FIDELITY ADVISOR SERIES V, 485BPOS, 1997-03-25

FIDELITY ADVISOR SERIES V
485BPOS, 1997-03-25

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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT (No. 33-9148)
UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 38 [X]
and
REGISTRATION STATEMENT (No. 811-4861)
UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. 38 [X]
Fidelity Advisor Series V
(Exact Name of Registrant as Specified in Charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address Of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number: 617-570-7000
Arthur S. Loring, Secretary
82 Devonshire Street
Boston, Massachusetts 02109
(Name and Address of Agent for Service)
It is proposed that this filing will become effective
( ) immediately upon filing pursuant to paragraph (b).
(X) on ( March 24, 1997 ) pursuant to paragraph (b).
( ) 60 days after filing pursuant to paragraph (a)(1).
( ) on ( ) pursuant to paragraph (a)(1) of Rule 485.
( ) 75 days after filing pursuant to paragraph (a)(2).
( ) on ( ) pursuant to paragraph (a)(2) of Rule 485.
If appropriate, check the following box:
( ) this post-effective amendment designates a new effective date for a
previously filed
post-effective amendment.
Registrant has filed a declaration pursuant to Rule 24f-2 under the
Investment Company Act of 1940 and filed the Notice required by such Rule
on December 20, 1996.
FIDELITY ADVISOR FOCUS CLASS A, CLASS T AND CLASS B
PROSPECTUS

CROSS REFERENCE SHEET
FORM N-1A

ITEM NUMBER PROSPECTUS SECTION

<TABLE>
<CAPTION>
<S> <C> <C> <C>
1 .............................. Cover Page

2 a .............................. Expenses

b, c .............................. Contents; Who May Want to Invest

3 a .............................. Financial Highlights

b .............................. *

c - d .............................. Performance

4 a i............................. Charter

ii........................... Investment Principles and Risks

b .............................. Investment Principles and Risks

c .............................. Who May Want to Invest; Investment Principles
and Risks

5 a .............................. Charter

b i............................. Cover Page; Charter

ii........................... Charter; Breakdown of Expenses

iii.......................... Expenses; Breakdown of Expenses

c .............................. FMR and Its Affiliates

d .............................. Charter; Breakdown of Expenses

e .............................. FMR and its Affiliates; Breakdown of Expenses

f .............................. Expenses

g i............................ Charter; Expenses; FMR and Its Affiliates

ii............................ *

5A .............................. Performance

6 a i............................. Charter

ii........................... How to Buy Shares; How to Sell Shares;
Transaction Details; Exchange Restrictions

iii.......................... Charter

b ............................. FMR and Its Affiliates

c .............................. Transaction Details; Exchange Restrictions

d .............................. *

e .............................. Cover Page; How to Buy Shares; How to Sell
Shares; Investor Services

f, g .............................. Dividends, Capital Gains, and Taxes

7 a .............................. Cover Page; Charter

b .............................. How to Buy Shares; Transaction Details

c .............................. Sales Charge Reductions and Waivers

d .............................. How to Buy Shares

e .............................. Expenses; Transaction Details; Breakdown of
Expenses

f .............................. Breakdown of Expenses

8 .............................. How to Sell Shares; Investor Services; Transaction
Details; Exchange Restrictions

9 .............................. *

</TABLE>

* Not Applicable

Please read this prospectus before investing, and keep it on file for
future reference. It contains important information, including how each
fund invests and the services available to shareholders.
To learn more about each fund and its investments, you can obtain a copy of
the funds' most recent financial reports and portfolio listing, or a copy
of the Statement of Additional Information (SAI) dated March 24,
1997 . The SAI has been filed with the Securities and Exchange
Commission (SEC) and is available along with other related materials on the
SEC's Internet Web site (http://www.sec.gov). The SAI is incorporated
herein by reference (legally forms a part of the prospectus). For a free
copy of either document, contact Fidelity Distributors Corporation (FDC),
82 Devonshire Street, Boston, MA 02109, or your investment professional.

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.

LIKE ALL MUTUAL FUNDS, THESE
SECURITIES HAVE NOT BEEN APPROVED
OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION, NOR
HAS THE SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.
AFOC-pro-0297-01
Each fund seeks to increase the value of your investment over the long-term
by investing mainly in equity securities of companies within a particular
market sector.
FIDELITY ADVISOR
FOCUS FUNDS
CLASS A, CLASS T, AND CLASS B
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
PROSPECTUS
MARCH 24, 1997 (FIDELITY_LOGO_GRAPHIC) 82 DEVONSHIRE STREET, BOSTON,
MA 02109
CONTENTS

<TABLE>
<CAPTION>
<S> <C> <C>
KEY FACTS WHO MAY WANT TO INVEST

EXPENSES Each class's sales charge (load) and its yearly
operating expenses.

FINANCIAL HIGHLIGHTS A summary of each fund's financial
data.

PERFORMANCE How Natural Resources has done over
time.

THE FUNDS IN DETAIL CHARTER How each fund is organized.

INVESTMENT PRINCIPLES AND RISKS Each fund's overall
approach to investing.

BREAKDOWN OF EXPENSES How operating costs are
calculated and what they include.

YOUR ACCOUNT TYPES OF ACCOUNTS Different ways to set up your
account, including tax-sheltered retirement plans.

HOW TO BUY SHARES Opening an account and making
additional investments.

HOW TO SELL SHARES Taking money out and closing your
account.

INVESTOR SERVICES Services to help you manage your
account.

SHAREHOLDER AND ACCOUNT POLICIES DIVIDENDS, CAPITAL GAINS, AND TAXES

TRANSACTION DETAILS Share price calculations and the
timing of purchases and redemptions.

EXCHANGE RESTRICTIONS

SALES CHARGE REDUCTIONS AND WAIVERS

</TABLE>

KEY FACTS

WHO MAY WANT TO INVEST
Class A, Class T, and Class B shares are offered to investors who engage an
investment professional for investment advice.
The funds may be appropriate for investors who want to pursue growth
aggressively by concentrating their investment on domestic and foreign
securities within a market sector. The funds are designed for those who are
interested in actively monitoring the progress of, and can accept the risks
of, industry-focused investing. Because the funds are narrowly focused,
changes in a particular industry, regulatory changes, or legislation can
have a substantial impact on a fund's share price.
Consumer Industries, Cyclical Industries, Health Care, Technology, and
Utilities Growth are non-diversified funds and may invest a greater portion
of their assets in securities of individual issuers than diversified funds.
As a result, changes in the market value of a single issuer could cause
greater fluctuations in share value than would occur in a more diversified
fund.
The value of each fund's investments varies from day to day, generally
reflecting changes in market conditions and other company, political, and
economic news. In the short term, stock prices can fluctuate dramatically
in response to these factors. The securities of small, less well-known
companies may be more volatile than those of larger companies. Over time,
however, stocks have shown greater growth potential than other types of
securities. Investments in foreign securities may involve risks in addition
to those of U.S. investments, including increased political and economic
risk, as well as exposure to currency fluctuations.
Each fund is not in itself a balanced investment plan. You should consider
your investment objective and tolerance for risk when making an investment
decision. When you sell your fund shares, they may be worth more or less
than what you paid for them.
Each fund is composed of multiple classes of shares. All classes of a fund
have a common investment objective and investment portfolio. Class A and
Class T shares have a front-end sales charge and pay a distribution fee.
Class T shares may be subject to a contingent deferred sales charge (CDSC).
Class B shares do not have a front-end sales charge, but do have a CDSC,
and pay a distribution fee and a shareholder service fee. Institutional
Class shares have no sales charge, and do not pay a distribution fee or a
shareholder service fee, but are only available to certain types of
investors. See "Sales Charge Reductions and Waivers," page , for
Institutional Class eligibility information.
You may obtain more information about Institutional Class shares, which are
not offered through this prospectus, by calling 1-800-843-3001 or from your
investment professional. Contact your investment professional to discuss
which class is appropriate for you.
In determining which class of shares is the most appropriate for you, you
should consider, among other factors, the length of time you intend to hold
your shares. In general, because of its higher front-end load, Class A
shares have higher costs than Class T for a short holding period and,
because of their lower 12b-1 fees, lower costs than Class T for a longer
holding period. If you are planning to invest a significant amount either
at one time or through a regular investment program, you should consider
the reduced sales charges available on Class A and Class T shares. If you
prefer not to pay a front-end sales charge and plan to hold your shares for
more than six years, you should consider Class B shares. While Class B
shares are subject to higher ongoing expenses, they are sold without a
front-end sales charge so your entire purchase amount is immediately
invested. However, if you sell your Class B shares within six years, you
will normally pay a CDSC that varies depending on how long you have held
your shares.
EXPENSES
SHAREHOLDER TRANSACTION EXPENSES are charges you may pay when you buy or
sell shares of a fund. In addition, you may be charged an annual account
maintenance fee if your account balance falls below $2,500. Lower front-end
sales charges may be available with purchases of $50,000 or more. See
"Transaction Details," page , for an explanation of how and when these
charges apply.
A CDSC is imposed on Class B shares only if you redeem Class B shares
within six years of purchase. See "Transaction Details," page , for
information about the CDSC.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>

Clas Clas Clas
s A s T s B

Maximum sales charge on purchases 5.25 3.50 None
(as a % of offering price) % %

Maximum CDSC (as a % of the lesser
of original purchase price or
redemption proceeds) None None 5.00[
[A] B]

Maximum sales charge on None None None
reinvested distributions

Redemption fee on shares held
less than 60 days 1.00 1.00 1.00
(as a % of amount redeemed) % % %

Exchange fee None None None

Annual account maintenance fee $12.0 $12.0 $12.0
(for accounts under $2,500) 0 0 0

</TABLE>

[A] A CONTINGENT DEFERRED SALES CHARGE OF 0.25% IS ASSESSED ON CERTAIN
REDEMPTIONS OF CLASS T SHARES THAT WERE PURCHASED WITHOUT AN INITIAL SALES
CHARGE. SEE TRANSACTION DETAILS, PAGE .
[B] DECLINES OVER 6 YEARS FROM 5.00% TO 0%.
ANNUAL OPERATING EXPENSES are paid out of each fund's assets. Each fund
pays a management fee to Fidelity Management & Research Company (FMR). Each
fund also incurs other expenses for services such as maintaining
shareholder records and furnishing shareholder statements and financial
reports.
12b-1 fees for Class A, Class T, and Class B include a distribution fee
and, for Class B, a shareholder service fee. Distribution fees are paid by
each class to FDC for services and expenses in connection with the
distribution of the applicable class' s shares. Shareholder service
fees are paid by Class B to investment professionals for services and
expenses incurred in connection with providing personal service and/or
maintenance of Class B shareholder accounts. Long-term shareholders may pay
more than the economic equivalent of the maximum sales charges permitted by
the National Association of Securities Dealers, Inc., due to 12b-1 fees.
Each class's expenses are factored into its share price or dividends and
are not charged directly to shareholder accounts (see "Breakdown of
Expenses" on page ).
The following figures are based on estimated or historical expenses of each
class of each fund , adjusted to reflect current fees for Natural
Resources , and are calculated as a percentage of average net assets
of the applicable class of each fund. A portion of the brokerage
commissions that a fund pay s is used to reduce that
fund 's expenses. In addition, each fund has
entered into arrangements with its custodian and transfer agent
whereby interest earned on uninvested cash balances is used to reduce
custodian and transfer agent expenses. Including these reductions, the
total operating expenses for Class T and Class B of Natural Resources
presented in the table would have been 1.44% and 2.12%, respectively.
EXPENSE TABLE EXAMPLE: You would pay the following expenses, including the
maximum front-end sales charge or CDSC, as applicable, on a $1,000
investment, assuming a 5% annual return and either (1) full redemption or
(2) no redemption, at the end of each time period:

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Examples No
Full Redemption Redempti
on

Operating Expenses Class A Class T Class B Class A Class T Class B Class B

CONSUMER Management fee 0.61%[A 0.61%[A 0.61% After 1 $ 69 $ 55 $ 75[C] $ 25
INDUSTRIES ] ] [A] year

12b-1 fee (including 0.25% 0.25% 0.50% 1.00% After 3 $ 10 $ 96 $ 108[C] $ 78
Shareholder Service Fee years 5
for Class B shares)

Other expenses (after 0.89%[A 0.89%[A 0.89%
reimbursement) ] ] [A]

Total operating expenses 1.75% 2.00% 2.50%

CYCLICAL Management fee 0.61%[A 0.61%[A 0.61% After 1 $ 69 $ 55 $ 75[C] $ 25
INDUSTRIES ] ] [A] year

12b-1 fee (including 0.25% 0.25% 0.50% 1.00% After 3 $ 10 $ 96 $ 108[C] $ 78
Shareholder Service Fee years 5
for Class B shares)

Other expenses (after 0.89%[A 0.89%[A 0.89%
reimbursement) ] ] [A]

Total operating expenses 1.75% 2.00% 2.50%

FINANCIAL Management fee 0.61%[A 0.61%[A 0.61% After 1 $ 69 $ 55 $ 75[C] $ 25
SERVICES ] ] [A] year

12b-1 fee (including 0.25% 0.25% 0.50% 1.00% After 3 $ 10 $ 96 $ 108[C] $ 78
Shareholder Service Fee years 5
for Class B shares)

Other expenses (after 0.89%[A 0.89%[A 0.89%
reimbursement) ] ] [A]

Total operating expenses 1.75% 2.00% 2.50%

HEALTH CARE Management fee 0.61%[A 0.61%[A 0.61% After 1 $ 69 $ 5 5 $ 75[C] $ 25
] ] [A] year

12b-1 fee (including 0.25% 0.25% 0.50% 1.00% After 3 $ 10 $ 9 6 $ 10 8[C] $ 78
Shareholder Service Fee years 5
for Class B shares)

Other expenses (after 0.89%[A 0. 89 %[A 0.8 9 %
reimbursement) ] ] [A]

Total operating expenses 1.75% 2.00 % 2. 50 %

NATURAL Management fee 0.60%[B 0.60%[ 0.60% After 1 $ 66 $ 49 $ 72[C] $ 22
RESOURCES ] B] [B] year

12b-1 fee (including 0.25% 0.25% 0.50% 1.00% After 3 $ 95 $ 80 $ 98[C] $ 68
Shareholder Service Fee years
for Class B shares)

Other expenses 0.57%[A 0.37% 0.56% After 5 $ 12 $ 112 $ 136[C] $ 116
] years 6

Total operating expenses 1.42% 1.47% 2.16% After 10 $ 21 $ 205 $ 222 $ 222
years[D] 4

Examples No
Full Redemption Redempti
on

Operating Expenses Class A Class T Class B Class A Class T Class B Class B

TECHNOLOGY Management fee 0.61%[A 0.61%[A 0.61% After 1 $ 69 $ 5 5 $ 75[C] $ 2 5
] ] [A] year

12b-1 fee (including 0.25% 0.25% 0.50% 1.00% After 3 $ 10 $ 9 6 $ 10 8[C] $ 78
Shareholder Service Fee years 5
for Class B shares)

Other expenses (after 0.89%[A 0. 89 %[A 0.8 9 %
reimbursement ) ] ] [A]

Total operating expenses 1.75% 2.00 % 2. 50 %

UTILITIES Management fee 0.61%[A 0.61%[A 0.61% After 1 $ 69 $ 5 5 $ 75[C] $ 25
GROWTH ] ] [A] year

12b-1 fee (including 0.25% 0.25% 0.50% 1.00% After 3 $ 10 $ 9 6 $ 108[C] $ 78
Shareholder Service Fee years 5
for Class B shares)

Other expenses (after 0.89%[A 0. 8 9%[A 0.89%
reimbursement) ] ] [A]

Total operating expenses 1.75% 2.0 0% 2.50%

</TABLE>

[A] BASED ON ESTIMATED EXPENSES FOR THE FIRST YEAR.
[B] EFFECTIVE SEPTEMBER 1, 1996, FMR VOLUNTARILY AGREED TO IMPLEMENT A
MANAGEMENT FEE REDUCTION. THE INDIVIDUAL FUND FEE RATE WAS REDUCED FROM
0.45% TO 0.30%. IF THIS AGREEMENT WAS NOT IN EFFECT, THE MANAGEMENT FEE
WOULD HAVE BEEN 0.72%.
[C] REFLECTS DEDUCTION OF APPLICABLE CDSC.
[D] REFLECTS CONVERSION OF CLASS B SHARES TO CLASS A SHARES AFTER SEVEN
YEARS.
THESE EXAMPLES ILLUSTRATE THE EFFECT OF EXPENSES, BUT ARE NOT MEANT TO
SUGGEST ACTUAL OR EXPECTED COSTS OR RETURNS, ALL OF WHICH MAY VARY.
FMR has voluntarily agreed to reimburse Class A, Class T, and Class B of
each fund to the extent that total operating expenses as a percentage of
its respective average net assets exceed the following rates:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Class Effectiv Class Effectiv Class Effectiv
A e T e B e
Date Date Date

Consumer Industries 1.75 9/1/96 2.00 9/1/96 2.50 3/1/97
% % %

Cyclical Industries 1.75 9/1/96 2.00 9/1/96 2.50 3/1/97
% % %

Financial Services 1.75 9/1/96 2.00 9/1/96 2.50 3/1/97
% % %

Health Care 1.75 9/1/96 2.00 9/1/96 2.50 3/1/97
% % %

Natural Resources 1.75 8/30/9 2.00 8/30/9 2.50 8/30/9
% 6 % 6 % 6

Technology 1.75 9/1/96 2.00 9/1/96 2.50 3/1/97
% % %

Utilities Growth 1.75 9/1/96 2.00 9/1/96 2.50 3/1/97
% % %
</TABLE>
If these agreements were not in effect, other expenses and total operating
expenses, as a percentage of average net assets, would have been the
following amounts:

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Other Expenses Total Operating
Expenses

