SUPPLEMENT TO THE FIDELITY SELECT
PORTFOLIOS(registered trademark) APRIL 29, 1997 PROSPECTUS
The following information updates the similar information on the cover
of the 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.
FUND
NUMBER
AMERICAN GOLD PORTFOLIO 041
BIOTECHNOLOGY PORTFOLIO 042
ENERGY SERVICE PORTFOLIO 043
HOME FINANCE PORTFOLIO 098
INSURANCE PORTFOLIO 045
RETAILING PORTFOLIO 046
The following information updates the similar information found in the
section entitled "Expenses," beginning on page P-7.
ANNUAL FUND OPERATING EXPENSES are paid out of each fund's assets.
Each fund pays a management fee that varies based on its performance.
It also incurs other expenses for services such as maintaining
shareholder records and furnishing shareholder statements and
financial reports. A fund's expenses are factored into its share price
or dividends and are not charged directly to shareholder accounts (see
page P-50).
The tables beginning on this page show figures that are based on
estimated or historical expenses, adjusted to reflect current fees,
and are calculated as a percentage of average net assets.
EXAMPLES: Let's say, hypothetically, that each fund's annual return is
5% and that its operating expenses are exactly as just described. For
every $1,000 you invested, the tables below show how much you would
pay in total expenses if you close your account after the number of
years indicated.
The examples illustrate the effect of expenses, but are not meant to
suggest actual or expected costs or returns, all of which may vary.
Operating expenses Account Account
open closed
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
AIR TRANSPORTATION Management fee 0.60% After 1 year $ 47 $ 55
12b-1 fee None After 3 years $ 83 $ 91
Other expenses 1.12% After 5 years $ 1.21 $ 129
Total fund operating expenses 1.72% After 10 years $ 227 $ 235
AMERICAN GOLD Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 73 $ 81
Other expenses 0.79% After 5 years $ 104 $ 112
Total fund operating expenses 1.39% After 10 years $ 192 $ 200
AUTOMOTIVE Management fee 0.60% After 1 year $ 45 $ 53
12b-1 fee None After 3 years $ 76 $ 84
Other expenses 0.89% After 5 years $ 109 $ 117
Total fund operating expenses 1.49% After 10 years $ 203 $ 211
BIOTECHNOLOGY Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 74 $ 82
Other expenses 0.82% After 5 years $ 105 $ 113
Total fund operating expenses 1.42% After 10 years $ 195 $ 203
BROKERAGE AND INVESTMENT MANAGEMENT Management fee 0.62% After 1 year $ 47 $ 55
12b-1 fee None After 3 years $ 83 $ 91
Other expenses 1.13% After 5 years $ 122 $ 130
Total fund operating expenses 1.75% After 10 years $ 230 $ 238
</TABLE>
Operating expenses Account Account
open closed
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
CHEMICALS Management fee 0.60% After 1 year $ 45 $ 53
12b-1 fee None After 3 years $ 76 $ 84
Other expenses 0.89% After 5 years $ 109 $ 117
Total fund operating expenses 1.49% After 10 years $ 203 $ 211
COMPUTERS Management fee 0.61% After 1 year $ 43 $ 51
12b-1 fee None After 3 years $ 70 $ 78
Other expenses 0.70% After 5 years $ 100 $ 108
Total fund operating expenses 1.31% After 10 years $ 183 $ 191
CONSTRUCTION AND HOUSING Management fee 0.60% After 1 year $ 49 $ 57
12b-1 fee None After 3 years $ 87 $ 95
Other expenses 1.28% After 5 years $ 129 $ 137
Total fund operating expenses 1.88% After 10 years $ 243 $ 251
CONSUMER INDUSTRIES Management fee 0.60% After 1 year $ 49 $ 57
12b-1 fee None After 3 years $ 88 $ 96
Other expenses 1.31% After 5 years $ 130 $ 138
Total fund operating expenses 1.91% After 10 years $ 247 $ 255
CYCLICAL INDUSTRIES* Management fee -- After 1 year $ 55 $ 63
(after reimbursement)
12b-1 fee None After 3 years $ 106 $ 114
Other expenses 2.50%
(after reimbursement)
Total fund operating expenses 2.50%
DEFENSE AND AEROSPACE Management fee 0.61% After 1 year $ 46 $ 54
12b-1 fee None After 3 years $ 80 $ 88
Other expenses 1.01% After 5 years $ 115 $ 123
Total fund operating expenses 1.62% After 10 years $ 216 $ 224
DEVELOPING COMMUNICATIONS Management fee 0.60% After 1 year $ 45 $ 53
12b-1 fee None After 3 years $ 76 $ 84
Other expenses 0.89% After 5 years $ 109 $ 117
Total fund operating expenses 1.49% After 10 years $ 203 $ 211
ELECTRONICS Management fee 0.61% After 1 year $ 41 $ 49
12b-1 fee None After 3 years $ 65 $ 73
Other expenses 0.54% After 5 years $ 91 $ 99
Total fund operating expenses 1.15% After 10 years $ 166 $ 174
</TABLE>
* FIGURES ARE BASED ON ESTIMATED EXPENSES.
