FIDELITY ADVISOR SERIES I, N-30D, 1997-07-15

FIDELITY ADVISOR SERIES I
N-30D, 1997-07-15

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(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

LARGE CAP
FUND - CLASS A, CLASS T AND CLASS B
SEMIANNUAL REPORT
MAY 31, 1997
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 10 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 13 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 14 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 22 Statements of assets and
liabilities, operations, and changes
in net assets, as well as financial
highlights.

NOTES 30 Notes to the financial statements.

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND 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 FUND 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.
PRESIDENT'S MESSAGE

(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
Through the first five months of 1997, stock and bond markets experienced
the kind of short-term volatility that can affect them from time to time.
After climbing steadily upward for more than two years, stock prices saw a
sharp correction in late March and early April. Returns in the bond market
were essentially stagnant as the Federal Reserve Board implemented a
long-expected increase in short-term interest rates at the end of March.
While it's impossible to predict the future direction of the markets with
any degree of certainty, there are certain basic principles that can help
investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will greatly
reduce your vulnerability to any single decline. We know from experience,
for example, that stock prices have gone up over longer periods of time,
have significantly outperformed other types of investments and have stayed
ahead of inflation.
Second, you can further manage your investing risk through diversification.
A stock mutual fund, for instance, is already diversified, because it
invests in many different companies. You can increase your diversification
further by investing in a number of different stock funds, or in such other
investment categories as bonds. If you have a short investment time
horizon, you might want to consider moving some of your investment into a
money market fund, which seeks income and a stable share price by investing
in high-quality, short-term investments. Of course, it's important to
remember that there is no assurance that a money market fund will achieve
its goal of maintaining a stable net asset value of $1.00 per share, and
that these types of funds are neither insured nor guaranteed by any agency
of the U.S. government.
Finally, no matter what your time horizon or portfolio diversity, it makes
good sense to follow a regular investment plan, investing a certain amount
of money in a fund at the same time each month or quarter and periodically
reviewing your overall portfolio. By doing so, you won't get caught up in
the excitement of a rapidly rising market, nor will you buy all your shares
at market highs. While this strategy - known as dollar cost averaging -
won't assure a profit or protect you from a loss in a declining market, it
should help you lower the average cost of your purchases.
Remember to contact your investment professional if you need help with your
investments.
Best regards,
Edward C. Johnson 3d
ADVISOR LARGE CAP FUND - CLASS A
PERFORMANCE: THE BOTTOM LINE

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 the
class' dividend income and capital gains (the profits earned upon the sale
of securities that have grown in value). The initial offering of Class A
shares took place on September 3, 1996. Class A shares bear a 0.25% 12b-1
fee that is reflected in returns after September 3, 1996. Returns prior to
September 3, 1996 are those of Class T and reflect Class T's 0.50% 12b-1
fee. If Fidelity had not reimbursed certain class expenses, the life of
fund total return would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1997 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Advisor Large Cap - Class A 6.40% 21.73% 25.87%

Advisor Large Cap - Class A 0.81% 15.34% 19.26%
(incl. max. 5.25% sales charge)

S&P 500(registered trademark) 13.15% 29.42% 34.53%

Growth Funds Average 8.36% 17.72% n/a

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage terms
over a set period - in this case, six months, one year or since the fund
started on February 20, 1996. For example, if you had invested $1,000 in a
fund that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare Class A's returns to the performance of
the Standard & Poor's 500 Index - a widely recognized, unmanaged index of
common stocks. To measure how Class A's performance stacked up against its
peers, you can compare it to the growth funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Analytical Services, Inc. The past six months average represents a peer
group of 809 mutual funds. These benchmarks include reinvested dividends
and capital gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1997 PAST 1 LIFE OF
YEAR FUND

Advisor Large Cap - Class A 21.73% 19.71%

Advisor Large Cap - Class A 15.34% 14.76%
(incl. max. 5.25% sales charge)

S&P 500 29.42% 26.10%

Growth Funds Average 17.72% n/a

AVERAGE ANNUAL RETURNS take Class A shares' cumulative return and show you
what would have happened if Class A
had performed at a constant rate each year.
$10,000 OVER LIFE OF FUND
1996/02/20 9475.00 10000.00
1996/02/29 9503.43 9891.39
1996/03/31 9531.85 9986.65
1996/04/30 9598.18 10133.85
1996/05/31 9797.15 10395.20
1996/06/30 9844.53 10434.81
1996/07/31 9370.78 9973.80
1996/08/31 9673.98 10184.14
1996/09/30 10327.75 10757.31
1996/10/31 10441.45 11053.99
1996/11/30 11208.93 11889.57
1996/12/31 10943.49 11654.03
1997/01/31 11496.63 12382.18
1997/02/28 11296.27 12479.25
1997/03/31 10704.74 11966.48
1997/04/30 11191.32 12680.88
1997/05/30 11925.96 13452.89
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Large Cap Fund - Class A on February 20, 1996,
when the fund started, and the current maximum 5.25% sales charge was paid.
As the chart shows, by May 31, 1997, the value of the investment would have
grown to $11,926 - a 19.26% increase on the initial investment. For
comparison, look at how the S&P 500 did over the same period. With
dividends reinvested, the same $10,000 investment would have grown to
$13,453 - a 34.53% increase.
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
long-term growth and
short-term volatility. In turn,
the share price and return of
a fund that invests in stocks
will vary. That means if you
sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
ADVISOR LARGE CAP FUND - CLASS T
PERFORMANCE: THE BOTTOM LINE

Advisor Large Cap - Class T 6.47% 21.71% 25.85%

Advisor Large Cap - Class T 2.75% 17.45% 21.45%
(incl. max. 3.50% sales charge)

S&P 500(registered trademark) 13.15% 29.42% 34.53%

Growth Funds Average 8.36% 17.72% n/a

CUMULATIVE TOTAL RETURNS show Class T's performance in percentage terms
over a set period - in this case, six months, one year or since the fund
started on February 20, 1996. For example, if you had invested $1,000 in a
fund that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare Class T's returns to the performance of
the Standard & Poor's 500 Index - a widely recognized, unmanaged index of
common stocks. To measure how Class T's performance stacked up against its
peers, you can compare it to the growth funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Analytical Services, Inc. The past six months average represents a peer
group of 809 mutual funds. These benchmarks include reinvested dividends
and capital gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1997 PAST 1 LIFE OF
YEAR FUND

Advisor Large Cap - Class T 21.71% 19.69%

Advisor Large Cap - Class T 17.45% 16.41%
(incl. max. 3.50% sales charge)