Class A Class Class Class Class Class
T B A T B

Consumer Industries[A] 1. 99 1. 49 2.63 2. 85 2. 60 4.24
% % % % % %

Cyclical Industries [A] 2.40 1. 95 2.79 3.26 3.06 4.40
% % % % % %

Financial Services [A] 1. 30 0.76 1.94 2.1 6 1.87 3.55
% % % % % %

Health Care[A] 0.9 9 0.95 1.50 1. 85 2.06 3.11
% % % % % %

Natural Resources ** * * ** * *

Technology[A] 1 . 05 1.00 1.58 1. 91 2.11 3.19
% % % % % %

Utilities Growth[A] 1.89 1.47 1.96 2 . 75 2.58 3.57
% % % % % %

</TABLE>

* TOTAL OPERATING EXPENSES WERE LESS THAN THE VOLUNTARY EXPENSE CAPS IN
EFFECT DURING THE FISCAL YEAR ENDED 1996.
** TOTAL OPERATING EXPENSES ARE NOT EXPECTED TO EXCEED THE VOLUNTARY
EXPENSE CAPS IN EFFECT DURING THE FISCAL YEAR ENDED 1996.
[A] BASED ON ESTIMATED EXPENSES FOR FIRST YEAR.
Expenses eligible for reimbursement do not include interest, taxes,
brokerage commissions, and extraordinary expenses.
FINANCIAL HIGHLIGHTS
The financial highlights tables that follow for Natural Resources are
included in the fund's Annual Report and have been audited by Coopers &
Lybrand L.L.P., independent accountants. Their report on the financial
statements and financial highlights is included in the fund's Annual
Report. The financial highlights tables that follow for Consumer
Industries, Cyclical Industries, Financial Services, Health Care,
Technology, and Utilities Growth are included in each fund's Semiannual
Report. The financial statements, the financial highlights, and for
Natural Resources, the report of the auditor are incorporated by
reference into (are legally a part of) the funds ' SAI.
Contact FDC or your investment professional for a free copy of the
Semiannual Report, or for Natural Resources the Annual
Report , or the SAI.
CONSUMER INDUSTRIES

<TABLE>
<CAPTION>
<S> <C> <C>
1.Selected Per-Share Data and RatiosE Class A Class T

2.Period ended January 31 (Unaudited) 1997D 1997D

3.Net asset value, beginning of period $ 10.00 $ 10.00

4.Income from Investment Operations

5. Net investment income (loss) -- (.01)

6. Net realized and unrealized gain (loss) 1.36 1.36

7. Total from investment operations 1.36 1.35

8.Less Distributions

9. From net investment income (.01) --

10. From net realized gain (.06) (.06)

11. Total distributions (.07) (.06)

12.Redemption fees added to paid in capital -- --

13.Net asset value, end of period $ 11.29 $ 11.29

14.Total returnB,C 13.64% 13.53%

15.Net assets, end of period (000 omitted) $ 880 $ 3,874

16.Ratio of expenses to average net assets 1.75%A,F 2.00%A,F

17.Ratio of net investment income (loss) to average net assets .07%A (.18)%A

18.Portfolio turnover 72%A 72%A

19.Average commission rateG $ .0282 $ .0282

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
20.Selected Per-Share Data and RatiosE Class A Class T

21.Period ended January 31 (Unaudited) 1997D 1997D

22.Net asset value, beginning of period $ 10.00 $ 10.00

23.Income from Investment Operations

24. Net investment income (loss) -- (.01)

25. Net realized and unrealized gain (loss) 1.55 1.55

26. Total from investment operations 1.55 1.54

27.Less Distributions

28. From net investment income (.01) (.01)

29. In excess of net investment income -- --

30. From net realized gain (.08) (.08)

31. Total distributions (.09) (.09)

32.Redemption fees added to paid in capital -- --

33.Net asset value, end of period $ 11.46 $ 11.45

34.Total returnB,C 15.53% 15.43%

35.Net assets, end of period (000 omitted) $ 269 $ 1,286

36.Ratio of expenses to average net assets 1.75%A,F 2.00%A,F

37.Ratio of expenses to average net assets after expense reductions 1.74%A,G 1.99%A,G

38.Ratio of net investment income (loss) to average net assets -- (.24)%

39.Portfolio turnover 43%A 43%A

40.Average commission rateH $ .0210 $ .0210

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
41.Selected Per-Share Data and RatiosE Class A Class T

42.Period ended January 31 (Unaudited) 1997D 1997D

43.Net asset value, beginning of period $ 10.00 $ 10.00

44.Income from Investment Operations

45. Net investment income .03 .02

46. Net realized and unrealized gain (loss) 2.31 2.30

47. Total from investment operations 2.34 2.32

48.Less Distributions

49. From net investment income (.01) (.01)

50. From net realized gain (.01) (.01)

51. Total distributions (.02) (.02)

52.Redemption fees added to paid in capital -- --

53.Net asset value, end of period $ 12.32 $ 12.30

54.Total returnB,C 23.41% 23.21%

55.Net assets, end of period (000 omitted) $ 2,895 $ 18,681

56.Ratio of expenses to average net assets 1.75%A,F 2.00%A,F

57.Ratio of expenses to average net assets after expense reductions 1.73%A,G 1.98%A,G

58.Ratio of net investment income to average net assets .59%A .34%A

59.Portfolio turnover 123%A 123%A

60.Average commission rateH $ .0333 $ .0333

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
61.Selected Per-Share Data and RatiosE Class A Class T

62.Period ended January 31 (Unaudited) 1997D 1997D

63.Net asset value, beginning of period $ 10.00 $ 10.00

64.Income from Investment Operations

65. Net investment income (loss) (.02) (.03)

66. Net realized and unrealized gain (loss) 1.72 1.71

67. Total from investment operations 1.70 1.68

68.Redemption fees added to paid in capital - -

69.Net asset value, end of period $ 11.70 $ 11.68

70.Total returnB,C 17.00% 16.80%

71.Net assets, end of period (000 omitted) $ 2,629 $ 19,750

72.Ratio of expenses to average net assets 1.75%A,F 2.00%A,F

73.Ratio of expenses to average net assets after expense reductions 1.74%A,G 1.99%A,G

74.Ratio of net investment income (loss) to average net assets (.50)%A (.75)%A

75.Portfolio turnover 52% 52%

76.Average commission rateH $ .0333 $ .0333

</TABLE>

<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
77.Selected Per-Share Data and
Class A Class T
Ratios

78.Years ended October 31
1996I 1996 1995 1994J 1993 1992 1991K 1990 1989 1988B

79.Net asset value, beginning of period
$ 23.65 $ 19.25 $ 17.56 $ 17.59 $ 13.88 $ 14.11 $ 12.30 $ 12.60 $ 11.47 $ 10.00

80.Income from Investment Operations

81. Net investment income (loss)
.00G .00G (.05)G (.11)G .22 (.10) (.15) (.10) .10H (.05)

82. Net realized and unrealized gain
1.46 6.56 2.00 .76 4.91 .79 2.45 .93 1.96 1.52
(loss)

83. Total from investment operations
1.46 6.56 1.95 .65 5.13 .69 2.30 .83 2.06 1.47

84.Less Distributions

85. From net investment income
- -- -- -- -- -- -- -- (.08) -- --

86. From net realized gain
- -- (.69) (.26) (.68) (1.42) (.92) (.49) (1.05) (.93) --

87. Total distributions
- -- (.69) (.26) (.68) (1.42) (.92) (.49) (1.13) (.93) --

88.Redemption fees added to paid in
- -- -- -- -- -- -- -- -- -- --
capital

89.Net asset value, end of period
$ 25.11 $ 25.12 $ 19.25 $ 17.56 $ 17.59 $ 13.88 $ 14.11 $ 12.30 $ 12.60 $ 11.47

90.Total returnC,D
6.17% 35.01% 11.40% 3.97% 41.05% 5.97% 19.50% 6.37% 19.63% 14.70%

91.Net assets, end of period (000
$ 1,609 $ 602,915 $ 272,979 $ 199,361 $ 40,309 $ 7,087 $ 5,940 $ 4,615 $ 2,049 $ 916
omitted)

92.Ratio of expenses to average net
1.66%A,L 1.59% 1.86%L 2.10% 2.63% 3.27%F 3.35%F 3.34%F 3.23% 2.85%A
assets

93.Ratio of expenses to average net
1.58%A,M 1.56%M 1.84%M 2.07%M 2.62%M 3.27% 3.35% 3.34% 3.23% 2.85%A
assets
after expense reductions

94.Ratio of net investment income
(.01)%A .00% (.30) (.67) (1.18) (1.22) (1.28) (1.13) .83% (.64)%A
(loss) to % % % % % %
average net assets

95.Portfolio turnover
137% 137% 161% 125% 208% 248% 256% 229% 249% 220%A

96.Average commission rateN
$ .0337 $ .0337

</TABLE>

NATURAL RESOURCES

<TABLE>
<CAPTION>
<S> <C> <C>
97.Selected Per-Share Data and RatiosG Class B

98.Years ended October 31 1996 1995

99.Net asset value, beginning of period $ 19.23 $ 18.87

100.Income from Investment Operations

101. Net investment income (loss) (.15) (.03)

102. Net realized and unrealized gain (loss) 6.49 .39

103. Total from investment operations 6.34 .36

104.Less Distributions

105. From net realized gain (.69) --

106.Redemption fees added to paid in capital -- --

107.Net asset value, end of period $ 24.88 $ 19.23

108.Total returnC,E 33.87% 1.91%

109.Net assets, end of period (000 omitted) $ 36,106 $ 2,508

110.Ratio of expenses to average net assets 2.28% 2.23%
A,L

111.Ratio of expenses to average net assets after expense reductions 2.24%M 2.21%
A,M

112.Ratio of net investment income (loss) to average net assets (.68)% (.67)%A

113.Portfolio turnover 137% 161%

114.Average commission rateN $ .0337

</TABLE>

A ANNUALIZED.
B DECEMBER 29, 1987 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31,
1988.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
E TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
F LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION.
G NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED
ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
H NET INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.17 PER SHARE.
I FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A
SHARES) TO OCTOBER 31, 1996. FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF
SALE OF CLASS B SHARES) TO OCTOBER 31, 1995.
J EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF
INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT
COMPANIES." AS A RESULT, NET INVESTMENT INCOME (LOSS) PER SHARE MAY REFLECT
CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
K AS OF OCTOBER 1, 1991, THE FUND DISCONTINUED THE USE OF
EQUALIZATION ACCOUNTING.
L FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
M FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
N FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, 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.
TECHNOLOGY

<TABLE>
<CAPTION>
<S> <C> <C>
115.Selected Per-Share Data and RatiosE Class A Class T

116.Period ended January 31 (Unaudited) 1997D 1997D

117.Net asset value, beginning of period $ 10.00 $ 10.00

118.Income from Investment Operations

119. Net investment income (loss) (.06) (.07)

120. Net realized and unrealized gain (loss) 3.94 3.92

121. Total from investment operations 3.88 3.85

122.Less Distributions

123. From net realized gain (.08) (.08)

124.Redemption fees added to paid in capital - -

125.Net asset value, end of period $ 13.80 $ 13.77

126.Total returnB,C 38.88% 38.58%

127.Net assets, end of period (000 omitted) $ 3,944 $ 24,808

128.Ratio of expenses to average net assets 1.75%A,F 2.00%A,F

129.Ratio of expenses to average net assets after expense reductions 1.71%A,G 1.97%A,G

130.Ratio of net investment income (loss) to average net assets (1.18)%A (1.44)%A

131.Portfolio turnover 417%A 417%A

132.Average commission rateH $ .0403 $ .0403

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
133.Selected Per-Share Data and RatiosE Class A Class T

134.Period ended January 31 (Unaudited) 1997D 1997D

135.Net asset value, beginning of period $ 10.00 $ 10.00

136.Income from Investment Operations

137. Net investment income .05 .04

138. Net realized and unrealized gain (loss) 1.77 1.77

139. Total from investment operations 1.82 1.81

140.Less Distributions

141. From net investment income (.03) (.03)

142. From net realized gain (.11) (.11)

143. Total distributions (.14) (.14)

144.Redemption fees added to paid in capital - -

145.Net asset value, end of period $ 11.68 $ 11.67

146.Total returnB,C 18.28% 18.18%

147.Net assets, end of period (000 omitted) $ 406 $ 3,993

148.Ratio of expenses to average net assets 1.75%A,F 2.00%A,F

149.Ratio of net investment income to average net assets 1.11%A .86%A

150.Portfolio turnover 22%A 22%A

151.Average commission rateG $ .0183 $ .0183

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIOD SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A
AND CLASS T SHARES) TO JANUARY 31, 1997.
E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
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.
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.
PERFORMANCE
Mutual fund performance is commonly measured as TOTAL RETURN. The total
returns that follow for Class A, Class T, and Class B of Natural Resources
are based on historical fund results and do not reflect the effect of
taxes.
For Natural Resources, the fiscal year runs from November 1 to October 31.
The table below shows the performance of each class of Natural Resources
over past fiscal years. The charts below present calendar year performance
for each class of Natural Resources.
Performance history will be available for Consumer Industries, Cyclical
Industries, Financial Services, Health Care, Technology, and Utilities
Growth after the funds have been in operation for six months.
NATURAL RESOURCES
Average Annual Total Return [A] Cumulative Total Return [A]

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Past 1 Past 5 Life of fund(dagger) Past 1 Past 5 Life of fund(dagger)
year years year years

NATURAL RESOURCES - CLASS A 34.96% 18.50% 17.21% 34.96% 133.62 307.50
% %

NATURAL RESOURCES - CLASS A (LOAD ADJ.)[B] 27.87% 17.22% 16.49% 27.87% 121.36 286.10
% %

NATURAL RESOURCES - CLASS T 35.01% 18.51% 17.21% 35.01% 133.72 307.66
% %

NATURAL RESOURCES - CLASS T (LOAD ADJ.)[B] 30.28% 17.66% 16.74% 30.28% 125.54 293.39
% %

NATURAL RESOURCES - CLASS B 33.87% 18.28% 17.08% 33.87% 131.50 303.79
% %

NATURAL RESOURCES - CLASS B (LOAD ADJ.)[D] 28.87% 18.07% 17.08% 28.87% 129.50 303.79
% %

</TABLE>

YEAR-BY-YEAR TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar years[A],[C] 1988 1989 1990 1991 1992 1993 1994 1995 1996

NATURAL RESOURCES - CLASS A 16.10 33.14 -5.28 14.47 13.33 37.94 -2.28 28.67 30.37
% % % % % % % % %

S&P 500 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %

Lipper Natural Resources Funds 8.83% 32.32 -8.59 2.92% 1.47% 22.94 -4.09 18.80 32.74
Average % % % % % %

Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns[C] 1988 1989 1990 1991 1992 1993 1994 1995 1996

NATURAL RESOURCES - CLASS T 16.10 33.14 -5.28 14.47 13.33 37.94 -2.28 28.67 30.52
% % % % % % % % %

S&P 500 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %

Lipper Natural Resources Funds 8.83% 32.32 -8.59 2.92% 1.47% 22.94 -4.09 18.80 32.74
Average % % % % % %

Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns[E] 1988 1989 1990 1991 1992 1993 1994 1995 1996

NATURAL RESOURCES - CLASS B 16.10 33.14 -5.28 14.47 13.33 37.94 -2.28 28.24 29.63
% % % % % % % % %

S&P 500 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %

Lipper Natural Resources Funds 8.83% 32.32 -8.59 2.92% 1.47% 22.94 -4.09 18.80 32.74
Average % % % % % %

Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%

</TABLE>

Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 16.1
Row: 3, Col: 1, Value: 33.14
Row: 4, Col: 1, Value: -5.28
Row: 5, Col: 1, Value: 14.47
Row: 6, Col: 1, Value: 13.33
Row: 7, Col: 1, Value: 37.94
Row: 8, Col: 1, Value: -2.28
Row: 9, Col: 1, Value: 28.24
Row: 10, Col: 1, Value: 29.63
(LARGE SOLID BOX) NATURAL RESOURCES - CLASS B
(dagger) LIFE OF FUND FIGURES ARE FROM COMMENCEMENT OF OPERATIONS (DECEMBER
29, 1987) THROUGH THE PERIOD ENDED OCTOBER 31, 1996.
[A] INITIAL OFFERING OF CLASS A SHARES TOOK PLACE ON SEPTEMBER 3, 1996.
RETURNS PRIOR TO THAT DATE ARE THOSE OF CLASS T, THE ORIGINAL CLASS OF THE
FUND, AND REFLECT CLASS T'S 0.65% 12B-1 FEE (EFFECTIVE JANUARY 1, 1996, THE
FEE WAS REDUCED TO 0.50%).
[B] LOAD ADJUSTED RETURNS FOR CLASS A SHARES INCLUDE THE EFFECT OF PAYING
CLASS A'S MAXIMUM 5.25% FRONT-END SALES CHARGE. LOAD ADJUSTED RETURNS FOR
CLASS T SHARES INCLUDE THE EFFECT OF CLASS T'S MAXIMUM 3.50% FRONT-END
SALES CHARGE.
[C] RETURNS DO NOT INCLUDE THE EFFECT OF CLASS A'S OR CLASS T'S MAXIMUM
APPLICABLE FRONT-END SALES CHARGE.
[D] CLASS B'S CDSC INCLUDED IN THE TOTAL RETURN FIGURES ARE CALCULATED
PURSUANT TO THE CDSC SCHEDULES FOUND ON PAGE .
[E] RETURNS DO NOT INCLUDE THE EFFECT OF CLASS B'S MAXIMUM APPLICABLE
CONTINGENT DEFERRED SALES CHARGE.
The exclusion of any applicable sales charge from a performance calculation
produces a higher return.
If FMR had not reimbursed certain class expenses during these periods,
total returns would have been lower.
EXPLANATION OF TERMS
TOTAL RETURN is the change in value of an investment over a given period,
assuming reinvestment of any dividends and capital gains. A CUMULATIVE
TOTAL RETURN reflects actual performance over a stated period of time. An
AVERAGE ANNUAL TOTAL RETURN is a hypothetical rate of return that, if
achieved annually, would have produced the same cumulative total return if
performance had been constant over the entire period. Average annual total
returns smooth out variations in performance; they are not the same as
actual year-by-year results. Average annual total returns covering periods
of less than one year assume that performance will remain constant for the
rest of the year.
Average annual and cumulative total returns usually will include the effect
of paying the maximum applicable sales charge.
THE COMPETITIVE FUNDS AVERAGE is the Lipper Natural Resources Funds
Average, which currently reflects the performance of over 39 mutual funds
with similar investment objectives. This average, published by Lipper
Analytical Services, Inc., excludes the effect of sales charges.
STANDARD & POOR'S 500 INDEX (S&P 500 (registered trademark) ) is a
widely recognized, unmanaged index of common stocks.
Unlike each class's returns, the total returns of each comparative index do
not include the effect of any brokerage commissions, transaction fees, or
other costs of investing.
THE CONSUMER PRICE INDEX is a widely recognized measure of inflation
calculated by the U.S. Government.
Each class of each fund may quote its adjusted net asset value including
all distributions paid. This value may be averaged over specified periods
and may be used to calculate a class's moving average.
The funds' recent strategies, performance, and holdings are detailed twice
a year in financial reports, which are sent to all shareholders. For
current performance or a free annual report for Natural Resources, please
contact your investment professional.
TOTAL RETURNS ARE BASED ON PAST RESULTS AND ARE NOT AN INDICATION OF FUTURE
PERFORMANCE.
THE FUNDS IN DETAIL