Operating expenses Account Account
open closed
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
ENERGY Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 73 $ 81
Other expenses 0.81% After 5 years $ 105 $ 113
Total fund operating expenses 1.41% After 10 years $ 194 $ 202
ENERGY SERVICE Management fee 0.60% After 1 year $ 43 $ 51
12b-1 fee None After 3 years $ 69 $ 77
Other expenses 0.67% After 5 years $ 98 $ 106
Total fund operating expenses 1.27% After 10 years $ 179 $ 187
ENVIRONMENTAL SERVICES Management fee 0.61% After 1 year $ 50 $ 58
12b-1 fee None After 3 years $ 92 $ 100
Other expenses 1.43% After 5 years $ 137 $ 145
Total fund operating expenses 2.04% After 10 years $ 260 $ 268
FINANCIAL SERVICES Management fee 0.61% After 1 year $ 42 $ 50
12b-1 fee None After 3 years $ 69 $ 77
Other expenses 0.65% After 5 years $ 97 $ 105
Total fund operating expenses 1.26% After 10 years $ 178 $ 186
FOOD AND AGRICULTURE Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 73 $ 81
Other expenses 0.79% After 5 years $ 104 $ 112
Total fund operating expenses 1.39% After 10 years $ 192 $ 200
HEALTH CARE Management fee 0.60% After 1 year $ 42 $ 50
12b-1 fee None After 3 years $ 66 $ 74
Other expenses 0.58% After 5 years $ 93 $ 101
Total fund operating expenses 1.18% After 10 years $ 169 $ 177
HOME FINANCE Management fee 0.61% After 1 year $ 42 $ 50
12b-1 fee None After 3 years $ 68 $ 76
Other expenses 0.62% After 5 years $ 96 $ 104
Total fund operating expenses 1.23% After 10 years $ 174 $ 182
INDUSTRIAL EQUIPMENT Management fee 0.61% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 74 $ 82
Other expenses 0.81% After 5 years $ 105 $ 113
Total fund operating expenses 1.42% After 10 years $ 195 $ 203
INDUSTRIAL MATERIALS Management fee 0.60% After 1 year $ 45 $ 53
12b-1 fee None After 3 years $ 76 $ 84
Other expenses 0.89% After 5 years $ 109 $ 117
Total fund operating expenses 1.49% After 10 years $ 203 $ 211
</TABLE>
Operating expenses Account Account
open closed
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
INSURANCE Management fee 0.61% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 74 $ 82
Other expenses 0.83% After 5 years $ 106 $ 114
Total fund operating expenses 1.44% After 10 years $ 197 $ 205
LEISURE Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 74 $ 82
Other expenses 0.84% After 5 years $ 106 $ 114
Total fund operating expenses 1.44% After 10 years $ 197 $ 205
MEDICAL DELIVERY Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 74 $ 82
Other expenses 0.83% After 5 years $ 106 $ 114
Total fund operating expenses 1.43% After 10 years $ 196 $ 204
MULTIMEDIA Management fee 0.60% After 1 year $ 46 $ 54
12b-1 fee None After 3 years $ 79 $ 87
Other expenses 1.00% After 5 years $ 114 $ 122
Total fund operating expenses 1.60% After 10 years $ 214 $ 222
NATURAL GAS Management fee 0.60% After 1 year $ 46 $ 54
12b-1 fee None After 3 years $ 80 $ 88
Other expenses 1.03% After 5 years $ 116 $ 124
Total fund operating expenses 1.63% After 10 years $ 217 $ 225
NATURAL RESOURCES* Management fee -- After 1 year $ 55 $ 63
(after reimbursement)
12b-1 fee None After 3 years $ 106 $ 114
Other expenses 2.50%
(after reimbursement)
Total fund operating expenses 2.50%
PAPER AND FOREST PRODUCTS Management fee 0.60% After 1 year $ 48 $ 56
