUTIONS (28,532)

Share transactions - net increase (decrease) 21,091,993

TOTAL INCREASE (DECREASE) IN NET ASSETS 22,670,107

NET ASSETS

Beginning of period -

End of period (including undistributed net investment income of $2,554) $ 22,670,107

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income .03

Net realized and unrealized gain (loss) 2.31

Total from investment operations 2.34

Less Distributions

From net investment income (.01)

From net realized gain (.01)

Total distributions (.02)

Redemption fees added to paid in capital -

Net asset value, end of period $ 12.32

TOTAL RETURN B, C 23.41%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 2,895

Ratio of expenses to average net assets 1.75% A
, E

Ratio of expenses to average net assets after expense reductions 1.73% A
, F

Ratio of net investment income to average net assets .59% A

Portfolio turnover 123% A

Average commission rate G $ .0333

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES
TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET
INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE
PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES
DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN
HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F FMR OR THE FUND
HAS ENTERED INTO
VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A
PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS). G A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY
TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM
PERIOD TO PERIOD AND
FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS
WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS T
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income .02

Net realized and unrealized gain (loss) 2.30

Total from investment operations 2.32

Less Distributions

From net investment income (.01)

From net realized gain (.01)

Total distributions (.02)

Redemption fees added to paid in capital -

Net asset value, end of period $ 12.30

TOTAL RETURN B, C 23.21%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 18,681

Ratio of expenses to average net assets 2.00% A,
E

Ratio of expenses to average net assets after expense reductions 1.98% A,
F

Ratio of net investment income to average net assets .34% A

Portfolio turnover 123% A

Average commission rate G $ .0333

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES
TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET
INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING
THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES
DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN
HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F FMR OR THE FUND
HAS ENTERED INTO
VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A
PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS). G A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY
FROM PERIOD TO PERIOD AND
FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS
WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income .04

Net realized and unrealized gain (loss) 2.31

Total from investment operations 2.35

Less Distributions

From net investment income (.02)

From net realized gain (.01)

Total distributions (.03)

Redemption fees added to paid in capital -

Net asset value, end of period $ 12.32

TOTAL RETURN B, C 23.51%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 1,094

Ratio of expenses to average net assets 1.50% A,
E

Ratio of expenses to average net assets after expense reductions 1.49% A,
F

Ratio of net investment income to average net assets .83% A

Portfolio turnover 123% A

Average commission rate G $ .0333

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES
TO FINANCIAL
STATEMENTS). C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED. D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED
ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION
OF THE CLASS' EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'
EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS). F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5
OF NOTES TO FINANCIAL STATEMENTS).
G A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO
PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1997 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Financial Services Fund (the fund) is a fund of Fidelity
Advisor Series VII (the trust) and is authorized to issue an unlimited
number of shares. The trust is registered under the Investment Company Act
of 1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust.
The fund offers Class A, Class T, and Institutional Class shares, each of
which has equal rights as to assets and voting privileges. Each class has
exclusive voting rights with respect to its distribution plan. Investment
income, realized and unrealized capital gains and losses, redemption fees,
the common expenses of the fund, and certain fund-level expense reductions
are allocated on a pro rata basis to each class based on the relative net
assets of each class to the total net assets of the fund. Each class of
shares differs in its respective distribution, transfer agent,
registration, and certain other class-specific fees, expenses, and expense
reductions.
On November 14, 1996, the Board of Trustees approved the creation of an
additional class of shares, Class B shares. Offering of the new class
commences on March 3, 1997. Class B shares are subject to an annual
distribution and service fee of 1.00% (of which .75% represents a
distribution fee and .25% represents a shareholder service fee) of the
class' average net assets, and a contingent deferred sales charge levied on
Class B share redemptions. This charge is based on a declining scale that
ranges from 5% to 1% on Class B shares redeemed within six years of
purchase.
The financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. Securities for which exchange quotations are not readily
available (and in certain cases debt securities which trade on an exchange)
are valued primarily using dealer-supplied valuations or at their fair
value as determined in good faith under consistently applied procedures
under the general supervision of the Board of Trustees. Short-term
securities with remaining maturities of sixty days or less for which
quotations are not readily available are valued at amortized cost or
original cost plus accrued interest, both of which approximate current
value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Income receipts
and expense payments are translated into U.S. dollars at the prevailing
exchange rate on the respective dates of the transactions. Purchases and
sales of securities are translated into U.S. dollars at the contractual
currency exchange rates established at the time of each trade.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, and the difference between
the amount of net investment income accrued and the U.S. dollar amount
actually received. The effects of changes in foreign currency exchange
rates on investments in securities are included with the net realized and
unrealized gain or loss on investment securities.
INCOME TAXES. The fund intends to qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code. By so qualifying, the fund
will not be subject to income taxes to the extent that it distributes
substantially all of its taxable income for its fiscal year. The schedule
of investments includes information regarding income taxes under the
caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Non-cash dividends included in dividend income, if any,
are recorded at the fair market value of the securities received. Interest
income is accrued as earned. Investment income is recorded net of foreign
taxes withheld where recovery of such taxes is uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
PREPAID EXPENSES. Fidelity Management & Research Company (FMR) bears all
organizational expenses except for registering and qualifying each class
and shares of each class for distribution under federal and state
securities law. These expenses are borne by each class and amortized over
one year.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date. Income dividends and capital gain distributions are
declared separately for each class.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences may result in distribution reclassifications.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income and accumulated undistributed net
realized gain (loss) on investments may include temporary book and tax
basis differences which will reverse in a subsequent period. Any taxable
income or gain remaining at fiscal year end is distributed in the following
year.
REDEMPTION FEES. Shares held in the fund less than 60 days are subject to a
redemption fee equal to 1% of the proceeds of the redeemed shares. The fee,
which is retained by the fund, is accounted for as an addition to paid in
capital.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FOREIGN CURRENCY CONTRACTS. The fund generally uses foreign currency
contracts to facilitate transactions in foreign-denominated securities.
Losses may arise from changes in the value of the foreign currency or if
the counterparties do not perform under the contracts' terms. The U.S.
dollar value of foreign currency contracts is determined using contractual
currency exchange rates established at the time of each trade. The cost of
the foreign currency contracts is included in the cost basis of the
associated investment.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission(the SEC), the fund, along with other
affiliated entities of FMR, may transfer uninvested cash balances into one
or more joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
TAXABLE CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by the
SEC, the fund may invest in the Taxable Central Cash Fund (the Cash Fund)
managed by FMR Texas, an affiliate of FMR. The Cash Fund is an open-end
money market fund available only to investment companies and other accounts
managed by FMR and its affiliates. The Cash Fund seeks preservation of
capital, liquidity, and current income by investing in U.S. Treasury
securities and repurchase agreements for these securities, and may be
utilized by the fund as an additional cash management option. Dividends
from the Cash Fund are declared daily and paid monthly from net interest
income. Income distributions received by the fund are recorded as interest
income.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $23,885,180 and $5,456,749, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .2500% to .5200% for the period. In the event that these
rates were lower than the contractual rates in effect during the period,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .30%. For
the period, the management fee was equivalent to an annualized rate of .60%
of average net assets.
DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the 1940
Act, the Trustees have adopted separate distribution plans with respect to
the fund's Class A shares (Class A Plan), Class T shares (Class T Plan),
and Institutional Class shares (collectively referred to as "the Plans").
Under the Class A and Class T Plans, the fund pays Fidelity Distributors
Corporation (FDC), an affiliate of FMR, a distribution and service fee.
This fee is based on annual rates of .25% and .50% of the average net
assets of the Class A and Class T shares, respectively. For the period, the
fund paid FDC $1,307 and $15,918 under the Class A and Class T Plans, all
of which was paid to securities dealers, banks and other financial
institutions for the distribution of Class A and Class T shares, and
providing shareholder support services.
Under the Plans, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's Class A, Class T,
and Institutional Class shares. The Plans also authorize payments to third
parties that assist in the sale of the fund's shares or render shareholder
support services.
SALES LOAD. FDC receives a front-end sales charge of up to 5.25% and 3.50%
for selling Class A and Class T shares of the fund, respectively.
For the period, FDC received sales charges of $63,381 and $144,481 on sales
of Class A and Class T shares of the fund, of which $50,686 and $115,237
were paid to securities dealers, banks, and other financial institutions.
TRANSFER AGENT FEES. Fidelity Investments Institutional Operations Company,
Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing,
and shareholder servicing agent for the fund's Class A, Class T and
Institutional Class shares. Prior to January 1, 1997, State Street Bank and
Trust Company acted in that capacity for the fund's Class T shares, and
delegated certain of these services to FIIOC for which FIIOC received its
allocable share of all such fees. FIIOC receives account fees and
asset-based fees that vary according to account size and type of account of
the shareholders of the respective classes of the fund. FIIOC pays for
typesetting, printing and mailing of all shareholder reports, except proxy
statements. For the period, the transfer agent fees were equivalent to
annualized rates of .33%, .30%, and .22% of the average net assets of Class
A, Class T, and Institutional Class, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
ACCOUNTING FEES. Fidelity Service Company, Inc. (FSC), an affiliate of FMR,
maintains the fund's accounting records. The fee is based on the level of
average net assets for the month plus out-of-pocket expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $3,151 for the period.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding interest,
taxes, brokerage commissions and extraordinary expenses) above annual rates
of 1.75%, 2.00%, and 1.50% of
average net assets for Class A, Class T, and Institutional Class,
respectively. For the period, the reimbursement reduced expenses by
$14,441, $20,742, and $12,871 for Class A, Class T, and Institutional
Class, respectively.
FMR has also directed certain portfolio trades to brokers who paid a
portion of the fund's expenses. For the period, the fund's expenses were
reduced by $662 under this arrangement.
In addition, the fund has entered into an arrangement with its custodian
whereby interest earned on uninvested cash balances was used to offset a
portion of expenses. During the period, the fund's custodian fees were
reduced by $29 under the custodian arrangement.
6. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:
SHARES DOLLARS

PERIOD ENDED PERIOD ENDED
JANUARY 31, JANUARY 31,

1997 A 1997 A

CLASS A 237,768 $ 2,717,399
Shares sold

Reinvestment of distributions 294 3,494

Shares redeemed (3,079) (36,172)

Redemption fees - 169

Net increase (decrease) 234,983 $ 2,684,890

CLASS T 1,550,762 $ 17,878,856
Shares sold

Reinvestment of distributions 1,650 19,567

Shares redeemed (33,334) (393,884)

Redemption fees - 1,029

Net increase (decrease) 1,519,078 $ 17,505,568

INSTITUTIONAL CLASS 88,621 $ 898,921
Shares sold

Reinvestment of distributions 214 2,546

Shares redeemed - -

Redemption fees - 68

Net increase (decrease) 88,835 $ 901,535

A SHARE TRANSACTIONS FOR EACH CLASS ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO JANUARY 31, 1997.
ADVISOR HEALTH CARE FUND - CLASS A
PERFORMANCE AND INVESTMENT SUMMARY

HEALTH CARE - CLASS A 17.00%

HEALTH CARE - CLASS A 10.86%
(INCL. 5.25% SALES CHARGE)

S&P 500 21.57%

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970212 150112 S00000000000001
FA Health Care -CL A SP Standard & Poor 500
00177 SP001
1996/09/03 9475.00 10000.00
1996/09/30 10109.83 10561.42
1996/10/31 9882.43 10852.70
1996/11/30 10384.60 11673.05
1996/12/31 10450.93 11441.81
1997/01/31 11085.75 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970212 150114 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Health Care - Class A on September 3, 1996, when the fund started, and the
current maximum 5.25% sales charge was paid. As the chart shows, by January
31, 1997, the value of the investment would have grown to $11,086 - a
10.86% increase on the initial investment. For comparison, look at how the
S&P 500 did over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $12,157 - a
21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

Schering-Plough Corp. 6.7

Pfizer, Inc. 6.5

Bristol-Myers Squibb Co. 5.3

Merck & Co., Inc. 5.0

Warner-Lambert Co. 4.9

American Home Products Corp. 4.4

Johnson & Johnson 3.6

SmithKline Beecham PLC ADR 2.8

Abbott Laboratories 2.3

Lilly (Eli) & Co. 2.0

TOP INDUSTRIES AS OF JANUARY 31, 1997
Drugs 44.4%
Medical Supplies &
Appliances 11.4%
Medical Technology 8.7%
Pharmaceutical Preparations 5.4%
Hospitals 5.4%
All Others 24.7%*
Row: 1, Col: 1, Value: 24.7
Row: 1, Col: 2, Value: 5.4
Row: 1, Col: 3, Value: 5.4
Row: 1, Col: 4, Value: 8.699999999999999
Row: 1, Col: 5, Value: 11.4
Row: 1, Col: 6, Value: 44.4
* INCLUDES SHORT-TERM INVESTMENTS
% OF FUND'S INVESTMENTS
ADVISOR HEALTH CARE FUND - CLASS T
PERFORMANCE AND INVESTMENT SUMMARY

HEALTH CARE - CLASS T 16.80%

HEALTH CARE - CLASS T 12.71%
(INCL. 3.50% SALES CHARGE)

S&P 500 21.57%

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970212 160849 S00000000000001
FA Health Care -CL T SP Standard & Poor 500
00191 SP001
1996/09/03 9650.00 10000.00
1996/09/30 10286.90 10561.42
1996/10/31 10055.30 10852.70
1996/11/30 10566.75 11673.05
1996/12/31 10624.65 11441.81
1997/01/31 11271.20 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970212 160851 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Health Care - Class T on September 3, 1996, when the fund started, and the
current maximum 3.50% sales charge was paid. As the chart shows, by January
31, 1997, the value of the investment would have grown to $11,271 - a
12.71% increase on the initial investment. For comparison, look at how the
S&P 500 did over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $12,157 - a
21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

Schering-Plough Corp. 6.7

Pfizer, Inc. 6.5

Bristol-Myers Squibb Co. 5.3

Merck & Co., Inc. 5.0

Warner-Lambert Co. 4.9

American Home Products Corp. 4.4

Johnson & Johnson 3.6

SmithKline Beecham PLC ADR 2.8

Abbott Laboratories 2.3

Lilly (Eli) & Co. 2.0

An interview with
Karen Firestone, Portfolio Manager of Fidelity Advisor Health Care Fund
Q. KAREN, HOW DID THE FUND PERFORM?
A. For the period from September 3, 1996 - when the fund started - through
January 31, 1997, the fund's Class A shares returned 17.00% and its Class T
shares returned 16.80%. By comparison, the Standard & Poor's 500 Index
returned 21.57% over the same period.
Q. WHY DID THE FUND UNDERPERFORM THE S&P 500 INDEX?
A. There were several general reasons. While health care companies showed
solid growth and steady profits during the period, they certainly did not
perform as well as technology stocks, which led the market and made up a
notable part of the index. I did try to take advantage of the technology
trend by buying some medical equipment and supplies companies, which make
products such as defibrillators and pacemakers. However, these companies
underperformed the overall health care sector. The index also benefited
from holding cyclical stocks - those that tend to perform well when the
market is strong. These stocks turned in solid performances over the
period. Health care companies are not considered cyclicals since people
need health care all the time, not just when the economy is up.
Q. WERE THERE REASONS THAT WERE MORE SPECIFIC TO THE FUND ITSELF?
A. Yes. As I mentioned, medical equipment and supplies companies - which
made up about 25% of the fund - underperformed. The most notable
underperformer was St. Jude Medical, a fairly heavy holding of the fund
during the period. St. Jude fell on rough times soon after it acquired a
company called Ventrotechs. That's because Ventrotechs almost immediately
announced that two patients who used its cardiac device had died. Another
company, Medtronic, the leading defibrillator company, slowed in 1996 when
the demand for medical equipment and supplies lessened somewhat. Notably,
when I purchased these companies, their pricing was attractive and they
looked like a solid value. I also should point out that HMOs were weak
performers during most of the period, and hospitals underperformed
throughout 1996.
Q. BY FAR THE PRIMARY FOCUS OF THE FUND WAS DRUG STOCKS, WHICH MADE UP
ABOUT 44% OF ITS HOLDINGS AT THE END OF THE PERIOD. WHAT MADE THEM SO
ATTRACTIVE?
A. Drugs or pharmaceuticals turned in a fabulous performance in terms of
revenue growth and earnings growth over the period, and they are expected
to do well in the upcoming year. Schering-Plough, the fund's top holding at
the end of the period, was a real growth machine and is one of the few true
acquisition targets in the industry. It had superb financial controls,
strong management and was selling at a P/E multiple below other drug
companies during the period. Schering turned in its strong performance
largely because of Claritin, the company's billion dollar antihistamine.
Now with its rival Seldane being pulled, expectations are that Claritin
will become the popular replacement drug. Another top 10 stock during the
period, Warner-Lambert, also had two hot new drugs: Lipitor, which helps
lower cholesterol, and a new diabetes drug, Rezulin.
Q. IF DRUG STOCKS WERE PERFORMING SO WELL, WHY DIDN'T YOU OWN MORE OF THEM?
A. That's a good question. Basically, I thought it was too risky to own
more. That's because if the fund had a bigger weighting in pharmaceuticals
and the bet didn't work, the fund's shareholders could have really been
whipsawed. Having a heavier weighting means that I would have had about 50%
of the fund in a handful of big names. If there had been a disappointment,
the fund could have lost 20% of its value in a holding that represented 5%
of the fund's total investments. Clearly, this point is hard to see when
the stocks are going up, but it's very easy to see when they're going down.
I suppose I could have owned more small positions in drug companies to
increase my overall pharmaceutical holdings, but if that was the wrong bet
and the HMOs or hospitals had taken off instead, I would have missed out on
a whole sector of health care.
Q. HOW DOES THE FUND LOOK GOING FORWARD?
A. I think health care is a good place to be right now. There's a lot of
uncertainty in both the economy and the market, and it's not clear where
interest rates are going. I will stick to my approach of trying to buy
companies that have strong sales and earnings momentum. This market pays
for momentum. The stocks that tend to look good going forward are those
that have proven themselves winners in the past. I'll also continue to look
for smaller and newer companies with great product potential.

FUND FACTS
START DATE: September 3, 1996
SIZE: as of January 31, 1997, more than
$6 million
MANAGER: Paul Antico, since January 1997;
joined Fidelity in 1991
(checkmark)
ADVISOR HEALTH CARE FUND
INVESTMENTS JANUARY 31, 1997 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 91.4%
SHARES VALUE (NOTE 1)
CHEMICALS & PLASTICS - 0.9%
CHEMICALS - 0.9%
Hoechst AG Ord. 4,800 $ 201,396
COMPUTER SERVICES & SOFTWARE - 0.1%
CAD/CAM/CAE - 0.1%
Healthdyne Information Enterprises,
Inc. (a) 2,000 12,000
DRUGS & PHARMACEUTICALS - 54.7%
BIOTECHNOLOGY - 4.0%
Alkermes, Inc. (a) 3,600 83,700
Amgen, Inc. (a) 4,800 270,600
Elf Sanofi SA 1,100 110,348
Genentech, Inc. special (a) 3,600 197,550
Human Genome Sciences, Inc. (a) 1,800 82,800
Idexx Laboratories, Inc. (a) 2,700 87,750
Interneuron Pharmaceuticals, Inc. (a) 1,800 53,550
Regeneron Pharmaceuticals, Inc. (a) 1,900 18,525
Sequana Therapeutics, Inc. (a) 1,000 15,500
920,323
COMMERCIAL LABORATORY RESEARCH - 0.9%
Arqule, Inc. 2,800 62,300
INCYTE Pharmaceuticals, Inc. (a) 1,300 86,450
Millennium Pharmaceuticals, Inc. (a) 3,700 71,688
220,438
DRUGS - 44.4%
Allergan, Inc. 2,600 91,975
ALZA Corp. Class A (a) 2,600 75,075
American Home Products Corp. 16,100 1,020,338
Barr Laboratories, Inc. (a) 5,300 185,500
Bristol-Myers Squibb Co. 9,800 1,244,600
Dura Pharmaceuticals, Inc. (a) 2,200 92,400
Elan Corp. PLC ADR (a) 3,600 138,600
Glaxo Holdings PLC 3,200 51,213
Glaxo PLC sponsored ADR 4,600 146,625
Lilly (Eli) & Co. 5,400 470,475
Merck & Co., Inc. 12,800 1,161,600
Mylan Laboratories, Inc. 5,500 90,063
Novo-Nordisk AS Class B 1,500 139,238
Pfizer, Inc. 16,300 1,513,863
Roche Holding AG participation
certificates 30 263,256
Schering-Plough Corp. 20,500 1,550,313
SmithKline Beecham PLC ADR 9,000 650,250
Takeda Chemical Industries Ltd. 6,000 118,093
Warner-Lambert Co. 14,300 1,151,150
Watson Pharmaceuticals, Inc. (a) 2,500 112,031
Yamanouchi Pharmaceutical Co. Ltd. (a) 4,000 74,776
10,341,434
PHARMACEUTICAL PREPARATIONS - 5.4%
Alpharma, Inc. Class A 6,000 78,750
Andrx Corp. 4,600 87,400
Arris Pharmaceutical Corp. (a) 4,000 53,500
Astra AB Class A Free shares 9,100 433,641
Inhale Therapeutic Systems (a) 300 5,625
Ligand Pharmaceuticals, Inc. Class B (a) 6,200 86,025
Novartis AG (Reg.) (a) 287 328,340
Rhone Poulenc Rorer, Inc. 1,100 82,775
Zeneca Group PLC Ord. 3,900 112,710
1,268,766
TOTAL DRUGS & PHARMACEUTICALS 12,750,961