CHARTER
EACH FUND IS A MUTUAL FUND: an investment that pools shareholders' money
and invests it toward a specified goal. Consumer Industries, Cyclical
Industries, Health Care, Technology, and Utilities Growth are
non-diversified funds and Financial Services is a diversified fund of
Fidelity Advisor Series VII, a Massachusetts business trust organized on
March 21, 1980. Natural Resources is a diversified fund of Advisor Series
V, a Massachusetts business trust organized on April 23, 1986. Each trust
is an open-end management company. There is a remote possibility that one
fund might become liable for a misstatement in the prospectus about another
fund.
EACH FUND IS GOVERNED BY A BOARD OF TRUSTEES which is responsible for
protecting the interests of shareholders. The trustees are experienced
executives who meet throughout the year to oversee the funds' activities,
review contractual arrangements with companies that provide services to the
funds, and review the funds' performance. The majority of trustees are not
otherwise affiliated with Fidelity.
THE FUNDS MAY HOLD SPECIAL MEETINGS AND MAIL PROXY MATERIALS. These
meetings may be called to elect or remove trustees, change fundamental
policies, approve a management contract, or for other purposes.
Shareholders not attending these meetings are encouraged to vote by proxy.
Fidelity will mail proxy materials in advance, including a voting card and
information about the proposals to be voted on. For shareholders of
Consumer Industries, Cyclical Industries, Financial Services, Health Care,
Technology, and Utilities Growth, you are entitled to one vote for each
share you own. For shareholders of Natural Resources, the number of votes
you are entitled to is based upon the dollar value of your investment.
Separate votes are taken by each class of shares, fund, or trust, if a
matter affects just that class of shares, fund, or trust, respectively.
FMR AND ITS AFFILIATES
Fidelity Investments is one of the largest investment management
organizations in the United States and has its principal business address
at 82 Devonshire Street, Boston, Massachusetts 02109. It includes a number
of different subsidiaries and divisions which provide a variety of
financial services and products. The funds employ various Fidelity
companies to perform activities required for their operation.
The funds are managed by FMR, which chooses each fund's investments and
handles it's business affairs. FMR chooses investments with the assistance
of foreign affiliates for each fund.
(small solid bullet) Fidelity Management & Research (U.K.) Inc. (FMR U.K.),
in London, England, serves as a sub-adviser for Consumer Industries,
Cyclical Industries, Financial Services, Health Care, Natural Resources,
Technology, and Utilities Growth.
(small solid bullet) Fidelity Management & Research Far East Inc. (FMR Far
East), in Tokyo, Japan, serves as a sub-adviser for Consumer Industries,
Cyclical Industries, Financial Services, Health Care, Natural Resources,
Technology, and Utilities Growth.
As of January 31, 199 7 , FMR advised funds having
approximately 29 million shareholder accounts with a total value of
more than $43 5 billion.
Paul Antico is manager of Advisor Consumer Industries, which he has managed
since January 1997. He also manages other Fidelity funds. Since joining
Fidelity in 1991, Mr. Antico has worked as an analyst and manager.
Albert Ruback is manager of Advisor Cyclical Industries, which he has
managed since September 1996. Previously, he managed other Fidelity funds.
Mr. Ruback joined Fidelity as an analyst in 1991, after receiving an MBA
from Harvard Business School.
Louis Salemy is manager of Advisor Financial Services, which he has managed
since September 1996. He also manages other Fidelity funds. Since joining
Fidelity in 1992, Mr. Salemy has worked as an analyst and manager.
Previously, he was a security analyst for Loomis, Sayles and Company from
1989 to 1992.
Karen Firestone is manager of Advisor Heath Care, which she has managed
since September 1996. She also manages several other Fidelity Funds. Since
joining Fidelity in 1983, Ms. Firestone has worked as an analyst and
manager.
Lawrence Rakers is manager of Advisor Natural Resources, which he has
managed since January 1997. He also manages other Fidelity funds. Mr.
Rakers joined Fidelity as an analyst in 1993. Previously, he was a project
engineer for Loral Corporation from 1986 to 1993.
Adam Hetnarski is manager of Advisor Technology, which he has managed since
September 1996. He also manages another Fidelity fund. Since joining
Fidelity in 1991, Mr. Hetnarski has worked as an analyst and manager.
John Muresianu is manager of Advisor Utilities Growth, which he has managed
since September 1996. He also manages other Fidelity funds. Since joining
Fidelity in 1986, Mr. Muresianu has worked as an analyst and manager.
Fidelity investment personnel may invest in securities for their own
account pursuant to a code of ethics that establishes procedures for
personal investing and restricts certain transactions.
FDC distributes and markets Fidelity's funds and services. Fidelity
Investments Institutional Operations Company, Inc. (FIIOC) performs
transfer agent servicing functions for each class of each fund.
FMR Corp. is the ultimate parent company of FMR, FMR U.K., and FMR Far
East. Members of the Edward C. Johnson 3d family are the predominant owners
of a class of shares of common stock representing approximately 49% of the
voting power of FMR Corp. Under the Investment Company Act of 1940 (the
1940 Act), control of a company is presumed where one individual or group
of individuals owns more than 25% of the voting stock of that company;
therefore, the Johnson family may be deemed under the 1940 Act to form a
controlling group with respect to FMR Corp.
A s of February 28, 1997, approximately 65.00% of Cyclical Industries'
total outstanding shares were held by Meridian Asset Management.
A broker-dealer may use a portion of the commissions paid by a fund to
reduce custodian or transfer agent fees for that fund. FMR may use its
broker-dealer affiliates and other firms that sell fund shares to carry out
a fund's transactions, provided that the fund receives brokerage services
and commission rates comparable to those of other broker-dealers.
INVESTMENT PRINCIPLES AND RISKS
Each fund concentrates its investments in the securities of companies in a
particular market sector. Under normal conditions, each fund will invest at
least 80% of its assets in securities of companies principally engaged in
the business activities of its named market sector. The funds will invest
primarily in equity securities, although they may invest in other types of
instruments as well.
The funds may involve significantly greater risks and therefore may
experience greater volatility than a mutual fund that does not concentrate
its investments. Because of the funds' narrow focus, each fund's
performance is closely tied to and affected by industries within its market
sector. Companies in an industry are often faced with the same obstacles,
issues, or regulatory burdens, and their securities may react similarly and
move in unison with these or other market conditions. Also, because the
funds (except Financial Services and Natural Resources) are
non-diversified, they are further exposed to increased volatility.
Non-diversified funds may have greater investments in a single issuer than
diversified funds, so the performance of a single issuer can have a
substantial impact on a fund's share price. Finally, the funds' strategies
in seeking to achieve their investment objectives may lead to investments
in smaller companies. Securities of smaller companies, especially those
whose business involves emerging products or concepts, may be more volatile
due to their limited product lines, markets, or financial resources, or
their susceptibility to major setbacks or downturns.
The value of each fund's domestic and foreign investments varies in
response to many factors. Stock values fluctuate in response to the
activities of individual companies and general market and economic
conditions. Investments in foreign securities may involve risks in addition
to those of U.S. investments, including increased political and economic
risk, as well as exposure to currency fluctuations.
FMR may use various investment techniques to hedge a portion of the funds'
risks, but there is no guarantee that these strategies will work as FMR
intends. When you sell your shares, they may be worth more or less than
what you paid for them.
FMR normally invests each fund's assets according to its investment
strategy. Each fund also reserves the right to invest without limitation in
preferred stocks and investment-grade debt instruments for temporary,
defensive purposes.
CONSUMER INDUSTRIES FUND seeks capital appreciation.
The fund invests primarily in companies engaged in the manufacture and
distribution of goods to consumers both domestically and internationally.
The fund normally invests at least 80% of its assets in securities of these
companies. These may include, for example, companies that manufacture or
sell durable goods such as homes, cars, boats, major appliances, and
personal computers. They may also include companies that manufacture or
sell non-durable goods such as food or entertainment products, and
companies that provide services such as lodging or childcare.
The success of consumer product manufacturers and retailers is closely tied
to the performance of the overall economy, interest rates, competition, and
consumer confidence. Success depends heavily on disposable household income
and consumer spending. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products in the
marketplace.
CYCLICAL INDUSTRIES FUND seeks capital appreciation.
The fund invests primarily in companies engaged in the research,
development, manufacture, distribution, supply, or sale of materials,
equipment, products or services related to cyclical industries. The fund
normally invests at least 80% of its assets in securities of these
companies. These may include companies in the automotive, chemical,
construction and housing, defense and aerospace, environmental services,
industrial equipment and materials, paper and forest products, and
transportation industries.
Many companies in these industries are significantly affected by general
economic trends including employment, economic growth, and interest rates.
Other factors that may affect these industries are changes in consumer
sentiment and spending, commodity prices, legislation, government
regulation and spending, import controls, and worldwide competition. At
times, worldwide production of these materials used in cyclical industries
has exceeded demand as a result of, for example, over-building or economic
downturns. During these times, commodity price declines and unit volume
reductions resulted in poor investment returns and losses. Furthermore, a
company in the cyclical industries may be subject to liability for
environmental damage, depletion of resources, and mandated expenditures for
safety and pollution control.
FINANCIAL SERVICES FUND seeks capital appreciation.
The fund invests primarily in companies that provide financial services to
consumers and industry. The fund normally invests at least 80% of its
assets in securities of these companies. These may include commercial
banks, savings and loan associations, brokerage companies, insurance
companies, real estate and leasing companies, and companies that span
across these segments. Under SEC regulations, the fund may not invest more
than 5% of its total assets in the equity securities of any company that
derives more than 15% of its revenues from brokerage or investment
management activities.
Financial services companies are subject to extensive governmental
regulation which may limit both the amounts and types of loans and other
financial commitments they can make, and the interest rates and fees they
can charge. Profitability is largely dependent on the availability and cost
of capital funds, and can fluctuate significantly when interest rates
change. Credit losses resulting from financial difficulties of borrowers
can negatively impact the industry. Insurance companies may be subject to
severe price competition. Legislation is currently being considered which
would reduce the separation between commercial and investment banking
businesses. If enacted, it could significantly impact the industry and the
fund.
HEALTH CARE FUND seeks capital appreciation.
The fund invests primarily in companies engaged in the design, manufacture,
or sale of products or services used for or in connection with health care
or medicine. The fund normally invests at least 80% of its assets in
securities of these companies. These may include, for example,
pharmaceutical companies, companies involved in research and development,
companies involved in the operation of health care facilities, and other
companies involved in the design, manufacture, or sale of related products
or services.
Many of these companies are subject to government regulation and approval
of their products and services, which could have a significant effect on
their price and availability. Furthermore, the types of products or
services produced or provided by these companies may quickly become
obsolete.
NATURAL RESOURCES FUND seeks long-term growth of capital and protection of
the purchasing power of shareholders' capital by investing primarily in
securities of foreign and domestic companies that own or develop natural
resources, or supply goods and services to such companies, or in physical
commodities.
The fund normally invests at least 80% of its assets in securities of
foreign and domestic companies that own or develop natural resources, or
supply goods and services to such companies, or in physical commodities.
These may include companies involved either directly or through
subsidiaries in exploring, mining, refining, processing, transporting,
fabricating, dealing in, or owning natural resources. Natural resources
include precious metals (e.g., gold, platinum and silver), ferrous and
nonferrous metals (e.g., iron, aluminum and copper), strategic metals
(e.g., uranium and titanium), hydrocarbons (e.g., coal, oil and natural
gases), chemicals, forest products, real estate, food products and other
basic commodities. FMR will seek securities whose prices directly reflect
positive changes in the value of an underlying natural resource or whose
issuers will benefit from particular phases in the overall economic cycle.
Accordingly, the fund may shift its emphasis from one natural resource
industry to another depending upon prevailing trends or developments. The
fund may also invest in securities of companies in other industries, and in
corporate and governmental debt securities of all types.
Although the fund is authorized to invest up to 50% of its assets in
physical commodities, it currently intends to invest no more than 25% of
its total assets in them, and intends to limit its physical commodity
investments to readily marketable precious metals. Precious metals, at
times, have been subject to substantial price fluctuations over short
periods of time and may be affected by unpredictable international monetary
and political policies such as currency devaluations or revaluations,
economic and social conditions within a country, trade imbalances, or trade
or currency restrictions between countries.
TECHNOLOGY FUND seeks capital appreciation.
The fund invests primarily in companies which have or will develop,
products, processes, or services that will provide or will benefit
significantly from technological advances and improvements. The fund
normally invests at least 80% of its assets in securities of these
companies. These may include, for example, companies that develop, produce
or distribute products or services in the computer, semi-conductor,
communications, health care, and biotechnology sectors.
Competitive pressures may have a significant effect on the financial
condition of companies in the technology industry. For example, if
technology continues to advance at an accelerated rate, and the number of
companies and product offerings continues to expand, these companies could
become increasingly sensitive to short product cycles and aggressive
pricing.
UTILITIES GROWTH FUND seeks capital appreciation.
The fund invests primarily in companies in the public utilities industry
and companies deriving a majority of their revenues from their public
utility operations. The fund normally invests at least 80% of its assets in
securities of these companies. These may include, for example, companies
that manufacture, produce, sell, or transmit gas or electric energy, and
those involved in telephone, satellite, and other communication fields.
Public utility stocks have traditionally produced above-average dividend
income, but the fund's investments are based on growth potential. The gas
and electric public utilities industries may be subject to broad risks
resulting from governmental regulation, financing difficulties, supply and
demand of services or fuel, and special risks associated with energy and
atmosphere conservation. The fund may not own more than 5% of the
outstanding voting securities of more than one public utility company as
defined by the Public Utility Holding Company Act of 1935.
SECURITIES AND INVESTMENT PRACTICES
The following pages contain more detailed information about types of
instruments in which a fund may invest, strategies FMR may employ in
pursuit of a fund's investment objective, and a summary of related risks.
Any restrictions listed supplement those discussed earlier in this section.
A complete listing of each fund's limitations and more detailed information
about each fund's investments are contained in the funds' SAI. Policies and
limitations are considered at the time of purchase; the sale of instruments
is not required in the event of a subsequent change in circumstances.
FMR may not buy all of these instruments or use all of these techniques
unless it believes that they are consistent with a fund's investment
objective and policies and that doing so will help a fund achieve its goal.
Fund holdings and recent investment strategies are detailed in each fund's
financial reports, which are sent to shareholders twice a year. For a free
SAI or financial report, call your investment professional.
EQUITY SECURITIES may include common stocks, preferred stocks, convertible
securities, and warrants. Common stocks, the most familiar type, represent
an equity (ownership) interest in a corporation. Although equity securities
have a history of long-term growth in value, their prices fluctuate based
on changes in a company's financial condition and on overall market and
economic conditions. Smaller companies are especially sensitive to these
factors.
RESTRICTIONS: With respect to 75% of its total assets, Financial Services
and Natural Resources may not purchase more than 10% of the outstanding
voting securities of a single issuer. Except Natural Resources, this
limitation does not apply to securities of other investment
companies .
Utilities Growth may not own more than 5% of the outstanding voting
securities of more than one public utility company as defined by the Public
Utility Holding Company Act of 1935. Financial Services may not invest more
than 5% of its total assets in the equity securities of any company that
derives more than 15% of its revenues from brokerage or investment
management activities.
DEBT SECURITIES. Bonds and other debt instruments are used by issuers to
borrow money from investors. The issuer pays the investor a fixed or
variable rate of interest, and must repay the amount borrowed at maturity.
Some debt securities, such as zero coupon bonds, do not pay current
interest, but are purchased at a discount from their face values. In
general, bond prices rise when interest rates fall, and vice versa. Debt
securities, loans, and other direct debt have varying degrees of quality
and varying levels of sensitivity to changes in interest rates. Longer-term
bonds are generally more sensitive to interest rate changes than short-term
bonds.
Investment-grade debt securities are medium- and high-quality securities.
Some, however, may possess speculative characteristics and may be more
sensitive to economic changes and to changes in the financial condition of
issuers. Lower-quality debt securities are sometimes called "junk bonds."
RESTRICTIONS: Purchase of a debt security is consistent with a fund's debt
quality policy if it is rated at or above the stated level by Moody's
Investor Service (Moody's) or rated in the equivalent categories by
Standard & Poor's (S&P), or is unrated but judged to be of equivalent
quality by FMR.
Each fund currently intends to limit its investments in lower than
Baa-quality debt securities to 5% of its assets.
OTHER INSTRUMENTS may include securities of closed-end investment companies
and real estate-related investments.
EXPOSURE TO FOREIGN MARKETS. Foreign securities, foreign currencies, and
securities issued by U.S. entities with substantial foreign operations may
involve additional risks and considerations. These include risks relating
to political or economic conditions in foreign countries, fluctuations in
foreign currencies, withholding or other taxes, operational risks,
increased regulatory burdens, and the potentially less stringent investor
protection and disclosure standards of foreign markets. Additionally,
governmental issuers of foreign debt securities may be unwilling to pay
interest and repay principal when due, and may require that the conditions
for payment be renegotiated. All of these factors can make foreign
investments, especially those in developing countries, more volatile than
U.S. investments.
AMERICAN DEPOSITARY RECEIPTS AND EUROPEAN DEPOSITARY RECEIPTS (ADRS AND
EDRS) are certificates evidencing ownership of shares of a foreign-based
issuer held in trust by a bank or similar financial institution. Designed
for use in U.S. and European securities markets, respectively, ADRs and
EDRs are alternatives to the purchase of the underlying securities in their
national markets and currencies.
REPURCHASE AGREEMENTS. In a repurchase agreement, a fund buys a security at
one price and simultaneously agrees to sell it back at a higher price.
Delays or losses could result if the other party to the agreement defaults
or becomes insolvent.
ADJUSTING INVESTMENT EXPOSURE. A fund can use various techniques to
increase or decrease its exposure to changing security prices, interest
rates, currency exchange rates, commodity prices, or other factors that
affect security values. These techniques may involve derivative
transactions such as buying and selling options and futures contracts,
entering into currency exchange contracts or swap agreements, and
purchasing indexed securities.
FMR can use these practices to adjust the risk and return characteristics
of a fund's portfolio of investments. If FMR judges market conditions
incorrectly or employs a strategy that does not correlate well with a
fund's investments, these techniques could result in a loss, regardless of
whether the intent was to reduce risk or increase return. These techniques
may increase the volatility of a fund and may involve a small investment of
cash relative to the magnitude of the risk assumed. In addition, these
techniques could result in a loss if the counterparty to the transaction
does not perform as promised.
ILLIQUID AND RESTRICTED SECURITIES. Some investments may be determined by
FMR, under the supervision of the Board of Trustees, to be illiquid, which
means that they may be difficult to sell promptly at an acceptable price.
The sale of some illiquid securities, and some other securities, may be
subject to legal restrictions. Difficulty in selling securities may result
in a loss or may be costly to a fund.
RESTRICTIONS: Each fund may not purchase a security if, as a result, more
than 10% of its assets would be invested in illiquid securities.
CASH MANAGEMENT. A fund may invest in money market securities, in
repurchase agreements, and in a money market fund available only to funds
and accounts managed by FMR or its affiliates, whose goal is to seek a high
level of current income while maintaining a stable $1.00 share price. A
major change in interest rates or a default on the money market fund's
investments could cause its share price to change.
DIVERSIFICATION. Diversifying a fund's investment portfolio can reduce the
risks of investing. This may include limiting the amount of money invested
in any one issuer or, on a broader scale, in any one industry. Economic,
business, or political changes can affect all securities of a similar type.
A fund that is not diversified may be more sensitive to changes in the
market value of a single issuer or industry.
RESTRICTIONS: Each fund (except Financial Services and Natural Resources)
is considered non-diversified. Generally, to meet federal tax requirements
at the close of each quarter, each fund (except Financial Services and
Natural Resources) does not invest more than 25% of its total assets in any
one issuer and, with respect to 50% of total assets, does not invest more
than 5% of its total assets in any one issuer. With respect to 75% of its
total assets, each of Financial Services and Natural Resources may not
purchase a security if, as a result, more than 5% would be invested in the
securities of any one issuer. These limitations do not apply to U.S.
Government securities or, except Natural Resources, securities of other
investment companies .
Each fund normally invests at least 80% of its assets, but always invests
at least 25% of its total assets, in securities of companies principally
engaged in the business activities of the industries in the market sector
identified for the fund. Natural Resources may not invest more than 25% of
its total assets in any one industry. This limitation does not apply to U.
S. Government securities.
BORROWING. Each fund may borrow from banks or from other funds advised by
FMR, or through reverse repurchase agreements. If a fund borrows money, its
share price may be subject to greater fluctuation until the borrowing is
paid off. If a fund makes additional investments while borrowings are
outstanding, this may be considered a form of leverage.
RESTRICTIONS: Each fund may borrow only for temporary or emergency
purposes, but not in an amount exceeding 331/3% of its total assets.
LENDING securities to broker-dealers and institutions, including Fidelity
Brokerage Services, Inc. (FBSI), an affiliate of FMR, is a means of earning
income. This practice could result in a loss or a delay in recovering a
fund's securities. A fund may also lend money to other funds advised by
FMR.
RESTRICTIONS: Loans, in the aggregate, may not exceed 331/3% of a fund's
total assets.
FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS
Some of the policies and restrictions discussed on the preceding pages are
fundamental, that is, subject to change only by shareholder approval. The
following paragraphs restate all those that are fundamental. All policies
stated throughout this prospectus, other than those identified in the
following paragraphs, can be changed without shareholder approval.
CONSUMER INDUSTRIES FUND invests primarily in companies engaged in the
manufacture and distribution of goods to consumers both domestically and
internationally.
CYCLICAL INDUSTRIES FUND invests primarily in companies engaged in the
research, development, manufacture, distribution, supply or sale of
materials, equipment, products or services related to cyclical industries.
FINANCIAL SERVICES FUND invests primarily in companies providing financial
services to consumers and industry.
HEALTH CARE FUND invests primarily in companies engaged in the design,
manufacture, or sale of products or services used for or in connection with
health care or medicine.
NATURAL RESOURCES FUND seeks long-term growth of capital and protection of
the purchasing power of shareholders' capital by investing primarily in
securities of foreign and domestic companies that own or develop natural
resources, or supply goods and services to such companies, or in physical
commodities.
TECHNOLOGY FUND invests primarily in companies which have or will develop,
products, processes or services that will provide or will benefit
significantly from technological advances and improvements.
UTILITIES GROWTH FUND invests primarily in companies in the public
utilities industry and companies deriving a majority of their revenues from
their public utility operations.
EACH FUND (except Natural Resources) seeks capital appreciation.
Each fund (except Natural Resources) invests at least 25% of its total
assets in securities of companies principally engaged in the business
activities of the industries in the market sector identified for the fund.
Natural Resources may not invest more than 25% of its total assets in any
one industry. This limitation does not apply to U.S. Government securities.
With respect to 75% of its total assets, Financial Services and Natural
Resources may not purchase a security if, as a result, more than 5% would
be invested in the securities of any one issuer and may not purchase more
than 10% of the outstanding voting securities of a single issuer. These
limitations do not apply to U.S. Government securities or, except Natural
Resources, securities of other investment companies .
Each fund may borrow only for temporary or emergency purposes, but not in
an amount exceeding 331/3% of its total assets.
Loans, in the aggregate, may not exceed 331/3% of each fund's total assets.
BREAKDOWN OF EXPENSES
Like all mutual funds, the funds pay fees related to their daily
operations. Expenses paid out of each class's assets are reflected in that
class's share price or dividends; they are neither billed directly to
shareholders nor deducted from shareholder accounts.
Each fund pays a MANAGEMENT FEE to FMR for managing its investments and
business affairs. FMR in turn pays fees to affiliates who provide
assistance with these services. Each fund also pays OTHER EXPENSES, which
are explained on page .
FMR may, from time to time, agree to reimburse a fund for management fees
and other expenses above a specified limit. FMR retains the ability to be
repaid by a fund if expenses fall below the specified limit prior to the
end of the fiscal year. Reimbursement arrangements, which may be terminated
at any time without notice, can decrease a fund's expenses and boost its
performance.
MANAGEMENT FEE
The management fee is calculated and paid to FMR every month. The fee is
calculated by adding a group fee rate to an individual fund fee rate, and
multiplying the result by the fund's average net assets.
The group fee rate is based on the average net assets of all the mutual
funds advised by FMR. This rate cannot rise above 0.52%, and it drops as
total assets under management increase.
The individual fund fee rate for each fund is 0.30%. The following table
states the estimated management fees for each fund (except Natural
Resources) and, for Natural Resources, the management fee for its most
recent fiscal year end.
Group Individual Total
Fee Rate Fund Fee Management
Rate Fee