S&P 500 29.42% 26.10%

Growth Funds Average 17.72% n/a

AVERAGE ANNUAL RETURNS take Class T shares' cumulative return and show you
what would have happened if Class T
had performed at a constant rate each year.
$10,000 OVER LIFE OF FUND
1996/02/20 9650.00 10000.00
1996/02/29 9678.95 9891.39
1996/03/31 9707.90 9986.65
1996/04/30 9775.45 10133.85
1996/05/31 9978.10 10395.20
1996/06/30 10026.35 10434.81
1996/07/31 9543.85 9973.80
1996/08/31 9852.65 10184.14
1996/09/30 10518.50 10757.31
1996/10/31 10634.30 11053.99
1996/11/30 11406.30 11889.57
1996/12/31 11135.97 11654.03
1997/01/31 11698.46 12382.18
1997/02/28 11494.76 12479.25
1997/03/31 10893.34 11966.48
1997/04/30 11388.05 12680.88
1997/05/30 12144.67 13452.89
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Large Cap Fund - Class T on February 20, 1996,
when the fund started, and the current maximum 3.50% sales charge was paid.
As the chart shows, by May 31, 1997, the value of the investment would have
grown to $12,145 - a 21.45% increase on the initial investment. For
comparison, look at how the S&P 500 did over the same period. With
dividends reinvested, the same $10,000 investment would have grown to
$13,453 - a 34.53% increase.
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
long-term growth and
short-term volatility. In turn,
the share price and return of
a fund that invests in stocks
will vary. That means if you
sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
ADVISOR LARGE CAP FUND - CLASS B
PERFORMANCE: THE BOTTOM LINE

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 the
class' dividend income and capital gains (the profits earned upon the sale
of securities that have grown in value). Effective January 2, 1997, Class
B's contingent deferred sales charge is based on a declining scale that
ranges from 5% to 1% on Class B shares redeemed within six years of
purchase. This scale is revised from the previous scale of 4% to 1% on
shares redeemed within five years of purchase. Class B's contingent
deferred sales charge included in the past six months, past one year and
the life of fund total return figures are 5%, 5% and 4%, respectively. If
Fidelity had not reimbursed certain class expenses, the life of fund total
return would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1997 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Advisor Large Cap - Class B 6.07% 20.85% 24.84%

Advisor Large Cap - Class B 1.07% 15.85% 20.84%
(incl. contingent deferred sales charge)

S&P 500(registered trademark) 13.15% 29.42% 34.53%

Growth Funds Average 8.36% 17.72% n/a

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage terms
over a set period - in this case, six months, one year or since the fund
started on February 20, 1996. For example, if you had invested $1,000 in a
fund that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare Class B's returns to the performance of
the Standard & Poor's 500 Index - a widely recognized, unmanaged index of
common stocks. To measure how Class B's performance stacked up against its
peers, you can compare it to the growth funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Analytical Services, Inc. The past six months average represents a peer
group of 809 mutual funds. These benchmarks include reinvested dividends
and capital gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1997 PAST 1 LIFE OF
YEAR FUND

Advisor Large Cap - Class B 20.85% 18.94%

Advisor Large Cap - Class B 15.85% 15.95%
(incl. contingent deferred sales charge)

S&P 500 29.42% 26.10%

Growth Funds Average 17.72% n/a

AVERAGE ANNUAL RETURNS take Class B shares' cumulative return and show you
what would have happened if Class B
had performed at a constant rate each year.
$10,000 OVER LIFE OF FUND
1996/02/20 10000.00 10000.00
1996/02/29 10020.00 9891.39
1996/03/31 10060.00 9986.65
1996/04/30 10120.00 10133.85
1996/05/31 10330.00 10395.20
1996/06/30 10370.00 10434.81
1996/07/31 9860.00 9973.80
1996/08/31 10180.00 10184.14
1996/09/30 10860.00 10757.31
1996/10/31 10970.00 11053.99
1996/11/30 11770.00 11889.57
1996/12/31 11479.86 11654.03
1997/01/31 12052.28 12382.18
1997/02/28 11831.32 12479.25
1997/03/31 11218.67 11966.48
1997/04/30 11720.85 12680.88
1997/05/30 12084.16
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Large Cap Fund - Class B on February 20, 1996,
when the fund started. As the chart shows, by May 31, 1997, the value of
the investment, including the effect of the applicable contingent deferred
sales charge, would have been $12,084 - a 20.84% increase on the initial
investment. For comparison, look at how the S&P 500 did over the same
period. With dividends reinvested, the same $10,000 investment would have
grown to $13,453 - a 34.53% increase.
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
long-term growth and
short-term volatility. In turn,
the share price and return of
a fund that invests in stocks
will vary. That means if you
sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Thomas Sprague, Portfolio Manager of Fidelity Advisor
Large Cap Fund
Q. HOW DID THE FUND PERFORM, TOM?
A. For the six months that ended May 31, 1997, the fund's Class A, T and B
shares had returns of 6.40%, 6.47% and 6.07%, respectively. The Standard &
Poor's 500 Index returned 13.15% over the same period, while the growth
funds average, as tracked by Lipper Analytical Services, returned 8.36%.
For the 12 months that ended May 31, 1997, the fund's Class A, T and B
shares had returns of 21.73%, 21.71% and 20.85%. The S&P 500 and Lipper
peer group had returns of 29.42% and 17.72%, respectively, over the same
period.
Q. WHAT FACTORS CONTRIBUTED TO THE DIFFERENCES IN RETURNS BETWEEN THE FUND
AND ITS INDEX AND PEER GROUP?
A. The environment over the past six months, and even over the past year,
has been very favorable for the stock market. Returns across the board have
been strong due to a combination of good earnings growth and stable
interest rates, two of the primary drivers behind stock performance. This
explains the stronger-than-normal absolute returns of the market, the fund
and the peer group over the past six and 12 months. One factor that helps
explain much of the difference between the fund and the S&P 500 has been
the amazing "narrowness" of the market. By that I mean that a select group
of the largest-cap stocks in the market - names
such as General Electric, Microsoft and Coca-Cola - dramatically
outperformed not only the broad market, but even the general large-cap
universe.
Q. HOW DID THIS ENVIRONMENT HURT THE FUND? DID IT HELP IN ANY WAY?
A. The fund had positions in each of the mega-cap stocks I mentioned above,
but was underweighted in them relative to the index. The reason for this
can be traced to my valuation methodology. When I'm looking at stocks, I
try to stick to my investment discipline of owning companies with good
earnings prospects, but only if the valuation is attractive. I felt and
still do that the valuations of many of these mega-caps were excessive
relative to their growth prospects. Apparently, the market felt otherwise
over the past six months. Over the longer-term, however, I think it will
benefit the fund to own a more diversified portfolio of large-cap names
with equivalent growth prospects and a much lower price-to-earnings (P/E)
ratio than those 50 or so mega-cap names that have performed so well of
late.
Q. WHAT OTHER FACTORS CONTRIBUTED TO PERFORMANCE?
A. Two other specific factors were the fund's positions in technology and
finance stocks. In terms of technology, as I've already mentioned, I didn't
own enough of the mega-cap names such as Microsoft and Intel relative to
the index. Additionally, the fund's stake in networking stocks - those that
link together communications equipment - proved disappointing as a
short-term earnings slowdown occurred. I remain convinced, however, that
the long-term outlook for networking remains bright. The flip side was the
financial services area. In conjunction with the stable interest rate
environment, many financial services companies had strong earnings growth
that enabled their relatively low P/E ratios to expand. The fund's large
exposure to this sector helped results.
Q. WHICH INDIVIDUAL STOCKS CONTRIBUTED POSITIVELY TO PERFORMANCE? WHICH
ONES HURT?
A. Stocks that performed well included Halliburton and Schlumberger - two
companies that provide equipment and services to energy companies involved
in the exploration and production of oil. Business levels for these
companies have been very strong. The fund's position in Allstate also
reacted positively as the company addressed its hurricane risk exposure in
Florida and its earthquake risk in California while at the same time
improving returns in its core auto insurance business. Glass-maker
Owens-Illinois and diversified manufacturer Tyco International produced
good results on the heels of solid earnings streams. Factors that detracted
from performance, other than the relative underweighting in technology
stocks already mentioned, included holdings in several retail stocks that
were hurt by surprisingly sluggish sales and a continued environment of
store overcapacity. These stocks included PETsMART- which the fund no
longer owns - and Toys "R" Us.
Q. AFTER REPEATED WARNINGS IN LATE 1996 AND EARLY 1997, THE FEDERAL RESERVE
BOARD RAISED INTEREST RATES IN MARCH. WITH MARKET EXPECTATIONS CENTERING
AROUND FURTHER RATE HIKES, CAN YOU EXPLAIN WHAT HIGHER INTEREST RATES DO TO
STOCKS?
A. Higher interest rates hurt in two ways. First, they affect the supply
and demand situation for stocks. If an investor can double his yield on a
money market investment, money will most likely flow out of the stock
market and into fixed-income securities. Second, higher rates tend to
depress a company's earnings growth. Since higher rates result in higher
borrowing costs, companies dependent on building earnings momentum through
capital expenditures would be forced to think twice.
Q. WHAT'S YOUR OUTLOOK?
A. I believe two factors have the most influence on a stock's performance:
interest rates and earnings growth. When rates are climbing, the market
suffers. When rates are down, the market prospers. When earnings are up,
the market is smiling. When they're down, the smile is replaced by a frown.
Since I don't try to predict the direction of interest rates, I'll continue
to emphasize earnings growth and valuation as the cornerstone of my
investment approach. This will most likely lead me to the technology area -
where many sectors - including networking, proprietary semiconductors and
information technology service providers - appear poised for long-term
growth. I'll also continue to favor the health care sector, where good
product development and strong pharmaceutical demand has been creating
earnings growth. Lastly, the healthy economy is producing strong earnings
growth potential in several consumer-related sectors. These will be
additional areas of focus for the fund.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: to seek long-term
growth of capital by investing
primarily in equity securities
of companies with large
market capitalizations
START DATE: February 20,
1996
SIZE: as of May 31 1997,
more than $59 million
MANAGER: Tom Sprague,
since inception; joined Fidelity
in 1989
(checkmark)
TOM SPRAGUE ON THE
IMPORTANCE OF EARNINGS
GROWTH:
"I can't stress how important
earnings growth is to my
investing discipline. From
1978 to 1996, the companies
that grew their earnings the
fastest outperformed the
slower earnings-growth
companies in all but two years.
To me, this illustrates the
strong influence of earnings
growth on a stock's
performance. Finding those
companies that are or have
the potential to grow their
earnings quickly depends on
a number of factors, most
notably the industry in which
that company operates and
the products it offers. Unit
growth is essential. While the
big automakers don't have
much room for unit growth,
companies in the technology
and health care sectors spend
lots of money on research and
development in their quest of
developing products that are
faster, such as PCs, or better,
such as a new and exciting
drug.
"Good earnings growth can
also come from companies
with low cost structures. My
goal is to find companies that
are on the cusp of increasing
their earnings, and we have
analysts combing the
countryside for opportunities.
If I can get the earnings part
of my strategy right, there's a
good chance the fund will
generate nice returns."
INVESTMENT CHANGES