SHARES VALUE (NOTE 1)
ELECTRONICS - 0.2%
ELECTRONIC CAPACITORS - 0.2%
Maxwell Technologies, Inc. 3,200 $ 58,400
INSURANCE - 0.6%
MULTI-LINE INSURANCE - 0.6%
Aetna, Inc. 1,700 134,300
MEDICAL EQUIPMENT & SUPPLIES - 23.3%
DENTAL EQUIPMENT - 0.7%
Sybron International, Inc. (a) 5,200 160,550
DRUG DISTRIBUTORS - WHOLESALE - 2.8%
Allegiance Corp. 2,300 58,938
AmeriSource Health Corp. Class A 400 19,600
Bergen Brunswig Corp. Class A 11,300 336,175
Cardinal Health, Inc. 3,900 244,238
658,951
MEDICAL SUPPLIES & APPLIANCES - 11.4%
Abbott Laboratories 9,800 532,875
Bard (C.R.), Inc. 1,800 50,850
Baxter International, Inc. 5,100 235,238
Becton, Dickinson & Co. 6,700 329,975
Boston Scientific Corp. (a) 4,300 293,475
Closure Medical Corp. 2,100 36,225
Depuy, Inc. (a) 2,800 52,500
Johnson & Johnson 14,700 847,088
Sofamor/Danek Group, Inc. (a) 6,500 268,125
2,646,351
MEDICAL TECHNOLOGY - 8.3%
Arterial Vascular Engineering, Inc. (a) 200 2,625
Beckman Instruments, Inc. 6,300 248,850
Biomet, Inc. 100 1,550
Biopsys Medical, Inc. (a) 2,900 77,575
Cardiac Pathways Corp. 4,300 57,513
Cardiogenesis Corp. 400 5,850
Datascope Corp. (a) 3,600 78,300
Guidant Corp. 2,800 156,100
Heartport, Inc. 600 18,975
InControl, Inc. (a) 9,300 68,588
Medtronic, Inc. 6,800 465,800
Nellcor, Inc. (a) 3,400 57,800
St. Jude Medical, Inc. (a) 6,100 231,038
Sonus Pharmaceuticals, Inc. (a) 3,200 89,600
Stryker Corp. 4,100 118,900
U.S. Surgical Corp. 6,500 260,813
1,939,877
X-RAY ELECTRO-MEDICAL APPARATUS - 0.1%
Fischer Imaging Corp. 3,600 22,050
TOTAL MEDICAL EQUIPMENT & SUPPLIES 5,427,779
MEDICAL FACILITIES MANAGEMENT - 11.6%
HEALTH PRACTITIONERS - 0.2%
FPA Medical Management, Inc. (a) 1,750 43,531
HOSPITALS - 5.4%
Columbia/HCA Healthcare Corp. 11,850 468,075
HEALTHSOUTH Rehabilitation Corp. (a) 7,200 314,100
Health Management Associates, Inc.
Class A (a) 3,800 104,975
Quorum Health Group, Inc. (a) 2,300 66,413
Tenet Healthcare Corp. (a) 11,300 305,100
1,258,663
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEDICAL FACILITIES MANAGEMENT - CONTINUEED
HMOS & OUTPATIENT CARE - 4.3%
Oxford Health Plans, Inc. (a) 7,600 $ 413,250
PacifiCare Health Systems, Inc.
Class B (a) 3,900 313,950
United HealthCare Corp. 5,800 282,750
1,009,950
MEDICAL LABORATORIES - 0.1%
Cambridge Heart, Inc. 900 11,138
MEDICAL SERVICES - 0.8%
Lincare Holdings, Inc. (a) 3,300 124,781
Physician Reliance Network, Inc. (a) 7,400 60,125
184,906
NURSING CARE & NURSING HOMES - 0.2%
ARV Assisted Living, Inc. (a) 800 7,900
Arbor Health Care Co. (a) 1,400 30,888
38,788
NURSING, PERSONAL CARE FACILITY - 0.1%
Integrated Living communities, Inc. (a) 4,500 24,750
SKILLED NURSING CARE FACILITY - 0.2%
Beverly Enterprises, Inc. 3,500 50,750
SPECIALTY HOSPITAL EXCEPT PSYCHIATRIC - 0.3%
Vencor, Inc. (a) 2,600 79,625
TOTAL MEDICAL FACILITIES MANAGEMENT 2,702,101
TOTAL COMMON STOCKS
(Cost $19,438,474) 21,286,937
CONVERTIBLE PREFERRED STOCKS - 0.4%
MEDICAL EQUIPMENT & SUPPLIES - 0.4%
MEDICAL TECHNOLOGY - 0.4%
U.S. Surgical Corp. $2.20 (c)
(Cost $109,380) 2,600 102,050
CASH EQUIVALENTS - 8.2%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.55%, dated
1/31/97 due 2/3/97 $ 31,014 31,000
SHARES
Taxable Central Cash Fund (b) 1,881,808 1,881,808
TOTAL CASH EQUIVALENTS
(Cost $1,912,808) 1,912,808
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $21,460,662) $ 23,301,795
LEGEND
1. Non-income producing
2. At period end, the seven-day yield on the Taxable Central Cash Fund was
5.39%. The yield refers to the income earned by investing in the fund over
the seven-day period, expressed as an annual percentage.
3. Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $102,050 or 0.4% of net
assets.
INCOME TAX INFORMATION
At January 31, 1997, the aggregate cost of investment securities for income
tax purposes was $21,460,662. Net unrealized appreciation aggregated
$1,841,133, of which $2,062,386 related to appreciated investment
securities and $221,253 related to depreciated investment securities.
OTHER INFORMATION
Distribution of investments by country of issue, as a percentage of total
value of investment in securities, is as follows:
United States 88.1%
United Kingdom 4.1
Switzerland 2.5
Sweden 1.9
Others (individually less than 1%) 3.4
TOTAL 100.0%
ADVISOR HEALTH CARE FUND
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

JANUARY 31, 1997 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase agreements of $31,000) (cost $21,460,662) - See $ 23,301,795

accompanying schedule

Cash 12,388

Receivable for investments sold 544,547

Receivable for fund shares sold 316,096

Dividends receivable 9,521

Interest receivable 7,360

Prepaid expenses 34,673

Receivable from investment adviser for expense reductions 12,683

TOTAL ASSETS 24,239,063

LIABILITIES

Payable for investments purchased $ 747,433

Payable for fund shares redeemed 3,163

Distribution fees payable 7,498

Other payables and accrued expenses 26,843

TOTAL LIABILITIES 784,937

NET ASSETS $ 23,454,126

Net Assets consist of:

Paid in capital $ 21,502,677

Accumulated net investment (loss) (32,821

)

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions 143,137

Net unrealized appreciation (depreciation) on investments 1,841,133

NET ASSETS $ 23,454,126

CALCULATION OF MAXIMUM $11.70

OFFERING PRICE

CLASS A:

NET ASSET VALUE and redemption

price per share ($2,628,618 (divided by)

224,639 shares)

Maximum offering price per share $12.35

(100/94.75 of $11.70)

CLASS T: $11.68

NET ASSET VALUE and redemption

price per share ($19,750,090 (divided by)

1,690,385 shares)

Maximum offering price per share $12.10

(100/96.50 of $11.68)

INSTITUTIONAL CLASS: $11.71

NET ASSET VALUE, offering price

and redemption price per share

($1,075,418 (divided by) 91,821 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SEPTEMBER 3, 1996 (COMMENCEMENT OF OPERATIONS) TO
JANUARY 31, 1997 (UNAUDITED)

INVESTMENT INCOME $ 33,617
Dividends

Interest 26,382

TOTAL INCOME 59,999

EXPENSES

Management fee $ 28,826

Transfer agent fees 2,601
Class A

Class T 11,032

Institutional Class 854

Distribution fees 1,666
Class A

Class T 18,686

Accounting fees and expenses 25,000

Non-interested trustees' compensation 16

Custodian fees and expenses 16,173

Registration fees 12,598
Class A

Class T 10,791

Institutional Class 10,880

Audit 7,567

Legal 639

Total expenses before reductions 147,329

Expense reductions (54,509 92,820
)

NET INVESTMENT INCOME (LOSS) (32,821
)

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 143,133

Foreign currency transactions 4 143,137

Change in net unrealized appreciation (depreciation) on investment securities 1,841,133

NET GAIN (LOSS) 1,984,270

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 1,951,449

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SEPTEMBER 3, 1996
(COMMENCEMENT
OF
OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
Operations $ (32,821)
Net investment income (loss)

Net realized gain (loss) 143,137

Change in net unrealized appreciation (depreciation) 1,841,133

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 1,951,449

Share transactions - net increase (decrease) 21,502,677

TOTAL INCREASE (DECREASE) IN NET ASSETS 23,454,126

NET ASSETS

Beginning of period -

End of period (including accumulated net investment loss of $32,821) $ 23,454,126

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SEPTEMBER 3, 1996
(COMMENCEMENT OF
OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.02)

Net realized and unrealized gain (loss) 1.72

Total from investment operations 1.70

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.70

TOTAL RETURN B, C 17.00%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 2,629

Ratio of expenses to average net assets 1.75% A
, E

Ratio of expenses to average net assets after expense reductions 1.74% A
, F

Ratio of net investment income (loss) to average net assets (.50)%
A

Portfolio turnover 52% A

Average commission rate G $ .0333

ANNUALIZED
THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS
OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE
NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5
OF NOTES TO
FINANCIAL STATEMENTS).
A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO
PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES
MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS T
SEPTEMBER 3, 1996
(COMMENCEMENT OF
OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.03)

Net realized and unrealized gain (loss) 1.71

Total from investment operations 1.68

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.68

TOTAL RETURN B, C 16.80%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 19,750

Ratio of expenses to average net assets 2.00% A
, E

Ratio of expenses to average net assets after expense reductions 1.99% A
, F

Ratio of net investment income (loss) to average net assets (.75)%
A

Portfolio turnover 52% A

Average commission rate G $ .0333

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME (LOSS)
PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING
THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F FMR OR THE FUND HAS
ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR
REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). G A
FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO
PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS
MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SEPTEMBER 3, 1996
(COMMENCEMENT OF
OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.01)

Net realized and unrealized gain (loss) 1.72

Total from investment operations 1.71

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.71

TOTAL RETURN B, C 17.10%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 1,075

Ratio of expenses to average net assets 1.50% A
, E

Ratio of expenses to average net assets after expense reductions 1.49% A
, F

Ratio of net investment income (loss) to average net assets (.25)%
A

Portfolio turnover 52% A

Average commission rate G $ .0333

ANNUALIZED H THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES
NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS). I TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED. J NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD. K FMR AGREED TO REIMBURSE A PORTION
OF THE CLASS' EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'
EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS). L FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5
OF NOTES TO FINANCIAL STATEMENTS). M A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION
RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS
AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES
EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE
STRUCTURES MAY DIFFER.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1997 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Health Care Fund (the fund) is a fund of Fidelity Advisor
Series VII (the trust) and is authorized to issue an unlimited number of
shares. The trust is registered under the Investment Company Act of 1940,
as amended (the 1940 Act), as an open-end management investment company
organized as a Massachusetts business trust.
The fund offers Class A, Class T, and Institutional Class shares, each of
which has equal rights as to assets and voting privileges. Each class has
exclusive voting rights with respect to its distribution plan. Investment
income, realized and unrealized capital gains and losses, redemption fees,
the common expenses of the fund, and certain fund-level expense reductions
are allocated on a pro rata basis to each class based on the relative net
assets of each class to the total net assets of the fund. Each class of
shares differs in its respective distribution, transfer agent,
registration, and certain other class-specific fees, expenses, and expense
reductions.
On November 14, 1996, the Board of Trustees approved the creation of an
additional class of shares, Class B shares. Offering of the new class
commences on March 3, 1997. Class B shares are subject to an annual
distribution and service fee of 1.00% (of which .75% represents a
distribution fee and .25% represents a shareholder service fee) of the
class' average net assets, and a contingent deferred sales charge levied on
Class B share redemptions. This charge is based on a declining scale that
ranges from 5% to 1% on Class B shares redeemed within six years of
purchase.
The financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. Securities (including restricted securities) for which
exchange quotations are not readily available (and in certain cases debt
securities which trade on an exchange) are valued primarily using
dealer-supplied valuations or at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Board of Trustees. Short-term securities with remaining maturities
of sixty days or less for which quotations are not readily available are
valued at amortized cost or original cost plus accrued interest, both of
which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Income receipts
and expense payments are translated into U.S. dollars at the prevailing
exchange rate on the respective dates of the transactions. Purchases and
sales of securities are translated into U.S. dollars at the contractual
currency exchange rates established at the time of each trade.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, and the difference between
the amount of net investment income accrued and the U.S. dollar amount
actually received. The effects of changes in foreign currency exchange
rates on investments in securities are included with the net realized and
unrealized gain or loss on investment securities.
INCOME TAXES. The fund intends to qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code. By so qualifying, the fund
will not be subject to income taxes to the extent that it distributes
substantially all of its taxable income for its fiscal year. The schedule
of investments includes information regarding income taxes under the
caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Non-cash dividends included in dividend income, if any,
are recorded at the fair market value of the securities received. Interest
income is accrued as earned. Investment income is recorded net of foreign
taxes withheld where recovery of such taxes is uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
PREPAID EXPENSES. Fidelity Management & Research Company (FMR) bears all
organizational expenses except for registering and qualifying each class
and shares of each class for distribution under federal and state
securities law. These expenses are borne by each class and amortized over
one year.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date. Income dividends and capital gain distributions are
declared separately for each class.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences may result in distribution reclassifications.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Accumulated net investment loss and accumulated undistributed net realized
gain (loss) on investments and foreign currency transactions may include
temporary book and tax basis differences which will reverse in a subsequent
period. Any taxable income or gain remaining at fiscal year end is
distributed in the following year.
REDEMPTION FEES. Shares held in the fund less than 60 days are subject to a
redemption fee equal to 1% of the proceeds of the redeemed shares. The fee,
which is retained by the fund, is accounted for as an addition to paid in
capital.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FOREIGN CURRENCY CONTRACTS. The fund generally uses foreign currency
contracts to facilitate transactions in foreign-denominated securities.
Losses may arise from changes in the value of the foreign currency or if
the counterparties do not perform under the contracts' terms. The U.S.
dollar value of foreign currency contracts is determined using contractual
currency exchange rates established at the time of each trade. The cost of
the foreign currency contracts is included in the cost basis of the
associated investment.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission(the SEC), the fund, along with other
affiliated entities of FMR, may transfer uninvested cash balances into one
or more joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
TAXABLE CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by the
SEC, the fund may invest in the Taxable Central Cash Fund (the Cash Fund)
managed by FMR Texas, an affiliate of FMR. The Cash Fund is an open-end
money market fund available only to investment companies and other accounts
managed by FMR and its affiliates. The Cash Fund seeks preservation of
capital, liquidity, and current income by investing in U.S. Treasury
securities and repurchase agreements for these securities, and may be
utilized by the fund as an additional cash management option. Dividends
from the Cash Fund are declared daily and paid monthly from net interest
income. Income distributions received by the fund are recorded as interest
income.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $22,163,795 and $2,759,074, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .2500% to .5200% for the period. In the event that these
rates were lower than the contractual rates in effect during the period,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .30%. For
the period, the management fee was equivalent to an annualized rate of .60%
of average net assets.
DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the 1940
Act, the Trustees have adopted separate distribution plans with respect to
the fund's Class A shares (Class A Plan), Class T shares (Class T Plan),
and Institutional Class shares (collectively referred to as "the Plans").
Under the Class A and Class T Plans, the fund pays Fidelity Distributors
Corporation (FDC), an affiliate of FMR, a distribution and service fee.
This fee is based on annual rates of .25% and .50% of the average net
assets of the Class A and Class T shares, respectively. For the period, the
fund paid FDC $1,666 and $18,686 under the Class A and Class T Plans, all
of which was paid to securities dealers, banks and other financial
institutions for the distribution of Class A and Class T shares, and
providing shareholder support services.
Under the Plans, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's Class A, Class T,
and Institutional Class shares. The Plans also authorize payments to third
parties that assist in the sale of the fund's shares or render shareholder
support services.
SALES LOAD. FDC receives a front-end sales charge of up to 5.25% and 3.50%
for selling Class A and Class T shares of the fund, respectively.
For the period, FDC received sales charges of $115,548 and $183,107 on
sales of Class A and Class T shares of the fund, of which $90,163 and
$149,533 were paid to securities dealers, banks, and other financial
institutions.
TRANSFER AGENT FEES. Fidelity Investments Institutional Operations Company,
Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing,
and shareholder servicing agent for the fund's Class A, Class T and
Institutional Class shares. Prior to January 1, 1997, State Street Bank and
Trust Company acted in that capacity for the fund's Class T shares, and
delegated certain of these services to FIIOC for which FIIOC received its
allocable share of all such fees. FIIOC receives account fees and
asset-based fees that vary according to account size and type of account
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
of the shareholders of the respective classes of the fund. FIIOC pays for
typesetting, printing and mailing of all shareholder reports, except proxy
statements. For the period, the transfer agent fees were equivalent to
annualized rates of .39%, .29%, and .22% of the average net assets of Class
A, Class T, and Institutional Class, respectively.
ACCOUNTING FEES. Fidelity Service Company, Inc. (FSC), an affiliate of FMR,
maintains the fund's accounting records. The fee is based on the level of
average net assets for the month plus out-of-pocket expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $1,690 for the period.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding interest,
taxes, brokerage commissions and extraordinary expenses) above annual rates
of 1.75%, 2.00%, and 1.50% of average net assets for Class A, Class T, and
Institutional Class, respectively. For the period, the reimbursement
reduced expenses by $16,914, $23,956, and $13,177 for Class A, Class T, and
Institutional Class, respectively.
FMR has also directed certain portfolio trades to brokers who paid a
portion of the fund's expenses. For the period, the fund's expenses were
reduced by $462 under this arrangement.
6. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:
SHARES DOLLARS

PERIOD ENDED PERIOD ENDED
JANUARY 31, JANUARY 31,

1997 A 1997 A

CLASS A $ 2,686,723
Shares sold 252,318

Shares redeemed (27,679) (302,881)

Redemption fees - 5

Net increase (decrease) 224,639 $ 2,383,847

CLASS T 1,759,958 $ 18,947,456
Shares sold

Shares redeemed (69,573) (755,385)

Redemption fees - 37

Net increase (decrease) 1,690,385 $ 18,192,108

INSTITUTIONAL CLASS 91,821 $ 926,720
Shares sold

Shares redeemed - -

Redemption fees - 2

Net increase (decrease) 91,821 $ 926,722

A SHARE TRANSACTIONS FOR EACH CLASS ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO JANUARY 31, 1997.
ADVISOR TECHNOLOGY FUND - CLASS A
PERFORMANCE AND INVESTMENT SUMMARY

TECHNOLOGY - CLASS A 38.88%

TECHNOLOGY - CLASS A 31.59%
(INCL. 5.25% SALES CHARGE)

S&P 500 21.57%

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970212 162408 S00000000000001
FA Technology -CL A SP Standard & Poor 500
00187 SP001
1996/09/03 9475.00 10000.00
1996/09/30 10536.20 10561.42
1996/10/31 10640.43 10852.70
1996/11/30 12071.15 11673.05
1996/12/31 11833.43 11441.81
1997/01/31 13158.85 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970212 162410 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Technology - Class A on September 3, 1996, when the fund started, and the
current maximum 5.25% sales charge was paid. As the chart shows, by January
31, 1997, the value of the investment would have grown to $13,159 - a
31.59% increase on the initial investment. For comparison, look at how the
S&P 500 did over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $12,157 - a
21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

Intel Corp. 4.9

Electronic Arts, Inc. 3.7

Applied Materials, Inc. 3.4

Cisco Systems, Inc. 3.4

Texas Instruments, Inc. 3.0

Teradyne, Inc. 2.7

Motorola, Inc. 2.5

ASM Lithography Holding NV 2.4

Ascend Communications, Inc. 2.2

Maxim Intergrated Products, Inc. 1.7

TOP INDUSTRIES AS OF JANUARY 31, 1997
Semiconductors 30.5%
Prepackaged
Computer Software 7.9%
Semiconductor
Capital Equipment
7.9%
Telephone Equipment 5.9%
Datacommunications
Equipment 3.6%
All Others 44.2%*
Row: 1, Col: 1, Value: 44.2
Row: 1, Col: 2, Value: 3.6
Row: 1, Col: 3, Value: 5.9
Row: 1, Col: 4, Value: 7.9
Row: 1, Col: 5, Value: 7.9
Row: 1, Col: 6, Value: 30.5
* INCLUDES SHORT-TERM INVESTMENTS
% OF FUND'S INVESTMENTS
ADVISOR TECHNOLOGY FUND - CLASS T
PERFORMANCE AND INVESTMENT SUMMARY

TECHNOLOGY - CLASS T 38.58%

TECHNOLOGY - CLASS T 33.73%
(INCL. 3.50% SALES CHARGE)

S&P 500 21.57%

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970218 165423 S00000000000001
FA Technology -CL T SP Standard & Poor 500
00192 SP001
1996/09/03 9650.00 10000.00
1996/09/30 10721.15 10561.42
1996/10/31 10817.65 10852.70
1996/11/30 12274.80 11673.05
1996/12/31 12022.98 11441.81
1997/01/31 13372.89 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970218 165424 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Technology - Class T on September 3, 1996, when the fund started, and the
current maximum 3.50% sales charge was paid. As the chart shows, by January
31, 1997, the value of the investment would have grown to $13,373 - a
33.73% increase on the initial investment. For comparison, look at how the
S&P 500 did over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $12,157 - a
21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