Consumer Industries 0.31%[A 0.30% 0.61%[A]
]

Cyclical Industries 0.31%[A 0.30% 0.61%[A]
]

Financial Services 0.31%[A 0.30% 0.61%[A]
]

Health Care 0.31%[A 0.30% 0.61%[A]
]

Natural Resources 0.30% 0.42%[B 0.72%[B]
]

Technology 0.31%[A 0.30% 0.61%[A]
]

Utilities Growth 0.31%[A 0.30% 0.61%[A]
]

[A] ESTIMATED
[B] EFFECTIVE SEPTEMBER 1, 1996, FMR VOLUNTARILY REDUCED NATURAL RESOURCES'
INDIVIDUAL FUND FEE RATE FROM 0.45% TO 0.30%.
FMR HAS SUB-ADVISORY AGREEMENTS with FMR U.K. and FMR Far East. These
sub-advisers provide FMR with investment research and advice on issuers
based outside the United States. Under the sub-advisory agreements, FMR
pays FMR U.K. and FMR Far East fees equal to 110% and 105%, respectively,
of the costs of providing these services.
The sub-advisers may also provide investment management services. In
return, FMR pays FMR U.K. and FMR Far East a fee equal to 50% of its
management fee rate with respect to the fund's investments that the
sub-adviser manages on a discretionary basis.
For the fiscal year ended October 31, 1996, FMR, on behalf of Natural
Resources, paid FMR U.K. and FMR Far East fees equal to less than 0.01% of
the fund's average net assets.
OTHER EXPENSES
While the management fee is a significant component of each fund's annual
operating costs, the funds have other expenses as well.
FIIOC performs certain transfer agency, dividend disbursing and shareholder
services for each class of each fund. Fidelity Service Company, Inc. (FSC)
calculates the NAV and dividends for each class, and maintains the general
accounting records and administers the securities lending program for each
fund. For the fiscal year ended October 31, 1996, fees paid by Class B of
Natural Resources to FIIOC amounted to 0.29% of the class's average net
assets. Through December 31, 1996, State Street Bank & Trust Company (State
Street) performed certain transfer agency, dividend disbursing and
shareholder services for Class T of the funds. During that period, State
Street entered into sub-arrangements pursuant to which FIIOC performed
certain transfer agency, dividend disbursing and shareholder services for
Class T shares. State Street paid FIIOC a portion of its fee for Class T
accounts for which FIIOC provided limited services, or its full fee for
Class T accounts that FIIOC maintained on its behalf. For the fiscal year
ended October 31, 1996, fees paid by Class T of Natural Resources to
State Street amounted to 0.24% of Class T's average net assets. Fees paid
by Natural Resources to FSC amounted to 0.07% of the fund's average net
assets.
Class A shares of each fund have adopted a DISTRIBUTION AND SERVICE PLAN.
Under the Plans, Class A of each fund is authorized to pay FDC a monthly
distribution fee as compensation for its services and expenses in
connection with the distribution of Class A shares. Class A of each fund
may pay FDC a distribution fee at an annual rate of up to 0.75% of its
average net assets, or such lesser amount as the Trustees may determine
from time to time.
Class A of each fund currently pays FDC a monthly distribution fee at an
annual rate of 0.25% of its average net assets throughout the month. Class
A distribution fee rates may be increased only when the Trustees believe
that it is in the best interests of Class A shareholders to do so.
Class T shares of each fund have adopted a DISTRIBUTION AND SERVICE PLAN.
Under the Plans, Class T of each fund is authorized to pay FDC a monthly
distribution fee as compensation for its services and expenses in
connection with the distribution of Class T shares. Class T of Natural
Resources may pay FDC a distribution fee at an annual rate of up to 0.65%
of its average net assets, or such lesser amount as the Trustees may
determine from time to time. Class T of Consumer Industries, Cyclical
Industries, Financial Services, Health Care, Technology, and Utilities
Growth may pay FDC a distribution fee at an annual rate of up to 0.75% of
its average net assets, or such lesser amount as the Trustees may determine
from time to time.
Class T of each fund currently pays FDC a monthly distribution fee at an
annual rate of 0.50% of its average net assets throughout the month. Class
T distribution fee rates may be increased only when the Trustees believe
that it is in the best interests of Class T shareholders to do so.
Up to the full amount of the Class A and Class T distribution fees may be
reallowed to investment professionals, as compensation for their services
in connection with the distribution of Class A and Class T shares and for
providing support services to Class A and Class T shareholders, based upon
the level of such services provided. These services may include, without
limitation, answering investor inquiries regarding the funds; providing
assistance to investors in changing dividend options, account designations,
and addresses; performing subaccounting and maintaining Class A and Class T
shareholder accounts; processing purchase and redemption transactions,
including automatic investment and redemption of investor account balances;
providing periodic statements showing an investor's account balance and
integrating other transactions into such statements; and performing other
administrative services in support of the shareholder.
Class B shares of each fund have adopted a DISTRIBUTION AND SERVICE PLAN.
Under the Plans, Class B of each fund is authorized to pay FDC a monthly
distribution fee as compensation for its services and expenses in
connection with the distribution of Class B shares. Class B of each fund
may pay FDC a distribution fee at an annual rate of up to 0.75% of its
average net assets, or such lesser amount as the Trustees may determine
from time to time.
Class B of each fund currently pays FDC a monthly distribution fee at an
annual rate of 0.75% of its average net assets throughout the month.
In addition, pursuant to each Class B Plan, investment professionals are
compensated at an annual rate of 0.25% of Class B's average net assets
throughout the month for providing personal service to and/or maintenance
of Class B shareholder accounts.
The Class A, Class T, and Class B Plans specifically recognize that FMR may
make payments from its management fee revenue, past profits, or other
resources to FDC for expenses incurred in connection with the distribution
of the applicable class's shares, including payments made to investment
professionals that provide shareholder support services or engage in the
sale of the applicable class's shares. The Board of Trustees of each fund
has authorized such payments.
Each fund also pays other expenses, such as legal, audit, and custodian
fees; in some instances, proxy solicitation costs; and the compensation of
trustees who are not affiliated with Fidelity. A broker-dealer may use a
portion of the commissions paid by a fund to reduce that fund's custodian
or transfer agent fees.
The annualized portfolio turnover rate for each of Consumer Industries,
Cyclical Industries, Financial Services, Health Care, and Utilities Growth
is not expected to exceed 200% for its first fiscal period ending July
1997. The annualized portfolio turnover rate for Technology is not
expected to exceed 400% for its first fiscal period ending July 1997.
The portfolio turnover rate for Natural Resources for the fiscal year ended
October 31, 1996 was 137%.
Portfolio turnover rates will vary from year to year. High turnover rates
increase transaction costs and may increase taxable capital gains. FMR
considers these effects when evaluating the anticipated benefits of
short-term investing.
YOUR ACCOUNT

TYPES OF ACCOUNTS
When you invest through an investment professional, your investment
professional, including a broker-dealer or financial institution, may
charge you a transaction fee with respect to the purchase and sale of fund
shares. Read your investment professional's program materials in
conjunction with this prospectus for additional service features or fees
that may apply. Certain features of the funds, such as minimum initial or
subsequent investment amounts, may be modified.
The different ways to set up (register) your account with Fidelity are
listed in the table at right.
The account guidelines that follow may not apply to certain retirement
accounts. If you are investing through a retirement account or if your
employer offers a fund through a retirement program, you may be subject to
additional fees. For more information, please refer to your program
materials, contact your employer, or call your retirement benefits number
or your investment professional directly, as appropriate.
If you have selected Fidelity Advisor funds as an investment option through
an insurance company group pension program, please contact the provider
directly.
WAYS TO SET UP YOUR ACCOUNT
INDIVIDUAL OR JOINT TENANT
FOR YOUR GENERAL INVESTMENT NEEDS
Individual accounts are owned by one person. Joint accounts can have two or
more owners (tenants).
RETIREMENT
TO SHELTER YOUR RETIREMENT SAVINGS FROM TAXES
Retirement plans allow individuals to shelter investment income and
capital gains from current taxes. In addition, contributions to these
accounts may be tax deductible. Retirement accounts require special
applications and typically have lower minimums.
(solid bullet) INDIVIDUAL RETIREMENT ACCOUNTS (IRAS) allow anyone of legal
age under 701/2 with earned income to invest up to $2,000 per tax year.
Individuals can also invest in a spouse's IRA if the spouse has earned
income of less than $250.
(solid bullet) ROLLOVER IRAS retain special tax advantages for certain
distributions from employer-sponsored retirement plans.
(solid bullet) SIMPLIFIED EMPLOYEE PENSION PLANS (SEP-IRAS) provide small
business owners or those with self-employed income (and their eligible
employees) with many of the same advantages as a Keogh, but with fewer
administrative requirements.
(solid bullet) 401(K) PLANS allow employees of corporations of all sizes to
contribute a percentage of their wages on a tax-deferred basis. These
accounts need to be established by the trustee of the plan.
(solid bullet) MONEY PURCHASE/PROFIT SHARING PLANS (KEOGH PLANS) are
tax-deferred pension accounts designated for employees of unincorporated
businesses or for persons who are self-employed.
GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA)
TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS
These custodial accounts provide a way to give money to a child and obtain
tax benefits. An individual can give up to $10,000 a year per child without
paying federal gift tax. Depending on state laws, you can set up a
custodial account under the Uniform Gifts to Minors Act (UGMA) or the
Uniform Transfers to Minors Act (UTMA). Contact your investment
professional.
TRUST
FOR MONEY BEING INVESTED BY A TRUST
The trust must be established before an account can be opened.
BUSINESS OR ORGANIZATION
FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS, OR OTHER
GROUPS
Contact your investment professional.
HOW TO BUY SHARES
Once each business day, two share prices are calculated for Class A and
Class T shares of each fund: the offering price and the NAV. If you pay a
front-end sales charge or qualify for a reduction, as described on page ,
your Class A or Class T share price will be the offering price. If you
qualify for a front-end sales charge waiver as described on page , your
Class T share price will be the NAV. When you buy Class A or Class T shares
at the offering price, Fidelity deducts the appropriate sales charge and
invests the rest in Class A or Class T shares of the fund. Class B's NAV is
also calculated every business day. Class B shares of each fund are sold
without a front-end sales charge and may be subject to a CDSC upon
redemption. For information on how the CDSC is calculated, see "Transaction
Details," page .
Shares are purchased at the next offering price or NAV, as applicable,
calculated after your order is received and accepted. The offering price
and NAV are normally calculated at 4:00 p.m. Eastern time.
It is the responsibility of your investment professional to transmit your
order to buy shares to Fidelity before the close of business on the day you
place your order.
Fidelity must receive payment within three business days after an order for
shares is placed; otherwise your purchase order may be canceled and you
could be held liable for resulting fees and/or losses.
Share certificates are not available for Class A, Class T, or Class B
shares.
IF YOU ARE NEW TO THE FIDELITY ADVISOR FUNDS, complete and sign an account
application and mail it along with your check. If there is no account
application accompanying this prospectus, call your investment
professional.
If you are investing through a tax-sheltered retirement plan, such as an
IRA, for the first time, you will need a special application. Contact your
investment professional for more information and a retirement account
application.
IF YOU ALREADY HAVE MONEY INVESTED IN A FIDELITY ADVISOR FUND, you can:
(small solid bullet) Mail an account application with a check,
(small solid bullet) Place an order and wire money into your account,
(small solid bullet) Open your account by exchanging from the same class of
another Fidelity Advisor fund or from another Fidelity fund, or
(small solid bullet) Contact your investment professional.
MINIMUM INVESTMENTS
TO OPEN AN ACCOUNT $2,500*
For Fidelity Advisor IRA, Rollover IRA, SEP-IRA and Keogh accounts $500
Through regular investment plans** $1,000*
TO ADD TO AN ACCOUNT $250*
For Fidelity Advisor IRA, Rollover IRA, SEP-IRA and Keogh accounts $100
Through regular investment plans $100*
MINIMUM BALANCE $1,000**
For Fidelity Advisor IRA, Rollover IRA, SEP-IRA and Keogh accounts NONE
*INVESTMENT MINIMUMS ARE WAIVED FOR PURCHASES INTO CLASS T NON-RETIREMENT
ACCOUNTS WITH DISTRIBUTIONS FROM A FIDELITY DEFINED TRUST ACCOUNT.
INVESTMENT MINIMUMS AND MINIMUM ACCOUNT BALANCES ARE ALSO WAIVED FOR
INVESTMENTS IN CERTAIN RETIREMENT ACCOUNTS FUNDED THROUGH SALARY REDUCTION,
OR ACCOUNTS FUNDED WITH THE PROCEEDS OF DISTRIBUTIONS FROM SUCH FIDELITY
RETIREMENT ACCOUNTS.
**AN ACCOUNT MAY BE OPENED WITH A MINIMUM OF $1,000, PROVIDED THAT A
REGULAR INVESTMENT PLAN IS ESTABLISHED AT THE TIME THE ACCOUNT IS OPENED.
FOR MORE INFORMATION ABOUT REGULAR INVESTMENT PLANS, PLEASE REFER TO
"INVESTOR SERVICES," PAGE .
PURCHASE AMOUNTS OF MORE THAN $100,000 WILL NOT BE ACCEPTED FOR CLASS B
SHARES.
For further information on opening an account, please consult your
investment professional or refer to the account application.
TO OPEN AN ACCOUNT TO ADD TO AN ACCOUNT

<TABLE>
<CAPTION>
<S> <C> <C>
PHONE (small solid bullet) Contact your investment professional or, if (small solid bullet) Contact your
investment professional or, if
YOUR INVESTMENT PROFESSIONAL you are investing through a broker-dealer or you are investing through a
broker-dealer
insurance representative, call or insurance representative, call
1-800-522-7297. If you are investing 1-800-522-7297. If you are
investing
through a bank representative, call through a bank representative,
call
1-800-843-3001. 1-800-843-3001.
(small solid bullet) Exchange from the same class of another (small solid bullet) Exchange
from the same class of another
Fidelity Advisor fund or from another Fidelity Advisor fund or from
another
Fidelity fund account with the same Fidelity fund account with the
same
registration, including name, address, and registration, including name,
address, and
taxpayer ID number. taxpayer ID number.