TOP TEN STOCKS AS OF MAY 31, 1997
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO

Philip Morris Companies, Inc. 2.2 1.6

American Home Products Corp. 1.8 1.4

General Electric Co. 1.8 2.0

Allstate Corp. 1.8 1.5

Owens - Illinois, Inc. 1.7 1.7

Adaptec, Inc. 1.6 1.5

Tyco International Ltd. 1.6 0.8

International Business Machines Corp. 1.5 2.6

American Express Co. 1.4 0.7

NationsBank Corp. 1.4 1.4

TOP FIVE MARKET SECTORS AS OF MAY 31, 1997
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET
SECTORS
6 MONTHS AGO

Technology 18.9 21.5

Health 13.6 12.7

Finance 11.9 10.7

Retail & Wholesale 8.4 9.3

Nondurables 7.5 7.0

ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF MAY 31, 1997 * AS OF NOVEMBER 30, 1996 **
Row: 1, Col: 1, Value: 6.3
Row: 1, Col: 2, Value: 93.7
Stocks 90.7%
Short-term
investments 9.3%
FOREIGN
INVESTMENTS 3.7%
Stocks 93.7%
Short-term
investments 6.3%
FOREIGN
INVESTMENTS 3.4%
Row: 1, Col: 1, Value: 9.300000000000001
Row: 1, Col: 2, Value: 90.7
*
**
INVESTMENTS MAY 31, 1997 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 93.7%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 2.8%
AlliedSignal, Inc. 5,740 $ 440,528
Boeing Co. 6,400 673,600
Lockheed Martin Corp. 4,270 399,779
Sundstrand Corp. 3,200 159,200
1,673,107
BASIC INDUSTRIES - 3.6%
CHEMICALS & PLASTICS - 1.2%
Monsanto Co. 7,550 332,200
Praxair, Inc. 7,790 409,949
742,149
PACKAGING & CONTAINERS - 1.7%
Owens-Illinois, Inc. (a) 32,240 995,410
PAPER & FOREST PRODUCTS - 0.7%
Fort Howard Corp. (a) 4,800 220,500
Kimberly-Clark Corp. 3,600 180,450
400,950
TOTAL BASIC INDUSTRIES 2,138,509
CONSTRUCTION & REAL ESTATE - 0.5%
BUILDING MATERIALS - 0.5%
Sherwin-Williams Co. 10,120 303,600
DURABLES - 1.3%
AUTOS, TIRES, & ACCESSORIES - 0.6%
Snap-on Tools Corp. 8,870 353,691
HOME FURNISHINGS - 0.7%
Leggett & Platt, Inc. 10,700 403,925
TOTAL DURABLES 757,616
ENERGY - 6.1%
ENERGY SERVICES - 2.7%
BJ Services Co. 4,000 221,000
Dresser Industries, Inc. 9,200 315,100
Halliburton Co. 8,500 657,688
Schlumberger Ltd. 3,430 408,599
1,602,387
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
ENERGY - CONTINUED
OIL & GAS - 3.4%
Anadarko Petroleum Corp. 2,350 $ 148,050
British Petroleum PLC ADR 5,418 784,933
Coastal Corp. (The) 5,800 290,725
Royal Dutch Petroleum Co. ADR 1,830 357,308
Texaco, Inc. 2,800 305,550
Unocal Corp. 3,300 140,663
2,027,229
TOTAL ENERGY 3,629,616
FINANCE - 11.9%
BANKS - 3.4%
Bank of New York Co., Inc. 16,480 702,460
BankAmerica Corp. 4,300 502,563
NationsBank Corp. 13,860 816,008
2,021,031
CREDIT & OTHER FINANCE - 2.0%
American Express Co. 12,130 843,035
Household International, Inc. 3,230 317,348
1,160,383
FEDERAL SPONSORED CREDIT - 1.7%
Federal Home Loan Mortgage Corporation 8,140 268,620
Federal National Mortgage Association 17,370 757,766
1,026,386
INSURANCE - 4.8%
Aetna, Inc. 4,550 459,550
Allstate Corp. 14,280 1,051,365
AMBAC, Inc. 6,200 465,000
MBIA, Inc. 3,780 405,878
UNUM Corp. 5,990 473,959
2,855,752
TOTAL FINANCE 7,063,552
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
HEALTH - 13.6%
DRUGS & PHARMACEUTICALS - 6.2%
American Home Products Corp. 14,220 $ 1,084,275
Bristol-Myers Squibb Co. 9,580 702,933
Merck & Co., Inc. 8,570 770,229
Pfizer, Inc. 2,650 272,619
Schering-Plough Corp. 5,930 538,148
SmithKline Beecham PLC ADR 3,780 330,750
3,698,954
MEDICAL EQUIPMENT & SUPPLIES - 4.0%
Abbott Laboratories 4,100 258,300
Baxter International, Inc. 9,640 508,510
Becton, Dickinson & Co. 8,420 414,685
Bergen Brunswig Corp. Class A 14,040 533,520
Johnson & Johnson 8,340 499,358
St. Jude Medical, Inc. (a) 4,470 151,421
2,365,794
MEDICAL FACILITIES MANAGEMENT - 3.4%
Columbia/HCA Healthcare Corp. 12,130 444,261
HEALTHSOUTH Rehabilitation Corp. (a) 12,900 295,088
Health Management Associates, Inc. Class A (a) 10,295 301,129
Oxford Health Plans, Inc. (a) 1,500 105,750
PacifiCare Health Systems, Inc. Class B (a) 2,400 190,200
Tenet Healthcare Corp. (a) 15,500 426,250
Vencor, Inc. (a) 5,600 228,200
1,990,878
TOTAL HEALTH 8,055,626
INDUSTRIAL MACHINERY & EQUIPMENT - 7.0%
ELECTRICAL EQUIPMENT - 2.5%
Alcatel Alsthom Compagnie Generale d'Electricite SA
sponsored ADR 16,800 382,200
General Electric Co. 17,800 1,074,675
1,456,875
INDUSTRIAL MACHINERY & EQUIPMENT - 3.9%
Case Corp. 4,500 265,500
Caterpillar, Inc. 4,300 419,788
Ingersoll-Rand Co. 6,340 345,530
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
Stanley Works 8,300 $ 340,300
Tyco International Ltd. 14,480 919,480
2,290,598
POLLUTION CONTROL - 0.6%
Browning-Ferris Industries, Inc. 8,800 288,200
Ogden Corp. 2,800 54,600
USA Waste Services, Inc. 900 32,625
375,425
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 4,122,898