Intel Corp. 4.9

Electronic Arts, Inc. 3.7

Applied Materials, Inc. 3.4

Cisco Systems, Inc. 3.4

Texas Instruments, Inc. 3.0

Teradyne, Inc. 2.7

Motorola, Inc. 2.5

ASM Lithography Holding NV 2.4

Ascend Communications, Inc. 2.2

Maxim Intergrated Products, Inc. 1.7

An interview with
Adam Hetnarski, Portfolio Manager of Fidelity Advisor Technology Fund
Q. ADAM, HOW DID THE FUND PERFORM?
A. The fund has performed well. Since inception on September 3, 1996,
through January 31, 1997, the Fidelity Advisor Technology Fund's Class A
shares had a return of 38.88% and Class T shares had a return of 38.58%.
During the same period, the return of the Standard & Poor's 500 Index was
21.57%.
Q. WHAT WERE THE REASONS BEHIND THIS PERFORMANCE?
A. The fund's strong performance was due to investments made in particular
stock groups. During this time period, the fund was overweighted in
semiconductor, semiconductor capital equipment, prepackaged computer
software, communications equipment and networking companies. Companies in
these groups provided the strongest growth in the market. For example,
Intel, the computer industry's leading manufacturer of semiconductors,
produced strong earnings growth and boosted the fund's performance during
the period.
Q. HOW WOULD YOU DESCRIBE THE INVESTING ENVIRONMENT DURING THIS TIME
PERIOD?
A. Technology remains a positive growth sector of the economy, representing
12% of the S&P 500 and a similar proportion of the Gross Domestic Product.
Further, technology is an increasing component of overall capital spending
in the U.S. and abroad. Governments, companies and consumers continue to
spend more to upgrade existing systems or purchase new ones. The technology
sector as a whole was very strong during the period, and the individual
holdings I chose based on their strong fundamentals played a crucial role
in the fund's superior performance.
Q. WHAT TRENDS AFFECTED THE FUND DURING THIS TIME PERIOD?
A. Two groups contributing significantly to performance were semiconductor
capital equipment and data communications equipment companies, both
beneficiaries of positive industry trends. Semiconductor capital equipment
companies that benefit from increasing semiconductor unit sales were helped
by the increased demand created by lower chip prices. Additionally,
increasing worldwide penetration, an upgrade cycle, and the "need for
speed" helped drive the demand for networking technology.
Q. WERE THERE ANY PARTICULAR STOCKS THAT STOOD OUT?
A. There were several standouts among the fund's holdings. The lack of
seasonal price cuts by Intel dramatically improved margins and earnings in
its December quarter. Intel was an important position in the fund because
it was a reasonably priced stock with strong earnings growth, as seen by
its attractive price-to-earnings ratio. Applied Materials, a leading-edge
semiconductor capital equipment company, stood out because it was
considerably undervalued. Ascend Communications, a networking firm,
benefited from the growth of the Internet. Lattice Semiconductor Corp. and
the Altera Corp., both semiconductor companies, were favored because
customer inventories were bottoming and the market opportunity expanded.
Q. HOW WOULD YOU CHARACTERIZE YOUR INVESTMENT STYLE OR PHILOSOPHY?
A. My goal is to seek out stocks that will enable the fund to perform well
regardless of the investing environment. Rather than follow a particular
style, I believe it's important to look at a wide range of companies to
determine the best opportunities. I am a stock picker who will buy stocks
that present a good value, show good business momentum over an extended
time period, or whose earnings I expect could dramatically exceed Wall
Street's expectations.
Q. WHAT IS YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. While the technology sector offers the potential for great rewards over
the long-term, past history shows it can be very volatile. Technology
companies remain the focal point of a world economy rapidly adjusting to
technological change and are big beneficiaries of government, corporate and
consumer spending. The industry is also heading into major new product
cycles. If an environment that is conducive to low interest rates and tepid
inflation exists, the sector should prosper.

FUND FACTS
START DATE: September 3, 1996
SIZE: as of January 31, 1997, more than
$6 million
MANAGER: Paul Antico, since January 1997;
joined Fidelity in 1991
(checkmark)
ADVISOR TECHNOLOGY FUND
INVESTMENTS JANUARY 31, 1997 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 84.2%
SHARES VALUE (NOTE 1)
AIR TRANSPORTATION - 0.9%
AIR TRANSPORT, MAJOR NATIONAL - 0.7%
AMR Corp. 1,500 $ 120,733
America West Holding Corp. Class B 5,600 83,300
204,033
AIR TRANSPORTATION, REGIONAL - 0.2%
Comair Holdings, Inc. 3,000 61,125
TOTAL AIR TRANSPORTATION 265,158
BANKS - 0.5%
NATIONAL COMMERCIAL BANKS - 0.5%
Advanta Corp. 1,000 46,750
Capital One Financial Corp. 3,100 124,000
170,750
COMMUNICATIONS EQUIPMENT - 9.5%
DATACOMMUNICATIONS EQUIPMENT - 3.6%
Aspect Telecommunications Corp. (a) 1,400 43,400
Cisco Systems, Inc. (a) 15,000 1,046,250
Dynatech Corp. (a) 600 21,600
Jabil Circuit, Inc. (a) 500 23,625
1,134,875
TELEPHONE EQUIPMENT - 5.9%
Ascend Communications, Inc. (a) 9,700 675,363
DSC Communications Corp. (a) 8,000 180,000
Ericsson (L.M.) Telephone Co.
Class B ADR 4,000 134,688
Larscom, Inc. Class A (a) 1,800 21,600
Lucent Technologies, Inc. 500 27,125
Nokia Corp. AB sponsored ADR 6,600 441,375
Pairgain Technologies, Inc. (a) 8,900 364,344
1,844,495
TOTAL COMMUNICATIONS EQUIPMENT 2,979,370
COMPUTER SERVICES & SOFTWARE - 13.5%
COMPUTER FACILITIES MANAGEMENT - 0.1%
Alternative Resources Corp. (a) 2,000 29,250
COMPUTER SERVICES - 3.6%
America Online, Inc. (a) 1,600 59,000
Advant Corp. (a) 3,500 112,656
Clarify, Inc. (a) 8,300 298,800
Diamond Multimedia Systems, Inc. 1,400 21,175
HBO & Co. 1,100 68,888
Midway Games, Inc. (a) 12,200 240,950
Viasoft, Inc. (a) 6,000 310,500
1,111,969
CUSTOM COMPUTER PROGRAMMING SERVICES - 1.7%
Intersolv, Inc. (a) 2,200 22,000
Keane, Inc. (a) 6,300 196,088
Softdesk, Inc. (a) 20,580 290,693
Walsh International, Inc. 800 6,500
515,281
CAD/CAM/CAE - 0.2%
Forte Software, Inc. (a) 1,100 40,288
New Dimension Software Ltd. 1,800 20,250
60,538
PREPACKAGED COMPUTER SOFTWARE - 7.9%
Activision, Inc. 13,000 188,500
Aware, Inc. 4,500 49,500
Broderbund Software, Inc. 3,100 95,713

SHARES VALUE (NOTE 1)
Baan Co. NV (a) 2,000 $ 90,750
Cadence Design Systems, Inc. (a) 600 22,950
Eagle Point Software Corp. 15,000 56,250
Electronic Arts, Inc. (a) 36,500 1,163,438
Lycos, Inc. 500 8,438
Microsoft Corp. (a) 1,000 102,000
Peerless Systems Corp. 2,400 48,000
Scopus Technology, Inc. (a) 5,500 276,375
Spectrum Holobyte, Inc. (a) 17,100 162,450
Symantec Corp. (a) 6,100 97,600
Template Software, Inc. 1,000 14,500
Vantive Corp. (a) 1,300 39,975
Yahoo, Inc. 1,800 60,975
2,477,414
TOTAL COMPUTER SERVICES & SOFTWARE 4,194,452
COMPUTERS & OFFICE EQUIPMENT - 5.2%
COMPUTER PERIPHERALS - 3.3%
Applied Magnetics Corp. (a) 1,300 71,825
Creative Technology Corp. Ltd. (a) 5,200 73,775
EMC Corp. (a) 12,300 465,863
Fore Systems, Inc. 1,000 29,125
Madge NV 8,000 120,000
SCI Systems, Inc. 3,000 174,750
Sigma Designs, Inc. (a) 10,300 104,288
1,039,626
COMPUTER STORAGE DEVICES - 1.4%
Quantum Corp. (a) 1,000 38,000
Read Rite Corp. (a) 9,000 297,000
Seagate Technology (a) 2,000 103,000
438,000
MINI & MICRO COMPUTERS - 0.3%
Compaq Computer Corp. 1,000 86,875
OFFICE AUTOMATION - 0.2%
Telxon Corp. 4,500 70,875
TOTAL COMPUTERS & OFFICE EQUIPMENT 1,635,376
CONSUMER DURABLES - 0.7%
MANUFACTURING INDUSTRIES - 0.3%
Wireless Telecom Group, Inc. 7,200 85,500
PRESSED & BLOWN GLASS - 0.4%
Dupont Photomasks, Inc. (a) 2,700 147,150
TOTAL CONSUMER DURABLES 232,650
CREDIT & OTHER FINANCE - 0.4%
MORTGAGE BANKERS - 0.4%
Imperial Credit Industries 5,500 120,313
DRUGS & PHARMACEUTICALS - 2.4%
BIOTECHNOLOGY - 0.3%
Sepracor, Inc. (a) 4,000 106,000
COMMERCIAL LABORATORY RESEARCH - 0.5%
Integrated Process Equipment Corp. 5,500 147,125
DRUGS - 1.6%
Merck & Co., Inc. 1,500 136,125
Pfizer, Inc. 2,500 232,188
Schering-Plough Corp. 600 45,375
Warner-Lambert Co. 1,000 80,500
494,188
TOTAL DRUGS & PHARMACEUTICALS 747,313
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
ELECTRICAL EQUIPMENT - 0.2%
TV & RADIO COMMUNICATION EQUIPMENT - 0.2%
Scientific-Atlanta, Inc. 800 $ 15,200
Spectrain Corp. 2,800 33,950
49,150
ELECTRONIC INSTRUMENTS - 11.4%
ELECTRONIC EQUIPMENT - 3.5%
Advantest Corp. (a) 3,800 203,722
Credence Systems Corp. (a) 2,000 45,000
Teradyne, Inc. (a) 27,200 839,800
1,088,522
SEMICONDUCTOR CAPITAL EQUIPMENT - 7.9%
Applied Materials, Inc. (a) 21,700 1,071,438
KLA Instruments Corp. (a) 5,000 213,125
Kulicke & Soffa Industries, Inc. (a) 13,000 357,500
Lam Research Corp. 6,500 262,438
Novellus System, Inc. (a) 4,100 324,925
Silicon Valley Group, Inc. 8,500 228,438
2,457,864
TOTAL ELECTRONIC INSTRUMENTS 3,546,386
ELECTRONICS - 32.3%
ELECTRONIC PARTS - WHOLESALE - 0.5%
Brightpoint, Inc. (a) 5,300 150,388
ELECTRONICS & ELECTRIC COMPONENTS - 0.5%
Photronics, Inc. 4,600 174,800
PRINTED CIRCUIT BOARDS - 0.8%
Elexsys International, Inc. 8,500 209,313
Flextronics International (a) 2,000 51,000
260,313
SEMICONDUCTORS - 30.5%
Actel Corp. (a) 8,000 164,000
Alliance Semiconductor Corp. (a) 12,300 93,019
Altera Corp. 9,500 410,875
Analog Devices, Inc. (a) 11,066 319,531
Atmel Corp. (a) 3,300 153,038
CFM Technologies, Inc. (a) 6,300 223,650
Cypress Semiconductor Corp. (a) 5,500 70,125
Dallas Semiconductor Corp. 8,500 224,188
Etec Systems, Inc. (a) 5,400 240,300
Integrated Silicon Solution (a) 12,200 119,713
Intel Corp. 9,350 1,517,038
Intel Corp. (warrants) (a) 1,984 242,296
LSI Logic Corp. 7,200 250,200
Lattice Semiconductor Corp. (a) 9,400 487,625
Linear Technology Corp. 8,100 394,875
Maxim Integrated Products, Inc. (a) 9,600 540,000
Micrel, Inc. (a) 6,700 255,438
Micro Linear Corp. 14,700 189,263
Microchip Technology, Inc. (a) 3,200 122,000
Micron Technology, Inc. 13,000 451,750
Motorola, Inc. 11,600 791,700
Quality Semiconductor, Inc. (a) 2,000 15,500
Tencor Instruments (a) 12,300 501,225
Texas Instruments, Inc. 12,000 940,500
Tokyo Electron Ltd. 4,000 143,951
Uniphase Corp. 5,500 239,938
Unitrode Corp. 3,000 110,250
Unitrode Corp. (warrants) (a) 7,500 70,781

SHARES VALUE (NOTE 1)
Xilinx, Inc. 500 $ 22,750
Zilog, Inc. (a) 7,500 190,313
9,495,832
TOTAL ELECTRONICS 10,081,333
ENERGY SERVICES - 1.2%
DRILLING - 1.1%
Cliffs Drilling Co. (a) 3,700 252,525
Falcon Drilling, Inc. (a) 2,700 101,588
354,113
OIL & GAS SERVICES - 0.1%
Western Atlas, Inc. (a) 500 33,938
TOTAL ENERGY SERVICES 388,051
ENGINEERING - 0.2%
ARCHITECTS & ENGINEERS - 0.2%
EG & G, Inc. 2,700 57,375
INDUSTRIAL MACHINERY & EQUIPMENT - 0.5%
SPECIAL INDUSTRY MACHINERY - 0.5%
PRI Automation, Inc. (a) 2,400 144,300
LODGING & GAMING - 0.4%
RACING & GAMING - 0.4%
WMS Industries, Inc. (a) 4,600 109,250
MEDICAL EQUIPMENT & SUPPLIES - 0.6%
MEDICAL, DENTAL, HOSPITAL EQUIPMENT - WHOLESALE - 0.3%
ESC Medical Systems Ltd. 2,500 81,250
MEDICAL SUPPLIES & APPLIANCES - 0.3%
Interpore International 600 3,675
Johnson & Johnson 1,500 86,438
90,113
TOTAL MEDICAL EQUIPMENT & SUPPLIES 171,363
PRINTING - 2.4%
COMMERCIAL PRINTING, LITHOGRAPHIC - 2.4%
ASM Lithography Holding NV (a) 10,400 760,500
RETAIL & WHOLESALE, MISCELLANEOUS - 0.7%
MAIL ORDER - 0.0%
Coldwater Creek, Inc. 500 9,063
MUSIC, TV, & ELECT STORES - 0.6%
Circuit City Stores, Inc. 4,900 172,113
RETAIL, GENERAL - 0.1%
PETsMART, Inc. 2,000 45,500
TOTAL RETAIL & WHOLESALE, MISCELLANEOUS 226,676
SERVICES - 0.2%
BUSINESS SERVICES - 0.2%
Medaphis Corp. (a) 3,700 49,488
TELEPHONE SERVICES - 1.0%
LCI International, Inc. (a) 2,000 45,000
Tel-Save Holdings, Inc. (a) 4,000 51,125
Teleport Communications Group, Inc.
Class A (a) 100 3,113
WorldCom, Inc. (a) 9,000 226,125
325,363
TOTAL COMMON STOCKS
(Cost $23,537,729) 26,254,617
CASH EQUIVALENTS - 15.8%
SHARES VALUE (NOTE 1)
Taxable Central Cash Fund (b)
(Cost $4,923,766) 4,923,766 $ 4,923,766
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $28,461,495) $ 31,178,383
LEGEND
1. Non-income producing
2. At period end, the seven-day yield on the Taxable Central Cash Fund was
5.39%. The yield refers to the income earned by investing in the fund over
the seven-day period, expressed as an annual percentage.
INCOME TAX INFORMATION
At January 31, 1997, the aggregate cost of investment securities for income
tax purposes was $28,461,495. Net unrealized appreciation aggregated
$2,716,888, of which $3,173,482 related to appreciated investment
securities and $456,594 related to depreciated investment securities.
ADVISOR TECHNOLOGY FUND
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1997 (UNAUDITED)

ASSETS

Investment in securities, at value $ 31,178,383
(cost $28,461,495) - See accompanying schedule

Receivable for investments sold 1,313,499

Receivable for fund shares sold 1,178,220

Dividends receivable 1,716

Interest receivable 8,971

Redemption fees receivable 45

Prepaid expenses 34,673

Receivable from investment adviser for expense reductions 4,110

TOTAL ASSETS 33,719,617

LIABILITIES

Payable for investments purchased $ 3,503,396

Payable for fund shares redeemed 30,922

Distribution fees payable 8,598

Other payables and accrued expenses 20,633

TOTAL LIABILITIES 3,563,549

NET ASSETS $ 30,156,068

Net Assets consist of:

Paid in capital $ 26,431,751

Accumulated net investment (loss) (71,292
)

Accumulated undistributed net realized gain (loss) on investments 1,078,721

Net unrealized appreciation (depreciation) on investments 2,716,888

NET ASSETS $ 30,156,068

CALCULATION OF MAXIMUM $13.80
OFFERING PRICE
CLASS A:
NET ASSET VALUE and redemption
price per share ($3,943,570 (divided by)
285,681 shares)

Maximum offering price per share $14.56
(100/94.75 of $13.80)

CLASS T: $13.77
NET ASSET VALUE and redemption
price per share ($24,808,120 (divided by)
1,801,754 shares)

Maximum offering price per share $14.27
(100/96.50 of $13.77)

INSTITUTIONAL CLASS: $13.79
NET ASSET VALUE, offering price
and redemption price per share
($1,404,378 (divided by) 101,806 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SEPTEMBER 3, 1996 (COMMENCEMENT OF OPERATIONS) TO
JANUARY 31, 1997 (UNAUDITED)

INVESTMENT INCOME $ 5,576
Dividends

Interest 22,389

TOTAL INCOME 27,965

EXPENSES

Management fee $ 31,247

Transfer agent fees 2,660
Class A

Class T 11,739

Institutional Class 917

Distribution fees 1,910
Class A

Class T 19,844

Accounting fees and expenses 25,000

Non-interested trustees' compensation 11

Custodian fees and expenses 6,685

Registration fees 12,597
Class A

Class T 10,758

Institutional Class 10,881

Audit 7,576

Legal 639

Total expenses before reductions 142,464

Expense reductions (43,207 99,257
)

NET INVESTMENT INCOME (LOSS) (71,292
)

REALIZED AND UNREALIZED GAIN (LOSS) 1,198,382
Net realized gain (loss) on investment securities

Change in net unrealized appreciation (depreciation) on investment securities 2,716,888

NET GAIN (LOSS) 3,915,270

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 3,843,978

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SEPTEMBER 3, 1996
(COMMENCEMENT
OF
OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
Operations $ (71,292)
Net investment income (loss)

Net realized gain (loss) 1,198,382

Change in net unrealized appreciation (depreciation) 2,716,888

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 3,843,978

Distributions to shareholders (16,635)
From net realized gain
Class A

Class T (94,078)

Institutional Class (8,948)

TOTAL DISTRIBUTIONS (119,661)

Share transactions - net increase (decrease) 26,431,751

TOTAL INCREASE (DECREASE) IN NET ASSETS 30,156,068

NET ASSETS

Beginning of period -

End of period (including accumulated net investment loss of $71,292) $ 30,156,068

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.06)

Net realized and unrealized gain (loss) 3.94

Total from investment operations 3.88

Less Distributions

From net realized gain (.08)

Redemption fees added to paid in capital -

Net asset value, end of period $ 13.80

TOTAL RETURN B, C 38.88%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 3,944

Ratio of expenses to average net assets 1.75% A
, E

Ratio of expenses to average net assets after expense reductions 1.71% A
, F

Ratio of net investment income (loss) to average net assets (1.18)%
A

Portfolio turnover 417% A

Average commission rate G $ .0403

ANNUALIZED
THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS
OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE
NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO
PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS T
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.07)

Net realized and unrealized gain (loss) 3.92

Total from investment operations 3.85

Less Distributions

From net realized gain (.08)

Redemption fees added to paid in capital -

Net asset value, end of period $ 13.77

TOTAL RETURN B, C 38.58%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 24,808

Ratio of expenses to average net assets 2.00% A
, E

Ratio of expenses to average net assets after expense reductions 1.97% A
, F

Ratio of net investment income (loss) to average net assets (1.44)%
A

Portfolio turnover 417% A

Average commission rate G $ .0403

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES
TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME (LOSS)
PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING
THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F FMR OR THE
FUND HAS
ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR
REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). G A
FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO
PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.05)

Net realized and unrealized gain (loss) 3.93

Total from investment operations 3.88

Less Distributions

From net realized gain (.09)

Redemption fees added to paid in capital -

Net asset value, end of period $ 13.79

TOTAL RETURN B, C 38.89%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 1,404