12b-1 fee None After 3 years $ 85 $ 93
Other expenses 1.21% After 5 years $ 125 $ 133
Total fund operating expenses 1.81% After 10 years $ 236 $ 244
PRECIOUS METALS AND MINERALS Management fee 0.60% After 1 year $ 46 $ 54
12b-1 fee None After 3 years $ 79 $ 87
Other expenses 1.00% After 5 years $ 114 $ 122
Total fund operating expenses 1.60% After 10 years $ 214 $ 222
</TABLE>
* FIGURES ARE BASED ON ESTIMATED EXPENSES.
Operating expenses Account Account
open closed
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
REGIONAL BANKS Management fee 0.61% After 1 year $ 43 $ 51
12b-1 fee None After 3 years $ 70 $ 78
Other expenses 0.68% After 5 years $ 99 $ 107
Total fund operating expenses 1.29% After 10 years $ 181 $ 189
RETAILING Management fee 0.60% After 1 year $ 45 $ 53
12b-1 fee None After 3 years $ 77 $ 85
Other expenses 0.94% After 5 years $ 111 $ 119
Total fund operating expenses 1.54% After 10 years $ 208 $ 216
SOFTWARE AND COMPUTER SERVICES Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 73 $ 81
Other expenses 0.79% After 5 years $ 104 $ 112
Total fund operating expenses 1.39% After 10 years $ 192 $ 200
TECHNOLOGY Management fee 0.60% After 1 year $ 43 $ 51
12b-1 fee None After 3 years $ 70 $ 78
Other expenses 0.71% After 5 years $ 100 $ 108
Total fund operating expenses 1.31% After 10 years $ 183 $ 191
TELECOMMUNICATIONS Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 74 $ 82
Other expenses 0.84% After 5 years $ 106 $ 114
Total fund operating expenses 1.44% After 10 years $ 197 $ 205
TRANSPORTATION Management fee 0.60% After 1 year $ 50 $ 58
12b-1 fee None After 3 years $ 91 $ 99
Other expenses 1.42% After 5 years $ 136 $ 144
Total fund operating expenses 2.02% After 10 years $ 258 $ 266
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
UTILITIES GROWTH Management fee 0.60% After 1 year $ 43 $ 51
12b-1 fee None After 3 years $ 69 $ 77
Other expenses 0.68% After 5 years $ 98 $ 106
Total fund operating expenses 1.28% After 10 years $ 180 $ 188
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET Management fee 0.20% After 1 year $ 36 $ 36
12b-1 fee None After 3 years $ 47 $ 47
Other expenses 0.36% After 5 years $ 60 $ 60
Total fund operating expenses 0.56% After 10 years $ 98 $ 98
</TABLE>
A portion of the brokerage commissions that a fund pays is used to
reduce that fund's expenses. In addition, each fund has entered into
arrangements with its custodian and transfer agent whereby interest
earned on uninvested cash balances is used to reduce custodian and
transfer agent expenses. Including these reductions, the total
operating expenses presented in the preceding tables would have been:
Air Transportation 1.63%
American Gold 1.37%
Automotive 1.45%
Biotechnology 1.41%
Brokerage and Investment Management 1.74%
Chemicals 1.47%
Computers 1.27%
Construction and Housing 1.82%
Consumer Industries 1.86%
Defense and Aerospace 1.59%
Developing Communications 1.47%
Electronics 1.11%
Energy 1.39%
Energy Service 1.25%
Environmental Services 1.97%
Financial Services 1.24%
Food and Agriculture 1.37%
Health Care 1.17%
Home Finance 1.19%
Industrial Equipment 1.35%
Industrial Materials 1.46%
Insurance 1.39%
Leisure 1.42%
Medical Delivery 1.39%
Multimedia 1.56%
Natural Gas 1.59%