MEDIA & LEISURE - 5.0%
ENTERTAINMENT - 1.0%
Carnival Cruise Lines, Inc. Class A 4,840 183,920
MGM Grand, Inc. (a) 10,000 378,750
562,670
LODGING & GAMING - 3.2%
HFS, Inc. (a) 10,240 551,680
La Quinta Motor Inns, Inc. 15,500 356,500
Marriott International, Inc. 14,110 814,853
Mirage Resorts, Inc. (a) 7,300 174,288
1,897,321
PUBLISHING - 0.3%
Times Mirror Co. Class A 3,470 194,754
RESTAURANTS - 0.5%
Rainforest Cafe, Inc. (a) 13,000 318,500
TOTAL MEDIA & LEISURE 2,973,245
NONDURABLES - 7.5%
AGRICULTURE - 0.4%
Pioneer Hi-Bred International, Inc. 3,450 240,638
BEVERAGES - 1.6%
Coca-Cola Co. (The) 2,380 162,435
PepsiCo, Inc. 20,180 741,615
904,050
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NONDURABLES - CONTINUED
FOODS - 1.4%
ConAgra, Inc. 2,490 $ 149,711
Hershey Foods Corp. 2,800 157,150
Ralston Purina Co. 3,280 279,620
Sara Lee Corp. 6,300 257,513
843,994
HOUSEHOLD PRODUCTS - 1.5%
Clorox Co. 1,900 239,875
Procter & Gamble Co. 4,710 649,391
889,266
TOBACCO - 2.6%
Philip Morris Companies, Inc. 28,980 1,275,120
RJR Nabisco Holdings Corp. 8,260 267,418
1,542,538
TOTAL NONDURABLES 4,420,486
RETAIL & WHOLESALE - 8.4%
APPAREL STORES - 0.7%
Payless ShoeSource, Inc. (a) 6,100 288,988
TJX Companies, Inc. 2,600 124,800
413,788
DRUG STORES - 0.9%
Rite Aid Corp. 11,410 530,565
GENERAL MERCHANDISE STORES - 1.9%
Consolidated Stores Corp. 3,400 130,050
Sears, Roebuck & Co. 13,900 682,838
Wal-Mart Stores, Inc. 10,500 312,375
1,125,263
GROCERY STORES - 1.8%
American Stores Co. 5,900 268,450
Kroger Co. (The) (a) 11,100 284,438
Safeway, Inc. (a) 11,100 499,500
1,052,388
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE, MISCELLANEOUS - 3.1%
Circuit City Stores, Inc. - Circuit City Group 14,230 $ 562,085
Lowe's Companies, Inc. 10,370 408,319
Toys "R" Us, Inc. (a) 22,240 692,220
Viking Office Products, Inc. (a) 9,000 169,875
1,832,499
TOTAL RETAIL & WHOLESALE 4,954,503
SERVICES - 2.7%
ADVERTISING - 0.6%
Omnicom Group, Inc. 6,570 381,060
SERVICES - 2.1%
AccuStaff, Inc. (a) 14,700 352,800
Block (H&R), Inc. 4,040 133,320
Service Corp. International 7,880 277,770
Sitel Corp. (a) 28,700 473,550
1,237,440
TOTAL SERVICES 1,618,500
TECHNOLOGY - 18.9%
COMMUNICATIONS EQUIPMENT - 2.5%
Ascend Communications, Inc. (a) 10,200 568,650
Aspect Telecommunications Corp. (a) 16,000 360,000
Cisco Systems, Inc. (a) 3,750 254,063
Network General Corp. (a) 17,100 314,213
1,496,926
COMPUTER SERVICES & SOFTWARE - 3.7%
Automatic Data Processing, Inc. 7,030 345,349
CUC International, Inc. (a) 26,411 607,442
Equifax, Inc. 8,590 268,438
Forte Software, Inc. (a) 3,500 45,938
Microsoft Corp. (a) 3,900 483,600
Oracle Systems Corp. (a) 6,400 298,400
SunGard Data Systems, Inc. (a) 3,600 153,000
2,202,167
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - 6.5%
Adaptec, Inc. (a) 26,000 $ 955,500
Comdisco, Inc. 10,100 372,438
Compaq Computer Corp. (a) 3,200 346,400
EMC Corp. (a) 4,600 183,425
Fore Systems, Inc. (a) 25,000 414,063
International Business Machines Corp. 10,440 903,060
Pitney Bowes, Inc. 9,160 643,490
3,818,376
ELECTRONIC INSTRUMENTS - 0.6%
Applied Materials, Inc. (a) 3,600 234,900
Lam Research Corp. (a) 3,600 130,950
365,850
ELECTRONICS - 4.8%
Altera Corp. (a) 4,000 212,000
Analog Devices, Inc. (a) 14,600 390,550
Intel Corp. 3,500 530,250
Linear Technology Corp. 11,100 556,388
Maxim Integrated Products, Inc. (a) 6,880 369,800
Micron Technology, Inc. 4,000 170,000
Motorola, Inc. 4,900 325,238
OnTrak Systems, Inc. (a) 1,100 31,625
Texas Instruments, Inc. 2,900 260,638
2,846,489
PHOTOGRAPHIC EQUIPMENT - 0.8%
Eastman Kodak Co. 5,600 464,100
TOTAL TECHNOLOGY 11,193,908
TRANSPORTATION - 0.7%
RAILROADS - 0.7%
CSX Corp. 7,200 381,600
UTILITIES - 3.7%
TELEPHONE SERVICES - 3.7%
Ameritech Corp. 3,640 238,420
Cincinnati Bell, Inc. 5,700 350,550
LCI International, Inc. (a) 13,600 329,800
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UTILITIES - CONTINUED
TELEPHONE SERVICES - CONTINUED
SBC Communications, Inc. 12,540 $ 733,590
WorldCom, Inc. (a) 17,260 511,328
2,163,688
TOTAL COMMON STOCKS
(Cost $48,538,551) 55,450,454
CASH EQUIVALENTS - 6.3%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.54%, dated
5/30/97 due 6/2/97 $ 3,742,727 3,741,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $52,279,551) $ 59,191,454
LEGEND
1. Non-income producing
INCOME TAX INFORMATION
At May 31, 1997, the aggregate cost of investment securities for income tax
purposes was $52,306,067. Net unrealized appreciation aggregated
$6,885,387, of which $7,790,819 related to appreciated investment
securities and $905,432 related to depreciated investment securities.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