Ratio of expenses to average net assets 1.50% A
, E

Ratio of expenses to average net assets after expense reductions 1.44% A
, F

Ratio of net investment income (loss) to average net assets (.91)%
A

Portfolio turnover 417% A

Average commission rate G $ .0403

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES
TO FINANCIAL
STATEMENTS). C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED. D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED
BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO
REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE PERIOD. WITHOUT
THIS REIMBURSEMENT, THE
CLASS' EXPENSE RATIO
WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID
OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS). G A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES
MAY DIFFER.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1997 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Technology Fund (the fund) is a fund of Fidelity Advisor
Series VII (the trust) and is authorized to issue an unlimited number of
shares. The trust is registered under the Investment Company Act of 1940,
as amended (the 1940 Act), as an open-end management investment company
organized as a Massachusetts business trust.
The fund offers Class A, Class T, and Institutional Class shares, each of
which has equal rights as to assets and voting privileges. Each class has
exclusive voting rights with respect to its distribution plan. Investment
income, realized and unrealized capital gains and losses, redemption fees,
the common expenses of the fund, and certain fund-level expense reductions
are allocated on a pro rata basis to each class based on the relative net
assets of each class to the total net assets of the fund. Each class of
shares differs in its respective distribution, transfer agent,
registration, and certain other class-specific fees, expenses, and expense
reductions.
On November 14, 1996, the Board of Trustees approved the creation of an
additional class of shares, Class B shares. Offering of the new class
commences on March 3, 1997. Class B shares are subject to an annual
distribution and service fee of 1.00% (of which .75% represents a
distribution fee and .25% represents a shareholder service fee) of the
class' average net assets, and a contingent deferred sales charge levied on
Class B share redemptions. This charge is based on a declining scale that
ranges from 5% to 1% on Class B shares redeemed within six years of
purchase.
The financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. Securities for which exchange quotations are not readily
available (and in certain cases debt securities which trade on an exchange)
are valued primarily using dealer-supplied valuations or at their fair
value as determined in good faith under consistently applied procedures
under the general supervision of the Board of Trustees. Short-term
securities with remaining maturities of sixty days or less for which
quotations are not readily available are valued at amortized cost or
original cost plus accrued interest, both of which approximate current
value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Income receipts
and expense payments are translated into U.S. dollars at the prevailing
exchange rate on the respective dates of the transactions. Purchases and
sales of securities are translated into U.S. dollars at the contractual
currency exchange rates established at the time of each trade.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, and the difference between
the amount of net investment income accrued and the U.S. dollar amount
actually received. The effects of changes in foreign currency exchange
rates on investments in securities are included with the net realized and
unrealized gain or loss on investment securities.
INCOME TAXES. The fund intends to qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code. By so qualifying, the fund
will not be subject to income taxes to the extent that it distributes
substantially all of its taxable income for its fiscal year. The schedule
of investments includes information regarding income taxes under the
caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Non-cash dividends included in dividend income, if any,
are recorded at the fair market value of the securities received. Interest
income is accrued as earned. Investment income is recorded net of foreign
taxes withheld where recovery of such taxes is uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
PREPAID EXPENSES. Fidelity Management & Research Company (FMR) bears all
organizational expenses except for registering and qualifying each class
and shares of each class for distribution under federal and state
securities law. These expenses are borne by each class and amortized over
one year.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date. Income dividends and capital gain distributions are
declared separately for each class.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences may result in distribution reclassifications.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Accumulated net investment loss and accumulated undistributed net realized
gain (loss) on investments may include temporary book and tax basis
differences which will reverse in a subsequent period. Any taxable income
or gain remaining at fiscal year end is distributed in the following year.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
REDEMPTION FEES. Shares held in the fund less than 60 days are subject to a
redemption fee equal to 1% of the proceeds of the redeemed shares. The fee,
which is retained by the fund, is accounted for as an addition to paid in
capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FOREIGN CURRENCY CONTRACTS. The fund generally uses foreign currency
contracts to facilitate transactions in foreign-denominated securities.
Losses may arise from changes in the value of the foreign currency or if
the counterparties do not perform under the contracts' terms. The U.S.
dollar value of foreign currency contracts is determined using contractual
currency exchange rates established at the time of each trade. The cost of
the foreign currency contracts is included in the cost basis of the
associated investment.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission(the SEC), the fund, along with other
affiliated entities of FMR, may transfer uninvested cash balances into one
or more joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
TAXABLE CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by the
SEC, the fund may invest in the Taxable Central Cash Fund (the Cash Fund)
managed by FMR Texas, an affiliate of FMR. The Cash Fund is an open-end
money market fund available only to investment companies and other accounts
managed by FMR and its affiliates. The Cash Fund seeks preservation of
capital, liquidity, and current income by investing in U.S. Treasury
securities and repurchase agreements for these securities, and may be
utilized by the fund as an additional cash management option. Dividends
from the Cash Fund are declared daily and paid monthly from net interest
income. Income distributions received by the fund are recorded as interest
income.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $47,337,876 and $24,998,529, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .2500% to .5200% for the period. In the event that these
rates were lower than the contractual rates in effect during the period,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .30%. For
the period, the management fee was equivalent to an annualized rate of .60%
of average net assets.
DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the 1940
Act, the Trustees have adopted separate distribution plans with respect to
the fund's Class A shares (Class A Plan), Class T shares (Class T Plan),
and Institutional Class shares (collectively referred to as "the Plans").
Under the Class A and Class T Plans, the fund pays Fidelity Distributors
Corporation (FDC), an affiliate of FMR, a distribution and service fee.
This fee is based on annual rates of .25% and .50% of the average net
assets of the Class A and Class T shares, respectively. For the period, the
fund paid FDC $1,910 and $19,844 under the Class A and Class T Plans, all
of which was paid to securities dealers, banks and other financial
institutions for the distribution of Class A and Class T shares, and
providing shareholder support services.
Under the Plans, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's Class A, Class T,
and Institutional Class shares. The Plans also authorize payments to third
parties that assist in the sale of the fund's shares or render shareholder
support services.
SALES LOAD. FDC receives a front-end sales charge of up to 5.25% and 3.50%
for selling Class A and Class T shares of the fund, respectively.
For the period, FDC received sales charges of $95,824 and $200,195 on sales
of Class A and Class T shares of the fund, of which $76,260 and $156,158
were paid to securities dealers, banks, and other financial institutions.
TRANSFER AGENT FEES. Fidelity Investments Institutional Operations Company,
Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing,
and shareholder servicing agent for the fund's Class A, Class T and
Institutional Class shares. Prior to January 1, 1997, State Street Bank and
Trust Company acted in that capacity for the fund's Class T shares, and
delegated certain of these services to FIIOC for which FIIOC received its
allocable share of all such fees. FIIOC receives account fees and
asset-based fees that vary according to account size and type of account of
the shareholders of the respective classes of the fund. FIIOC pays for
typesetting, printing and mailing of all shareholder reports, except proxy
statements. For the period, the transfer
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
agent fees were equivalent to annualized rates of .34%, .29%, and .20% of
the average net assets of Class A, Class T, and Institutional Class,
respectively.
ACCOUNTING FEES. Fidelity Service Company, Inc. (FSC), an affiliate of FMR,
maintains the fund's accounting records. The fee is based on the level of
average net assets for the month plus out-of-pocket expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $4,024 for the period.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding interest,
taxes, brokerage commissions and extraordinary expenses) above annual rates
of 1.75%, 2.00%, and 1.50% of average net assets for Class A, Class T, and
Institutional Class, respectively. For the period, the reimbursement
reduced expenses by $14,087, $15,817, and $11,622 for Class A, Class T, and
Institutional Class, respectively.
FMR has also directed certain portfolio trades to brokers who paid a
portion of the fund's expenses. For the period, the fund's expenses were
reduced by $1,681 under this arrangement.
6. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:
SHARES DOLLARS

PERIOD ENDED PERIOD ENDED
JANUARY 31, JANUARY 31,

1997 A 1997 A

CLASS A 289,072 $ 3,446,771
Shares sold

Reinvestment of distributions 1,188 14,911

Shares redeemed (4,579) (61,306)

Redemption fees - 90

Net increase (decrease) 285,681 $ 3,400,466

CLASS T 1,874,390 $ 22,879,442
Shares sold

Reinvestment of distributions 7,154 89,642

Shares redeemed (79,791) (991,167)

Redemption fees - 549

Net increase (decrease) 1,801,754 $ 21,978,466

INSTITUTIONAL CLASS 101,306 $ 1,046,775
Shares sold

Reinvestment of distributions 714 8,948

Shares redeemed (214) (2,943)

Redemption fees - 39

Net increase (decrease) 101,806 $ 1,052,819

A SHARE TRANSACTIONS FOR EACH CLASS ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO JANUARY 31, 1997.
ADVISOR UTILITIES GROWTH FUND - CLASS A
PERFORMANCE AND INVESTMENT SUMMARY

UTILITIES GROWTH - CLASS A 18.28%

UTILITIES GROWTH - CLASS A 12.07%
(INCL. 5.25% SALES CHARGE)

S&P 500 21.57%

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970218 165609 S00000000000001
FA Utilities Growth -CL A SP Standard & Poor 500
00186 SP001
1996/09/03 9475.00 10000.00
1996/09/30 9617.13 10561.42
1996/10/31 10204.58 10852.70
1996/11/30 10754.13 11673.05
1996/12/31 10900.22 11441.81
1997/01/31 11207.27 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970218 165611 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Utilities Growth - Class A on September 3, 1996, when the fund started, and
the current maximum 5.25% sales charge was paid. As the chart shows, by
January 31, 1997, the value of the investment would have grown to $11,207 -
a 12.07% increase on the initial investment. For comparison, look at how
the S&P 500 did over the same period. With dividends and capital gains, if
any, reinvested, the same $10,000 investment would have grown to $12,157 -
a 21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

WorldCom, Inc. 7.8

MCI Communications Corp. 5.6

Sprint Corp. 4.3

Pacific Telesis Group 4.2

BellSouth Corp. 4.1

GTE Corp. 4.0

SBC Communications, Inc. 3.9

Ameritech Corp. 3.7

AirTouch Communications, Inc. 3.5

Sonat, Inc. 3.4

TOP INDUSTRIES AS OF JANUARY 31, 1997
Telephone Services 51.6%
Gas Transmission
& Distribution 9.0%
Gas Transmission 7.6%
Gas Distribution 7.4%
Electric Power 5.4%
All Others 19.0%*
Row: 1, Col: 1, Value: 19.0
Row: 1, Col: 2, Value: 5.4
Row: 1, Col: 3, Value: 7.4
Row: 1, Col: 4, Value: 7.6
Row: 1, Col: 5, Value: 9.0
Row: 1, Col: 6, Value: 51.6
* INCLUDES SHORT-TERM INVESTMENTS
% OF FUND'S INVESTMENTS
ADVISOR UTILITIES GROWTH FUND - CLASS T
PERFORMANCE AND INVESTMENT SUMMARY

UTILITIES GROWTH - CLASS T 18.18%

UTILITIES GROWTH - CLASS T 14.05%
(INCL. 3.50% SALES CHARGE)

S&P 500 21.57%

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970213 153607 S00000000000001
FA Utilities Growth -CL T SP Standard & Poor 500
00196 SP001
1996/09/03 9650.00 10000.00
1996/09/30 9794.75 10561.42
1996/10/31 10393.05 10852.70
1996/11/30 10943.10 11673.05
1996/12/31 11101.67 11441.81
1997/01/31 11404.62 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970213 153609 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Utilities Growth - Class T on September 3, 1996, when the fund started, and
the current maximum 3.50% sales charge was paid. As the chart shows, by
January 31, 1997, the value of the investment would have grown to $11,405 -
a 14.05% increase on the initial investment. For comparison, look at how
the S&P 500 did over the same period. With dividends and capital gains, if
any, reinvested, the same $10,000 investment would have grown to $12,157 -
a 21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

WorldCom, Inc. 7.8

MCI Communications Corp. 5.6

Sprint Corp. 4.3

Pacific Telesis Group 4.2

BellSouth Corp. 4.1

GTE Corp. 4.0

SBC Communications, Inc. 3.9

Ameritech Corp. 3.7

AirTouch Communications, Inc. 3.5

Sonat, Inc. 3.4

An interview with
John Muresianu, Portfolio Manager of Fidelity Advisor Utilities Growth Fund
Q. JOHN, HOW DID THE FUND PERFORM?
A. From their inception on September 3, 1996, through January 31, 1997, the
fund's Class A and Class T shares have returned 18.28% and 18.18%,
respectively. During the same time period, the Standard & Poor's 500 Index
posted a return of 21.57%.
Q. WHAT FACTORS AFFECTED THE SECTOR'S PERFORMANCE?
A. The sector underperformed the broad market as investors became concerned
about how ongoing deregulation would affect utilities companies, especially
in the telephone and electric industries. In addition, utilities stocks
tend to trade in concert with the bond market, which underperformed the
stock market significantly during the period. The stock market, as
represented by the S&P 500, performed well largely on the basis of the
strong technology sector.
Q. CAN YOU GIVE US A MORE DETAILED OVERVIEW OF THE RECENT INVESTING
ENVIRONMENT FOR THE UTILITY SECTORS?
A. Gas stocks performed the best because gas prices spiked upward as a
result of very cold weather. In addition, there was a significant amount of
consolidation that helped stocks in the group. Further, the supply and
demand dynamic improved, partially due to a slowdown of Canadian imports
because of restricted pipeline capacity. On the telephone side, there
continued to be broad concern over the impact of increasing competition in
the cellular and local telephone service areas. At the same time, telephone
companies reported steady revenue and earnings growth; over the near term,
business prospects for telephone companies looked fine, helping the
telephone utility industry post modest gains.
Q. WHAT ABOUT ELECTRIC UTILITY STOCKS?
A. Electrics struggled. While all utility stocks are sensitive to what
happens in the bond market, electrics are more attuned than the telephone
and gas stocks. That's because they have the highest yields, are the most
income-oriented and have less prospects for earnings growth. The bond
market had its ups and downs, and utility stocks, as a result, bounced
around as well. Electric utility stocks also were negatively affected by
continued evidence that the Nuclear Regulatory Commission has been getting
tougher on nuclear operations. While deregulation has been a concern among
all utility sectors, especially telephones, it hasn't affected electrics
too negatively thus far. Regulators appear more likely to create a
transition to competition that is friendlier to utility companies than was
feared a few years ago.
Q. TELEPHONE STOCKS HAD THE LARGEST INDUSTRY WEIGHTING IN THE FUND . . .
A. This theme has its origin in my stock picking strategy. I see greater
earnings growth potential for telephone stocks than the other options in
the utility sector, and that's why they're attractive to me.
Q. WHICH STOCKS TURNED IN STRONG PERFORMANCES FOR THE FUND?
A. CINergy has done very well. It is a low-cost electric producer and could
be a winner under deregulation over the long term. It also has a very
growth-oriented management. On the gas side, Sonat - the fund's largest gas
position - has been a very strong performer. And in the telephone arena,
Pacific Telesis has done very well.
Q. AT THE SAME TIME, THERE MUST HAVE BEEN SOME DISAPPOINTMENTS . . .
A. AirTouch Communications was one. This stock lagged because of concern
about slowing cellular subscriber growth and increased price competition.
Enron was another disappointment. Even though it saw some stock price
appreciation, it lagged the gas group because of contract litigation in the
United Kingdom and a slowdown in earnings growth related to heavy spending
in anticipation of a fully competitive retail electricity market.
Q. WHAT'S YOUR OUTLOOK?
A. It's important for me to reiterate that my strategy will continue to be
based on individual stock picking. That's because it's nearly impossible to
predict the direction of the economy and interest rates. I will continue to
look for those companies that are able to show the best earnings growth.
For some time, most of these prospects have been in gas and telephone
companies, and I'll probably continue to favor them over electric utility
stocks.

FUND FACTS
START DATE: September 3, 1996
SIZE: as of January 31, 1997, more than
$6 million
MANAGER: Paul Antico, since January 1997;
joined Fidelity in 1991
(checkmark)
ADVISOR UTILITIES GROWTH FUND
INVESTMENTS JANUARY 31, 1997 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 93.8%
SHARES VALUE (NOTE 1)
BROADCASTING - 0.0%
CABLE TV OPERATORS - 0.0%
TCI Group Class A 100 $ 1,268
TELEVISION BROADCASTING - 0.0%
TCI Satellite Entertainment, Inc.
Class A (a) 10 81
TOTAL BROADCASTING 1,349
CELLULAR - 3.9%
CELLULAR & COMMUNICATION SERVICES - 3.9%
AirTouch Communications, Inc. (a) 8,300 214,763
Cellnet Data Systems, Inc. (a) 600 7,950
Telephone & Data Systems, Inc. 200 7,625
Vodafone Group PLC sponsored ADR 200 8,600
238,938
COAL - 0.3%
MAPCO, Inc. 500 16,375
COMMUNICATIONS EQUIPMENT - 1.1%
TELEPHONE EQUIPMENT - 1.1%
Lucent Technologies, Inc. 1,256 68,138
COMPUTER SERVICES & SOFTWARE - 0.2%
DATA PROCESSING - 0.2%
NCR Corp. (a) 287 10,870
ELECTRIC UTILITY - 8.3%
ELECTRIC & OTHER SERVICES - 2.9%
DPL, Inc. 700 17,150
Enova Corp. 600 13,425
Hidroelectrica de Cantabrico SA 100 3,387
IES Industries, Inc. 200 6,125
LG&E Energy Corp. 200 4,850
Montana Power Co. 700 15,400
NIPSCO Industries, Inc. 600 23,400
PECO Energy Co. 700 16,100
PacifiCorp. 1,000 21,250
Public Service Co. of New Mexico 700 14,000
Rochester Gas & Electric Corp. 200 3,875
Sierra Pacific Resources 100 2,838
Utilicorp United, Inc. 100 2,763
Veba AG Ord. 700 38,599
183,162
ELECTRIC POWER - 5.4%
AES Corp. (a) 3,000 178,125
American Electric Power Co., Inc. 300 12,413
Boston Edison Co. 200 5,425
Central & South West Corp. 900 22,725
Central Louisiana Electric Co., Inc. 800 21,700
DQE, Inc. 600 17,175
Entergy Corp. 300 8,063
Kansas City Power & Light Co. 200 5,775
Pinnacle West Capital Corp. 500 15,813
Portland General Corp. 700 27,475
Southern Co. 400 8,750
TECO Energy, Inc. 200 4,850
United Illuminating Co. 200 5,900
334,189
TOTAL ELECTRIC UTILITY 517,351

SHARES VALUE (NOTE 1)
GAS - 24.9%
GAS & OTHER SERVICES - 0.9%
MDU Resources Group, Inc. 1,200 $ 26,550
UGI Corp. 1,000 23,000
Western Resources, Inc. 100 3,063
52,613
GAS DISTRIBUTION - 7.4%
Eastern Enterprises Co. 1,500 49,313
Energen Corp. 1,600 49,200
K N Energy, Inc. 1,400 54,425
MCN Corp. 4,800 155,400
NUI Corp. 400 9,400
National Fuel Gas Co. 200 8,450
New Jersey Resources Corp. 200 5,975
NICOR, Inc. 400 14,450
Northwest Natural Gas Co. 100 2,500
Pacific Enterprises 3,000 90,375
Peoples Energy Corp. 200 6,650
WICOR, Inc. 300 10,500
456,638
GAS TRANSMISSION - 7.6%
Enron Corp. 3,300 136,125
ONEOK, Inc. 600 17,775
Sonat, Inc. 4,000 213,000
TPC Corp. (a) 900 9,788
USX-Delhi Group 100 1,625
Williams Companies, Inc. 2,400 96,300
474,613
GAS TRANSMISSION & DISTRIBUTION - 9.0%
Bay State Gas Co. 300 7,763
Columbia Gas System, Inc. (The) 1,600 104,200
Consolidated Natural Gas Co. 400 22,250
ENSERCH Corp. 4,600 104,650
Equitable Resources, Inc. 400 13,000
Noram Energy Corp. 1,800 28,125
PanEnergy Corp. 2,600 119,925
Questar Corp. 3,000 117,375
Tejas Gas Corp. (a) 800 35,200
Yankee Energy System, Inc. 400 9,000
561,488
TOTAL GAS 1,545,352
HOLDING COMPANIES - 0.6%
CINergy Corp. 1,000 34,500
INDEPENDENT POWER - 0.0%
STEAM SUPPLY - 0.0%
Bonneville Pacific Corp. (a) 300 281
OIL & GAS - 2.9%
CRUDE PETROLEUM & GAS - 0.1%
Occidental Petroleum Corp. 300 7,650
PETROLEUM REFINERS - 2.8%
Coastal Corp. (The) 3,600 174,150
TOTAL OIL & GAS 181,800
TELEPHONE SERVICES - 51.6%
AT&T Corp. 3,800 149,625
ALLTEL Corp. 200 6,425
Ameritech Corp. 3,800 227,050
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TELEPHONE SERVICES - CONTINUED
BCE, Inc. 500 $ 25,185
Bell Atlantic Corp. 2,700 181,575
BellSouth Corp. 5,800 257,375
Cincinnati Bell, Inc. 1,100 68,063
GTE Corp. 5,300 249,100
MCI Communications Corp. 9,900 347,738
NYNEX Corp. 4,100 207,563
Pacific Telesis Group 6,600 259,050
SBC Communications, Inc. 4,400 241,450
Sprint Corp. 6,500 264,875
U.S. West Communications Group 4,700 154,513
U.S. West Media Group (a) 4,300 80,088
WorldCom, Inc. (a) 19,350 486,169
3,205,844
TOTAL COMMON STOCKS
(Cost $5,335,920) 5,820,798
CONVERTIBLE PREFERRED STOCKS - 0.3%
ELECTRIC UTILITY - 0.3%
COMBINATION UTILITIES - 0.3%
Citizens Utilities Trust $2.50
(Cost $19,495) 400 19,300
CASH EQUIVALENTS - 5.9%

Taxable Central Cash Fund (b)
(Cost $368,523) 368,523 368,523
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $5,723,938) $ 6,208,621
LEGEND
1. Non-income producing
2. At period end, the seven-day yield on the Taxable Central Cash Fund was
5.39%. The yield refers to the income earned by investing in the fund over
the seven-day period, expressed as an annual percentage.
INCOME TAX INFORMATION
At January 31, 1997, the aggregate cost of investment securities for income
tax purposes was $5,723,938. Net unrealized appreciation aggregated
$484,683, of which $517,358 related to appreciated investment securities
and $32,675 related to depreciated investment securities.
ADVISOR UTILITIES GROWTH FUND
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1997 (UNAUDITED)

ASSETS

Investment in securities, at value $ 6,208,621
(cost $5,723,938) - See accompanying schedule

Receivable for fund shares sold 173,418

Dividends receivable 16,415

Interest receivable 1,491

Prepaid expenses 34,673

Receivable from investment adviser for expense reductions 24,545

TOTAL ASSETS 6,459,163

LIABILITIES

Payable for investments purchased $ 153,326

Distribution fees payable 1,352

Other payables and accrued expenses 17,250

TOTAL LIABILITIES 171,928

NET ASSETS $ 6,287,235

Net Assets consist of:

