FIDELITY GROWTH & INCOME PORTFOLIO
A FUND OF FIDELITY SECURITIES FUND
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
DATED SEPTEMBER 25, 1993
MANAGEMENT CONTRACT. Effective August 1, 1994, FMR agreed to
voluntarily adopt the revised group fee rate schedule shown below for
purposes of calculating the group fee component of the management fee. The
revised schedule provides for lower management fees as total assets under
management increase, and it will be presented to shareholders for approval
at the next shareholder meeting.
The following information replaces the "Group Fee Rate" and "Effective
Annual Fee Rate" schedules found on page 18.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE
RATES
Average Group Annualized Group Net Effective Annual Fee
Assets Rate Assets Rate
0 - $ 3 billion .520% $ 0.5 billion .5200%
3 - 6 .490 25 .4238
6 - 9 .460 50 .3823
9 - 12 .430 75 .3626
12 - 15 .400 100 .3512
15 - 18 .385 125 .3430
18 - 21 .370 150 .3371
21 - 24 .360 175 .3325
24 - 30 .350 200 .3284
30 - 36 .345 225 . 3249
36 - 42 .340 250 . 3219
42 - 48 .335 275 . 3190
48 - 66 .325 300 . 3163
66 - 84 .320 325 . 3137
84 - 102 .315 350 . 3113
102 - 138 .310 375 . 3090
138 - 174 .305 400 . 3067
174 - 210 .300
210 - 246 .295
246 - 282 .290
282 - 318 .285
318 - 354 .280
354 - 390 .275
Over 390 .270
The following paragraph replaces the first paragraph under the heading
"Valuation of Portfolio Securities" on page 11.
Portfolio securities are valued by various methods depending on the primary
market or exchange on which they trade. Most equity securities for which
the primary market is the U.S. are valued at last sale price or, if no sale
has occurred, at the closing bid price. Most equity securities for which
the primary market is outside the U.S. are valued using the official
closing price or the last sale price in the principal market where they are
traded. If the last sale price (on the local exchange) is unavailable, the
last evaluated quote or last bid price is normally used. Short-term
securities are valued either at amortized cost or at original cost plus
accrued interest, both of which approximate current value. Convertible and
fixed-income securities are valued primarily by a pricing service that uses
a vendor security valuation matrix which incorporates both dealer-supplied
valuations and electronic data processing techniques. This twofold
approach is believed to
GAIB-94-4 (Page 1 of 2) August 1994
more accurately reflect fair value because it takes into account
appropriate factors such as institutional trading in similar groups of
securities, yield, quality, coupon rate, maturity, type of issue, trading
characteristics, and other market data, without exclusive reliance upon
quoted, exchange, or over-the counter prices. Use of pricing services has
been approved by the Board of Trustees.
The following paragraph supplements that found in the "Performance"
section, beginning on page 12.
The fund may be compared in advertising to Certificates of Deposit (CDs) or
other investments issued by banks. The fund differs from bank investments
in several respects. The fund may offer greater liquidity or higher
potential returns than CDs; but unlike CDs, the fund does not guarantee
your principal or your return.
The following paragraph supplements the section entitled "Additional
Purchase and Redemption Information" beginning on page 14.
The fund's sales charge may be reduced to reflect sales charges previously
paid, or that would have been paid absent a reduction as noted in the
prospectus, in connection with investments in other Fidelity funds. This
includes reductions for investments in prototype or prototype-like
retirement plans sponsored by FMR or FMR Corp., which are listed on page
14.
The following information replaces instance 8 found in the section entitled
"Additional Purchase and Redemption Information" beginning on page 14.
(8) if you are a current or former Trustee or officer of a Fidelity fund or
a current or retired officer, director, or regular employee of FMR Corp. or
its direct or indirect subsidiaries (a Fidelity Trustee or employee), the
spouse of a Fidelity Trustee or employee, a Fidelity Trustee or employee
acting as custodian for a minor child, or a person acting as trustee of a
trust for the sole benefit of the minor child of a Fidelity Trustee or
employee;
The following information supplements the section entitled "Additional
Purchase and Redemption Information" beginning on page 14.
(12) if you are a registered investment adviser (RIA) purchasing for your
discretionary accounts, provided you execute a Fidelity RIA load waiver
agreement which specifies certain aggregate minimum and operating
provisions. This waiver is available only for shares purchased directly
from Fidelity, without a broker, unless purchased through a brokerage firm
which is a correspondent of National Financial Services Corporation (NFSC).
The waiver is unavailable, however, if the RIA is part of an organization
principally engaged in the brokerage business, unless the brokerage firm in
the organization is an NFSC correspondent;
(13) if you are a trust institution or bank trust department purchasing for
your non-discretionary, non-retirement fiduciary accounts, provided you
execute a Fidelity Trust load waiver agreement which specifies certain
aggregate minimum and operating provisions. This waiver is available only
for shares purchased either directly from Fidelity or through a
bank-affiliated broker, and is unavailable if the trust department or
institution is part of an organization not principally engaged in banking
or trust activities;
(14) to shares purchased as part of a pension or profit-sharing plan as
defined in Section 401(a) of the Internal Revenue Code that maintains all
of its mutual fund assets in Fidelity mutual funds, provided the plan
executes a Fidelity non-prototype sales charge waiver request form
confirming its qualifications; or
(15) to shares purchased as part of a payroll deduction program (including
shares purchased in an amount not greater than $5,000 by participants in
the program within three months of the commencement of their participation
in the program from sources other than payroll deduction) through an
employer who has entered into a Fidelity payroll deduction load waiver
agreement and who (i) is a member of the Fidelity Retirement Client
Advisory Group and maintains an employee benefit plan that either qualifies
for exemption (1) above or is in the CORPORATE plan for Retirement Program
and has at least some of its plan assets in Fidelity-managed products, or
(ii) is a member of the Fidelity Retail Advisory Group and has more than
500 employees.
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