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

ASSETS

Investment in securities, at value (including repurchase $ 59,191,454
agreements of $3,741,000) (cost $52,279,551) -
See accompanying schedule

Cash 891

Receivable for investments sold 487,067

Receivable for fund shares sold 88,285

Dividends receivable 66,287

Prepaid expenses 5,031

TOTAL ASSETS 59,839,015

LIABILITIES

Payable for investments purchased $ 372,423

Payable for fund shares redeemed 49,687

Accrued management fee 25,375

Distribution fees payable 27,543

Other payables and accrued expenses 46,454

TOTAL LIABILITIES 521,482

NET ASSETS $ 59,317,533

Net Assets consist of:

Paid in capital $ 50,981,177

Accumulated net investment (loss) (30,298)

Accumulated undistributed net realized gain (loss) on 1,454,751
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 6,911,903
investments

NET ASSETS $ 59,317,533

</TABLE>

STATEMENT OF ASSETS AND LIABILITIES - CONTINUED
MAY 31, 1997 (UNAUDITED)

CALCULATION OF MAXIMUM OFFERING PRICE $12.50
CLASS A:
NET ASSET VALUE and redemption price per share
($1,540,159 (divided by) 123,224 shares)

Maximum offering price per share (100/94.75 of $12.50) $13.19

CLASS T: $12.52
NET ASSET VALUE and redemption price per share
($35,912,633 (divided by) 2,868,979 shares)

Maximum offering price per share (100/96.50 of $12.52) $12.97

CLASS B: $12.43
NET ASSET VALUE and offering price per share
($16,132,128 (divided by) 1,297,532 shares) A

INSTITUTIONAL CLASS: $12.55
NET ASSET VALUE, offering price and redemption price
per share ($5,732,613 (divided by) 456,817 shares)

A REDEMPTION PRICE PER SHARE IS EQUAL TO NET ASSET VALUE LESS ANY
APPLICABLE CONTINGENT DEFERRED SALES CHARGE.
STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1997 (UNAUDITED)

INVESTMENT INCOME $ 316,786
Dividends

Interest 99,923

TOTAL INCOME 416,709

EXPENSES

Management fee $ 162,800

Transfer agent fees 58,116

Distribution fees 143,381

Accounting fees and expenses 30,701

Non-interested trustees' compensation 110

Custodian fees and expenses 16,226

Registration fees 41,319

Audit 12,573

Legal 120

Miscellaneous 3,029

Total expenses before reductions 468,375

Expense reductions (21,368) 447,007

NET INVESTMENT INCOME (LOSS) (30,298)

REALIZED AND UNREALIZED GAIN (LOSS) 1,518,716
Net realized gain (loss) on investment securities

Change in net unrealized appreciation (depreciation) on 1,925,251
investment securities

NET GAIN (LOSS) 3,443,967

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 3,413,669
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS FEBRUARY 20, 1996
ENDED MAY 31, (COMMENCEMENT
1997 OF OPERATIONS) TO
(UNAUDITED) NOVEMBER 30,
1996

INCREASE (DECREASE) IN NET ASSETS

Operations $ (30,298) $ (18,281)
Net investment income (loss)

Net realized gain (loss) 1,518,716 218,046

Change in net unrealized appreciation (depreciation) 1,925,251 4,986,652

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 3,413,669 5,186,417
FROM OPERATIONS

Distributions to shareholders from net realized gains (257,582) -

Share transactions - net increase (decrease) 10,659,752 40,315,277

TOTAL INCREASE (DECREASE) IN NET ASSETS 13,815,839 45,501,694

NET ASSETS

Beginning of period 45,501,694 -

End of period $ 59,317,533 $ 45,501,694

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS YEAR ENDED
ENDED NOVEMBER 30,
MAY 31, 1997

(UNAUDITED) 1996 H

<TABLE>
<CAPTION>
<S> <C> <C>
SELECTED PER-SHARE DATA D

Net asset value, beginning of period $ 11.83 $ 10.21

Income from Investment Operations

Net investment income (loss) (.01) .00

Net realized and unrealized gain (loss) .76 1.62

Total from investment operations .75 1.62

Less Distributions

From net realized gain (.08) -

Net asset value, end of period $ 12.50 $ 11.83

TOTAL RETURN B, C 6.40% 15.87%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 1,540 $ 503