Paid in capital $ 5,795,349

Undistributed net investment income 1,897

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions 5,306

Net unrealized appreciation (depreciation) on investments 484,683

NET ASSETS $ 6,287,235

CALCULATION OF MAXIMUM $11.68
OFFERING PRICE
CLASS A:
NET ASSET VALUE and redemption
price per share ($406,213 (divided by)
34,764 shares)

Maximum offering price per share $12.33
(100/94.75 of $11.68)

CLASS T: $11.67
NET ASSET VALUE and redemption
price per share ($3,993,297 (divided by)
342,101 shares)

Maximum offering price per share $12.09
(100/96.50 of $11.67)

INSTITUTIONAL CLASS: $11.69
NET ASSET VALUE, offering price
and redemption price per share
($1,887,725 (divided by) 161,453 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SEPTEMBER 3, 1996 (COMMENCEMENT OF OPERATIONS) TO
JANUARY 31, 1997 (UNAUDITED)

INVESTMENT INCOME $ 34,521
Dividends

Interest 5,229

TOTAL INCOME 39,750

EXPENSES

Management fee $ 8,271

Transfer agent fees 567
Class A

Class T 2,302

Institutional Class 1,079

Distribution fees 275
Class A

Class T 3,257

Accounting fees and expenses 25,000

Non-interested trustees' compensation 5

Custodian fees and expenses 5,962

Registration fees 12,593
Class A

Class T 10,739

Institutional Class 10,883

Audit 7,563

Legal 635

Total expenses before reductions 89,131

Expense reductions (64,724 24,407
)

NET INVESTMENT INCOME 15,343

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 48,972

Foreign currency transactions 15 48,987

Change in net unrealized appreciation (depreciation) on investment securities 484,683

NET GAIN (LOSS) 533,670

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 549,013

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SEPTEMBER 3, 1996
(COMMENCEMENT
OF
OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
Operations $ 15,343
Net investment income

Net realized gain (loss) 48,987

Change in net unrealized appreciation (depreciation) 484,683

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 549,013

Distributions to shareholders (816)
From net investment income
Class A

Class T (6,500)

Institutional Class (6,130)

From net realized gain (2,993)
Class A

Class T (23,832)

Institutional Class (16,856)

TOTAL DISTRIBUTIONS (57,127)

Share transactions - net increase (decrease) 5,795,349

TOTAL INCREASE (DECREASE) IN NET ASSETS 6,287,235

NET ASSETS

Beginning of period -

End of period (including undistributed net investment income of $1,897) $ 6,287,235

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SEPTEMBER 3, 1996
(COMMENCEMENT OF
OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income .05

Net realized and unrealized gain (loss) 1.77

Total from investment operations 1.82

Less Distributions

From net investment income (.03)

From net realized gain (.11)

Total distributions (.14)

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.68

TOTAL RETURN B, C 18.28%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 406

Ratio of expenses to average net assets 1.75% A
, E

Ratio of net investment income to average net assets 1.11% A

Portfolio turnover 22% A

Average commission rate F $ .0183

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE
PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN
HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F A FUND IS REQUIRED TO DISCLOSE ITS
AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH
COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING
ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES
AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS T
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income .04

Net realized and unrealized gain (loss) 1.77

Total from investment operations 1.81

Less Distributions

From net investment income (.03)

From net realized gain (.11)

Total distributions (.14)

Redemptions fees added to paid in capital -

Net asset value, end of period $ 11.67

TOTAL RETURN B, C 18.18%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 3,993

Ratio of expenses to average net assets 2.00% A
, E

Ratio of net investment income to average net assets .86% A

Portfolio turnover 22% A

Average commission rate F $ .0183

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE
PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN
HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F A FUND IS REQUIRED TO DISCLOSE ITS
AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH
COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING
ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES
AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income .06

Net realized and unrealized gain (loss) 1.78

Total from investment operations 1.84

Less Distributions

From net investment income (.04)

From net realized gain (.11)

Total distributions (.15)

Redemptions fees added to paid in capital -

Net asset value, end of period $ 11.69

TOTAL RETURN B, C 18.49%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 1,888

Ratio of expenses to average net assets 1.50% A
, E

Ratio of net investment income to average net assets 1.36% A

Portfolio turnover 22% A

Average commission rate F $ .0183

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED. D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION
OF THE CLASS' EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'
EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS). F A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY
FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES
MAY DIFFER.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1997 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Utilities Growth Fund (the fund) is a fund of Fidelity
Advisor Series VII (the trust) and is authorized to issue an unlimited
number of shares. The trust is registered under the Investment Company Act
of 1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust.
The fund offers Class A, Class T, and Institutional Class shares, each of
which has equal rights as to assets and voting privileges. Each class has
exclusive voting rights with respect to its distribution plan. Investment
income, realized and unrealized capital gains and losses, redemption fees,
the common expenses of the fund, and certain fund-level expense reductions
are allocated on a pro rata basis to each class based on the relative net
assets of each class to the total net assets of the fund. Each class of
shares differs in its respective distribution, transfer agent,
registration, and certain other class-specific fees, expenses, and expense
reductions.
On November 14, 1996, the Board of Trustees approved the creation of an
additional class of shares, Class B shares. Offering of the new class
commences on March 3, 1997. Class B shares are subject to an annual
distribution and service fee of 1.00% (of which .75% represents a
distribution fee and .25% represents a shareholder service fee) of the
class' average net assets, and a contingent deferred sales charge levied on
Class B share redemptions. This charge is based on a declining scale that
ranges from 5% to 1% on Class B shares redeemed within six years of
purchase.
The financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. Securities for which exchange quotations are not readily
available (and in certain cases debt securities which trade on an exchange)
are valued primarily using dealer-supplied valuations or at their fair
value as determined in good faith under consistently applied procedures
under the general supervision of the Board of Trustees. Short-term
securities with remaining maturities of sixty days or less for which
quotations are not readily available are valued at amortized cost or
original cost plus accrued interest, both of which approximate current
value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Income receipts
and expense payments are translated into U.S. dollars at the prevailing
exchange rate on the respective dates of the transactions. Purchases and
sales of securities are translated into U.S. dollars at the contractual
currency exchange rates established at the time of each trade.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, and the difference between
the amount of net investment income accrued and the U.S. dollar amount
actually received. The effects of changes in foreign currency exchange
rates on investments in securities are included with the net realized and
unrealized gain or loss on investment securities.
INCOME TAXES. The fund intends to qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code. By so qualifying, the fund
will not be subject to income taxes to the extent that it distributes
substantially all of its taxable income for its fiscal year. The schedule
of investments includes information regarding income taxes under the
caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Non-cash dividends included in dividend income, if any,
are recorded at the fair market value of the securities received. Interest
income is accrued as earned. Investment income is recorded net of foreign
taxes withheld where recovery of such taxes is uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
PREPAID EXPENSES. Fidelity Management & Research Company (FMR) bears all
organizational expenses except for registering and qualifying each class
and shares of each class for distribution under federal and state
securities law. These expenses are borne by each class and amortized over
one year.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date. Income dividends and capital gain distributions are
declared separately for each class.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences may result in distribution reclassifications.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income and accumulated undistributed net
realized gain (loss) on investments and foreign currency transactions may
include temporary book and tax basis differences which will reverse in a
subsequent period. Any taxable income or gain remaining at fiscal year end
is distributed in the following year.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
REDEMPTION FEES. Shares held in the fund less than 60 days are subject to a
redemption fee equal to 1% of the proceeds of the redeemed shares. The fee,
which is retained by the fund, is accounted for as an addition to paid in
capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FOREIGN CURRENCY CONTRACTS. The fund generally uses foreign currency
contracts to facilitate transactions in foreign-denominated securities.
Losses may arise from changes in the value of the foreign currency or if
the counterparties do not perform under the contracts' terms. The U.S.
dollar value of foreign currency contracts is determined using contractual
currency exchange rates established at the time of each trade. The cost of
the foreign currency contracts is included in the cost basis of the
associated investment.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission(the SEC), the fund, along with other
affiliated entities of FMR, may transfer uninvested cash balances into one
or more joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
TAXABLE CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by the
SEC, the fund may invest in the Taxable Central Cash Fund (the Cash Fund)
managed by FMR Texas, an affiliate of FMR. The Cash Fund is an open-end
money market fund available only to investment companies and other accounts
managed by FMR and its affiliates. The Cash Fund seeks preservation of
capital, liquidity, and current income by investing in U.S. Treasury
securities and repurchase agreements for these securities, and may be
utilized by the fund as an additional cash management option. Dividends
from the Cash Fund are declared daily and paid monthly from net interest
income. Income distributions received by the fund are recorded as interest
income.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $5,644,440 and $337,997, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .2500% to .5200% for the period. In the event that these
rates were lower than the contractual rates in effect during the period,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .30%. For
the period, the management fee was equivalent to an annualized rate of .60%
of average net assets.
DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the 1940
Act, the Trustees have adopted separate distribution plans with respect to
the fund's Class A shares (Class A Plan), Class T shares (Class T Plan),
and Institutional Class shares (collectively referred to as "the Plans").
Under the Class A and Class T Plans, the fund pays Fidelity Distributors
Corporation (FDC), an affiliate of FMR, a distribution and service fee.
This fee is based on annual rates of .25% and .50% of the average net
assets of the Class A and Class T shares, respectively. For the period, the
fund paid FDC $275 and $3,257 under the Class A and Class T Plans, all of
which was paid to securities dealers, banks and other financial
institutions for the distribution of Class A and Class T shares, and
providing shareholder support services.
Under the Plans, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's Class A, Class T,
and Institutional Class shares. The Plans also authorize payments to third
parties that assist in the sale of the fund's shares or render shareholder
support services.
SALES LOAD. FDC receives a front-end sales charge of up to 5.25% and 3.50%
for selling Class A and Class T shares of the fund, respectively.
For the period, FDC received sales charges of $11,595 and $34,737 on sales
of Class A and Class T shares of the fund, of which $8,974 and $28,590 were
paid to securities dealers, banks, and other financial institutions.
TRANSFER AGENT FEES. Fidelity Investments Institutional Operations Company,
Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing,
and shareholder servicing agent for the fund's Class A, Class T and
Institutional Class shares. Prior to January 1, 1997, State Street Bank and
Trust Company acted in that capacity for the fund's Class T shares, and
delegated certain of these services to FIIOC for which FIIOC received its
allocable
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
share of all such fees. FIIOC receives account fees and asset-based fees
that vary according to account size and type of account of the shareholders
of the respective classes of the fund. FIIOC pays for typesetting, printing
and mailing of all shareholder reports, except proxy statements. For the
period, the transfer agent fees were equivalent to annualized rates of
.51%, .35%, and .17% of the average net assets of Class A, Class T, and
Institutional Class, respectively.
ACCOUNTING FEES. Fidelity Service Company, Inc. (FSC), an affiliate of FMR,
maintains the fund's accounting records. The fee is based on the level of
average net assets for the month plus out-of-pocket expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $276 for the period.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding interest,
taxes, brokerage commissions and extraordinary expenses) above annual rates
of 1.75%, 2.00%, and 1.50% of average net assets for Class A, Class T, and
Institutional Class, respectively. For the period, the reimbursement
reduced expenses by $15,008, $25,122, and $24,594 for Class A, Class T, and
Institutional Class, respectively.
6. BENEFICIAL INTEREST.
At the end of the period, FMR and its affiliates were record owners of
approximately 16.9% of the total outstanding shares of the fund.
7. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:
SHARES DOLLARS

PERIOD ENDED PERIOD ENDED
JANUARY 31, JANUARY 31,

1997 A 1997 A

CLASS A 38,111 $ 401,344
Shares sold

Reinvestment of distributions 351 3,875

Shares redeemed (3,698) (41,314)

Redemption fees - 21

Net increase (decrease) 34,764 $ 363,926

CLASS T 343,832 $ 3,788,767
Shares sold

Reinvestment of distributions 2,654 29,247

Shares redeemed (4,385) (49,466)

Redemption fees - 135

Net increase (decrease) 342,101 $ 3,768,683

INSTITUTIONAL CLASS 161,370 $ 1,662,250
Shares sold

Reinvestment of distributions 1,243 13,709

Shares redeemed (1,160) (13,309)

Redemption fees - 90

Net increase (decrease) 161,453 $ 1,662,740

A SHARE TRANSACTIONS FOR EACH CLASS ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO JANUARY 31, 1997.

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
William J. Hayes, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
ADVISORY BOARD
William O. McCoy
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA - Class A and Class T
CUSTODIAN
The Chase Manhattan Bank
New York, NY
FOCUS FUNDS
Fidelity Advisor Consumer
Industries Fund
Fidelity Advisor Cyclical
Industries Fund
Fidelity Advisor Financial
Services Fund
Fidelity Advisor Health Care Fund
Fidelity Advisor Natural
Resources Fund
Fidelity Advisor Technology Fund
Fidelity Advisor Utilities Growth Fund
GROWTH FUNDS
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Large Cap Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Overseas Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor TechnoQuant(trademark)
Growth Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Balanced
Fidelity Advisor Equity Income Fund
Fidelity Advisor Growth & Income Fund
TAXABLE INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Intermediate Bond Fund
Fidelity Advisor Mortgage Securities Fund
Fidelity Advisor Short Fixed-Income Fund
Fidelity Advisor Strategic Income Fund
MUNICIPAL FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Intermediate Municipal Income Fund
Fidelity Advisor Municipal Bond Fund
Fidelity Advisor Short-Intermediate Municipal Income Fund
STATE MUNICIPAL FUNDS
Fidelity Advisor California Municipal Income Fund
Fidelity Advisor New York Municipal Income Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund

(REGISTERED TRADEMARK)

(2_FIDELITY_LOGOS)FIDELITY ADVISOR
FOCUS FUNDS
INSTITUTIONAL CLASS
Consumer Industries
Cyclical Industries
Financial Services
Health Care
Technology
Utilities Growth

SEMIANNUAL REPORT
JANUARY 31, 1997
CONTENTS

PERFORMANCE OVERVIEW AND 3
MARKET RECAP

CONSUMER INDUSTRIES 4 PERFORMANCE AND INVESTMENT SUMMARY
5 FUND TALK: THE MANAGERS' OVERVIEW
6 INVESTMENTS
9 FINANCIAL STATEMENTS
12 NOTES TO THE FINANCIAL STATEMENTS

CYCLICAL INDUSTRIES 15 PERFORMANCE AND INVESTMENT SUMMARY
16 FUND TALK: THE MANAGER'S OVERVIEW
17 INVESTMENTS
20 FINANCIAL STATEMENTS
23 NOTES TO THE FINANCIAL STATEMENTS

FINANCIAL SERVICES 26 PERFORMANCE AND INVESTMENT SUMMARY
27 FUND TALK: THE MANAGER'S OVERVIEW
28 INVESTMENTS
29 FINANCIAL STATEMENTS
32 NOTES TO THE FINANCIAL STATEMENTS

HEALTH CARE 35 PERFORMANCE AND INVESTMENT SUMMARY
36 FUND TALK: THE MANAGER'S OVERVIEW
37 INVESTMENTS
39 FINANCIAL STATEMENTS
42 NOTES TO THE FINANCIAL STATEMENTS

TECHNOLOGY 45 PERFORMANCE AND INVESTMENT SUMMARY
46 FUND TALK: THE MANAGER'S OVERVIEW
47 INVESTMENTS
50 FINANCIAL STATEMENTS
53 NOTES TO THE FINANCIAL STATEMENTS

UTILITIES GROWTH 56 PERFORMANCE AND INVESTMENT SUMMARY
57 FUND TALK: THE MANAGER'S OVERVIEW
58 INVESTMENTS
60 FINANCIAL STATEMENTS
63 NOTES TO THE FINANCIAL STATEMENTS

PERFORMANCE
There are several ways to evaluate historical performance. You can look at
the total percentage change in value, the average annual percentage change,
or the growth of a hypothetical $10,000 investment. Total return reflects
the change in the value of an investment, assuming reinvestment of dividend
income and capital gains (the profits earned upon the sale of securities
that have grown in value). If Fidelity had not reimbursed certain class
expenses, the total return would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED LIFE OF
JANUARY 31, 1997 FUND

CONSUMER INDUSTRIES - INSTITUTIONAL CLASS 13.84%

S&P 500 (registered trademark) 21.57%

CUMULATIVE TOTAL RETURNS show Institutional Class' performance in
percentage terms over a set period - in this case, since the fund started
on September 3, 1996. You can compare Institutional Class' returns to the
performance of the S&P 500 - a widely recognized, unmanaged index of common
stocks. This benchmark reflects reinvestment of dividends and capital
gains, if any, and excludes the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL RETURNS take Institutional Class shares' cumulative return
and show you what would have happened if Institutional Class shares had
performed at a constant rate each year. Average annual total returns will
appear once the fund is a year old.

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970212 145319 S00000000000001
FA Consumer Ind -CL I SP Standard & Poor 500
00205 SP001
1996/09/03 10000.00 10000.00
1996/09/30 10560.00 10561.42
1996/10/31 10680.00 10852.70
1996/11/30 11050.00 11673.05
1996/12/31 10860.20 11441.81
1997/01/31 11383.58 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970212 145321 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Consumer Industries - Institutional Class on September 3, 1996, when the
fund started. As the chart shows, by January 31, 1997, the value of the
investment would have grown to $11,384 - a 13.84% increase on the initial
investment. For comparison, look at how the S&P 500 did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 investment would have grown to $12,157 - a 21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

Procter & Gamble Co. 4.5

Philip Morris Companies, Inc. 4.1

Gillette Co. 4.1

Westinghouse Electric Corp. 3.7

Coca-Cola Co. (The) 3.7

Disney (Walt) Co. 3.5

HFS, Inc. 3.2

Hilton Hotels Corp. 2.4

Mirage Resorts, Inc. 2.1

Kimberly-Clark Corp. 2.1

NOTE TO SHAREHOLDERS: Effective January 7, 1997, Paul Antico became
Portfolio Manager of Fidelity Advisor Consumer Industries Fund. The
following is an interview with Katherine Collins, who managed the fund
during most of the period covered by the report, and Paul Antico, who
discusses his investment approach and outlook.
Q. KATHERINE, HOW DID THE FUND PERFORM?
K.C. Since its inception on September 3, 1996, through January 31, 1997,
the fund's Institutional Class shares had a total return of 13.84%. By
comparison, the Standard & Poor's 500 Index returned 21.57% during the same
period.
Q. WHAT WERE THE REASONS BEHIND THE FUND'S PERFORMANCE?
K.C. As with any sector fund, performance versus the broader market can
vary significantly, especially over a short time frame. If I had to choose
the biggest contributor to the fund's performance, it would be the fund's
weighting in large-capitalization, blue chip consumer issues. They had
exceptionally strong performance at the end of the year, and I was able to
find good opportunities in companies such as Procter & Gamble, Coca-Cola
and Gillette, as well as large-cap entertainment stocks such as Walt
Disney. The heavier weighting in personal care stocks also helped the
fund's performance. Newspaper stocks did quite well, primarily due to a
decline in newsprint prices that helped boost earnings. The fund also was
helped by limiting its exposure to restaurant, cable and cellular
communications stocks, which performed poorly during the period.
Q. WERE THERE ANY DISAPPOINTMENTS?
K.C. Sure. Gaming and broadcasting stocks did not perform well during the
period. Several gaming companies have been adding capacity, and I believe
when their new facilities open they will be in a better position to
increase their earnings. While we've purchased some of these companies in
advance of these events, the capacity additions have caused some
disruptions in the industry, leading to a lowering of short-term earnings
expectations. The fund's radio broadcasting investments were affected by a
sharp correction in October and November, stemming from the Justice
Department's investigation into some of the recent consolidation in the
industry. However, it now appears that the positive effects of the
industry's consolidation will continue, and current business remains
strong.
Q. TURNING TO YOU, PAUL, WHAT IS YOUR INVESTMENT PHILOSOPHY?
P.A. Like Katherine, I'm a common sense investor, managing the fund from
the bottom up - evaluating the merits of individual companies rather than
solely looking at industries or economic trends. I like to buy growth at
the right price, and I am sensitive to valuations, but I'm not afraid to
pay more for a great company such as Gillette or Coca-Cola. I look at each
company on its own merits, and I look at valuation the same way. There are
always some great buying opportunities in the sector because of its
breadth. Let me give you an example. If consumers are staying away from
high-priced restaurants, they instead may go to low-priced ones such as
McDonald's. If they stay away altogether, they will purchase products for
home consumption. Within each industry of this sector, I believe there are
always companies that have the potential for strong performance and are
establishing or building their market niche.
Q. HAVING RECENTLY TAKEN THE HELM, WHAT IS YOUR OUTLOOK?
P.A. The outlook for consumer stocks is, of course, tied to general
economic health. At the same time, I think the fund can do well in
virtually any economic environment because of investment opportunities
opening up through changing trends. If I feel the need to position the fund
more defensively, I will purchase more traditional consumer companies. If I
see hot new trends, I can take advantage of the higher appreciation
potential growing companies can provide. This is a broad sector with a huge
number of companies to choose from. My team of analysts and I will call on
as many companies as possible, trying to find the best buying
opportunities.

