SUPPLEMENT TO
THE FIDELITY TREND FUND AND FIDELITY VALUE FUND FEBRUARY 19, 1998
PROSPECTUS
FIDELITY VALUE FUND IS NOT OFFERED THROUGH THIS PROSPECTUS.
TO REQUEST A PROSPECTUS FOR VALUE FUND PLEASE VISIT FIDELITY'S WEB
SITE AT WWW.FIDELITY.COM OR CALL FIDELITY AT 1-800-544-8888.
The following information replaces similar information found under the
heading "FMR and Its Affiliates" in the Charter section on page P-12.
Nick Thakore is manager of Trend Fund, which he has managed since
October 1998. Since joining Fidelity in 1993, Mr. Thakore has worked
as an analyst and manager.
SUPPLEMENT TO THE FIDELITY TREND FUND
AND
FIDELITY VALUE FUND
A FUND OF FIDELITY CAPITAL TRUST
FEBRUARY 19, 1998
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"INVESTMENT POLICIES AND LIMITATIONS" SECTION UNDER THE HEADING
"INVESTMENT LIMITATIONS OF TREND FUND" ON PAGE 2:
(1) The fund may not with respect to 75% of the fund's total assets,
purchase the securities of any issuer (other than securities issued or
guaranteed by the U.S. Government or any of its agencies or
instrumentalities, or securities of other investment companies) if, as
a result, (a) more than 5% of the fund's total assets would be
invested in the securities of that issuer, or (b) the fund would hold
more than 10% of the outstanding voting securities of that issuer.
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND IN THE
"INVESTMENT POLICIES AND LIMITATIONS" SECTION UNDER THE HEADING
"INVESTMENT LIMITATIONS OF TREND FUND" BEGINNING ON PAGE 2:
(9) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
(vi) The fund does not currently intend to invest all of its assets in
the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
THE FOLLOWING INFORMATION REPLACES THE SIMILAR INFORMATION FOUND IN
THE FIRST PARAGRAGH IN THE "MANAGEMENT CONTRACTS" SECTION ON PAGE 22:
Each fund has entered into a management contract with FMR, pursuant to
which FMR furnishes investment advisory and other services.
THE FOLLOWING INFORMATION REPLACES THE INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION UNDER THE HEADINGS "MANAGEMENT FEES,"
"TREND FUND" AND "VALUE FUND" BEGINNING ON PAGE 23:
MANAGEMENT FEES. For the services of FMR under the management
contract, each fund pays FMR a monthly management fee which has two
components: a basic fee, which is the sum of a group fee rate and an
individual fund fee rate, and a performance adjustment based on a
comparison of each fund's performance to that of the S&P 500.
The group fee rate is based on the monthly average net assets of all
of the registered investment companies with which FMR has management
contracts.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Annualized Group Net Effective Annual Fee
Assets Rate Assets Rate
0 - $3 billion .5200% $ 0.5 billion .5200%
3 - 6 .4900 25 .4238
6 - 9 .4600 50 .3823
9 - 12 .4300 75 .3626
12 - 15 .4000 100 .3512
15 - 18 .3850 125 .3430
18 - 21 .3700 150 .3371
21 - 24 .3600 175 .3325
24 - 30 .3500 200 .3284
30 - 36 .3450 225 .3249
36 - 42 .3400 250 .3219
42 - 48 .3350 275 .3190
48 - 66 .3250 300 .3163
66 - 84 .3200 325 .3137
84 - 102 .3150 350 .3113
102 - 138 .3100 375 .3090
138 - 174 .3050 400 .3067
174 - 210 .3000 425 .3046
210 - 246 .2950 450 .3024
246 - 282 .2900 475 .3003
282 - 318 .2850 500 .2982
318 - 354 .2800 525 .2962
354 - 390 .2750 550 .2942
390 - 426 .2700
426 - 462 .2650
462 - 498 .2600
498 - 534 .2550
Over 534 .2500
The group fee rate is calculated on a cumulative basis pursuant to the
graduated fee rate schedule shown above on the left. The schedule
above on the right shows the effective annual group fee rate at
various asset levels, which is the result of cumulatively applying the
annualized rates on the left. For example, the effective annual fee
rate for Trend Fund at $550 billion of group net assets - the
approximate level for December 31, 1997 - was 0.2942%, which is the
weighted average of the respective fee rates for each level of group
net assets up to $550 billion. The effective annual fee rate for Value
Fund at $550 billion of group net assets - the approximate level for
October 31, 1997 - was 0.2941%, which is the weighted average of the
respective fee rates for each level of group net assets up to $550
billion.