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

Ratio of expenses to average net assets after expense 1.73% A, E 1.75% A
reductions

Ratio of net investment income (loss) to average net assets (.16)% A .11% A

Portfolio turnover 101% A 59% A

Average commission rate G $ .0371 $ .0306

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS 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 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).
F 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).
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.
H FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A SHARES)
TO NOVEMBER 30, 1996.
FINANCIAL HIGHLIGHTS - CLASS T
SIX MONTHS YEAR ENDED
ENDED NOVEMBER 30,
MAY 31, 1997

(UNAUDITED) 1996 H

<TABLE>
<CAPTION>
<S> <C> <C>
SELECTED PER-SHARE DATA D

Net asset value, beginning of period $ 11.82 $ 10.00

Income from Investment Operations

Net investment income (loss) .00 (.01)

Net realized and unrealized gain (loss) .76 1.83

Total from investment operations .76 1.82

Less Distributions

From net realized gain (.06) -

Net asset value, end of period $ 12.52 $ 11.82

TOTAL RETURN B, C 6.47% 18.20%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 35,913 $ 26,133

Ratio of expenses to average net assets 1.65% A 2.00% A,
F

Ratio of expenses to average net assets after expense 1.62% A, E 2.00% A
reductions

Ratio of net investment income (loss) to average net assets (.06)% A (.14)% A

Portfolio turnover 101% A 59% A

Average commission rate G $ .0371 $ .0306

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS 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 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).
F 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).
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.
H FOR THE PERIOD FEBRUARY 20, 1996 (COMMENCEMENT OF SALE OF CLASS T SHARES)
TO NOVEMBER 30, 1996.
FINANCIAL HIGHLIGHTS - CLASS B
SIX MONTHS YEAR ENDED
ENDED NOVEMBER 30,
MAY 31, 1997

(UNAUDITED) 1996 H

<TABLE>
<CAPTION>
<S> <C> <C>
SELECTED PER-SHARE DATA D

Net asset value, beginning of period $ 11.77 $ 10.00

Income from Investment Operations

Net investment income (loss) (.04) (.05)

Net realized and unrealized gain (loss) .75 1.82

Total from investment operations .71 1.77

Less Distributions

From net realized gain (.05) -

Net asset value, end of period $ 12.43 $ 11.77

TOTAL RETURN B, C 6.07% 17.70%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 16,132 $ 9,721

Ratio of expenses to average net assets 2.22% A 2.50% A,
F

Ratio of expenses to average net assets after expense 2.19% A, E 2.50% A
reductions

Ratio of net investment income (loss) to average net assets (.64)% A (.64)% A

Portfolio turnover 101% A 59% A

Average commission rate G $ .0371 $ .0306

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E 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).
F 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).
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.
H FOR THE PERIOD FEBRUARY 20, 1996 (COMMENCEMENT OF SALE OF CLASS B SHARES)
TO NOVEMBER 30, 1996.
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SIX MONTHS YEAR ENDED
ENDED NOVEMBER 30,
MAY 31, 1997

(UNAUDITED) 1996 H

<TABLE>
<CAPTION>
<S> <C> <C>
SELECTED PER-SHARE DATA D

Net asset value, beginning of period $ 11.86 $ 10.00

Income from Investment Operations

Net investment income .03 .03

Net realized and unrealized gain (loss) .75 1.83

Total from investment operations .78 1.86

Less Distributions

From net realized gain (.09) -

Net asset value, end of period $ 12.55 $ 11.86

TOTAL RETURN B, C 6.64% 18.60%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 5,733 $ 9,144

Ratio of expenses to average net assets 1.10% A 1.50% A,
E

Ratio of expenses to average net assets after expense 1.07% A, F 1.48% A,
reductions F

Ratio of net investment income to average net assets .46% A .38% A

Portfolio turnover 101% A 59% A

Average commission rate G $ .0371 $ .0306

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
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.
H FOR THE PERIOD FEBRUARY 20, 1996 (COMMENCEMENT OF SALE OF INSTITUTIONAL
CLASS SHARES) TO NOVEMBER 30, 1996.
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1997 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Large Cap Fund(the fund) is a fund of Fidelity Advisor
Series I (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, Class B, 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, 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.
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.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not 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 Class A and
shares of Class A for distribution under federal and state securities law.
These expenses are borne by Class A 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, which may result in distribution
reclassifications, are primarily due to differing treatments for net
operating losses and losses deferred due to wash sales. The fund also
utilized earnings and profits distributed to shareholders on redemption of
shares as a part of the dividends paid deduction for income tax purposes.
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.
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 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 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.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $35,854,717 and $25,127,336, 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. The annual individual
fund fee rate is .30%. 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.
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
each class of shares (collectively referred to as "the Plans"). Under
certain of the Plans, the class pays Fidelity
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN - CONTINUED
Distributors Corporation (FDC), an affiliate of FMR, a distribution and
service fee. This fee is based on the following annual rates of the average
net assets of each applicable class:
CLASS A .25%

CLASS T .50%

CLASS B 1.00%*

* .75% REPRESENTS A DISTRIBUTION FEE AND .25% REPRESENTS A SHAREHOLDER
SERVICE FEE.
For the period, each class paid FDC the following amounts, a portion of
which was paid to securities dealers, banks and other financial
institutions for the distribution of each class' applicable shares, and
providing shareholder support services:
PAID TO DEALERS'
FDC PORTION

CLASS A $ 1,191 $ 1,191

CLASS T 77,259 77,259

CLASS B 64,931 16,236

$ 143,381 $ 94,686

Under the Plans, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of each class' shares. The Plans
also authorize payments to third parties that assist in the sale of each
class' shares or render shareholder support services.
SALES LOAD. FDC receives a front-end sales charge of up to 5.25% for
selling Class A shares and 3.50% for selling Class T shares of the fund,
respectively, and the proceeds of a contingent deferred sales charge levied
on Class B share redemptions occurring within six years of purchase (five
years prior to January 2, 1997). The Class B charge is based on declining
rates which range from 5% to 1%(4% to 1% prior to January 2, 1997) of the
lesser of the cost of shares at the initial date of purchase or the net
asset value of the redeemed shares, excluding any reinvested dividends and
capital gains.
For the period, FDC received the following sales charge amounts related to
each class, a portion of which is paid to securities dealers, banks, and
other financial institutions:
PAID TO DEALERS'
FDC PORTION

CLASS A $ 20,815 $ 12,677

CLASS T 53,491 36,389

CLASS B 17,071 0*

$ 91,377 $ 49,066

* WHEN CLASS B SHARES ARE INITIALLY SOLD, FDC PAYS COMMISSIONS FROM ITS OWN
RESOURCES TO DEALERS THROUGH WHICH
THE SALES ARE MADE.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES. Each class of the fund has entered into a separate
transfer, dividend disbursing, and shareholder servicing agent
(collectively referred to as the Transfer Agents) contract with respect to
its shares. The Transfer Agents receive account fees and asset-based fees
that vary according to the account size and type of account of the
shareholders of the respective classes of the fund. For the period, the
following amounts were paid to each transfer agent:
TRANSFER AMOUNT % OF
AGENT AVERAGE
NET ASSETS ***