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
Mail (mail_graphic) (small solid bullet) Complete and sign the account application. (small solid bullet) Make your check
payable to the complete
Make your check payable to the complete name of the fund of your choice and not
name of the fund of your choice and note the applicable class. Indicate your fund
the applicable class. Mail to the address account number on your check and mail to
indicated on the application. the address printed on your account
statement.
(small solid bullet) Exchange by mail: call
your investment
professional for instructions.

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
In Person (hand_graphic) (small solid bullet) Bring your account application and check to (small solid bullet) Bring your check
to your investment
your investment professional. professional.

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
Wire (wire_graphic) (small solid bullet) Not available (small solid bullet) Wire to:
Banker's Trust Co.
Routing # 021001033
Fidelity DART Depository
Account # 00159759
FBO: (Account name)
(Account number)
Specify the complete name of the fund of
your choice, note
the applicable class, and include your
account number and
your name.

Automatically (automatic_graphic) (small solid bullet) Not available (small solid bullet) Use Fidelity Advisor Systematic
Investment Program. Sign up for this
service when opening your account,
or call your investment professional to
begin the program.

</TABLE>

HOW TO SELL SHARES
You can arrange to take money out of your fund account at any time by
selling (redeeming) some or all of your shares. Your shares will be sold at
the next NAV calculated after your order is received and accepted, less any
applicable CDSC. NAV is normally calculated at 4:00 p.m. Eastern time.
It is the responsibility of your investment professional to transmit your
order to sell shares to Fidelity before the close of business on the day
you place your order.
TO SELL SHARES IN A NON-RETIREMENT ACCOUNT, you may use any of the methods
described on these pages.
TO SELL SHARES IN A FIDELITY ADVISOR RETIREMENT ACCOUNT, your request must
be made in writing, except for exchanges to shares of the same class of
another Fidelity Advisor fund or shares of other Fidelity funds, which can
be requested by phone or in writing.
IF YOU ARE SELLING SOME BUT NOT ALL OF YOUR SHARES, please leave at least
$1,000 worth of shares in the account to keep it open (account minimum
balances do not apply to retirement and Fidelity Defined Trust accounts).
TO SELL SHARES BY BANK WIRE, you will need to sign up for this service in
advance.
CERTAIN REQUESTS MUST INCLUDE A SIGNATURE GUARANTEE. It is designed to
protect you and Fidelity from fraud. Your request must be made in writing
and include a signature guarantee if any of the following situations apply:
(small solid bullet) You wish to redeem more than $100,000 worth of shares,
(small solid bullet) Your account registration has changed within the last
30 days,
(small solid bullet) The check is being mailed to a different address than
the one on your account (record address),
(small solid bullet) The check is being made payable to someone other than
the account owner,
(small solid bullet) The redemption proceeds are being transferred to a
Fidelity Advisor account with a different registration,
(small solid bullet) You wish to set up the bank wire feature, or
(small solid bullet) You wish to have redemption proceeds wired to a
non-predesignated bank account.
You should be able to obtain a signature guarantee from a bank, broker,
dealer, credit union (if authorized under state law), securities exchange
or association, clearing agency, or savings association. A notary public
cannot provide a signature guarantee.
SELLING SHARES IN WRITING
Write a "letter of instruction" with:
(small solid bullet) Your name,
(small solid bullet) The fund's name,
(small solid bullet) The applicable class name,
(small solid bullet) Your fund account number,
(small solid bullet) The dollar amount or number of shares to be redeemed,
signed certificates (if previously issued), and
(small solid bullet) Any other applicable requirements listed in the table
on page .
Deliver your letter to your investment professional, or mail it to the
following address:
Fidelity Investments
P.O. Box 770002
Cincinnati, OH 45277-0081
Unless otherwise instructed, Fidelity will send a check to the record
address.
ACCOUNT TYPE SPECIAL REQUIREMENTS

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<S> <C> <C>
PHONE All account types except retirement (small solid bullet) Maximum check request: $100,000.
YOUR INVESTMENT PROFESSIONAL

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
(phone_graphic) All account types (small solid bullet) You may
exchange to the same class of
other Fidelity Advisor funds or
to other
Fidelity funds if both accounts
are
registered with the same name(s),
address, and taxpayer ID number.

Mail or in Person (mail_graphic)(hand_graphic) Individual, Joint Tenant, Sole Proprietorship, (small solid bullet) The letter
of instruction (with signature
UGMA, UTMA guarantee) must be signed by all
persons
required to sign for
transactions, exactly as
their names appear on the account
and
Retirement account sent to your investment
professional.
(small solid bullet) The account
owner should complete a
retirement distribution form.
Contact your
investment professional or, if
you
purchased your shares through a
broker-dealer or insurance
representative,
call 1-800-522-7297. If you
purchased your
shares through a bank
representative, call
1-800-843-3001.

Trust (small solid bullet) The trustee
must sign the letter indicating
capacity as trustee. If the
trustee's name is
not in the account registration,
provide a
copy of
the trust document certified
within the last
60 days.

Business or Organization (small solid bullet) At least one
person authorized by
corporate resolution to act on
the account
must sign the letter (with
signature
guarantee).

Executor, Administrator, (small solid bullet) For
instructions, contact your
investment
Conservator/Guardian professional or, if you purchased
your
shares through a broker-dealer or
insurance representative, call
1-800-522-7297. If you purchased
your
shares through a bank
representative, call
1-800-843-3001.

Wire (wire_graphic) All account types except retirement (small solid bullet) You must
sign up for the wire feature
before using it. To verify that
it is in place,
contact your investment
professional or, if
you purchased your shares through
a
broker-dealer or insurance
representative,
call 1-800-522-7297. If you
purchased your
shares through a bank
representative, call
1-800-843-3001. Minimum wire:
$500.
(small solid bullet) Your wire
redemption request must be
received and accepted by the
transfer
agent before 4:00 p.m. Eastern
time for
money to be wired on the next
business
day.

</TABLE>

INVESTOR SERVICES
Fidelity Advisor funds provide a variety of services to help you manage
your account.
INFORMATION SERVICES
STATEMENTS AND REPORTS that Fidelity sends to you include the following:
(small solid bullet) Confirmation statements (after every transaction, that
affects your account balance or your account registration)
(small solid bullet) Account statements (quarterly)
(small solid bullet) Financial reports (every six months)
To reduce expenses, only one copy of most financial reports and
prospectuses will be mailed, even if you have more than one account in the
fund. Call your investment professional if you need additional copies of
financial reports and prospectuses.
TRANSACTION SERVICES
EXCHANGE PRIVILEGE. You may sell your Class A or Class T shares and buy the
same class of shares of Fidelity Advisor Funds, or Initial Class shares of
Daily Money Fund: U.S. Treasury Portfolio, Daily Money Fund: Money Market
Portfolio, and Daily Tax-Exempt Money Fund, by telephone or in writing. You
may sell your Class B shares and buy Class B shares of other Fidelity
Advisor Funds, or Class B shares of Daily Money Fund: U.S. Treasury
Portfolio, by telephone or in writing. The shares you exchange will carry
credit for any front-end sales charge you previously paid in connection
with their purchase.
Note that exchanges out of a fund into another Advisor Focus Fund are
unlimited, but that exchanges into other Advisor funds are limited to four
per calendar year, and that they may have tax consequences for you. For
details on policies and restrictions governing exchanges, including
circumstances under which a shareholder's exchange privilege may be
suspended or revoked, see "Exchange Restrictions," page .
FIDELITY ADVISOR SYSTEMATIC WITHDRAWAL PROGRAM lets you set up periodic
redemptions from your account. Accounts with a value of $10,000 or more in
Class A and Class T shares are eligible for this program. Because of Class
A's and Class T's front-end sales charge, you may not want to set up a
systematic withdrawal plan during a period when you are buying Class A or
Class T shares on a regular basis.
One easy way to pursue your financial goals is to invest money regularly.
Fidelity Advisor funds offer convenient services that let you transfer
money into your fund account, or between fund accounts, automatically.
While regular investment plans do not guarantee a profit and will not
protect you against loss in a declining market, they can be an excellent
way to invest for retirement, a home, educational expenses, and other
long-term financial goals. Certain restrictions apply for retirement
accounts. Call your investment professional for more information.
REGULAR INVESTMENT PLANS
FIDELITY ADVISOR SYSTEMATIC INVESTMENT PROGRAM
TO MOVE MONEY FROM YOUR BANK ACCOUNT TO A FIDELITY ADVISOR FUND

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MINIMUM MINIMUM
INITIAL ADDITIONAL FREQUENCY SETTING UP OR CHANGING
$1,000 $100 Monthly, bimonthly, (small solid bullet) For a new account, complete the appropriate section on the
quarterly, application.
or semi-annually (small solid bullet) For existing accounts, call your investment professional for an
application.
(small solid bullet) To change the amount or frequency of your investment, contact
your investment professional directly or, if you purchased your
shares through a broker-dealer or insurance representative,
call1-800-522-7297. If you purchased your shares through a bank
representative, call 1-800-843-3001. Call at least 10 business
days prior to your next scheduled investment date (20 business
days if you purchased your shares through a bank).

</TABLE>

TO DIRECT DISTRIBUTIONS FROM A FIDELITY DEFINED TRUST TO CLASS T OF A
FIDELITY ADVISOR FUND

<TABLE>
<CAPTION>
<S> <C> <C>
MINIMUM MINIMUM
INITIAL ADDITIONAL SETTING UP OR CHANGING
Not Not (small solid bullet) For a new or existing account, ask your investment professional
Applicable Ap for the appropriate enrollment form.
plicable (small solid bullet) To change the fund to which your distributions are directed,
contact your investment professional for instructions.

</TABLE>

FIDELITY ADVISOR SYSTEMATIC EXCHANGE PROGRAM
TO MOVE MONEY FROM A FIDELITY MONEY MARKET FUND OR A FIDELITY ADVISOR FUND
TO ANOTHER FIDELITY ADVISOR FUND

<TABLE>
<CAPTION>
<S> <C> <C>
MINIMUM FREQUENCY SETTING UP OR CHANGING
$100 Monthly, quarterly, (small solid bullet) To establish, call your investment professional after both accounts
semi-annually, or are opened.
annually (small solid bullet) To change the amount or frequency of your investment, contact
your investment professional directly or, if you purchased your
shares through a broker-dealer or insurance representative, call
1-800-522-7297. If you purchased your shares through a bank
representative, call 1-800-843-3001.
(small solid bullet) The account from which the exchanges are to be processed must
have a minimum balance of $10,000. The account into which the
exchange is being processed must have a minimum of $1,000.
(small solid bullet) Both accounts must have the same registrations and taxpayer ID
numbers.
(small solid bullet) Call at least 2 business days prior to your next scheduled
exchange date.

</TABLE>

SHAREHOLDER AND ACCOUNT POLICIES

As a % of As an Investment
Offering approxim Profession
Price ate % of al
Net Concession
Amount as % of
Invested Offering
Price

Up to $49,999 5.25% 5.54% 4.75%

$50,000 to $99,999 4.25% 4.44% 3.75%

$100,000 to $249,999 3.25% 3.36% 2.75%

$250,000 to $499,999 2.50% 2.56% 2.00%

$500,000 to $999,999 2.00% 2.04% 1.75%

$1,000,000 or more 1.00% 1.01% 0.75%

Class T Sales
Charge

As a % of As an Investment
Offering approxim Profession
Price ate % of al
Net Concession
Amount as % of
Invested Offering
Price

Up to $49,999 3.50% 3.63% 3.00%

$50,000 to $99,999 3.00% 3.09% 2.50%

$100,000 to $249,999 2.50% 2.56% 2.00%

$250,000 to $499,999 1.50% 1.52% 1.25%

$500,000 to $999,999 1.00% 1.01% 0.75%

$1,000,000 or more None* None* *

* SEE SECTION ENTITLED FINDERS FEE.
FINDERS FEE. On eligible purchases of Class T shares in amounts of $1
million or more, investment professionals will be compensated with a fee at
the rate of 0.25% of the amount purchased. Finders fees are not paid to
trust departments.
Any assets on which a finders fee has been paid will bear a contingent
deferred sales charge (Class T CDSC) if they do not remain in Class T
shares of the Fidelity Advisor funds, Initial Class shares of Daily Money
Fund: US Treasury Portfolio, Daily Money Fund: Money Market Portfolio, or
Daily Tax-Exempt Money Fund, for a period of at least one uninterrupted
year. The Class T CDSC will be 0.25% of the lesser of the cost of the
shares at the initial date of purchase or the value of the shares at
redemption, not including any reinvested dividends or capital gains. Class
T CDSC shares representing reinvested dividends and capital gains, if any,
will be redeemed first, followed by other Class T CDSC shares that have
been held for the longest period of time.
Shares held by an insurance company separate account will be aggregated at
the client (e.g., the contract holder or plan sponsor) level, not at the
separate account level. Upon request, anyone claiming eligibility for the
0.25% fee with respect to shares held by an insurance company separate
account must provide FDC access to records detailing purchases at the
client level.
With respect to employee benefit plans, the Class T CDSC does not apply to
the following types of redemptions; (i) plan loans or distributions or (ii)
exchanges to non-Advisor fund investment options. With respect to
Individual Retirement Accounts, the Class T CDSC does not apply to
redemptions made for disability, payment of death benefits, or required
partial distributions starting at age 70. Your investment professional
should advise Fidelity at the time your redemption order is placed if you
qualify for a waiver of the Class T CDSC.
CONTINGENT DEFERRED SALES CHARGE. Class B shares may, upon redemption, be
assessed a CDSC based on the following schedule:

From Date of Purchase Contingent
Deferred
Sales Charge

Less than 1 year 5%

1 year to less than 2 years 4%

2 years to less than 3 years 3%

3 years to less than 4 years 3%

4 years to less than 5 years 2%

5 years to less than 6 years 1%

6 years to less than 7 years[A] 0%

[A] AFTER A MAXIMUM HOLDING PERIOD OF SEVEN YEARS, CLASS B SHARES WILL
CONVERT AUTOMATICALLY TO CLASS A SHARES OF THE SAME FIDELITY ADVISOR FUND.
SEE "CONVERSION FEATURE" BELOW FOR MORE INFORMATION.
When exchanging Class B shares of one fund for Class B shares of another
Fidelity Advisor fund or Class B shares of Daily Money Fund: U.S. Treasury
Portfolio, your Class B shares retain the CDSC schedule in effect when they
were originally purchased.
Investment professionals with whom FDC has agreements receive as
compensation from FDC a concession equal to 4.00% of your purchase of Class
B shares.
The CDSC will be calculated based on the lesser of the cost of Class B
shares at the initial date of purchase or the value of Class B shares at
redemption, not including any reinvested dividends or capital gains. Class
B shares acquired through distributions (dividends or capital gains) will
not be subject to a CDSC. In determining the applicability and rate of any
CDSC at redemption, Class B shares representing reinvested dividends and
capital gains, if any, will be redeemed first, followed by Class B shares
that have been held for the longest period of time.
CONVERSION FEATURE. After a maximum holding period of seven years from the
initial date of purchase, Class B shares and any capital appreciation
associated with those shares, convert automatically to Class A shares of
the same Fidelity Advisor fund. Conversion to Class A shares will be made
at NAV. At the time of conversion, a portion of the Class B shares
purchased through the reinvestment of dividends or capital gains (Dividend
Shares) will also convert to Class A shares. The portion of Dividend Shares
that will convert is determined by the ratio of your converting Class B
non-Dividend Shares to your total Class B non-Dividend Shares.
For more information about the CDSC, including the conversion feature and
the permitted circumstances for CDSC waivers, contact your investment
professional.
REINSTATEMENT PRIVILEGE. If you have sold all or part of your Class A,
Class T, or Class B shares of a fund, you may reinvest an amount equal to
all or a portion of the redemption proceeds in the same class of the fund
or any of the other Fidelity Advisor funds, at the NAV next determined
after receipt and acceptance of your investment order, provided that such
reinvestment is made within 30 days of redemption. Under these
circumstances, the dollar amount of the CDSC, if any, you paid on Class T
or Class B shares will be reimbursed to you by reinvesting that amount in
Class T or Class B shares, as applicable. You must reinstate your shares
into an account with the same registration. This privilege may be exercised
only once by a shareholder with respect to a fund and certain restrictions
may apply. For purposes of the CDSC holding period schedule, the holding
period of your Class T or Class B shares will continue as if the shares had
not been redeemed.
WHEN YOU SIGN YOUR ACCOUNT APPLICATION, you will be asked to certify that
your social security or taxpayer identification number is correct and that
you are not subject to 31% backup withholding for failing to report income
to the IRS. If you violate IRS regulations, the IRS can require a fund to
withhold 31% of your taxable distributions and redemptions.
YOU MAY INITIATE MANY TRANSACTIONS BY TELEPHONE. Fidelity may only be
liable for losses resulting from unauthorized transactions if it does not
follow reasonable procedures designed to verify the identity of the caller.
Fidelity will request personalized security codes or other information, and
may also record calls. You should verify the accuracy of the confirmation
statements immediately after receipt. If you do not want the ability to
redeem and exchange by telephone, call Fidelity for instructions.
Additional documentation may be required from corporations, associations,
and certain fiduciaries.
IF YOU ARE UNABLE TO REACH FIDELITY BY PHONE (for example, during periods
of unusual market activity), consider placing your order by mail.
EACH FUND RESERVES THE RIGHT TO SUSPEND THE OFFERING OF SHARES for a period
of time. Each fund also reserves the right to reject any specific purchase
order, including certain purchases by exchange. See "Exchange Restrictions"
on page . Purchase orders may be refused if, in FMR's opinion, they would
disrupt management of a fund.
WHEN YOU PLACE AN ORDER TO BUY SHARES, your shares will be purchased at the
next NAV or offering price calculated after your order is received and
accepted. Note the following:
(small solid bullet) All of your purchases must be made in U.S. dollars and
checks must be drawn on U.S. banks.
(small solid bullet) Fidelity does not accept cash.
(small solid bullet) When making a purchase with more than one check, each
check must have a value of at least $50.
(small solid bullet) Each fund reserves the right to limit the number of
checks processed at one time.
(small solid bullet) If your check does not clear, your purchase will be
canceled and you could be liable for any losses or fees a fund or Fidelity
has incurred.
AUTOMATED PURCHASE ORDERS. Class A, Class T, and Class B shares can be
purchased or sold through investment professionals utilizing an automated
order placement and settlement system that guarantees payment for orders on
a specified date.