Paper and Forest Products 1.78%
Precious Metals and Minerals 1.59%
Regional Banks 1.28%
Retailing 1.48%
Software and Computer Services 1.36%
Technology 1.26%
Telecommunications 1.40%
Transportation 2.00%
Utilities Growth 1.27%
Effective April 30, 1997, FMR has voluntarily agreed to reimburse each
fund to the extent that total operating expenses exceed 2.50% of its
average net assets. If these agreements were not in effect, the
management fee, other expenses and total operating expenses of
Cyclical Industries would be estimated to be 0.59%, 2.59%, and 3.18%,
respectively; and the management fee, other expenses and total
operating expenses of Natural Resources would be estimated to be
0.59%, 2.12%, and 2.71, respectively. Expenses eligible for
reimbursement do not include interest, taxes, brokerage commissions,
or extraordinary expenses.
The following information updates the similar information found in the
section entitled "FMR and Its Affiliates," beginning on page P-36.
Paul Antico is manager of Leisure, which he has managed since January
1997. Previously, he managed other Fidelity funds. Since joining
Fidelity in 1991, Mr. Antico has worked as an analyst and manager.
Audra Barranco is manager of Chemicals, which she has managed since
June 1997. Ms. Barranco joined Fidelity in 1996 as an analyst, after
receiving her MBA from Columbia Business School. Previously, she
worked as an investment commentary writer and internal wholesaler for
Pioneer Funds Distributor from 1992 to 1995.
Steve Buller is manager of Environmental Services, which he has
managed since December 1997. He is also an associate manager for
another Fidelity fund. Mr. Buller joined Fidelity in 1992 as an
analyst. From 1995 to 1997, he worked as a fixed-income analyst for
Fidelity International, Limited, in London.
James Catudal is manager of Industrial Materials, which he has managed
since August 1997. He joined Fidelity in 1997 as a research analyst.
Mr. Catudal worked for State Street Research & Management as an equity
analyst after receiving his MBA from the Amos Tuck School at Dartmouth
College in 1995. Previously, he worked for Textron, McCord Winn
Division, from 1987 to 1993.
Douglas Chase is manager of Consumer Industries which he has managed
since August 1997. He managed Industrial Materials from 1994 to 1997.
Mr. Chase joined Fidelity as an equity analyst in 1993 after receiving
his MBA from the University of Michigan. Previously, he was a
consultant for Stanford Resources from 1988 to 1991.
Jeffrey Dorsey is manager of Multimedia, which he has managed since
December 1997. Since joining Fidelity in 1991, Mr. Dorsey has worked
as an analyst, senior analyst, corporate strategist and manager.
Robert Ewing is manager of Energy Service which he has managed since
November 1996. Since joining Fidelity in 1990, Mr. Ewing has worked as
an analyst and manager.
Albert Grosman is manager of Automotive, which he has managed since
December 1997. Mr. Grosman joined Fidelity in 1996 as an analyst
working part-time. After receiving his MBA from Columbia University in
1997, he joined Fidelity full-time. From 1993 to 1995, Mr. Grosman was
self-employed as an investment manager, managing investment portfolios
on a discretionary basis in Toronto, Canada.