Each fund's individual fund fee rate is 0.30%. Based on the average
group net assets of the funds advised by FMR for December 1997
(Trend), and October 1997 (Value), each fund's annual basic fee rate
would be calculated as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Group Fee Rate Individual Fund Fee Rate Basic Fee Rate
Trend Fund 0.2942% + 0.30% = 0.5942%
Value Fund 0.2941% + 0.30% = 0.5941%
</TABLE>
One-twelfth of this annual basic fee rate is applied to each fund's
net assets averaged for the most recent month, giving a dollar amount,
which is the fee for that month.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION UNDER THE HEADING "COMPUTING THE
PERFORMANCE ADJUSTMENT" ON PAGE 24:
Each percentage point of difference, calculated to the nearest 1.00%
(for Value Fund) and 0.01% (for Trend Fund) (up to a maximum
difference of (plus/minus)10.00) is multiplied by a performance
adjustment rate of 0.02%.
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION UNDER THE HEADING "SUB-ADVISERS" ON
PAGE 25:
On behalf of each fund, FMR may also grant the sub-advisers investment
management authority as well as the authority to buy and sell
securities if FMR believes it would be beneficial to the funds.
On behalf of each fund, for providing discretionary investment
management and executing portfolio transactions, FMR pays FMR U.K. and
FMR Far East a fee equal to 50% of its monthly management fee rate
(including any performance adjustment) with respect to each fund's
average net assets managed by the sub-adviser on a discretionary
basis.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"DESCRIPTION OF THE TRUSTS" SECTION BEGINNING ON PAGE 27:
SHAREHOLDER AND TRUSTEE LIABILITY. Each trust is an entity of the type
commonly known as "Massachusetts business trust." Under Massachusetts
law, shareholders of such a trust may, under certain circumstances, be
held personally liable for the obligations of the trust. Fidelity
Trend Fund provides that the trust shall not have any claim against
shareholders except for the payment of the purchase price of shares
and requires that each agreement, obligation, or instrument entered
into or executed by the trust or the Trustees include a provision
limiting the obligations created thereby to the trust or to one or
more funds and its or their assets. Fidelity Capital Trust provides
that the trust shall not have any claim against shareholders except
for the payment of the purchase price of shares and requires that each
agreement, obligation, or instrument entered into or executed by the
trust or its Trustees shall include a provision limiting the
obligations created thereby to the trust and its assets. Each
Declaration of Trust provides for indemnification out of each fund's
property of any shareholder held personally liable for the obligations
of the fund. Each Declaration of Trust also provides that its funds
shall, upon request, assume the defense of any claim made against any
shareholder for any act or obligation of the fund and satisfy any
judgment thereon. Thus, the risk of a shareholder incurring financial
loss on account of shareholder liability is limited to circumstances
in which the fund itself would be unable to meet its obligations. FMR
believes that, in view of the above, the risk of personal liability to
shareholders is remote.
VOTING RIGHTS. Each fund's capital consists of shares of beneficial
interest. As a shareholder, you receive one vote for each dollar value
of net asset value you own. The shares have no preemptive or
conversion rights; the voting and dividend rights, the right of
redemption, and the privilege of exchange are described in the
Prospectus. Shares are fully paid and nonassessable, except as set
forth under the heading "Shareholder and Trustee Liability" above.
Shareholders representing 10% or more of a trust or fund may, as set
forth in the Declarations of Trust, call meetings of a trust or fund
for any purpose related to the trust or fund, as the case may be,
including, in the case of a meeting of an entire trust, the purpose of
voting on removal of one or more Trustees. Fidelity Capital Trust or
its funds may be terminated upon the sale of its assets to another
open-end management investment company, or upon liquidation and
distribution of its assets, if approved by vote of the holders of a
majority of the trust or the fund, as determined by the current value
of each shareholder's investment in the funds or trust. Fidelity Trend
Fund may be terminated upon the sale of its assets to, or merger with,
another open-end management investment company or series thereof, or
upon liquidation and distribution of its assets. Generally, the merger
of a trust or a fund with another entity or the sale of substantially
all of the assets of a trust or a fund to another entity requires the
vote of a majority of the outstanding shares of the fund, as
determined by the current value of each shareholder's investment in
the fund. The Trustees of Fidelity Trend Fund may, however, reorganize
or terminate the trust or any fund without prior shareholder approval.
If not so terminated, each trust or fund will continue indefinitely.
Each fund may invest all of its assets in another investment company.