CONFIRMED PURCHASES. Certain financial institutions that meet FDC's
creditworthiness criteria may enter confirmed purchase orders on behalf of
customers by phone, with payment to follow no later than close of business
on the next business day. If payment is not received by the next business
day, the order will be canceled and the financial institutions will be
liable for any losses.
TO AVOID THE COLLECTION PERIOD associated with check purchases, consider
buying shares by bank wire, U.S. Postal money order, U.S. Treasury check,
Federal Reserve check, or automatic investment plans.
WHEN YOU PLACE AN ORDER TO SELL SHARES, your shares will be sold at the
next NAV, minus any CDSC and redemption fee, if applicable, calculated
after your order is received and accepted. Note the following:
(small solid bullet) Normally, redemption proceeds will be mailed to you on
the next business day, but if making immediate payment could adversely
affect a fund, it may take up to seven days to pay you.
(small solid bullet) Each fund may hold payment on redemptions until it is
reasonably satisfied that investments made by check have been collected,
which can take up to seven business days.
(small solid bullet) Redemptions may be suspended or payment dates
postponed when the NYSE is closed (other than weekends or holidays), when
trading on the NYSE is restricted, or as permitted by the SEC.
A REDEMPTION FEE, if applicable, of 1.00% for shares held less than 60
days, will be deducted from the amount of your redemption. This fee is paid
to the fund rather than FMR, and it does not apply to shares that were
acquired through reinvestment of distributions. If you bought shares on
different days, the shares you held longest will be redeemed first for
purposes of determining whether the redemption fee applies. Any applicable
contingent deferred sales charge is calculated based on your original
redemption amount.
FIDELITY RESERVES THE RIGHT TO DEDUCT AN ANNUAL MAINTENANCE FEE of $12.00
from accounts with a value of less than $2,500 (including any amount paid
as a sales charge), subject to an annual maximum charge of $60.00 per
shareholder. Accounts opened after September 30 will not be subject to the
fee for that year. The fee, which is payable to the transfer agent, is
designed to offset in part the relatively higher costs of servicing smaller
accounts. The fee will not be deducted from retirement accounts (except
non-prototype retirement accounts), accounts using a systematic investment
program, certain (Network Level I and III) accounts which are maintained
through National Securities Clearing Corporation (NSCC), or if total assets
in Fidelity mutual funds exceed $50,000. Eligibility for the $50,000 waiver
is determined by aggregating Fidelity mutual fund accounts (excluding
contractual plans) maintained (i) by FIIOC and (ii) through NSCC; provided
those accounts are registered under the same primary social security
number.
IF YOUR NON-RETIREMENT ACCOUNT BALANCE FALLS BELOW $1,000, you will be
given 30 days' notice to reestablish the minimum balance. If you do not
increase your balance, Fidelity reserves the right to close your account
and send the proceeds to you. Your shares will be redeemed at the NAV,
minus any applicable CDSC, on the day your account is closed.
FIDELITY MAY CHARGE A FEE FOR SPECIAL SERVICES, such as providing
historical account documents, that are beyond the normal scope of its
services.
FDC will, at its expense, provide promotional incentives such as sales
contests and luxury trips to investment professionals who support the sale
of shares of the funds. In some instances, these incentives will be offered
only to certain types of investment professionals, such as bank-affiliated
or non-bank affiliated broker-dealers, or to investment professionals whose
representatives provide services in connection with the sale or expected
sale of significant amounts of shares.
EXCHANGE RESTRICTIONS
As a shareholder, you have the privilege of exchanging Class A, Class T, or
Class B shares of a fund for the same class of shares of another
Fidelity Advisor Focus Fund or other Fidelity Advisor funds at NAV;
Class A or Class T shares for Initial Class shares of Daily Money Fund:
U.S. Treasury Portfolio, Daily Money Fund: Money Market Portfolio, or Daily
Tax-Exempt Money Fund; and Class B shares for Class B shares of Daily Money
Fund: U.S. Treasury Portfolio. If you purchased your Class T shares through
certain investment professionals that have signed an agreement with FDC,
you also have the privilege of exchanging your Class T shares for shares of
Fidelity Capital Appreciation Fund. However, you should note the following:
(small solid bullet) The fund or class you are exchanging into must be
available for sale in your state.
(small solid bullet) You may only exchange between accounts that are
registered in the same name, address, and taxpayer identification number.
(small solid bullet) Before exchanging into a fund or class, read its
prospectus.
(small solid bullet) Exchanges may have tax consequences for you.
(small solid bullet) Although there is no limit on the exchanges you may
make between the Advisor Focus funds, the funds reserve the right to enact
limitations in the future. Because excessive trading can hurt fund
performance and shareholders, each fund reserves the right to temporarily
or permanently terminate the exchange privilege of any investor who makes
more than four exchanges out of a fund into a Fidelity Advisor fund per
calendar year. Accounts under common ownership or control, including
accounts with the same taxpayer identification number, will be counted
together for purposes of the four exchange limit.
(small solid bullet) Each fund reserves the right to reject exchange
purchases in excess of 1% of its net assets or $1 million, whichever is
less. For purposes of this policy, accounts under common ownership will be
aggregated.
(small solid bullet) Each fund reserves the right to refuse exchange
purchases by any person or group if, in FMR's judgment, the fund would be
unable to invest the money effectively in accordance with its investment
objective and policies, or would otherwise potentially be adversely
affected.
(small solid bullet) Your exchanges may be restricted or refused if a fund
receives or anticipates simultaneous orders affecting significant portions
of the fund's assets. In particular, a pattern of exchanges that coincides
with a "market-timing" strategy may be disruptive to a fund.
(small solid bullet) Any exchanges of Class T or Class B shares are not
subject to a CDSC.
Although the funds will attempt to give you prior notice whenever they are
reasonably able to do so, they may impose these restrictions at any time.
The funds reserve the right to terminate or modify these exchange
privileges in the future.
SALES CHARGE REDUCTIONS AND WAIVERS
The front-end sales charge will be reduced for purchases of Class A and
Class T shares according to the Sales Charge schedule shown on page .
Please refer to the funds' SAI for more details about each plan or call
your investment professional.
If you purchased your shares through a broker-dealer or insurance
representative, call 1-800-522-7297. If you purchased your shares through a
bank representative, call 1-800-843-3001.
Your purchases and existing balances of Class A, Class T, and Class B
shares may be included in the following programs for purposes of qualifying
for a Class A or Class T front-end sales charge reduction.
QUANTITY DISCOUNTS apply to purchases of Class A or Class T shares of a
single Fidelity Advisor fund or to combined purchases of (i) Class A, Class
T, and Class B shares of any Fidelity Advisor fund, (ii) Class B shares of
Daily Money Fund: U.S. Treasury Portfolio, and (iii) Initial Class shares
of Daily Money Fund: U.S. Treasury Portfolio, Daily Money Fund: Money
Market Portfolio, and Daily Tax-Exempt Money Fund acquired by exchange from
any Fidelity Advisor fund. The minimum investment eligible for a quantity
discount is $50,000.
To qualify for a quantity discount, investing in a fund's Class A, and
Class T, and Class B shares for several accounts at the same time will be
considered a single transaction (Combined Purchase), as long as shares are
purchased through one investment professional and the total is at least
$50,000.
RIGHTS OF ACCUMULATION let you determine your front-end sales charge on
Class A and Class T shares by adding to your new purchase of Class A and
Class T shares the value of all of the Fidelity Advisor fund Class A, Class
T, and Class B shares held by you, your spouse, and your children under age
21. You can also add the value of Initial Class and Class B shares of Daily
Money Fund: U.S. Treasury Portfolio, and Initial Class shares of Daily
Money Fund: Money Market Portfolio, and Daily Tax-Exempt Money Fund
acquired by exchange from any Fidelity Advisor fund.
A LETTER OF INTENT (the Letter) lets you receive the same reduced front-end
sales charge on purchases of Class A and Class T shares made during a
13-month period as if the total amount invested during the period had been
invested in a single lump sum. (see Quantity Discounts above.) You must
file your non-binding Letter with Fidelity within 90 days of the start of
your purchases. Your initial investment must be at least 5% of the amount
you plan to invest. Out of the initial investment, Class A or Class T
shares equal to 5% of the dollar amount specified in the Letter will be
registered in your name and held in escrow. You will earn income dividends
and capital gain distributions on escrowed Class A or Class T shares.
Reinvested income and capital gain distributions do not count toward the
completion of the Letter. The escrow will be released when your purchase of
the total amount has been completed. You are not obligated to complete the
Letter, and in such a case, sufficient escrowed Class A or Class T shares
will be redeemed to pay any applicable front-end sales charges.
A FRONT-END SALES CHARGE WILL NOT APPLY TO THE FOLLOWING CLASS T SHARES:
1. Purchased by a bank trust officer, registered representative, or other
employee (or a member of one of their immediate families) of investment
professionals having agreements with FDC;
2. Purchased by 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 Fidelity International Limited or their 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;
3. Purchased by a charitable organization (as defined for purposes of
Section 501(c)(3) of the Internal Revenue Code) investing $100,000 or more;
4. Purchased for a charitable remainder trust or life income pool
established for the benefit of a charitable organization (as defined for
purposes of Section 501(c)(3) of the Internal Revenue Code);
5. Purchased for a Fidelity or Fidelity Advisor account with the proceeds
of a distribution (i) from an employee benefit plan that qualified for
waiver (11) or had a minimum of $3 million in plan assets invested in
Fidelity funds; or (ii) from an insurance company separate account
qualifying under (6), or used to fund annuity contracts purchased by
employee benefit plans having in the aggregate at least $3 million in plan
assets invested in Fidelity funds. (Distributions other than those
transferred to an IRA account must be transferred directly into a Fidelity
account.);
6. Purchased for an insurance company separate account used to fund annuity
contracts for employee benefit plans which, in the aggregate, have more
than 200 eligible employees or a minimum of $1 million in plan assets
invested in Fidelity Advisor funds;
7. Purchased for any state, county, or city, or any governmental
instrumentality, department, authority or agency;
8. Purchased with redemption proceeds from other mutual fund complexes on
which you have previously paid a front-end sales charge or CDSC;
9. Purchased by a trust institution or bank trust department (excluding
assets described in (11) and (12) below) that has executed a participation
agreement with FDC specifying certain asset minimums and qualifications,
and marketing restrictions. Assets managed by third parties do not qualify
for this waiver;
10. Purchased for use in a broker-dealer managed account program, provided
the broker-dealer has executed a participation agreement with FDC
specifying certain asset minimums and qualifications, and marketing,
program and trading restrictions. Employee benefit plans assets do not
qualify for this waiver;
11. Purchased as part of an employee benefit plan having more than (i) 200
eligible employees or a minimum of $1 million of plan assets invested in
Fidelity Advisor funds; or (ii) 25 eligible employees or $250,000 of plan
assets invested in Fidelity Advisor funds that subscribe to the Advisor
Retirement Connection or similar FIIS-sponsored program;
12. Purchased as part of an employee benefit plan through an intermediary
that has executed a participation agreement with FDC specifying certain
asset minimums and qualifications, and marketing, program and trading
restrictions;
13. Purchased on a discretionary basis by a registered investment advisor
which is not part of an organization primarily engaged in the brokerage
business, that has executed a participation agreement with FDC specifying
certain asset minimums and qualifications, and marketing, program and
trading restrictions. Employee benefit plan assets do not qualify for this
waiver; or
14. Purchased with distributions of income, principal, and capital gains
from Fidelity Defined Trusts.
Employee benefit plans that purchased Class T shares load waived prior to
June 30, 1995 but do not meet the qualifications of waiver (12) will be
permitted to make additional purchases of Class T shares on a load
waived basis.
You must notify FDC in advance if you qualify for a front-end sales charge
waiver. Employee benefit plan investors must meet additional requirements
specified in the funds' SAI.
If you are investing through an account managed by a broker-dealer, if you
have authorized an investment adviser to make investment decisions for you,
or if you are investing through a trust department, you may qualify to
purchase Class T shares without a sales charge (as described in (9), (10)
and (13), above) or Institutional Class shares. Because Institutional Class
shares have no sales charge, and do not pay a distribution fee or a
shareholder service fee, Institutional Class shares are expected to have a
higher total return than Class A, Class T or Class B shares. Contact your
investment professional to discuss if you qualify.
THE CDSC ON CLASS B SHARES MAY BE WAIVED:
1. In cases of disability or death, provided that Class B shares are
redeemed within one year following the death or the initial determination
of disability; or
2. In connection with a total or partial redemption related to certain
distributions from retirement plans or accounts.
Your investment professional should call Fidelity for more information.
No dealer, sales representative, or any other person has been authorized to
give any information or to make any representations, other than those
contained in this Prospectus and in the related SAI, in connection with the
offer contained in this Prospectus. If given or made, such other
information or representations must not be relied upon as having been
authorized by the funds or FDC. This Prospectus and the related SAI do not
constitute an offer by the funds or by FDC to sell or to buy shares of the
funds to any person to whom it is unlawful to make such offer.

FIDELITY ADVISOR FOCUS INSTITUTIONAL CLASS PROSPECTUS

CROSS REFERENCE SHEET
FORM N-1A

ITEM NUMBER PROSPECTUS SECTION

<TABLE>
<CAPTION>
<S> <C> <C> <C>
1 .............................. Cover Page

2 a .............................. Expenses

b, c .............................. Contents; Who May Want to Invest

3 a .............................. Financial Highlights

b .............................. *

c - d .............................. Performance

4 a i............................. Charter

ii........................... Investment Principles and Risks

b .............................. Investment Principles and Risks

c .............................. Who May Want to Invest; Investment Principles
and Risks

5 a .............................. Charter

b i............................. Cover Page; Charter

ii........................... Charter; Breakdown of Expenses

iii.......................... Expenses; Breakdown of Expenses

c .............................. FMR and Its Affiliates

d .............................. Charter; Breakdown of Expenses

e .............................. FMR and its Affiliates; Breakdown of Expenses

f .............................. Expenses

g i............................ Charter; Expenses; FMR and Its Affiliates

ii............................ *
..

5 A .............................. Performance

6 a i............................. Charter

ii........................... How to Buy Shares; How to Sell Shares;
Transaction Details; Exchange Restrictions

iii.......................... Charter

b ............................. FMR and Its Affiliates

c .............................. Transaction Details; Exchange Restrictions

d .............................. *

e .............................. Cover Page; How to Buy Shares; How to Sell
Shares; Investor Services

f, g .............................. Dividends, Capital Gains, and Taxes

7 a .............................. Cover Page; Charter

b .............................. How to Buy Shares; Transaction Details

c .............................. *

d .............................. How to Buy Shares

e .............................. Expenses; Transaction Details; Breakdown of
Expenses

f .............................. Breakdown of Expenses

8 .............................. How to Sell Shares; Investor Services; Transaction
Details; Exchange Restrictions

9 .............................. *

</TABLE>

* Not Applicable

Please read this prospectus before investing, and keep it on file for
future reference. It contains important information, including how each
fund invests and the services available to shareholders.
FIDELITY ADVISOR
FOCUS FUNDS
INSTITUTIONAL CLASS
To learn more about each fund and its investments, you can obtain a copy of
the funds' most recent financial reports and portfolio listing, or a copy
of the Statement of Additional Information (SAI) dated March 24,
1997 . The SAI has been filed with the Securities and Exchange
Commission (SEC) and is available along with other related materials on the
SEC's Internet Web site (http://www.sec.gov). The SAI is incorporated
herein by reference (legally forms a part of the prospectus). For a free
copy of either document, contact Fidelity Distributors Corporation (FDC),
82 Devonshire Street, Boston, MA 02109, or your investment professional.

LIKE ALL MUTUAL FUNDS, THESE
SECURITIES HAVE NOT BEEN APPROVED
OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION, NOR
HAS THE SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.
AFOCI-pro-0297-01
Each fund seeks to increase the value of your investment over the long-term
by investing mainly in equity securities of companies within a particular
market sector.
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
PROSPECTUS
MARCH 24, 1997 (FIDELITY_LOGO_GRAPHIC) 82 DEVONSHIRE STREET, BOSTON,
MA 02109
CONTENTS

<TABLE>
<CAPTION>
<S> <C> <C>
KEY FACTS WHO MAY WANT TO INVEST

EXPENSES Institutional Class's yearly operating
expenses.

FINANCIAL HIGHLIGHTS A summary of each fund's financial
data.

PERFORMANCE How Natural Resources has done over
time.

THE FUNDS IN DETAIL CHARTER How each fund is organized.

INVESTMENT PRINCIPLES AND RISKS Each fund's overall
approach to investing.

BREAKDOWN OF EXPENSES How operating costs are
calculated and what they include.

YOUR ACCOUNT TYPES OF ACCOUNTS Different ways to set up your
account, including tax-sheltered retirement plans.

HOW TO BUY SHARES Opening an account and making
additional investments.

HOW TO SELL SHARES Taking money out and closing your
account.

INVESTOR SERVICES Services to help you manage your
account.

SHAREHOLDER AND ACCOUNT POLICIES DIVIDENDS, CAPITAL GAINS, AND TAXES

TRANSACTION DETAILS Share price calculations and the
timing of purchases and redemptions.