CLASS A FIIOC * $ 1,392 .29

CLASS T** FIIOC * 34,513 .23

CLASS B FIIOC * 15,643 .24

INSTITUTIONAL CLASS FIIOC * 6,568 .14

$ 58,116

* FIDELITY INVESTMENTS INSTITUTIONAL OPERATIONS COMPANY, INC. (FIIOC) AN
AFFILIATE OF FMR.
** PRIOR TO JANUARY 1, 1997 STATE STREET BANK AND TRUST COMPANY WAS THE
TRANSFER AGENT FOR THE FUND'S CLASS T SHARES. STATE STREET, HOWEVER, HAD
DELEGATED CERTAIN TRANSFER, DIVIDEND DISBURSING, AND SHAREHOLDER
SERVICES TO FIIOC FOR WHICH FIIOC RECEIVED ITS ALLOCABLE SHARE OF ALL SUCH
FEES.
*** ANNUALIZED
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 $6,681 for the period.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding interest,
taxes, brokerage commissions and extraordinary expenses) above the
following annual rates or range of annual rates of average net assets for
each class:
FMR REIMBURSEME
EXPENSE NT
LIMITATIONS

CLASS A 1.75% $ 14,676

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 $6,025 under this arrangement.
5. EXPENSE REDUCTIONS - CONTINUED
In addition, the fund has entered into arrangements with its custodian and
each class' transfer agent whereby credits realized as a result of
uninvested cash balances were used to reduce a portion of expenses. During
the period, the fund's custodian fees were reduced by $386 under the
custodian arrangement, and each applicable class' expenses were reduced as
follows under the transfer agent arrangements:
TRANSFER
AGENT
INTEREST
CREDITS

CLASS T $ 36

INSTITUTIONAL CLASS 245

$ 281

6. BENEFICIAL INTEREST.
At the end of the period, FMR and its affiliates were record owners of
approximately 6% of the total outstanding shares of the fund. In addition,
1 unaffiliated shareholder was record owner of more than 10% of the total
outstanding shares of the fund, totaling 11%.
7. DISTRIBUTIONS TO SHAREHOLDERS.
Distributions to shareholders of each class were as follows:
SIX MONTHS YEAR ENDED
ENDED APRIL 30, NOVEMBER 30,
1997 1996 A, B

CLASS A

From net realized gain $ 4,398 $ -

CLASS T

From net realized gain 136,999 -

CLASS B

From net realized gain 44,784 -

INSTITUTIONAL CLASS

From net realized gain 71,401 -

$ 257,582 $ -

A DISTRIBUTIONS FOR CLASS A ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALES OF SHARES) TO NOVEMBER 30, 1996.
B DISTRIBUTIONS FOR CLASS B, CLASS T, AND INSTITUTIONAL CLASS ARE FOR THE
PERIOD FEBRUARY 20, 1996 (COMMENCEMENT OF OPERATIONS) TO
NOVEMBER 30, 1996.
8. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:
SHARES DOLLARS

SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED MAY 31, NOVEMBER 30, ENDED MAY 31, NOVEMBER 30,

1997 1996 A, B 1997 1996 A, B

CLASS A 84,113 42,933 $ 992,445 $ 469,990
Shares sold

Reinvestment of distributions 387 - 4,472 -

Shares redeemed (3,750) (459) (44,390) (4,991)

Net increase (decrease) 80,750 42,474 $ 952,527 $ 464,999

CLASS T 1,434,674 2,758,551 $ 17,017,547 $ 28,830,863
Shares sold

Reinvestment of distributions 10,908 - 125,919 -

Shares redeemed (786,981) (548,173) (9,240,885) (5,771,968)

Net increase (decrease) 658,601 2,210,378 $ 7,902,581 $ 23,058,895

CLASS B 557,484 859,428 $ 6,532,400 $ 9,066,601
Shares sold

Reinvestment of distributions 3,711 - 42,621 -

Shares redeemed (89,506) (33,585) (1,055,788) (354,172)

Net increase (decrease) 471,689 825,843 $ 5,519,233 $ 8,712,429

INSTITUTIONAL CLASS 152,562 774,817 $ 1,794,819 $ 8,117,325
Shares sold

Reinvestment of distributions 5,997 - 69,380 -

Shares redeemed (472,907) (3,652) (5,578,788) (38,371)

Net increase (decrease) (314,348) 771,165 $ (3,714,589) $ 8,078,954

</TABLE>

A SHARE TRANSACTIONS FOR CLASS A ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO NOVEMBER 30, 1996.
B SHARE TRANSACTIONS FOR CLASS B, CLASS T, AND INSTITUTIONAL CLASS ARE FOR
THE PERIOD FEBRUARY 20, 1996 (COMMENCEMENT OF SALE OF SHARES) TO
NOVEMBER 30, 1996.
9. REGISTRATION FEES.
For the period, each class paid the following amounts to register its
shares for sale:
REGISTRATION
FEES

CLASS A $ 16,424

CLASS T 11,547

CLASS B 8,115

INSTITUTIONAL CLASS 5,233

$ 41,319

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
Richard A. Silver, 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 *
William O. McCoy *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
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 TechnoQuant
Growth Fund
Fidelity Advisor Overseas Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Large Cap Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Balanced Fund
Fidelity Advisor Growth & Income Fund
TAXABLE INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Mortgage
Securities Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Intermediate Bond Fund
Fidelity Advisor Short Fixed-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
Prime Fund
Treasury Fund
Tax-Exempt Fund

(REGISTERED TRADEMARK)

(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

LARGE CAP
FUND - INSTITUTIONAL CLASS
SEMIANNUAL REPORT
MAY 31, 1997
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 6 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 9 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 10 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 18 Statements of assets and
liabilities, operations, and changes
in net assets, as well as financial
highlights.

NOTES 26 Notes to the financial statements.