Jamie Harmon is manager of Biotechnology, which he has managed since
June 1997. Since joining Fidelity in 1995, Mr. Harmon has worked as a
research associate, analyst and manager. Previously, he was a junior
analyst with Essex Investment Management Co., Inc. from 1994 to 1995.
Mr. Harmon received a bachelor of arts degree in government from
Harvard University in 1994.
Doug Lober is manager of Paper and Forest Products, which he has
managed since October 1997. Mr. Lober joined Fidelity in 1997 as a
senior equity analyst. Previously, he was an analyst and manager at
Fidelity from 1986 until 1989. Mr. Lober received his doctorate in
forestry and environmental studies from Yale University in 1993, and
was an assistant professor at Duke University from 1993 to 1997.
Yolanda McGettigan is manager of Construction and Housing, which she
has managed since December 1997. Ms. McGettigan joined Fidelity as an
analyst in 1997, after receiving her MBA from the Fuqua School of
Business at Duke University. Previously, she was employed as a sales
representative for Robinson-Humphrey from 1994 to 1995 and a trader
for Cantor Fitzgerald from 1992 to 1994.
John Porter is manager of Software and Computer Services which he has
managed since June 1997. Mr. Porter joined Fidelity as an analyst in
1995, after receiving his MBA from the University of Chicago.
Previously, Mr. Porter was a product engineer for Ford Motor Company
from 1991 to 1993.
Lawrence Rakers is manager of Energy and Natural Resources which he
has managed since January 1997 and March 1997, respectively. He also
manages another Fidelity fund. Mr. Rakers joined Fidelity as an
analyst in 1993. Previously, he was a project engineer for Loral
Corporation from 1986 to 1993.
Peter Saperstone is manager of Air Transportation and Defense and
Aerospace, both of which he has managed since July 1997. Mr.
Saperstone joined Fidelity as an analyst in August 1995. Previously,
he was an equity research analyst at Gabelli & Company, Inc. from 1993
to 1995, and a credit analyst at National Westminster Bank USA from
1991 to 1993.
Beso Sikharulidze is manager of Health Care, which he has managed
since June 1997. He also manages another Fidelity fund. Mr.
Sikharulidze joined Fidelity as an analyst in 1992, after receiving
his MBA from Harvard University.
Nick Thakore is manager of Telecommunications and Utilities Growth,
which he has managed since July 1996 and August 1997, respectively.
Mr. Thakore joined Fidelity as an analyst in 1993, after earning his
MBA from The Wharton School at the University of Pennsylvania.
Previously, he was a real estate analyst for Prudential Properties
Company from 1989 to 1991.
Victor Thay is manager of Natural Gas, which he has managed since
December 1997. Mr. Thay joined Fidelity as a research associate in
1995, after receiving undergraduate degrees in political science and
business administration from the University of California at Berkeley
in 1995.
Simon Wolf is manager of Industrial Equipment which he has managed
since August 1997. Mr. Wolf joined Fidelity in 1996 as a research
associate. Previously, he worked for Salomon Brothers as an analyst
and high yield research assistant analyst from 1993 to 1996. Mr. Wolf
received a bachelor of science in economics degree from The Wharton
School at the University of Pennsylvania in 1992.
The following information replaces the similar information
found in the section entitled "Securi ties and Investment
Practices," on page P-47.
The money market fund may not invest more than 5% of its total
assets in any one issuer, except that it may invest up to 25% of its
total assets in certain other money market funds and in the
highest-quality securities of a single issuer for up to three business
days. This limitation does not apply to U.S. Government securities.
The following information replaces in its entirety the similar
information in the section entitled "Key Information," on page P-54.
AUTOMATICALLY
NEW ACCOUNTS CANNOT BE OPENED WITH THESE SERVICES.
(small solid bullet) Use Fidelity Automatic Account Builder or Direct
Deposit to automatically purchase more shares. Sign up for these
services when opening your account, or call 1-800-544-6666 to add it.
Direct Deposit is not available for retirement accounts.
The short-selling program discussion found on page P-59 of the
prospectus incorrectly identifies Fidelity Brokerage Services, Inc. as
FSBI instead of FBSI.