Showing Percentage of Total Value of Investment in Securities

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1997 (UNAUDITED)

ASSETS

Investment in securities, at value $ 6,121,961
(cost $5,744,126) - See accompanying schedule

Receivable for investments sold 126,727

Receivable for fund shares sold 11,279

Dividends receivable 2,991

Interest receivable 3,383

Prepaid expenses 34,673

Receivable from investment adviser for expense reductions 24,111

TOTAL ASSETS 6,325,125

LIABILITIES

Payable for investments purchased $ 238,457

Payable for fund shares redeemed 15,783

Distribution fees payable 1,685

Other payables and accrued expenses 17,456

TOTAL LIABILITIES 273,381

NET ASSETS $ 6,051,744

Net Assets consist of:

Paid in capital $ 5,663,156

Accumulated net investment loss (1,906
)

Accumulated undistributed net realized gain (loss) on investments 12,659

Net unrealized appreciation (depreciation) on investments 377,835

NET ASSETS $ 6,051,744

CALCULATION OF MAXIMUM $11.29
OFFERING PRICE
CLASS A:
NET ASSET VALUE and redemption
price per share ($880,164 (divided by)
77,946 shares)

Maximum offering price per share $11.92
(100/94.75 of $11.29)

CLASS T: $11.29
NET ASSET VALUE and redemption
price per share ($3,873,958 (divided by)
343,241 shares)

Maximum offering price per share $11.70
(100/96.50 of $11.29)

INSTITUTIONAL CLASS: $11.31
NET ASSET VALUE, offering price
and redemption price per share
($1,297,622 (divided by) 114,751 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SEPTEMBER 3, 1996 (COMMENCEMENT OF OPERATIONS) TO
JANUARY 31, 1997 (UNAUDITED)

INVESTMENT INCOME $ 14,912
Dividends

Interest 13,869

TOTAL INCOME 28,781

EXPENSES

Management fee $ 9,458

Transfer agent fees 888
Class A

Class T 3,147

Institutional Class 806

Distribution fees 542
Class A

Class T 4,619

Accounting fees and expenses 25,206

Non-interested trustees' compensation 6

Custodian fees and expenses 6,298

Registration fees 12,889
Class A

Class T 10,960

Institutional Class 11,246

Audit 7,563

Legal 635

Total expenses before reductions 94,263

Expense reductions (65,329 28,934
)

NET INVESTMENT INCOME (LOSS) (153
)

REALIZED AND UNREALIZED GAIN (LOSS) 39,927
Net realized gain (loss) on investment securities

Change in net unrealized appreciation (depreciation) on investment securities 377,835

NET GAIN (LOSS) 417,762

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 417,609

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
Operations $ (153)
Net investment income (loss)

Net realized gain (loss) 39,927

Change in net unrealized appreciation (depreciation) 377,835

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 417,609

Distributions to shareholders (704)
From net investment income
Class A

Institutional Class (1,049)

From net realized gain (4,223)
Class A

Class T (16,752)

Institutional Class (6,293)

TOTAL DISTRIBUTIONS (29,021)

Share transactions - net increase (decrease) 5,663,156

TOTAL INCREASE (DECREASE) IN NET ASSETS 6,051,744

NET ASSETS

Beginning of period -

End of period (including accumulated net investment loss of $1,906) $ 6,051,744

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income -

Net realized and unrealized gain (loss) 1.36

Total from investment operations 1.36

Less Distributions

From net investment income (.01)

From net realized gain (.06)

Total distributions (.07)

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.29

TOTAL RETURN B, C 13.64%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 880

Ratio of expenses to average net assets 1.75% A
, E

Ratio of net investment income to average net assets .07% A

Portfolio turnover 72% A

Average commission rate F $ .0282

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND
FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE
PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN
HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F A FUND IS REQUIRED TO DISCLOSE ITS
AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS
ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING
ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES
AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS T
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.01)

Net realized and unrealized gain (loss) 1.36

Total from investment operations 1.35

Less Distributions

From net realized gain (.06)

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.29

TOTAL RETURN B, C 13.53%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 3,874

Ratio of expenses to average net assets 2.00% A
, E

Ratio of net investment income (loss) to average net assets (.18)%
A

Portfolio turnover 72% A

Average commission rate F $ .0282

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES
TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND
FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME (LOSS) PER
SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE
PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN
HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F A FUND IS REQUIRED TO DISCLOSE ITS
AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS
ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING
ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES
AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S>
<C>
SELECTED PER-SHARE DATA D
$ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income
.01

Net realized and unrealized gain (loss)
1.37

Total from investment operations
1.38

Less Distributions

From net investment income
(.01)

From net realized gain
(.06)

Total distributions
(.07)

Redemption fees added to paid in capital
-

Net asset value, end of period
$ 11.31

TOTAL RETURN B, C
13.84%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted)
$ 1,298

Ratio of expenses to average net assets
1.50% A

, E

Ratio of net investment income to average net assets
.32% A

Portfolio turnover
72% A

Average commission rate F
$ .0282

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF
NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE PERIOD. WITHOUT THIS
REIMBURSEMENT, THE CLASS'
EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE
COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX
OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1997 (Unaudited)

PERIOD ENDED PERIOD ENDED
JANUARY 31, JANUARY 31,

1997 A 1997 A

CLASS A 77,937 $ 830,694
Shares sold

Reinvestment of distributions 458 4,926

Shares redeemed (449) (4,910)

Redemption fees - 124

Net increase (decrease) 77,946 $ 830,834

CLASS T 383,305 $ 4,100,121
Shares sold

Reinvestment of distributions 1,491 16,025

Shares redeemed (41,555) (456,388)

Redemption fees - 558

Net increase (decrease) 343,241 $ 3,660,316

INSTITUTIONAL CLASS 114,527 $ 1,169,504
Shares sold

Reinvestment of distributions 682 7,342

Shares redeemed (458) (5,027)

Redemption fees - 187

Net increase (decrease) 114,751 $ 1,172,006

A SHARE TRANSACTIONS FOR EACH CLASS ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO JANUARY 31, 1997.
ADVISOR CYCLICAL INDUSTRIES FUND - INSTITUTIONAL CLASS
PERFORMANCE AND INVESTMENT SUMMARY

PERFORMANCE
There are several ways to evaluate historical performance. You can look at
the total percentage change in value, the average annual percentage change,
or the growth of a hypothetical $10,000 investment. Total return reflects
the change in the value of an investment, assuming reinvestment of dividend
income and capital gains (the profits earned upon the sale of securities
that have grown in value). If Fidelity had not reimbursed certain class
expenses, the total return would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED LIFE OF
JANUARY 31, 1997 FUND

CYCLICAL INDUSTRIES - INSTITUTIONAL CLASS 15.63%

S&P 500 21.57%

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970212 162050 S00000000000001
FA Cyclical Ind -CL I SP Standard & Poor 500
00204 SP001
1996/09/03 10000.00 10000.00
1996/09/30 10390.00 10561.42
1996/10/31 10690.00 10852.70
1996/11/30 11330.00 11673.05
1996/12/31 11260.09 11441.81
1997/01/31 11572.87 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970212 162051 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Cyclical Industries - Institutional Class on September 3, 1996, when the
fund started. As the chart shows, by January 31, 1997, the value of the
investment would have grown to $11,563 - a 15.63% increase on the initial
investment. For comparison, look at how the S&P 500 did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 investment would have grown to $12,157 - a 21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

General Electric Co. 5.5

Quanex Corp. 3.5

McDonnell Douglas Corp. 3.5

du Pont (E.I.) de Nemours & Co. 3.2

Emerson Electric Co. 2.8

Aluminum Co. of America 2.8

General Motors Corp. 2.7

Westinghouse Electric Corp. 2.6

Monsanto Co. 2.3

Boeing Co. 2.1

An interview with
Albert Ruback, Portfolio Manager of Fidelity Advisor Cyclical Industries
Fund
Q. ALBERT, HOW HAS THE FUND PERFORMED?
A. For the period from September 3, 1996 - when the fund started - through
January 31, 1997, the fund's Institutional Class shares returned 15.63%. By
comparison, the Standard & Poor's 500 Index returned 21.57% over the same
period.
Q. WHY DID THE FUND'S PERFORMANCE LAG THAT OF THE S&P 500?
A. The fund did well; it's just that the S&P 500 has continued to set
records. The S&P 500 posted very strong numbers, for two reasons, I
believe. First, because of the solid performance of technology stocks.
Second, the trend we've seen over the past two years or so of
outperformance of the large-capitalization growth stocks continued through
the end of the period. While the cyclical group of stocks performed well,
they were not favored as much as alternative investments. Over the course
of the second half of 1996, there was uncertainty about the health of the
economy, including some concerns that the economy may indeed turn down.
This backdrop caused investors to be worried that cyclical stocks - which
rise and fall with the economy - would underperform if we were headed
toward a cyclical downturn.
Q. HAVE YOU BEEN PURSUING ANY PARTICULAR INVESTMENT THEMES?
A. Yes, three of them. One theme involved companies that produce aluminum,
such as Alcoa and Inco. Aluminum inventories have remained at low levels,
and the production outlook across the industry is attractive. If we get
increases in demand and operating rates, we'll reach what is known as a
"pinch point," where concern among aluminum users could cause the price of
the commodity to escalate sharply. A second strategy involved the aerospace
and defense sector. The outlook for commercial aircraft orders, including a
significant backlog, is strong and should translate into extraordinary cash
flow for aircraft companies. In addition, the U.S. defense budget has been
declining every year for the past several years. Now it appears that this
movement has bottomed, and there is some impetus in Congress to increase
defense spending. During the period, McDonnell Douglas and Boeing were two
stocks that performed well due to these trends. Finally, there was paper
and forest products. This area has lagged significantly due to high
inventories. Lately, it appeared that inventories were much more under
control and the outlook for capacity additions was much more favorable. If
the economy remains stable, we should see price increases and inventory
reductions that should increase the earnings of these companies.
Q. WHAT ARE SOME OF THE BASICS OF CYCLICAL INVESTING?
A. With steady growth companies, growth and earnings are predictable within
a range. Conversely, cyclical companies can go from posting tremendous
profits to significant losses during the course of the economic cycle. It's
important to remain closely attuned to a company's orders, backlogs and
production prowess and to have a feeling for a company's earnings before it
reports them. One of the keys is to invest in a cyclical company well
before it posts positive results, and to sell a cyclical stock before you
see an earnings downturn. Also, it's important to recognize that some
companies tend to do better early in a business cycle, some do well in the
middle and others perform well toward the end, even within the same
industry.
Q. ARE THERE ANY OTHER IMPORTANT ASPECTS TO YOUR INVESTMENT APPROACH?
A. I am a value oriented investor. It's important to me that I buy a stock
at an attractive valuation - a stock's price relative to other measures
such as earnings or cash flow - relative to the historical norm of its
growth potential. While I like to buy stocks when they're selling in the
middle or bottom half of their historical price range, I will pay more for
a stock that has extraordinary growth prospects. At the same time, I won't
buy a stock just because it's cheap; there has to be some sort of catalyst
for the company's business.
Q. WHAT'S YOUR OUTLOOK FOR 1997?
A. Valuations in the stock market have reached very high levels. As a
result, I'm trying to be even more sensitive to a stock's valuation,
because we could be entering a period when the market will become much more
stock selective, rather than continuing its focus on the largest stocks in
the S&P. At the same time, I'll do what I always do: focus on companies one
at a time, looking for stocks selling at attractive valuations that I
believe will appreciate in price because of some sort of catalyst.

FUND FACTS
START DATE: September 3, 1996
SIZE: as of January 31, 1997, more than
$6 million
MANAGER: Paul Antico, since January 1997;
joined Fidelity in 1991
(checkmark)
ADVISOR CYCLICAL INDUSTRIES FUND
INVESTMENTS JANUARY 31, 1997 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1997 (UNAUDITED)

ASSETS

Investment in securities, at value $ 7,515,833
(cost $6,852,381) - See accompanying schedule

Receivable for investments sold 110,032

Receivable for fund shares sold 22,146

Dividends receivable 2,932

Interest receivable 3,070

Prepaid expenses 34,673

Receivable from investment adviser for expense reductions 20,660

TOTAL ASSETS 7,709,346

LIABILITIES

Payable for investments purchased $ 72,166

Payable for fund shares redeemed 4,818

Distribution fees payable 464

Other payables and accrued expenses 16,046

TOTAL LIABILITIES 93,494

NET ASSETS $ 7,615,852

Net Assets consist of:

Paid in capital $ 6,893,562

Distributions in excess of net investment income (5,150
)

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions 63,988

Net unrealized appreciation (depreciation) on investments 663,452

NET ASSETS $ 7,615,852

CALCULATION OF MAXIMUM $11.46
OFFERING PRICE
CLASS A:
NET ASSET VALUE and redemption
price per share ($269,407 (divided by)
23,504 shares)

Maximum offering price per share $12.09
(100/94.75 of $11.46)

CLASS T: $11.45
NET ASSET VALUE and redemption
price per share ($1,286,336 (divided by)
112,334 shares)

Maximum offering price per share $11.87
(100/96.50 of $11.45)

INSTITUTIONAL CLASS: $11.46
NET ASSET VALUE, offering price
and redemption price per share
($6,060,109 (divided by) 528,638 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SEPTEMBER 3, 1996 (COMMENCEMENT OF OPERATIONS) TO
JANUARY 31, 1997 (UNAUDITED)

INVESTMENT INCOME $ 33,072
Dividends

Interest 9,201

TOTAL INCOME 42,273

EXPENSES

Management fee $ 14,428

Transfer agent fees 547
Class A

Class T 923

Institutional Class 3,195

Distribution fees 219
Class A

Class T 1,027

Accounting fees and expenses 25,104

Non-interested trustees' compensation 10

Custodian fees and expenses 4,912

Registration fees 12,568
Class A

Class T 10,711

Institutional Class 10,950

Audit 7,563

Legal 639

Total expenses before reductions 92,796

Expense reductions (56,063 36,733
)

NET INVESTMENT INCOME 5,540

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 109,972

Foreign currency transactions (2 109,970
)

Change in net unrealized appreciation (depreciation) on investment securities 663,452

NET GAIN (LOSS) 773,422

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 778,962

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
Operations $ 5,540
Net investment income

Net realized gain (loss) 109,970

Change in net unrealized appreciation (depreciation) 663,452

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 778,962

Distributions to shareholders (109)
From net investment income
Class A

Class T (309)

Institutional Class (5,122)

In excess of net investment income (101)
Class A

Class T (287)

Institutional Class (4,762)

From net realized gain (1,679)
Class A

Class T (4,766)

Institutional Class (39,537)

TOTAL DISTRIBUTIONS (56,672)

Share transactions - net increase (decrease) 6,893,562

TOTAL INCREASE (DECREASE) IN NET ASSETS 7,615,852

NET ASSETS -
Beginning of period

End of period (including distributions in excess of net investment income of $5,150) $ 7,615,852

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income -

Net realized and unrealized gain (loss) 1.55

Total from investment operations 1.55

Less Distributions

From net investment income (.01)

In excess of net investment income -

From net realized gain (.08)

Total distributions (.09)

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.46

TOTAL RETURN B, C 15.53%

RATIOS AND SUPPLEMENTAL DATA $ 269
Net assets, end of period (000 omitted)

Ratio of expenses to average net assets 1.75% A
, E

Ratio of expenses to average net assets after expense reductions 1.74% A
, F

Ratio of net investment income to average net assets - A

Portfolio turnover 43% A

Average commission rate G $ .0210

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF
NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D
NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F FMR OR
THE FUND HAS ENTERED INTO
VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS). G A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND
FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY
DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS T
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.01)

Net realized and unrealized gain (loss) 1.55

Total from investment operations 1.54

Less Distributions

From net investment income (.01)

In excess of net investment income -

From net realized gain (.08)

Total distributions (.09)

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.45

TOTAL RETURN B, C 15.43%

RATIOS AND SUPPLEMENTAL DATA $ 1,286
Net assets, end of period (000 omitted)

Ratio of expenses to average net assets 2.00% A,
E

Ratio of expenses to average net assets after expense reductions 1.99% A,
F

Ratio of net investment income (loss) to average net assets (.24)%
A

Portfolio turnover 43% A

Average commission rate G $ .0210

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF
NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D
NET INVESTMENT INCOME (LOSS)
PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE
CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F
FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS). G A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND
FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY
DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income .01

Net realized and unrealized gain (loss) 1.55

Total from investment operations 1.56

Less Distributions

From net investment income (.01)

In excess of net investment income (.01)

From net realized gain (.08)

Total distributions (.10)

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.46

TOTAL RETURN B, C 15.63%

RATIOS AND SUPPLEMENTAL DATA $ 6,060
Net assets, end of period (000 omitted)

Ratio of expenses to average net assets 1.50% A,
E

Ratio of expenses to average net assets after expense reductions 1.46% A,
F

Ratio of net investment income to average net assets .28% A

Portfolio turnover 43% A

Average commission rate G $ .0210

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF
NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE PERIOD. WITHOUT THIS
REIMBURSEMENT, THE CLASS'
EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F FMR OR THE FUND HAS ENTERED INTO VARYING
ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). G A FUND IS REQUIRED TO
DISCLOSE ITS AVERAGE COMMISSION
RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND
DEPENDING ON THE MIX OF TRADES
EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1997 (Unaudited)

PERIOD ENDED PERIOD ENDED
JANUARY 31, JANUARY 31,

1997 A 1997 A

CLASS A 25,653 $ 267,356
Shares sold

Reinvestment of distributions 169 1,885

Shares redeemed (2,318) (26,106)

Redemption fees - 43

Net increase (decrease) 23,504 $ 243,178

CLASS T 112,600 $ 1,241,366
Shares sold

Reinvestment of distributions 440 4,903

Shares redeemed (706) (7,967)

Redemption fees - 60

Net increase (decrease) 112,334 $ 1,238,362

INSTITUTIONAL CLASS 552,969 $ 5,677,168
Shares sold

Reinvestment of distributions 4,432 49,421

Shares redeemed (28,763) (315,638)

Redemption fees - 1,071

Net increase (decrease) 528,638 $ 5,412,022

A SHARE TRANSACTIONS FOR EACH CLASS ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO JANUARY 31, 1997.
ADVISOR FINANCIAL SERVICES FUND - INSTITUTIONAL CLASS
PERFORMANCE AND INVESTMENT SUMMARY

PERFORMANCE
There are several ways to evaluate historical performance. You can look at
the total percentage change in value, the average annual percentage change,
or the growth of a hypothetical $10,000 investment. Total return reflects
the change in the value of an investment, assuming reinvestment of dividend
income and capital gains (the profits earned upon the sale of securities
that have grown in value). If Fidelity had not reimbursed certain class
expenses, the total return would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED LIFE OF
JANUARY 31, 1997 FUND

FINANCIAL SERVICES - INSTITUTIONAL CLASS 23.51%

S&P 500 21.57%

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970213 152146 S00000000000001
FA Financial Serv -CL I SP Standard & Poor 500
00273 SP001
1996/09/03 10000.00 10000.00
1996/09/30 10620.00 10561.42
1996/10/31 11190.00 10852.70
1996/11/30 12090.00 11673.05
1996/12/31 11729.57 11441.81
1997/01/31 12351.14 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970213 152148 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Financial Services - Institutional Class on September 3, 1996, when the
fund started. As the chart shows, by January 31, 1997, the value of the
investment would have grown to $12,351 - a 23.51% increase on the initial
investment. For comparison, look at how the S&P 500 did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 investment would have grown to $12,157 - a 21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

American Express Co. 6.5

Citicorp 5.8

Household International, Inc. 5.5

BankAmerica Corp. 5.1

Wachovia Corp. 5.1

Barnett Banks, Inc. 5.1

First Chicago NBD Corp. 4.9

Allstate Corp. 4.9

Capital One Financial Corp. 4.6

National City Corp. 4.2

An interview with
Louis Salemy, Portfolio Manager of Fidelity Advisor Financial Services Fund
Q. LOUIS, HOW DID THE FUND PERFORM?
A. The fund did very well. While we typically look at performance over six-
and 12-month increments, this fund began on September 3, 1996. From that
date through January 31, 1997, the fund's Institutional Class shares
produced a return of 23.51%. The Standard & Poor's 500 Index had a return
of 21.57% over the same period.
Q. IT WAS A STRONG PERIOD FOR FINANCE-RELATED STOCKS. WHAT FACTORS WERE
CONDUCIVE TO THIS PERFORMANCE?
A. The main factor I'd point to was the friendly investing environment. The
interest rate situation stayed fairly moderate throughout the period -
rates weren't going down and they're weren't going up. This climate
typically leads to strong performance in the finance area. Additionally,
there was a decent amount of takeover activity going on, and the market
reacted favorably to that.
Q. WHY WERE COMPANIES ENGAGING IN THIS TYPE OF ACTIVITY, AND WHY DOES THE
MARKET LIKE TAKEOVERS?
A. In an economy like we've seen, scale becomes an overriding factor. By
that, I mean companies are of the mindset that bigger is better. Companies
also needed to become more competitive; if a company was to run its
business on a daily basis without doing anything proactively, its returns
would most likely be on the down slope. In seeking to get a competitive
edge, the bigger is better mentality took shape. To answer the second part
of the question, the market thinks highly of takeovers because they can
frequently be a win-win situation. Not only does the acquiring company's
stock tend to rise, but so does the stock of the company being acquired.
Q. VALUATIONS SEEMED TO BE PARTICULARLY HIGH DURING THE PERIOD. CAN YOU
SPEAK TO THAT?
A. Stocks were really expensive, and this was true of the overall market.
In that kind of environment, I try to consider the share price relative to
where the market is. On an absolute basis, I've never seen such high
valuation levels. In selecting stocks for the fund, I'm willing to pay a
higher price, but I need to see positive future return prospects.
Q. WITHIN THE FINANCE SECTOR, BANKS PERFORMED QUITE WELL. WHAT WAS GOING ON
IN THIS AREA?
A. The market didn't really differentiate between the regional banks and
the money-center banks. Overall, the performance of the
larger-capitalization banks exceeded that of the smaller caps. The fund had
more of a bias toward the large-cap banks, which worked in my favor. When
looking at bank stocks, I tend to gravitate toward the ones that are taking
proactive steps to improve their business. During the period, the larger
banks fell into this category more so than their smaller counterparts.
Q. HOW ABOUT THE INSURANCE AND CREDIT CARD SECTORS?
A. The same environment that was beneficial to bank stocks was negative for
insurance-related stocks, as negative pricing trends took hold. Overall,
insurance stocks were the weakest performing group in the finance industry.
Credit card stocks, on the other hand, went through some consolidation.
First USA, for example, was acquired by BankOne in a fairly significant
deal involving two of the fund's positions. A high level of consumer debt,
however, kept the credit card group from performing extremely well.
Q. FROM AN INDIVIDUAL INVESTMENT STANDPOINT, WHICH STOCKS PERFORMED WELL?
WHICH WOULD YOU CATEGORIZE AS DISAPPOINTMENTS?
A. American Express was a very solid contributor to the fund's returns.
There was some speculation during the period that American Express was
going to merge with Citicorp and this may have fueled an uptick in the
share price. American Express also had strong earnings growth, which the
market finally recognized. Household International, a consumer credit
company, also performed well on the heels of new management and a more
proactive business approach. In terms of disappointments, I could have
owned more bigger-cap regional banks, but valuations and my perceptions of
their fundamental characteristics kept me conservative. Mercury Finance, a
consumer credit company that the fund no longer owns, ran into accounting
problems and hurt the fund somewhat.
Q. WHAT'S YOUR OUTLOOK?
A. I'll continue to seek out stocks of companies that are willing to take a
proactive approach to increase their returns. If interest rates were to
rise and credit losses increased, this would have a negative effect on the
finance sector as a whole.