EXCHANGE RESTRICTIONS

</TABLE>

KEY FACTS

WHO MAY WANT TO INVEST
Institutional Class shares are offered to accounts managed (i) by a bank
trust department and other trust institutions, (ii) by a broker-dealer, and
(iii) by a registered investment advisor (RIA) on a discretionary basis
(collectively, eligible intermediaries).
Institutional Class shares are available through eligible intermediaries
that have signed a participation agreement with FDC. The participation
agreement specifies certain aggregate asset minimums and asset
qualifications, trading guidelines, marketing restrictions and program
requirements. In addition, Institutional Class shares are available through
certain intermediaries that meet qualifications established by FDC but have
not signed a participation agreement.
Investors (including employee benefit plans) and intermediaries (other than
eligible intermediaries) that established Institutional Class accounts
prior to June 30, 1995, may continue to purchase Institutional Class
shares.
The funds may be appropriate for investors who want to pursue growth
aggressively by concentrating their investment on domestic and foreign
securities within a market sector. The funds are designed for those who are
interested in actively monitoring the progress of, and can accept the risks
of, industry-focused investing. Because the funds are narrowly focused,
changes in a particular industry, regulatory changes, or legislation can
have a substantial impact on a fund's share price.
Consumer Industries, Cyclical Industries, Health Care, Technology, and
Utilities Growth are non-diversified funds and may invest a greater portion
of their assets in securities of individual issuers than diversified funds.
As a result, changes in the market value of a single issuer could cause
greater fluctuations in share value than would occur in a more diversified
fund.
The value of each fund's investments varies from day to day, generally
reflecting changes in market conditions and other company, political, and
economic news. In the short-term, stock prices can fluctuate dramatically
in response to these factors. The securities of small, less well-known
companies may be more volatile than those of larger companies. Over time,
however, stocks have shown greater growth potential than other types of
securities. Investments in foreign securities may involve risks in addition
to those of U.S. investments, including increased political and economic
risk, as well as exposure to currency fluctuations.
Each fund is not in itself a balanced investment plan. You should consider
your investment objective and tolerance for risk when making an investment
decision. When you sell your fund shares, they may be worth more or less
than what you paid for them.
Each fund is composed of multiple classes of shares. All classes of a fund
have a common investment objective and investment portfolio. Class A and
Class T shares have a front-end sales charge and pay a distribution fee.
Class T shares may be subject to a contingent deferred sales charge (CDSC).
Class B shares do not have a front-end sales charge, but do have a CDSC,
and pay a distribution fee and a shareholder service fee. Because
Institutional Class shares have no sales charge, and do not pay a
distribution fee or a shareholder service fee, Institutional Class shares
are expected to have a higher total return than Class A, Class T, or Class
B shares. You may obtain more information about Class A, Class T, and Class
B shares, which are not offered through this prospectus, by calling
1-800-843-3001 or from your investment professional.
EXPENSES
SHAREHOLDER TRANSACTION EXPENSES are charges you may pay when you buy or
sell Institutional Class shares of a fund. In addition, you may be charged
an annual account maintenance fee if your account balance falls below
$2,500. See "Transaction Details," page , for an explanation of how and
when these charges apply.
Maximum sales charge on purchases and Non
reinvested distributions e

Maximum deferred sales charge Non
e

Redemption fee on shares held less than 60 days 1.00
(as a % of amount redeemed) %

Exchange fee Non
e

Annual account maintenance fee (for accounts under $2,500) $12.
00

ANNUAL OPERATING EXPENSES are paid out of each fund's assets. Each fund
pays a management fee to Fidelity Management & Research Company (FMR). Each
fund also incurs other expenses for services such as maintaining
shareholder records and furnishing shareholder statements and financial
reports.
Institutional Class's expenses are factored into its share price or
dividends and are not charged directly to shareholder accounts (see
"Breakdown of Expenses" on page ).
The following figures are based on estimated or historical expenses of the
Institutional Class of each fund , adjusted to reflect current fees
for Natural Resources , and are calculated as a percentage of average
net assets of the Institutional Class of each fund. A portion of the
brokerage commissions that a funds pay s is used to reduce
that fund's expenses. In addition, each fund has
entered into arrangements with its custodian and transfer agent
whereby interest earned on uninvested cash balances is used to reduce
custodian and transfer agent expenses. Including these reductions, total
operating expenses for the Institutional Class of Natural Resources
presented in the table would be 1.27%.
EXPENSE TABLE EXAMPLE: You would pay the following expenses on a $1,000
investment in Institutional Class shares, assuming a 5% annual return and
full redemption at the end of each time period:
Operating Expenses Examples

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CONSUMER INDUSTRIES Management fee 0.61%[A After 1 $ 15
] year

12b-1 fee None After 3 $ 47
years

Other expenses (after reimbursement) 0.89%[A
]

Total operating expenses 1.50%

CYCLICAL INDUSTRIES Management fee 0.61%[A After 1 $ 15
] year

12b-1 fee None After 3 $ 47
years

Other expenses (after reimbursement) 0.89%[A
]

Total operating expenses 1.50%

FINANCIAL SERVICES Management fee 0.61%[A After 1 $ 15
] year

12b-1 fee None After 3 $ 47
years

Other expenses (after reimbursement) 0.89%[A
]

Total operating expenses 1.50%

HEALTH CARE Management fee 0.61%[A After 1 $ 15
] year

12b-1 fee None After 3 $ 47
years

Other expenses (after reimbursement) 0.89%[A
]

Total operating expenses 1.50%

NATURAL RESOURCES Management fee 0.60%[B After 1 $ 13
] year

12b-1 fee None After 3 $ 42
years

Other expenses 0.72% After 5 $ 72
years

Total operating expenses 1.32% After 10 $ 15
years 9

TECHNOLOGY Management fee 0.61%[A After 1 $ 15
] year

12b-1 fee None After 3 $ 47
years

Other expenses (after reimbursement) 0.89%[A
]

Total operating expenses 1.50%

UTILITIES GROWTH Management fee 0.61%[A After 1 $ 15
] year

12b-1 fee None After 3 $ 47
years

Other expenses (after reimbursement) 0.89%[A
]

Total operating expenses 1.50%

</TABLE>

[A] BASED ON ESTIMATED EXPENSES FOR THE FIRST YEAR.
[B] EFFECTIVE SEPTEMBER 1, 1996, FMR VOLUNTARILY AGREED TO IMPLEMENT A
MANAGEMENT FEE REDUCTION. THE INDIVIDUAL FUND FEE RATE WAS REDUCED FROM
0.45% TO 0.30%. IF THIS AGREEMENT WAS NOT IN EFFECT, THE MANAGEMENT FEE
WOULD HAVE BEEN 0.72%.
THESE EXAMPLES ILLUSTRATE THE EFFECT OF EXPENSES, BUT ARE NOT MEANT TO
SUGGEST ACTUAL OR EXPECTED COSTS OR RETURNS, ALL OF WHICH MAY VARY.
FMR has voluntarily agreed to reimburse the Institutional Class of each
fund to the extent that total operating expenses as a percentage of its
average net assets exceed the following rates:
Effectiv
e
Date

Consumer Industries 1.50 9/1/96
%

Cyclical Industries 1.50 9/1/96
%

Financial Services 1.50 9/1/96
%

Health Care 1.50 9/1/96
%

Natural Resources 1.50 8/30/96
%

Technology 1.50 9/1/96
%

Utilities Growth 1.50 9/1/96
%

If these agreements were not in effect, other expenses and total operating
expenses of the Institutional Class of each fund, as a percentage of
average net assets, would have been the following amounts:
Other Total
Expen Expens
ses es

Consumer Industries[A] 2. 08 2.69
% %

Cyclical Industries[A] ** **

Financial Services[A] 1.7 9 2. 40
% %

Health Care[A] 1. 53 2.14
% %

Natural Resources * *

Technology[A] 1. 32 1. 93
% %

Utilities Growth[A] 1. 58 2. 19
% %

*TOTAL OPERATING EXPENSES WERE LESS THAN THE VOLUNTARY EXPENSE CAP IN
EFFECT DURING THE FISCAL YEAR ENDED 1996.
**TOTAL OPERATING EXPENSES ARE NOT EXPECTED TO EXCEED THE VOLUNTARY
EXPENSE CAP IN EFFECT DURING THE FISCAL YEAR ENDED 1997.
[A] BASED ON ESTIMATED EXPENSES FOR FIRST YEAR.
Expenses eligible for reimbursement do not include interest, taxes,
brokerage commissions, and extraordinary expenses.
FINANCIAL HIGHLIGHTS
The financial highlights table that follows for Natural Resources is
included in the fund's Annual Report and has been audited by Coopers &
Lybrand L.L.P., independent accountants. Their report on the financial
statements and financial highlights is included in the fund's Annual
Report. The financial highlights tables that follow for Consumer
Industries, Cyclical Industries, Financial Services, Health Care,
Technology, and Utilities Growth are included in each fund's Semiannual
Report. The financial statements, the financial highlights and , for
Natural Resources, the report of the auditor are incorporated by
reference into (are legally a part of) the funds ' SAI.
Contact FDC or your investment professional for a free copy of the
Semiannual Report, or for Natural Resources the Annual
Report , or the SAI.
CONSUMER INDUSTRIES

<TABLE>
<CAPTION>
<S> <C>
1.Selected Per-Share Data and RatiosE

2.Period ended January 31 (Unaudited) 1997D

3.Net asset value, beginning of period $ 10.00

4.Income from Investment Operations

5. Net investment income .01

6. Net realized and unrealized gain (loss) 1.37

7. Total from investment operations 1.38

8.Less Distributions

9. From net investment income (.01)

10. From net realized gain (.06)

11. Total distributions (.07)

12.Redemption fees added to paid in capital --

13.Net asset value, end of period $ 11.31

14.Total returnB,C 13.84%

15.Net assets, end of period (000 omitted) $ 1,298

16.Ratio of expenses to average net assets 1.50%A,
F

17.Ratio of net investment income to average net assets .32%A

18.Portfolio turnover 72%A

19.Average commission rate G $ .0282

</TABLE>

<TABLE>
<CAPTION>
<S> <C>
20.Selected Per-Share Data and RatiosE

21.Period ended January 31 (Unaudited) 1997D

22.Net asset value, beginning of period $ 10.00

23.Income from Investment Operations

24. Net investment income .01

25. Net realized and unrealized gain (loss) 1.55

26. Total from investment operations 1.56

27.Less Distributions

28. From net investment income (.01)

29. In excess of net investment income (.01)

30. From net realized gain (.08)

31. Total distributions (.10)

32.Redemption fees added to paid in capital --

33.Net asset value, end of period $ 11.46

34.Total returnB,C 15.63%

35.Net assets, end of period (000 omitted) $ 6,060

36.Ratio of expenses to average net assets 1.50%A,
F

37.Ratio of expenses to average net assets after expense reductions 1.46%A,
G

38.Ratio of net investment income to average net assets .28%A

39.Portfolio turnover 43%A

40.Average commission rate H $ .0210

</TABLE>

<TABLE>
<CAPTION>
<S> <C>
41.Selected Per-Share Data and RatiosE

42.Period ended January 31 (Unaudited) 1997D

43.Net asset value, beginning of period $ 10.00

44.Income from Investment Operations

45. Net investment income .04

46. Net realized and unrealized gain (loss) 2.31

47. Total from investment operations 2.35

48.Less Distributions

49. From net investment income (.02)

50. From net realized gain (.01)

51. Total distributions (.03)

52.Redemption fees added to paid in capital --

53.Net asset value, end of period $ 12.32

54.Total returnB,C 23.51%

55.Net assets, end of period (000 omitted) $ 1,094

56.Ratio of expenses to average net assets 1.50%A,
F

57.Ratio of expenses to average net assets after expense reductions 1.49%A,
G

58.Ratio of net investment income to average net assets .83%A

59.Portfolio turnover 123%A

60.Average commission rateH $ .0333

</TABLE>

<TABLE>
<CAPTION>
<S> <C>
61.Selected Per-Share Data and RatiosE

62.Period ended January 31 (Unaudited) 1997D

63.Net asset value, beginning of period $ 10.00

64.Income from Investment Operations

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

66. Net realized and unrealized gain (loss) 1.72

67. Total from investment operations 1.71

68.Redemption fees added to paid in capital -

69.Net asset value, end of period $ 11.71

70.Total returnB,C 17.10%

71.Net assets, end of period (000 omitted) $ 1,075

72.Ratio of expenses to average net assets 1.50%A,
F

73.Ratio of expenses to average net assets after expense reductions 1.49%A,
G

74.Ratio of net investment income (loss) to average net assets (.25)%A

75.Portfolio turnover 52%A

76.Average commission rateH $ .0333

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
77.Selected Per-Share Data and RatiosD

78.Years ended October 31 1996 1995E

79.Net asset value, beginning of period $ 19.27 $ 18.87

80.Income from Investment Operations

81. Net investment income (loss) .04 (.01)

82. Net realized and unrealized gain (loss) 6.55 .41

83. Total from investment operations 6.59 .40

84.Less Distributions

85. From net realized gain (.69) --

86.Net asset value, end of period $ 25.17 $ 19.27

87.Total returnB,C 35.13% 2.12%

88.Net assets, end of period (000 omitted) $ 9,860 $ 718

89.Ratio of expenses to average net assets 1.44% 1.68%
A,F

90.Ratio of expenses to average net assets after expense reductions 1.39% 1.66%
A,G

91.Ratio of net investment income (loss) to average net assets .17% (.13)%A

92.Portfolio turnover 137% 161%

93.Average commission rateH $ .0337

</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.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF INSTITUTIONAL CLASS
SHARES) TO OCTOBER 31, 1995.
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.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
H FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, 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.
TECHNOLOGY

<TABLE>
<CAPTION>
<S> <C>
94.Selected Per-Share Data and RatiosE

95.Period ended January 31 (Unaudited) 1997D

96.Net asset value, beginning of period $ 10.00

97.Income from Investment Operations

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

99. Net realized and unrealized gain (loss) 3.93

100. Total from investment operations 3.88

101.Less Distributions

102. From net realized gain (.09)

103.Redemption fees added to paid in capital -

104.Net asset value, end of period $ 13.79

105.Total returnB,C 38.89%

106.Net assets, end of period (000 omitted) $ 1,404

107.Ratio of expenses to average net assets 1.50%A,
F

108.Ratio of expenses to average net assets after expense reductions 1.44%A,
G

109.Ratio of net investment income (loss) to average net assets (.91)%
A

110.Portfolio turnover 417%A

111.Average commission rateH $ .0403

</TABLE>

<TABLE>
<CAPTION>
<S> <C>
112.Selected Per-Share Data and RatiosE

113.Period ended January 31 (Unaudited) 1997D

114.Net asset value, beginning of period $ 10.00

115.Income from Investment Operations

116. Net investment income .06

117. Net realized and unrealized gain (loss) 1.78

118. Total from investment operations 1.84

119.Less Distributions

120. From net investment income (.04)

121. From net realized gain (.11)

122. Total distributions (.15)

123.Redemption fees added to paid in capital -

124.Net asset value, end of period $ 11.69

125.Total returnB,C 18.49%

126.Net assets, end of period (000 omitted) $ 1,888

127.Ratio of expenses to average net assets 1.50%A,F

128.Ratio of net investment income to average net assets 1.36%A

129.Portfolio turnover 22%A

130.Average commission rateG $ .0183

</TABLE>

A ANNUALIZED
B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN.
C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF INSTITUTIONAL
CLASS SHARES) TO JANUARY 31, 1997.
E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
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.
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.
PERFORMANCE
Mutual fund performance is commonly measured as TOTAL RETURN. The total
returns that follow for the Institutional Class of Natural Resources are
based on historical fund results and do not reflect the effect of taxes.
For Natural Resources, the fiscal year runs from November 1 to October 31.
The table below shows the performance of the Institutional Class of Natural
Resources over past fiscal years. The chart below presents calendar year
performance for the Institutional Class of Natural Resources.
Performance history will be available for Consumer Industries, Cyclical
Industries, Financial Services, Health Care, Technology, and Utilities
Growth after the funds have been in operation for six months.
NATURAL RESOURCES - INSTITUTIONAL CLASS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Average Annual Total Return* Cumulative Total Return*

Past 1 Past 5 Life of fund+ Past 1 Past 5 Life of fund+
year years year years

NATURAL RESOURCES 35.13% 18.55% 17.24% 35.13% 134.17% 308.45%

</TABLE>

YEAR-BY-YEAR TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar years* 1988 1989 1990 1991 1992 1993 1994 1995 1996

NATURAL RESOURCES 16.10 33.14 -5.28 14.47 13.33 37.94 -2.28 28.86 30.72
% % % % % % % % %

S&P 500 16.61 31.69 -3.10 30.47 7.62 10.08 1.32% 37.58 22.96
% % % % % % % %

Lipper Natural Resources Funds 8.83% 32.32 -8.59 2.92% 1.47% 22.94 -4.09 18.80 32.74
Average % % % % % %

Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%

</TABLE>

Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 16.1
Row: 3, Col: 1, Value: 33.14
Row: 4, Col: 1, Value: -5.28
Row: 5, Col: 1, Value: 14.47
Row: 6, Col: 1, Value: 13.33
Row: 7, Col: 1, Value: 37.94
Row: 8, Col: 1, Value: -2.28
Row: 9, Col: 1, Value: 28.86
Row: 10, Col: 1, Value: 30.72
(LARGE SOLID BOX) NATURAL RESOURCES -
INSTITUTIONAL CLASS
+ LIFE OF FUND FIGURES ARE FROM COMMENCEMENT OF OPERATIONS (DECEMBER 29,
1987) THROUGH THE PERIOD ENDED OCTOBER 31, 1996.
* INITIAL OFFERING OF INSTITUTIONAL CLASS SHARES TOOK PLACE ON JULY 3,
1995, AND DO NOT BEAR A SALES LOAD OR 12B-1 FEE. RETURNS PRIOR TO JULY 3,
1995, ARE THOSE OF CLASS T SHARES, THE ORIGINAL CLASS OF THESE FUNDS AND
INCLUDE CLASS T'S 12B-1 FEE (AT A THEN APPLICABLE RATE OF 0.65%).
If FMR had not reimbursed certain class expenses of Natural Resources
during these periods, total returns would have been lower.
EXPLANATION OF TERMS
TOTAL RETURN is the change in value of an investment over a given period,
assuming reinvestment of any dividends and capital gains. A CUMULATIVE
TOTAL RETURN reflects actual performance over a stated period of time. An
AVERAGE ANNUAL TOTAL RETURN is a hypothetical rate of return that, if
achieved annually, would have produced the same cumulative total return if
performance had been constant over the entire period. Average annual total
returns smooth out variations in performance; they are not the same as
actual year-by-year results. Average annual total returns covering periods
of less than one year assume that performance will remain constant for the
rest of the year.
THE COMPETITIVE FUNDS AVERAGE is the Lipper Natural Resources Funds
Average, which currently reflects the performance of 39 mutual funds with
similar objectives. This average, published by Lipper Analytical Services,
Inc., excludes the effect of sales charges.
STANDARD & POOR'S 500 INDEX (S&P 500 (registered trademark)) is a
widely recognized, unmanaged index of common stocks.
Unlike each class's returns, the total returns of each comparative index do
not include the effect of any brokerage commissions, transaction fees, or
other costs of investing.
THE CONSUMER PRICE INDEX is a widely recognized measure of inflation
calculated by the U.S. Government.
The Institutional Class of each fund may quote its adjusted net asset value
including all distributions paid. This value may be averaged over specified
periods and may be used to calculate a class's moving average.
The funds' recent strategies, performance, and holdings are detailed twice
a year in financial reports, which are sent to all shareholders. For
current performance or a free annual report for Natural Resources, please
contact your investment professional.
TOTAL RETURNS ARE BASED ON PAST RESULTS AND ARE NOT AN INDICATION OF FUTURE
PERFORMANCE.
THE FUNDS IN DETAIL