CUMULATIVE TOTAL RETURN
PERIODS ENDED MAY 31, 1997 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Advisor Large Cap Fund - 6.64% 22.20% 26.48%
Institutional Class

S&P 500(registered trademark) 13.15% 29.42% 34.53%

Growth Funds Average 8.36% 17.72% n/a

CUMULATIVE TOTAL RETURNS show Institutional Class' performance in
percentage terms over a set period - in this case, six months, one year or
since the fund started on February 20, 1996. For example, if you had
invested $1,000 in a fund that had a 5% return over the past year, the
value of your investment would be $1,050. You can compare the Institutional
Class' returns to the performance of the Standard & Poor's 500 Index - a
widely recognized, unmanaged index of common stocks. To measure how
Institutional Class' performance stacked up against its peers, you can
compare it to the growth funds average, which reflects the performance of
mutual funds with similar objectives tracked by Lipper Analytical Services,
Inc. The past six months average represents a peer group of 809 mutual
funds. These benchmarks include reinvested dividends and capital gains, if
any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1997 PAST 1 LIFE OF
YEAR FUND

Advisor Large Cap Fund - 22.20% 20.16%
Institutional Class

S&P 500 29.42% 26.10%

Growth Funds Average 17.72% n/a

AVERAGE ANNUAL RETURNS take Institutional Class shares' cumulative return
and show you what would have happened
if Institutional Class had performed at a constant rate each year.
$10,000 OVER LIFE OF FUND
1996/02/20 10000.00 10000.00
1996/02/29 10020.00 9891.39
1996/03/31 10060.00 9986.65
1996/04/30 10140.00 10133.85
1996/05/31 10350.00 10395.20
1996/06/30 10400.00 10434.81
1996/07/31 9900.00 9973.80
1996/08/31 10220.00 10184.14
1996/09/30 10910.00 10757.31
1996/10/31 11040.00 11053.99
1996/11/30 11860.00 11889.57
1996/12/31 11579.86 11654.03
1997/01/31 12164.08 12382.18
1997/02/28 11952.44 12479.25
1997/03/31 11337.69 11966.48
1997/04/30 11861.74 12680.88
1997/05/30 12647.82 13452.89
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Large Cap Fund - Institutional Class on
February 20, 1996, when the fund started. As the chart shows, by May 31,
1997, the value of the investment would have grown to $12,648 - a 26.48%
increase on the initial investment. For comparison, look at how the S&P 500
did over the same period. With dividends reinvested, the same $10,000
investment would have grown to $13,453 - a 34.53% increase.
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
long-term growth and
short-term volatility. In turn,
the share price and return of
a fund that invests in stocks
will vary. That means if you
sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Thomas Sprague, Portfolio Manager of Fidelity Advisor
Large Cap Fund
Q. HOW DID THE FUND PERFORM, TOM?
A. For the six months that ended May 31, 1997, the fund's Institutional
Class shares returned 6.64%. The Standard & Poor's 500 Index returned
13.15% over the same period, while the growth funds average, as tracked by
Lipper Analytical Services, returned 8.36%. For the 12 months that ended
May 31, 1997, the fund's Institutional Class shares had a return of 22.20%.
The S&P 500 and Lipper peer group returned 29.42% and 17.72%, respectively,
over the same time.
Q. WHAT FACTORS CONTRIBUTED TO THE DIFFERENCES IN RETURNS BETWEEN THE FUND
AND ITS INDEX AND PEER GROUP?
A. The environment over the past six months, and even over the past year,
has been very favorable for the stock market. Returns across the board have
been strong due to a combination of good earnings growth and stable
interest rates, two of the primary drivers behind stock performance. This
explains the stronger-than-normal absolute returns of the market, the fund
and the peer group over the past six and 12 months. One factor that helps
explain much of the difference between the fund and the S&P 500 has been
the amazing "narrowness" of the market. By that I mean that a select group
of the largest-cap stocks in the market - names
such as General Electric, Microsoft and Coca-Cola - dramatically
outperformed not only the broad market, but even the general large-cap
universe.
Q. HOW DID THIS ENVIRONMENT HURT THE FUND? DID IT HELP IN ANY WAY?
A. The fund had positions in each of the mega-cap stocks I mentioned above,
but was underweighted in them relative to the index. The reason for this
can be traced to my valuation methodology. When I'm looking at stocks, I
try to stick to my investment discipline of owning companies with good
earnings prospects, but only if the valuation is attractive. I felt and
still do that the valuations of many of these mega-caps were excessive
relative to their growth prospects. Apparently, the market felt otherwise
over the past six months. Over the longer-term, however, I think it will
benefit the fund to own a more diversified portfolio of large-cap names
with equivalent growth prospects and a much lower price-to-earnings (P/E)
ratio than those 50 or so mega-cap names that have performed so well of
late.
Q. WHAT OTHER FACTORS CONTRIBUTED TO PERFORMANCE?
A. Two other specific factors were the fund's positions in technology and
finance stocks. In terms of technology, as I've already mentioned, I didn't
own enough of the mega-cap names such as Microsoft and Intel relative to
the index. Additionally, the fund's stake in networking stocks - those that
link together communications equipment - proved disappointing as a
short-term earnings slowdown occurred. I remain convinced, however, that
the long-term outlook for networking remains bright. The flip side was the
financial services area. In conjunction with the stable interest rate
environment, many financial services companies had strong earnings growth
that enabled their relatively low P/E ratios to expand. The fund's large
exposure to this sector helped results.
Q. WHICH INDIVIDUAL STOCKS CONTRIBUTED POSITIVELY TO PERFORMANCE? WHICH
ONES HURT?
A. Stocks that performed well included Halliburton and Schlumberger - two
companies that provide equipment and services to energy companies involved
in the exploration and production of oil. Business levels for these
companies have been very strong. The fund's position in Allstate also
reacted positively as the company addressed its hurricane risk exposure in
Florida and its earthquake risk in California while at the same time
improving returns in its core auto insurance business. Glass-maker
Owens-Illinois and diversified manufacturer Tyco International produced
good results on the heels of solid earnings streams. Factors that detracted
from performance, other than the relative underweighting in technology
stocks already mentioned, included holdings in several retail stocks that
were hurt by surprisingly sluggish sales and a continued environment of
store overcapacity. These stocks included PETsMART- which the fund no
longer owns - and Toys "R" Us.
Q. AFTER REPEATED WARNINGS IN LATE 1996 AND EARLY 1997, THE FEDERAL RESERVE
BOARD RAISED INTEREST RATES IN MARCH. WITH MARKET EXPECTATIONS CENTERING
AROUND FURTHER RATE HIKES, CAN YOU EXPLAIN WHAT HIGHER INTEREST RATES DO TO
STOCKS?
A. Higher interest rates hurt in two ways. First, they affect the supply
and demand situation for stocks. If an investor can double his yield on a
money market investment, money will most likely flow out of the stock
market and into fixed-income securities. Second, higher rates tend to
depress a company's earnings growth. Since higher rates result in higher
borrowing costs, companies dependent on building earnings momentum through
capital expenditures would be forced to think twice.
Q. WHAT'S YOUR OUTLOOK?
A. I believe two factors have the most influence on a stock's performance:
interest rates and earnings growth. When rates are climbing, the market
suffers. When rates are down, the market prospers. When earnings are up,
the market is smiling. When they're down, the smile is replaced by a frown.
Since I don't try to predict the direction of interest rates, I'll continue
to emphasize earnings growth and valuation as the cornerstone of my
investment approach. This will most likely lead me to the technology area -
where many sectors - including networking, proprietary semiconductors and
information technology service providers - appear poised for long-term
growth. I'll also continue to favor the health care sector, where good
product development and strong pharmaceutical demand has been creating
earnings growth. Lastly, the healthy economy is producing strong earnings
growth potential in several consumer-related sectors. These will be
additional areas of focus for the fund.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.