Showing Percentage of Total Value of Investment in Securities

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1997 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase agreements of $200,000) (cost $20,148,546) - See $ 21,684,817
accompanying schedule

Cash 397

Receivable for investments sold 834,757

Receivable for fund shares sold 439,124

Dividends receivable 26,364

Interest receivable 8,362

Prepaid expenses 34,673

Receivable from investment adviser for expense reductions 9,300

TOTAL ASSETS 23,037,794

LIABILITIES

Payable for investments purchased $ 327,798

Payable for fund shares redeemed 12,985

Distribution fees payable 7,041

Other payables and accrued expenses 19,863

TOTAL LIABILITIES 367,687

NET ASSETS $ 22,670,107

Net Assets consist of:

Paid in capital $ 21,091,993

Undistributed net investment income 2,554

Accumulated undistributed net realized gain (loss) on investments 39,289

Net unrealized appreciation (depreciation) on investments 1,536,271

NET ASSETS $ 22,670,107

CALCULATION OF MAXIMUM $12.32
OFFERING PRICE
CLASS A:
NET ASSET VALUE and redemption
price per share ($2,894,798 (divided by)
234,983 shares)

Maximum offering price per share $13.00
(100/94.75 of $12.32)

CLASS T: $12.30
NET ASSET VALUE and redemption
price per share ($18,681,135 (divided by)
1,519,078 shares)

Maximum offering price per share $12.75
(100/96.50 of $12.30)

INSTITUTIONAL CLASS: $12.32
NET ASSET VALUE, offering price
and redemption price per share
($1,094,174 (divided by) 88,835 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SEPTEMBER 3, 1996 (COMMENCEMENT OF OPERATIONS) TO
JANUARY 31, 1997 (UNAUDITED)

INVESTMENT INCOME $ 66,923
Dividends

Interest 29,295

TOTAL INCOME 96,218

EXPENSES

Management fee $ 24,665

Transfer agent fees 1,738
Class A

Class T 9,552

Institutional Class 850

Distribution fees 1,307
Class A

Class T 15,918

Accounting fees and expenses 25,000

Non-interested trustees' compensation 12

Custodian fees and expenses 6,250

Registration fees 12,596
Class A

Class T 10,747

Institutional Class 10,880

Audit 7,567

Legal 637

Total expenses before reductions 127,719

Expense reductions (48,745 78,974
)

NET INVESTMENT INCOME 17,244

REALIZED AND UNREALIZED GAIN (LOSS) 53,131
Net realized gain (loss) on
investment securities

Change in net unrealized appreciation (depreciation) on investment securities 1,536,271

NET GAIN (LOSS) 1,589,402

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 1,606,646

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
Operations $ 17,244
Net investment income

Net realized gain (loss) 53,131

Change in net unrealized appreciation (depreciation) 1,536,271

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 1,606,646

Distributions to shareholders (1,792)
From net investment income
Class A

Class T (11,201)

Institutional Class (1,697)

From net realized gain (1,792)
Class A

Class T (11,201)

Institutional Class (849)

TOTAL DISTRIBUTIONS (28,532)

Share transactions - net increase (decrease) 21,091,993

TOTAL INCREASE (DECREASE) IN NET ASSETS 22,670,107

NET ASSETS

Beginning of period -

End of period (including undistributed net investment income of $2,554) $ 22,670,107

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income .03

Net realized and unrealized gain (loss) 2.31

Total from investment operations 2.34

Less Distributions

From net investment income (.01)

From net realized gain (.01)

Total distributions (.02)

Redemption fees added to paid in capital -

Net asset value, end of period $ 12.32

TOTAL RETURN B, C 23.41%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 2,895

Ratio of expenses to average net assets 1.75% A
, E

Ratio of expenses to average net assets after expense reductions 1.73% A
, F

Ratio of net investment income to average net assets .59% A

Portfolio turnover 123% A

Average commission rate G $ .0333

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF
NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D
NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F FMR OR
THE FUND HAS ENTERED INTO
VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS). G A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND
FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY
DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS T
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income .02

Net realized and unrealized gain (loss) 2.30

Total from investment operations 2.32

Less Distributions

From net investment income (.01)

From net realized gain (.01)

Total distributions (.02)

Redemption fees added to paid in capital -

Net asset value, end of period $ 12.30

TOTAL RETURN B, C 23.21%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 18,681

Ratio of expenses to average net assets 2.00% A,
E

Ratio of expenses to average net assets after expense reductions 1.98% A,
F

Ratio of net investment income to average net assets .34% A

Portfolio turnover 123% A

Average commission rate G $ .0333

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF
NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D
NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F FMR OR
THE FUND HAS ENTERED INTO
VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS). G A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND
FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY
DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income .04

Net realized and unrealized gain (loss) 2.31

Total from investment operations 2.35

Less Distributions

From net investment income (.02)

From net realized gain (.01)

Total distributions (.03)

Redemption fees added to paid in capital -

Net asset value, end of period $ 12.32

TOTAL RETURN B, C 23.51%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 1,094

Ratio of expenses to average net assets 1.50% A,
E

Ratio of expenses to average net assets after expense reductions 1.49% A,
F

Ratio of net investment income to average net assets .83% A

Portfolio turnover 123% A

Average commission rate G $ .0333

G A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS
AMOUNT MAY VARY FROM PERIOD TO
PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE
STRUCTURES MAY DIFFER.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1997 (Unaudited)

PERIOD ENDED PERIOD ENDED
JANUARY 31, JANUARY 31,

1997 A 1997 A

CLASS A 237,768 $ 2,717,399
Shares sold

Reinvestment of distributions 294 3,494

Shares redeemed (3,079) (36,172)

Redemption fees - 169

Net increase (decrease) 234,983 $ 2,684,890

CLASS T 1,550,762 $ 17,878,856
Shares sold

Reinvestment of distributions 1,650 19,567

Shares redeemed (33,334) (393,884)

Redemption fees - 1,029

Net increase (decrease) 1,519,078 $ 17,505,568

INSTITUTIONAL CLASS 88,621 $ 898,921
Shares sold

Reinvestment of distributions 214 2,546

Shares redeemed - -

Redemption fees - 68

Net increase (decrease) 88,835 $ 901,535

A SHARE TRANSACTIONS FOR EACH CLASS ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO JANUARY 31, 1997.
ADVISOR HEALTH CARE FUND - INSTITUTIONAL CLASS
PERFORMANCE AND INVESTMENT SUMMARY

PERFORMANCE
There are several ways to evaluate historical performance. You can look at
the total percentage change in value, the average annual percentage change,
or the growth of a hypothetical $10,000 investment. Total return reflects
the change in the value of an investment, assuming reinvestment of dividend
income and capital gains (the profits earned upon the sale of securities
that have grown in value). If Fidelity had not reimbursed certain class
expenses, the total return would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED LIFE OF
JANUARY 31, 1997 FUND

HEALTH CARE - INSTITUTIONAL CLASS 17.10%

S&P 500 21.57%

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970212 160715 S00000000000001
FA Health Care -CL I SP Standard & Poor 500
00271 SP001
1996/09/03 10000.00 10000.00
1996/09/30 10670.00 10561.42
1996/10/31 10430.00 10852.70
1996/11/30 10960.00 11673.05
1996/12/31 11030.00 11441.81
1997/01/31 11710.00 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970212 160717 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Health Care - Institutional Class on September 3, 1996, when the fund
started. As the chart shows, by January 31, 1997, the value of the
investment would have grown to $11,710 - a 17.10% increase on the initial
investment. For comparison, look at how the S&P 500 did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 investment would have grown to $12,157 - a 21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

Schering-Plough Corp. 6.7

Pfizer, Inc. 6.5

Bristol-Myers Squibb Co. 5.3

Merck & Co., Inc. 5.0

Warner-Lambert Co. 4.9

American Home Products Corp. 4.4

Johnson & Johnson 3.6

SmithKline Beecham PLC ADR 2.8

Abbott Laboratories 2.3

Lilly (Eli) & Co. 2.0

An interview with
Karen Firestone, Portfolio Manager of Fidelity Advisor Health Care Fund
Q. KAREN, HOW DID THE FUND PERFORM?
A. For the period from September 3, 1996 - when the fund started - through
January 31, 1997, the fund's Institutional Class shares returned 17.10%. By
comparison, the Standard & Poor's 500 Index returned 21.57% over the same
period.
Q. WHY DID THE FUND UNDERPERFORM THE S&P 500 INDEX?
A. There were several general reasons. While health care companies showed
solid growth and steady profits during the period, they certainly did not
perform as well as technology stocks, which led the market and made up a
notable part of the index. I did try to take advantage of the technology
trend by buying some medical equipment and supplies companies, which make
products such as defibrillators and pacemakers. However, these companies
underperformed the overall health care sector. The index also benefited
from holding cyclical stocks - those that tend to perform well when the
market is strong. These stocks turned in solid performances over the
period. Health care companies are not considered cyclicals since people
need health care all the time, not just when the economy is up.
Q. WERE THERE REASONS THAT WERE MORE SPECIFIC TO THE FUND ITSELF?
A. Yes. As I mentioned, medical equipment and supplies companies - which
made up about 25% of the fund - underperformed. The most notable
underperformer was St. Jude Medical, a fairly heavy holding of the fund
during the period. St. Jude fell on rough times soon after it acquired a
company called Ventrotechs. That's because Ventrotechs almost immediately
announced that two patients who used its cardiac device had died. Another
company, Medtronic, the leading defibrillator company, slowed in 1996 when
the demand for medical equipment and supplies lessened somewhat. Notably,
when I purchased these companies, their pricing was attractive and they
looked like a solid value. I also should point out that HMOs were weak
performers during most of the period, and hospitals underperformed
throughout 1996.
Q. BY FAR THE PRIMARY FOCUS OF THE FUND WAS DRUG STOCKS, WHICH MADE UP
ABOUT 44% OF ITS HOLDINGS AT THE END OF THE PERIOD. WHAT MADE THEM SO
ATTRACTIVE?
A. Drugs or pharmaceuticals turned in a fabulous performance in terms of
revenue growth and earnings growth over the period, and they are expected
to do well in the upcoming year. Schering-Plough, the fund's top holding at
the end of the period, was a real growth machine and is one of the few true
acquisition targets in the industry. It had superb financial controls,
strong management and was selling at a P/E multiple below other drug
companies during the period. Schering turned in its strong performance
largely because of Claritin, the company's billion dollar antihistamine.
Now with its rival Seldane being pulled, expectations are that Claritin
will become the popular replacement drug. Another top 10 stock during the
period, Warner-Lambert, also had two hot new drugs: Lipitor, which helps
lower cholesterol, and a new diabetes drug, Rezulin.
Q. IF DRUG STOCKS WERE PERFORMING SO WELL, WHY DIDN'T YOU OWN MORE OF THEM?
A. That's a good question. Basically, I thought it was too risky to own
more. That's because if the fund had a bigger weighting in pharmaceuticals
and the bet didn't work, the fund's shareholders could have really been
whipsawed. Having a heavier weighting means that I would have had about 50%
of the fund in a handful of big names. If there had been a disappointment,
the fund could have lost 20% of its value in a holding that represented 5%
of the fund's total investments. Clearly, this point is hard to see when
the stocks are going up, but it's very easy to see when they're going down.
I suppose I could have owned more small positions in drug companies to
increase my overall pharmaceutical holdings, but if that was the wrong bet
and the HMOs or hospitals had taken off instead, I would have missed out on
a whole sector of health care.
Q. HOW DOES THE FUND LOOK GOING FORWARD?
A. I think health care is a good place to be right now. There's a lot of
uncertainty in both the economy and the market, and it's not clear where
interest rates are going. I will stick to my approach of trying to buy
companies that have strong sales and earnings momentum. This market pays
for momentum. The stocks that tend to look good going forward are those
that have proven themselves winners in the past. I'll also continue to look
for smaller and newer companies with great product potential.

Showing Percentage of Total Value of Investment in Securities

STATEMENT OF ASSETS AND LIABILITIES

JANUARY 31, 1997 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase agreements of $31,000) (cost $21,460,662) - See $ 23,301,795

accompanying schedule

Cash 12,388

Receivable for investments sold 544,547

Receivable for fund shares sold 316,096

Dividends receivable 9,521

Interest receivable 7,360

Prepaid expenses 34,673

Receivable from investment adviser for expense reductions 12,683

TOTAL ASSETS 24,239,063

LIABILITIES

Payable for investments purchased $ 747,433

Payable for fund shares redeemed 3,163

Distribution fees payable 7,498

Other payables and accrued expenses 26,843

TOTAL LIABILITIES 784,937

NET ASSETS $ 23,454,126

Net Assets consist of:

Paid in capital $ 21,502,677

Accumulated net investment (loss) (32,821

)

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions 143,137

Net unrealized appreciation (depreciation) on investments 1,841,133

NET ASSETS $ 23,454,126

CALCULATION OF MAXIMUM $11.70

OFFERING PRICE

CLASS A:

NET ASSET VALUE and redemption

price per share ($2,628,618 (divided by)

224,639 shares)

Maximum offering price per share $12.35

(100/94.75 of $11.70)

CLASS T: $11.68

NET ASSET VALUE and redemption

price per share ($19,750,090 (divided by)

1,690,385 shares)

Maximum offering price per share $12.10

(100/96.50 of $11.68)

INSTITUTIONAL CLASS: $11.71

NET ASSET VALUE, offering price

and redemption price per share

($1,075,418 (divided by) 91,821 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SEPTEMBER 3, 1996 (COMMENCEMENT OF OPERATIONS) TO
JANUARY 31, 1997 (UNAUDITED)

INVESTMENT INCOME $ 33,617
Dividends

Interest 26,382

TOTAL INCOME 59,999

EXPENSES

Management fee $ 28,826

Transfer agent fees 2,601
Class A

Class T 11,032

Institutional Class 854

Distribution fees 1,666
Class A

Class T 18,686

Accounting fees and expenses 25,000

Non-interested trustees' compensation 16

Custodian fees and expenses 16,173

Registration fees 12,598
Class A

Class T 10,791

Institutional Class 10,880

Audit 7,567

Legal 639

Total expenses before reductions 147,329

Expense reductions (54,509 92,820
)

NET INVESTMENT INCOME (LOSS) (32,821
)

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 143,133

Foreign currency transactions 4 143,137

Change in net unrealized appreciation (depreciation) on investment securities 1,841,133

NET GAIN (LOSS) 1,984,270

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 1,951,449

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SEPTEMBER 3, 1996
(COMMENCEMENT
OF
OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
Operations $ (32,821)
Net investment income (loss)

Net realized gain (loss) 143,137

Change in net unrealized appreciation (depreciation) 1,841,133

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 1,951,449

Share transactions - net increase (decrease) 21,502,677

TOTAL INCREASE (DECREASE) IN NET ASSETS 23,454,126

NET ASSETS

Beginning of period -

End of period (including accumulated net investment loss of $32,821) $ 23,454,126

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SEPTEMBER 3, 1996
(COMMENCEMENT OF
OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.02)

Net realized and unrealized gain (loss) 1.72

Total from investment operations 1.70

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.70

TOTAL RETURN B, C 17.00%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 2,629

Ratio of expenses to average net assets 1.75% A
, E

Ratio of expenses to average net assets after expense reductions 1.74% A
, F

Ratio of net investment income (loss) to average net assets (.50)%
A

Portfolio turnover 52% A

Average commission rate G $ .0333

ANNUALIZED

THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.

NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.

FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO
WOULD HAVE BEEN HIGHER (SEE
NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).

FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES
(SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).

A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS
AMOUNT MAY VARY FROM PERIOD TO
PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE
STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS T
SEPTEMBER 3, 1996
(COMMENCEMENT OF
OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.03)

Net realized and unrealized gain (loss) 1.71

Total from investment operations 1.68

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.68

TOTAL RETURN B, C 16.80%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 19,750

Ratio of expenses to average net assets 2.00% A
, E

Ratio of expenses to average net assets after expense reductions 1.99% A
, F

Ratio of net investment income (loss) to average net assets (.75)%
A

Portfolio turnover 52% A

Average commission rate G $ .0333

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF
NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D
NET INVESTMENT INCOME (LOSS)
PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE
CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F
FMR OR THE FUND HAS
ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS). G A
FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT
MAY VARY FROM PERIOD TO
PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE
STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SEPTEMBER 3, 1996
(COMMENCEMENT OF
OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.01)

Net realized and unrealized gain (loss) 1.72

Total from investment operations 1.71

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.71

TOTAL RETURN B, C 17.10%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 1,075

Ratio of expenses to average net assets 1.50% A
, E

Ratio of expenses to average net assets after expense reductions 1.49% A
, F

Ratio of net investment income (loss) to average net assets (.25)%
A

Portfolio turnover 52% A

Average commission rate G $ .0333

ANNUALIZED H THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF
NOTES TO FINANCIAL
STATEMENTS). I TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. J NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD. K FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE PERIOD. WITHOUT THIS
REIMBURSEMENT, THE CLASS'
EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). L FMR OR THE FUND HAS ENTERED INTO VARYING
ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). M A FUND IS REQUIRED TO
DISCLOSE ITS AVERAGE COMMISSION
RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND
DEPENDING ON THE MIX OF TRADES
EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1997 (Unaudited)

PERIOD ENDED PERIOD ENDED
JANUARY 31, JANUARY 31,

1997 A 1997 A

CLASS A $ 2,686,723
Shares sold 252,318

Shares redeemed (27,679) (302,881)

Redemption fees - 5

Net increase (decrease) 224,639 $ 2,383,847

CLASS T 1,759,958 $ 18,947,456
Shares sold

Shares redeemed (69,573) (755,385)

Redemption fees - 37

Net increase (decrease) 1,690,385 $ 18,192,108

INSTITUTIONAL CLASS 91,821 $ 926,720
Shares sold

Shares redeemed - -

Redemption fees - 2

Net increase (decrease) 91,821 $ 926,722

A SHARE TRANSACTIONS FOR EACH CLASS ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO JANUARY 31, 1997.
ADVISOR TECHNOLOGY FUND - INSTITUTIONAL CLASS
PERFORMANCE AND INVESTMENT SUMMARY

PERFORMANCE
There are several ways to evaluate historical performance. You can look at
the total percentage change in value, the average annual percentage change,
or the growth of a hypothetical $10,000 investment. Total return reflects
the change in the value of an investment, assuming reinvestment of dividend
income and capital gains (the profits earned upon the sale of securities
that have grown in value). If Fidelity had not reimbursed certain class
expenses, the total return would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED LIFE OF
JANUARY 31, 1997 FUND

TECHNOLOGY - INSTITUTIONAL CLASS 38.89%

S&P 500 21.57%

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970212 162535 S00000000000001
FA Technology -CL I SP Standard & Poor 500
00202 SP001
1996/09/03 10000.00 10000.00
1996/09/30 11120.00 10561.42
1996/10/31 11230.00 10852.70
1996/11/30 12740.00 11673.05
1996/12/31 12478.92 11441.81
1997/01/31 13888.97 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970212 162536 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Technology - Institutional Class on September 3, 1996, when the fund
started. As the chart shows, by January 31, 1997, the value of the
investment would have grown to $13,889 - a 38.89% increase on the initial
investment. For comparison, look at how the S&P 500 did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 investment would have grown to $12,157 - a 21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

Intel Corp. 4.9

Electronic Arts, Inc. 3.7

Applied Materials, Inc. 3.4

Cisco Systems, Inc. 3.4

Texas Instruments, Inc. 3.0

Teradyne, Inc. 2.7

Motorola, Inc. 2.5

ASM Lithography Holding NV 2.4

Ascend Communications, Inc. 2.2

Maxim Intergrated Products, Inc. 1.7

An interview with
Adam Hetnarski, Portfolio Manager of Fidelity Advisor Technology Fund
Q. ADAM, HOW DID THE FUND PERFORM?
A. The fund has performed well. Since inception on September 3, 1996,
through January 31, 1997, the Fidelity Advisor Technology Fund's
Institutional Class shares had a return of 38.89%. During the same period,
the Standard & Poor's 500 Index was up 21.57%.
Q. WHAT WERE THE REASONS BEHIND THIS PERFORMANCE?
A. The fund's strong performance was due to investments made in particular
stock groups. During this time period, the fund was overweighted in
semiconductor, semiconductor capital equipment, prepackaged computer
software, communications equipment and networking companies. Companies in
these groups provided the strongest growth in the market. For example,
Intel, the computer industry's leading manufacturer of semiconductors,
produced strong earnings growth and boosted the fund's performance during
the period.
Q. HOW WOULD YOU DESCRIBE THE INVESTING ENVIRONMENT DURING THIS TIME
PERIOD?
A. Technology remains a positive growth sector of the economy, representing
12% of the S&P 500 and a similar proportion of the Gross Domestic Product.
Further, technology is an increasing component of overall capital spending
in the U.S. and abroad. Governments, companies and consumers continue to
spend more to upgrade existing systems or purchase new ones. The technology
sector as a whole was very strong during the period, and the individual
holdings I chose based on their strong fundamentals played a crucial role
in the fund's superior performance.
Q. WHAT TRENDS AFFECTED THE FUND DURING THIS TIME PERIOD?
A. Two groups contributing significantly to performance were semiconductor
capital equipment and data communications equipment companies, both
beneficiaries of positive industry trends. Semiconductor capital equipment
companies that benefit from increasing semiconductor unit sales were helped
by the increased demand created by lower chip prices. Additionally,
increasing worldwide penetration, an upgrade cycle, and the "need for
speed" helped drive the demand for networking technology.
Q. WERE THERE ANY PARTICULAR STOCKS THAT STOOD OUT?
A. There were several standouts among the fund's holdings. The lack of
seasonal price cuts by Intel dramatically improved margins and earnings in
its December quarter. Intel was an important position in the fund because
it was a reasonably priced stock with strong earnings growth, as seen by
its attractive price-to-earnings ratio. Applied Materials, a leading-edge
semiconductor capital equipment company, stood out because it was
considerably undervalued. Ascend Communications, a networking firm,
benefited from the growth of the Internet. Lattice Semiconductor Corp. and
the Altera Corp., both semiconductor companies, were favored because
customer inventories were bottoming and the market opportunity expanded.
Q. HOW WOULD YOU CHARACTERIZE YOUR INVESTMENT STYLE OR PHILOSOPHY?
A. My goal is to seek out stocks that will enable the fund to perform well
regardless of the investing environment. Rather than follow a particular
style, I believe it's important to look at a wide range of companies to
determine the best opportunities. I am a stock picker who will buy stocks
that present a good value, show good business momentum over an extended
time period, or whose earnings I expect could dramatically exceed Wall
Street's expectations.
Q. WHAT IS YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. While the technology sector offers the potential for great rewards over
the long-term, past history shows it can be very volatile. Technology
companies remain the focal point of a world economy rapidly adjusting to
technological change and are big beneficiaries of government, corporate and
consumer spending. The industry is also heading into major new product
cycles. If an environment that is conducive to low interest rates and tepid
inflation exists, the sector should prosper.

