FIDELITY GROWTH & INCOME PORTFOLIO
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
DATED SEPTEMBER 25, 1993
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 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 supplements the section entitled "Management
Contract" beginning on page 17.
Effective November 1, 1993, 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.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Annualized Group Net Effective Annual
Assets Rate Assets Fee 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 .3253
36 - 42 .340 250 .3223
42 - 48 .335 275 .3198
48 - 66 .325 300 .3175
66 - 84 .320 325 .3153
84 - 102 .315 350 .3133
102 - 138 .310
138 - 174 .305
174 - 228 .300
228 - 282 .295
282 - 336 .290
Over 336 .285
GAIB-94-1 March 21, 1994