Showing Percentage of Total Value of Investment in Securities

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1997 (UNAUDITED)

ASSETS

Investment in securities, at value $ 31,178,383
(cost $28,461,495) - See accompanying schedule

Receivable for investments sold 1,313,499

Receivable for fund shares sold 1,178,220

Dividends receivable 1,716

Interest receivable 8,971

Redemption fees receivable 45

Prepaid expenses 34,673

Receivable from investment adviser for expense reductions 4,110

TOTAL ASSETS 33,719,617

LIABILITIES

Payable for investments purchased $ 3,503,396

Payable for fund shares redeemed 30,922

Distribution fees payable 8,598

Other payables and accrued expenses 20,633

TOTAL LIABILITIES 3,563,549

NET ASSETS $ 30,156,068

Net Assets consist of:

Paid in capital $ 26,431,751

Accumulated net investment (loss) (71,292
)

Accumulated undistributed net realized gain (loss) on investments 1,078,721

Net unrealized appreciation (depreciation) on investments 2,716,888

NET ASSETS $ 30,156,068

CALCULATION OF MAXIMUM $13.80
OFFERING PRICE
CLASS A:
NET ASSET VALUE and redemption
price per share ($3,943,570 (divided by)
285,681 shares)

Maximum offering price per share $14.56
(100/94.75 of $13.80)

CLASS T: $13.77
NET ASSET VALUE and redemption
price per share ($24,808,120 (divided by)
1,801,754 shares)

Maximum offering price per share $14.27
(100/96.50 of $13.77)

INSTITUTIONAL CLASS: $13.79
NET ASSET VALUE, offering price
and redemption price per share
($1,404,378 (divided by) 101,806 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SEPTEMBER 3, 1996 (COMMENCEMENT OF OPERATIONS) TO
JANUARY 31, 1997 (UNAUDITED)

INVESTMENT INCOME $ 5,576
Dividends

Interest 22,389

TOTAL INCOME 27,965

EXPENSES

Management fee $ 31,247

Transfer agent fees 2,660
Class A

Class T 11,739

Institutional Class 917

Distribution fees 1,910
Class A

Class T 19,844

Accounting fees and expenses 25,000

Non-interested trustees' compensation 11

Custodian fees and expenses 6,685

Registration fees 12,597
Class A

Class T 10,758

Institutional Class 10,881

Audit 7,576

Legal 639

Total expenses before reductions 142,464

Expense reductions (43,207 99,257
)

NET INVESTMENT INCOME (LOSS) (71,292
)

REALIZED AND UNREALIZED GAIN (LOSS) 1,198,382
Net realized gain (loss) on investment securities

Change in net unrealized appreciation (depreciation) on investment securities 2,716,888

NET GAIN (LOSS) 3,915,270

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 3,843,978

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SEPTEMBER 3, 1996
(COMMENCEMENT
OF
OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
Operations $ (71,292)
Net investment income (loss)

Net realized gain (loss) 1,198,382

Change in net unrealized appreciation (depreciation) 2,716,888

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 3,843,978

Distributions to shareholders (16,635)
From net realized gain
Class A

Class T (94,078)

Institutional Class (8,948)

TOTAL DISTRIBUTIONS (119,661)

Share transactions - net increase (decrease) 26,431,751

TOTAL INCREASE (DECREASE) IN NET ASSETS 30,156,068

NET ASSETS

Beginning of period -

End of period (including accumulated net investment loss of $71,292) $ 30,156,068

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.06)

Net realized and unrealized gain (loss) 3.94

Total from investment operations 3.88

Less Distributions

From net realized gain (.08)

Redemption fees added to paid in capital -

Net asset value, end of period $ 13.80

TOTAL RETURN B, C 38.88%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 3,944

Ratio of expenses to average net assets 1.75% A
, E

Ratio of expenses to average net assets after expense reductions 1.71% A
, F

Ratio of net investment income (loss) to average net assets (1.18)%
A

Portfolio turnover 417% A

Average commission rate G $ .0403

ANNUALIZED

NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.

FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO
WOULD HAVE BEEN HIGHER (SEE
NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).

FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES
(SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS T
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.07)

Net realized and unrealized gain (loss) 3.92

Total from investment operations 3.85

Less Distributions

From net realized gain (.08)

Redemption fees added to paid in capital -

Net asset value, end of period $ 13.77

TOTAL RETURN B, C 38.58%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 24,808

Ratio of expenses to average net assets 2.00% A
, E

Ratio of expenses to average net assets after expense reductions 1.97% A
, F

Ratio of net investment income (loss) to average net assets (1.44)%
A

Portfolio turnover 417% A

Average commission rate G $ .0403

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF
NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D
NET INVESTMENT INCOME (LOSS)
PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE
CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F
FMR OR THE FUND HAS
ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS). G A
FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT
MAY VARY FROM PERIOD TO
PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE
STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income (loss) (.05)

Net realized and unrealized gain (loss) 3.93

Total from investment operations 3.88

Less Distributions

From net realized gain (.09)

Redemption fees added to paid in capital -

Net asset value, end of period $ 13.79

TOTAL RETURN B, C 38.89%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 1,404

Ratio of expenses to average net assets 1.50% A
, E

Ratio of expenses to average net assets after expense reductions 1.44% A
, F

Ratio of net investment income (loss) to average net assets (.91)%
A

Portfolio turnover 417% A

Average commission rate G $ .0403

WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH
THIRD PARTIES WHO EITHER PAID
OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). G A FUND IS REQUIRED TO DISCLOSE ITS
AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE
MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1997 (Unaudited)

PERIOD ENDED PERIOD ENDED
JANUARY 31, JANUARY 31,

1997 A 1997 A

CLASS A 289,072 $ 3,446,771
Shares sold

Reinvestment of distributions 1,188 14,911

Shares redeemed (4,579) (61,306)

Redemption fees - 90

Net increase (decrease) 285,681 $ 3,400,466

CLASS T 1,874,390 $ 22,879,442
Shares sold

Reinvestment of distributions 7,154 89,642

Shares redeemed (79,791) (991,167)

Redemption fees - 549

Net increase (decrease) 1,801,754 $ 21,978,466

INSTITUTIONAL CLASS 101,306 $ 1,046,775
Shares sold

Reinvestment of distributions 714 8,948

Shares redeemed (214) (2,943)

Redemption fees - 39

Net increase (decrease) 101,806 $ 1,052,819

A SHARE TRANSACTIONS FOR EACH CLASS ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO JANUARY 31, 1997.
ADVISOR UTILITIES GROWTH FUND - INSTITUTIONAL CLASS
PERFORMANCE AND INVESTMENT SUMMARY

PERFORMANCE
There are several ways to evaluate historical performance. You can look at
the total percentage change in value, the average annual percentage change,
or the growth of a hypothetical $10,000 investment. Total return reflects
the change in the value of an investment, assuming reinvestment of dividend
income and capital gains (the profits earned upon the sale of securities
that have grown in value). If Fidelity had not reimbursed certain class
expenses, the total return would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED LIFE OF
JANUARY 31, 1997 FUND

UTILITIES GROWTH - INSTITUTIONAL CLASS 18.49%

S&P 500 21.57%

UNDERSTANDING PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. The stock market, for
example, has a history of growth in the long run
and volatility in the short run. Unlike the broader
market, however, some sectors may not have
a history of growth in the long run. And, as
with all stock funds, the share price and return
of
a fund that invests in a sector will vary. That
means if you sell your shares during a sector
downturn, you might lose money. But if you
can identify a sector that is about to
experience rapid growth you may have the
potential for above-average gains.
(checkmark)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19970131 19970213 154556 S00000000000001
FA Utilities Growth -CL I SP Standard & Poor 500
00206 SP001
1996/09/03 10000.00 10000.00
1996/09/30 10160.00 10561.42
1996/10/31 10780.00 10852.70
1996/11/30 11360.00 11673.05
1996/12/31 11524.62 11441.81
1997/01/31 11848.98 12156.70
IMATRL PRASUN SHR__CHT 19970131 19970213 154558 R00000000000008

Let's say hypothetically that $10,000 was invested in Fidelity Advisor
Utilities Growth - Institutional Class on September 3, 1996, when the fund
started. As the chart shows, by January 31, 1997, the value of the
investment would have grown to $11,849 - an 18.49% increase on the initial
investment. For comparison, look at how the S&P 500 did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 investment would have grown to $12,157 - a 21.57% increase.
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF JANUARY 31, 1997
% OF FUND'S
INVESTMENTS

WorldCom, Inc. 7.8

MCI Communications Corp. 5.6

Sprint Corp. 4.3

Pacific Telesis Group 4.2

BellSouth Corp. 4.1

GTE Corp. 4.0

SBC Communications, Inc. 3.9

Ameritech Corp. 3.7

AirTouch Communications, Inc. 3.5

Sonat, Inc. 3.4

An interview with
John Muresianu, Portfolio Manager of Fidelity Advisor Utilities Growth Fund
Q. JOHN, HOW DID THE FUND PERFORM?
A. Since its inception on September 3, 1996 through January 31, 1997, the
fund's Institutional Class shares returned 18.49%. During the same time
period, the Standard & Poor's 500 Index posted a return of 21.57%.
Q. WHAT FACTORS AFFECTED THE SECTOR'S PERFORMANCE?
A. The sector underperformed the broad market as investors became concerned
about how ongoing deregulation would affect utilities companies, especially
in the telephone and electric industries. In addition, utilities stocks
tend to trade in concert with the bond market, which underperformed the
stock market significantly during the period. The stock market, as
represented by the S&P 500, performed well largely on the basis of the
strong technology sector.
Q. CAN YOU GIVE US A MORE DETAILED OVERVIEW OF THE RECENT INVESTING
ENVIRONMENT FOR THE UTILITY SECTORS?
A. Gas stocks performed the best because gas prices spiked upward as a
result of very cold weather. In addition, there was a significant amount of
consolidation that helped stocks in the group. Further, the supply and
demand dynamic improved, partially due to a slowdown of Canadian imports
because of restricted pipeline capacity. On the telephone side, there
continued to be broad concern over the impact of increasing competition in
the cellular and local telephone service areas. At the same time, telephone
companies reported steady revenue and earnings growth; over the near term,
business prospects for telephone companies looked fine, helping the
telephone utility industry post modest gains.
Q. WHAT ABOUT ELECTRIC UTILITY STOCKS?
A. Electrics struggled. While all utility stocks are sensitive to what
happens in the bond market, electrics are more attuned than the telephone
and gas stocks. That's because they have the highest yields, are the most
income-oriented and have less prospects for earnings growth. The bond
market had its ups and downs, and utility stocks, as a result, bounced
around as well. Electric utility stocks also were negatively affected by
continued evidence that the Nuclear Regulatory Commission has been getting
tougher on nuclear operations. While deregulation has been a concern among
all utility sectors, especially telephones, it hasn't affected electrics
too negatively thus far. Regulators appear more likely to create a
transition to competition that is friendlier to utility companies than was
feared a few years ago.
Q. TELEPHONE STOCKS HAD THE LARGEST INDUSTRY WEIGHTING IN THE FUND . . .
A. This theme has its origin in my stock picking strategy. I see greater
earnings growth potential for telephone stocks than the other options in
the utility sector, and that's why they're attractive to me.
Q. WHICH STOCKS TURNED IN STRONG PERFORMANCES FOR THE FUND?
A. CINergy has done very well. It is a low-cost electric producer and could
be a winner under deregulation over the long term. It also has a very
growth-oriented management. On the gas side, Sonat - the fund's largest gas
position - has been a very strong performer. And in the telephone arena,
Pacific Telesis has done very well.
Q. AT THE SAME TIME, THERE MUST HAVE BEEN SOME DISAPPOINTMENTS . . .
A. AirTouch Communications was one. This stock lagged because of concern
about slowing cellular subscriber growth and increased price competition.
Enron was another disappointment. Even though it saw some stock price
appreciation, it lagged the gas group because of contract litigation in the
United Kingdom and a slowdown in earnings growth related to heavy spending
in anticipation of a fully competitive retail electricity market.
Q. WHAT'S YOUR OUTLOOK?
A. It's important for me to reiterate that my strategy will continue to be
based on individual stock picking. That's because it's nearly impossible to
predict the direction of the economy and interest rates. I will continue to
look for those companies that are able to show the best earnings growth.
For some time, most of these prospects have been in gas and telephone
companies, and I'll probably continue to favor them over electric utility
stocks.

Showing Percentage of Total Value of Investment in Securities

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1997 (UNAUDITED)

ASSETS

Investment in securities, at value $ 6,208,621
(cost $5,723,938) - See accompanying schedule

Receivable for fund shares sold 173,418

Dividends receivable 16,415

Interest receivable 1,491

Prepaid expenses 34,673

Receivable from investment adviser for expense reductions 24,545

TOTAL ASSETS 6,459,163

LIABILITIES

Payable for investments purchased $ 153,326

Distribution fees payable 1,352

Other payables and accrued expenses 17,250

TOTAL LIABILITIES 171,928

NET ASSETS $ 6,287,235

Net Assets consist of:

Paid in capital $ 5,795,349

Undistributed net investment income 1,897

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions 5,306

Net unrealized appreciation (depreciation) on investments 484,683

NET ASSETS $ 6,287,235

CALCULATION OF MAXIMUM $11.68
OFFERING PRICE
CLASS A:
NET ASSET VALUE and redemption
price per share ($406,213 (divided by)
34,764 shares)

Maximum offering price per share $12.33
(100/94.75 of $11.68)

CLASS T: $11.67
NET ASSET VALUE and redemption
price per share ($3,993,297 (divided by)
342,101 shares)

Maximum offering price per share $12.09
(100/96.50 of $11.67)

INSTITUTIONAL CLASS: $11.69
NET ASSET VALUE, offering price
and redemption price per share
($1,887,725 (divided by) 161,453 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SEPTEMBER 3, 1996 (COMMENCEMENT OF OPERATIONS) TO
JANUARY 31, 1997 (UNAUDITED)

INVESTMENT INCOME $ 34,521
Dividends

Interest 5,229

TOTAL INCOME 39,750

EXPENSES

Management fee $ 8,271

Transfer agent fees 567
Class A

Class T 2,302

Institutional Class 1,079

Distribution fees 275
Class A

Class T 3,257

Accounting fees and expenses 25,000

Non-interested trustees' compensation 5

Custodian fees and expenses 5,962

Registration fees 12,593
Class A

Class T 10,739

Institutional Class 10,883

Audit 7,563

Legal 635

Total expenses before reductions 89,131

Expense reductions (64,724 24,407
)

NET INVESTMENT INCOME 15,343

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 48,972

Foreign currency transactions 15 48,987

Change in net unrealized appreciation (depreciation) on investment securities 484,683

NET GAIN (LOSS) 533,670

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 549,013

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SEPTEMBER 3, 1996
(COMMENCEMENT
OF
OPERATIONS) TO
JANUARY 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
Operations $ 15,343
Net investment income

Net realized gain (loss) 48,987

Change in net unrealized appreciation (depreciation) 484,683

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 549,013

Distributions to shareholders (816)
From net investment income
Class A

Class T (6,500)

Institutional Class (6,130)

From net realized gain (2,993)
Class A

Class T (23,832)

Institutional Class (16,856)

TOTAL DISTRIBUTIONS (57,127)

Share transactions - net increase (decrease) 5,795,349

TOTAL INCREASE (DECREASE) IN NET ASSETS 6,287,235

NET ASSETS

Beginning of period -

End of period (including undistributed net investment income of $1,897) $ 6,287,235

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SEPTEMBER 3, 1996
(COMMENCEMENT OF
OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income .05

Net realized and unrealized gain (loss) 1.77

Total from investment operations 1.82

Less Distributions

From net investment income (.03)

From net realized gain (.11)

Total distributions (.14)

Redemption fees added to paid in capital -

Net asset value, end of period $ 11.68

TOTAL RETURN B, C 18.28%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 406

Ratio of expenses to average net assets 1.75% A
, E

Ratio of net investment income to average net assets 1.11% A

Portfolio turnover 22% A

Average commission rate F $ .0183

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF
NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D
NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F A FUND
IS REQUIRED TO DISCLOSE ITS
AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD
AND FUND TO FUND DEPENDING
ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS T
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income .04

Net realized and unrealized gain (loss) 1.77

Total from investment operations 1.81

Less Distributions

From net investment income (.03)

From net realized gain (.11)

Total distributions (.14)

Redemptions fees added to paid in capital -

Net asset value, end of period $ 11.67

TOTAL RETURN B, C 18.18%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 3,993

Ratio of expenses to average net assets 2.00% A
, E

Ratio of net investment income to average net assets .86% A

Portfolio turnover 22% A

Average commission rate F $ .0183

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF
NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D
NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F A FUND
IS REQUIRED TO DISCLOSE ITS
AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD
AND FUND TO FUND DEPENDING
ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SEPTEMBER 3, 1996
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1997

(UNAUDITED)

<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA D $ 10.00
Net asset value, beginning of period

Income from Investment Operations

Net investment income .06

Net realized and unrealized gain (loss) 1.78

Total from investment operations 1.84

Less Distributions

From net investment income (.04)

From net realized gain (.11)

Total distributions (.15)

Redemptions fees added to paid in capital -

Net asset value, end of period $ 11.69

TOTAL RETURN B, C 18.49%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 1,888

Ratio of expenses to average net assets 1.50% A
, E

Ratio of net investment income to average net assets 1.36% A

Portfolio turnover 22% A

Average commission rate F $ .0183

A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF
NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE PERIOD. WITHOUT THIS
REIMBURSEMENT, THE CLASS'
EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). F A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE
COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX
OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1997 (Unaudited)

PERIOD ENDED PERIOD ENDED
JANUARY 31, JANUARY 31,

1997 A 1997 A

CLASS A 38,111 $ 401,344
Shares sold

Reinvestment of distributions 351 3,875

Shares redeemed (3,698) (41,314)

Redemption fees - 21

Net increase (decrease) 34,764 $ 363,926

CLASS T 343,832 $ 3,788,767
Shares sold

Reinvestment of distributions 2,654 29,247

Shares redeemed (4,385) (49,466)

Redemption fees - 135

Net increase (decrease) 342,101 $ 3,768,683

INSTITUTIONAL CLASS 161,370 $ 1,662,250
Shares sold

Reinvestment of distributions 1,243 13,709

Shares redeemed (1,160) (13,309)

Redemption fees - 90

Net increase (decrease) 161,453 $ 1,662,740

A SHARE TRANSACTIONS FOR EACH CLASS ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO JANUARY 31, 1997.

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
William J. Hayes, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
ADVISORY BOARD
William O. McCoy
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
CUSTODIAN
The Chase Manhattan Bank
New York, NY
FOCUS FUNDS
Fidelity Advisor Consumer
Industries Fund
Fidelity Advisor Cyclical
Industries Fund
Fidelity Advisor Financial
Services Fund
Fidelity Advisor Health Care Fund
Fidelity Advisor Natural
Resources Fund
Fidelity Advisor Technology Fund
Fidelity Advisor Utilities Growth Fund
GROWTH FUNDS
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Large Cap Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Overseas Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor TechnoQuant(trademark)
Growth Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Balanced Fund
Fidelity Advisor Equity Income Fund
Fidelity Advisor Growth & Income Fund
TAXABLE INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Intermediate Bond Fund
Fidelity Advisor Mortgage Securities Fund
Fidelity Advisor Short Fixed-Income Fund
Fidelity Advisor Strategic Income Fund
MUNICIPAL FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Municipal Bond Fund
Fidelity Advisor Intermediate Municipal Income Fund
Fidelity Advisor Short-Intermediate Municipal Income Fund
STATE MUNICIPAL FUNDS
Fidelity Advisor California Municipal Income Fund
Fidelity Advisor New York Municipal Income Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund

(REGISTERED TRADEMARK)