CHARTER
EACH FUND IS A MUTUAL FUND: an investment that pools shareholders' money
and invests it toward a specified goal. Consumer Industries, Cyclical
Industries, Health Care, Technology, and Utilities Growth are
non-diversified funds and Financial Services is a diversified fund of
Fidelity Advisor Series VII, a Massachusetts business trust organized on
March 21, 1980. Natural Resources is a diversified fund of Advisor Series
V, a Massachusetts business trust organized on April 23, 1986. Each trust
is an open-end management company. There is a remote possibility that one
fund might become liable for a misstatement in the prospectus about another
fund.
EACH FUND IS GOVERNED BY A BOARD OF TRUSTEES which is responsible for
protecting the interests of shareholders. The trustees are experienced
executives who meet throughout the year to oversee the funds' activities,
review contractual arrangements with companies that provide services to the
funds, and review the funds' performance. The majority of trustees are not
otherwise affiliated with Fidelity.
THE FUNDS MAY HOLD SPECIAL MEETINGS AND MAIL PROXY MATERIALS. These
meetings may be called to elect or remove trustees, change fundamental
policies, approve a management contract, or for other purposes.
Shareholders not attending these meetings are encouraged to vote by proxy.
Fidelity will mail proxy materials in advance, including a voting card and
information about the proposals to be voted on. For shareholders of
Consumer Industries, Cyclical Industries, Financial Services, Health Care,
Technology, and Utilities Growth, you are entitled to one vote for each
share you own. For shareholders of Natural Resources, the number of votes
you are entitled to is based upon the dollar value of your investment.
Separate votes are taken by each class of shares, fund, or trust, if a
matter affects just that class of shares, fund, or trust, respectively.
FMR AND ITS AFFILIATES
Fidelity Investments is one of the largest investment management
organizations in the United States and has its principal business address
at 82 Devonshire Street, Boston, Massachusetts 02109. It includes a number
of different subsidiaries and divisions which provide a variety of
financial services and products. The funds employ various Fidelity
companies to perform activities required for their operation.
The funds are managed by FMR, which chooses each fund's investments and
handles its business affairs. FMR chooses investments with the assistance
of foreign affiliates for each fund.
(small solid bullet) Fidelity Management & Research (U.K.) Inc. (FMR U.K.),
in London, England, serves as a sub-adviser for Consumer Industries,
Cyclical Industries, Financial Services, Health Care, Natural Resources,
Technology, and Utilities Growth.
(small solid bullet) Fidelity Management & Research Far East Inc. (FMR Far
East), in Tokyo, Japan, serves as a sub-adviser for Consumer Industries,
Cyclical Industries, Financial Services, Health Care, Natural Resources,
Technology, and Utilities Growth.
As of January 31, 1996, FMR advised funds having approximately 29
million shareholder accounts with a total value of more than
$43 5 billion.
Paul Antico is manager of Advisor Consumer Industries which he has managed
since January 1997. He also manages other Fidelity funds. Since joining
Fidelity in 1991, Mr. Antico has worked as an analyst and manager.
Albert Ruback is manager of Advisor Cyclical Industries, which he has
managed since September 1996. Previously, he managed other Fidelity funds.
Mr. Ruback joined Fidelity as an analyst in 1991, after receiving an MBA
from Harvard Business School.
Louis Salemy is manager of Advisor Financial Services, which he has managed
since September 1996. He also manages other Fidelity funds. Since joining
Fidelity in 1992, Mr. Salemy has worked as an analyst and manager.
Previously, he was a security analyst for Loomis, Sayles and Company from
1989 to 1992.
Karen Firestone is manager of Advisor Heath Care, which she has managed
since September 1996. She also manages several other Fidelity Funds. Since
joining Fidelity in 1983, Ms. Firestone has worked as an analyst and
manager.
Lawrence Rakers is manager of Advisor Natural Resources, which he has
managed since January 1997. He also manages other Fidelity funds. Mr.
Rakers joined Fidelity as an analyst in 1993. Previously, he was a project
engineer for Loral Corporation from 1986 to 1993.
Adam Hetnarski is manager of Advisor Technology, which he has managed since
September 1996. He also manages another Fidelity fund. Since joining
Fidelity in 1991, Mr. Hetnarski has worked as an analyst and manager.
John Muresianu is manager of Advisor Utilities Growth, which he has managed
since September 1996. He also manages other Fidelity funds. Since joining
Fidelity in 1986, Mr. Muresianu has worked as an analyst and manager.
Fidelity investment personnel may invest in securities for their own
account pursuant to a code of ethics that establishes procedures for
personal investing and restricts certain transactions.
FDC distributes and markets Fidelity's funds and services. Fidelity
Investments Institutional Operations Company, Inc. (FIIOC) performs
transfer agent servicing functions for the Institutional Class of each
fund.
FMR Corp. is the ultimate parent company of FMR, FMR U.K., and FMR Far
East. Members of the Edward C. Johnson 3d family are the predominant owners
of a class of shares of common stock representing approximately 49% of the
voting power of FMR Corp. Under the Investment Company Act of 1940 (the
1940 Act), control of a company is presumed where one individual or group
of individuals owns more than 25% of the voting stock of that company;
therefore, the Johnson family may be deemed under the 1940 Act to form a
controlling group with respect to FMR Corp.
As of February 28, 1997, approximately 65.00% of Cyclical Industries'
total outstanding shares were held by Meridian Asset Management.
A broker-dealer may use a portion of the commissions paid by a fund to
reduce custodian or transfer agent fees for that fund. FMR may use its
broker-dealer affiliates and other firms that sell fund shares to carry out
a fund's transactions, provided that the fund receives brokerage services
and commission rates comparable to those of other broker-dealers.
INVESTMENT PRINCIPLES AND RISKS
Each fund concentrates its investments in the securities of companies in a
particular market sector. Under normal conditions, each fund will invest at
least 80% of its assets in securities of companies principally engaged in
the business activities of its named market sector. The funds will invest
primarily in equity securities, although they may invest in other types of
instruments as well.
The funds may involve significantly greater risks and therefore may
experience greater volatility than a mutual fund that does not concentrate
its investments. Because of the funds' narrow focus, each fund's
performance is closely tied to and affected by industries within its market
sector. Companies in an industry are often faced with the same obstacles,
issues, or regulatory burdens, and their securities may react similarly and
move in unison with these or other market conditions. Also, because the
funds (except Financial Services and Natural Resources) are
non-diversified, they are further exposed to increased volatility.
Non-diversified funds may have greater investments in a single issuer than
diversified funds, so the performance of a single issuer can have a
substantial impact on a fund's share price. Finally, the funds' strategies
in seeking to achieve their investment objectives may lead to investments
in smaller companies. Securities of smaller companies, especially those
whose business involves emerging products or concepts, may be more volatile
due to their limited product lines, markets, or financial resources, or
their susceptibility to major setbacks or downturns.
The value of each fund's domestic and foreign investments varies in
response to many factors. Stock values fluctuate in response to the
activities of individual companies and general market and economic
conditions. Investments in foreign securities may involve risks in addition
to those of U.S. investments, including increased political and economic
risk, as well as exposure to currency fluctuations.
FMR may use various investment techniques to hedge a portion of the funds'
risks, but there is no guarantee that these strategies will work as FMR
intends. When you sell your shares, they may be worth more or less than
what you paid for them.
FMR normally invests each fund's assets according to its investment
strategy. Each fund also reserves the right to invest without limitation in
preferred stocks and investment-grade debt instruments for temporary,
defensive purposes.
CONSUMER INDUSTRIES FUND seeks capital appreciation.
The fund invests primarily in companies engaged in the manufacture and
distribution of goods to consumers both domestically and internationally.
The fund normally invests at least 80% of its assets in securities of these
companies. These may include, for example, companies that manufacture or
sell durable goods such as homes, cars, boats, major appliances, and
personal computers. They may also include companies that manufacture or
sell non-durable goods such as food or entertainment products, and
companies that provide services such as lodging or childcare.
The success of consumer product manufacturers and retailers is closely tied
to the performance of the overall economy, interest rates, competition, and
consumer confidence. Success depends heavily on disposable household income
and consumer spending. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products in the
marketplace.
CYCLICAL INDUSTRIES FUND seeks capital appreciation.
The fund invests primarily in companies engaged in the research,
development, manufacture, distribution, supply, or sale of materials,
equipment, products or services related to cyclical industries. The fund
normally invests at least 80% of its assets in securities of these
companies. These may include companies in the automotive, chemical,
construction and housing, defense and aerospace, environmental services,
industrial equipment and materials, paper and forest products, and
transportation industries.
Many companies in these industries are significantly affected by general
economic trends including employment, economic growth, and interest rates.
Other factors that may affect these industries are changes in consumer
sentiment and spending, commodity prices, legislation, government
regulation and spending, import controls, and worldwide competition. At
times, worldwide production of these materials used in cyclical industries
has exceeded demand as a result of, for example, over-building or economic
downturns. During these times, commodity price declines and unit volume
reductions resulted in poor investment returns and losses. Furthermore, a
company in the cyclical industries may be subject to liability for
environmental damage, depletion of resources, and mandated expenditures for
safety and pollution control.
FINANCIAL SERVICES FUND seeks capital appreciation.
The fund invests primarily in companies that provide financial services to
consumers and industry. The fund normally invests at least 80% of its
assets in securities of these companies. These may include commercial
banks, savings and loan associations, brokerage companies, insurance
companies, real estate and leasing companies, and companies that span
across these segments. Under SEC regulations, the fund may not invest more
than 5% of its total assets in the equity securities of any company that
derives more than 15% of its revenues from brokerage or investment
management activities.
Financial services companies are subject to extensive governmental
regulation which may limit both the amounts and types of loans and other
financial commitments they can make, and the interest rates and fees they
can charge. Profitability is largely dependent on the availability and cost
of capital funds, and can fluctuate significantly when interest rates
change. Credit losses resulting from financial difficulties of borrowers
can negatively impact the industry. Insurance companies may be subject to
severe price competition. Legislation is currently being considered which
would reduce the separation between commercial and investment banking
businesses. If enacted, it could significantly impact the industry and the
fund.
HEALTH CARE FUND seeks capital appreciation.
The fund invests primarily in companies engaged in the design, manufacture,
or sale of products or services used for or in connection with health care
or medicine. The fund normally invests at least 80% of its assets in
securities of these companies. These may include, for example,
pharmaceutical companies, companies involved in research and development,
companies involved in the operation of health care facilities, and other
companies involved in the design, manufacture, or sale of related products
or services.
Many of these companies are subject to government regulation and approval
of their products and services, which could have a significant effect on
their price and availability. Furthermore, the types of products or
services produced or provided by these companies may quickly become
obsolete.
NATURAL RESOURCES FUND seeks long-term growth of capital and protection of
the purchasing power of shareholders' capital by investing primarily in
securities of foreign and domestic companies that own or develop natural
resources, or supply goods and services to such companies, or in physical
commodities.
The fund normally invests at least 80% of its assets in securities of
foreign and domestic companies that own or develop natural resources, or
supply goods and services to such companies, or in physical commodities.
These may include companies involved either directly or through
subsidiaries in exploring, mining, refining, processing, transporting,
fabricating, dealing in, or owning natural resources. Natural resources
include precious metals (e.g., gold, platinum and silver), ferrous and
nonferrous metals (e.g., iron, aluminum and copper), strategic metals
(e.g., uranium and titanium), hydrocarbons (e.g., coal, oil and natural
gases), chemicals, forest products, real estate, food products and other
basic commodities. FMR will seek securities whose prices directly reflect
positive changes in the value of an underlying natural resource or whose
issuers will benefit from particular phases in the overall economic cycle.
Accordingly, the fund may shift its emphasis from one natural resource
industry to another depending upon prevailing trends or developments. The
fund may also invest in securities of companies in other industries, and in
corporate and governmental debt securities of all types.
Although the fund is authorized to invest up to 50% of its assets in
physical commodities, it currently intends to invest no more than 25% of
its total assets in them, and intends to limit its physical commodity
investments to readily marketable precious metals. Precious metals, at
times, have been subject to substantial price fluctuations over short
periods of time and may be affected by unpredictable international monetary
and political policies such as currency devaluations or revaluations,
economic and social conditions within a country, trade imbalances, or trade
or currency restrictions between countries.
TECHNOLOGY FUND seeks capital appreciation.
The fund invests primarily in companies which have or will develop,
products, processes, or services that will provide or will benefit
significantly from technological advances and improvements. The fund
normally invests at least 80% of its assets in securities of these
companies. These may include, for example, companies that develop, produce
or distribute products or services in the computer, semi-conductor,
communications, health care, and biotechnology sectors.
Competitive pressures may have a significant effect on the financial
condition of companies in the technology industry. For example, if
technology continues to advance at an accelerated rate, and the number of
companies and product offerings continues to expand, these companies could
become increasingly sensitive to short product cycles and aggressive
pricing.
UTILITIES GROWTH FUND seeks capital appreciation.
The fund invests primarily in companies in the public utilities industry
and companies deriving a majority of their revenues from their public
utility operations. The fund normally invests at least 80% of its assets in
securities of these companies. These may include, for example, companies
that manufacture, produce, sell, or transmit gas or electric energy, and
those involved in telephone, satellite, and other communication fields.
Public utility stocks have traditionally produced above-average dividend
income, but the fund's investments are based on growth potential. The gas
and electric public utilities industries may be subject to broad risks
resulting from governmental regulation, financing difficulties, supply and
demand of services or fuel, and special risks associated with energy and
atmosphere conservation. The fund may not own more than 5% of the
outstanding voting securities of more than one public utility company as
defined by the Public Utility Holding Company Act of 1935.
SECURITIES AND INVESTMENT PRACTICES
The following pages contain more detailed information about types of
instruments in which a fund may invest, strategies FMR may employ in
pursuit of a fund's investment objective, and a summary of related risks.
Any restrictions listed supplement those discussed earlier in this section.
A complete listing of each fund's limitations and more detailed information
about each fund's investments are contained in the funds' SAI. Policies and
limitations are considered at the time of purchase; the sale of instruments
is not required in the event of a subsequent change in circumstances.
FMR may not buy all of these instruments or use all of these techniques
unless it believes that they are consistent with a fund's investment
objective and policies and that doing so will help a fund achieve its goal.
Fund holdings and recent investment strategies are detailed in each fund's
financial reports, which are sent to shareholders twice a year. For a free
SAI or financial report, call your investment professional.
EQUITY SECURITIES may include common stocks, preferred stocks, convertible
securities, and warrants. Common stocks, the most familiar type, represent
an equity (ownership) interest in a corporation. Although equity securities
have a history of long-term growth in value, their prices fluctuate based
on changes in a company's financial condition and on overall market and
economic conditions. Smaller companies are especially sensitive to these
factors.
RESTRICTIONS: With respect to 75% of its total assets, Financial Services
and Natural Resources may not purchase more than 10% of the outstanding
voting securities of a single issuer. Except Natural Resources, this
limitation does not apply to securities of other investment
companies .
Utilities Growth may not own more than 5% of the outstanding voting
securities of more than one public utility company as defined by the Public
Utility Holding Company Act of 1935. Financial Services may not invest more
than 5% of its total assets in the equity securities of any company that
derives more than 15% of its revenues from brokerage or investment
management activities.
DEBT SECURITIES. Bonds and other debt instruments are used by issuers to
borrow money from investors. The issuer pays the investor a fixed or
variable rate of interest, and must repay the amount borrowed at maturity.
Some debt securities, such as zero coupon bonds, do not pay current
interest, but are purchased at a discount from their face values. In
general, bond prices rise when interest rates fall, and vice versa. Debt
securities, loans, and other direct debt have varying degrees of quality
and varying levels of sensitivity to changes in interest rates. Longer-term
bonds are generally more sensitive to interest rate changes than short-term
bonds.
Investment-grade debt securities are medium- and high-quality securities.
Some, however, may possess speculative characteristics and may be more
sensitive to economic changes and to changes in the financial condition of
issuers. Lower-quality debt securities are sometimes called "junk bonds."
RESTRICTIONS: Purchase of a debt security is consistent with a fund's debt
quality policy if it is rated at or above the stated level by Moody's
Investor Service (Moody's) or rated in the equivalent categories by
Standard & Poor's (S&P), or is unrated but judged to be of equivalent
quality by FMR.
Each fund currently intends to limit its investments in lower than
Baa-quality debt securities to 5% of its assets.
OTHER INSTRUMENTS may include securities of closed-end investment companies
and real estate-related investments.
EXPOSURE TO FOREIGN MARKETS. Foreign securities, foreign currencies, and
securities issued by U.S. entities with substantial foreign operations may
involve additional risks and considerations. These include risks relating
to political or economic conditions in foreign countries, fluctuations in
foreign currencies, withholding or other taxes, operational risks,
increased regulatory burdens, and the potentially less stringent investor
protection and disclosure standards of foreign markets. Additionally,
governmental issuers of foreign debt securities may be unwilling to pay
interest and repay principal when due, and may require that the conditions
for payment be renegotiated. All of these factors can make foreign
investments, especially those in developing countries, more volatile than
U.S. investments.
AMERICAN DEPOSITARY RECEIPTS AND EUROPEAN DEPOSITARY RECEIPTS (ADRS AND
EDRS) are certificates evidencing ownership of shares of a foreign-based
issuer held in trust by a bank or similar financial institution. Designed
for use in U.S. and European securities markets, respectively, ADRs and
EDRs are alternatives to the purchase of the underlying securities in their
national markets and currencies.
REPURCHASE AGREEMENTS. In a repurchase agreement, a fund buys a security at
one price and simultaneously agrees to sell it back at a higher price.
Delays or losses could result if the other party to the agreement defaults
or becomes insolvent.
ADJUSTING INVESTMENT EXPOSURE. A fund can use various techniques to
increase or decrease its exposure to changing security prices, interest
rates, currency exchange rates, commodity prices, or other factors that
affect security values. These techniques may involve derivative
transactions such as buying and selling options and futures contracts,
entering into currency exchange contracts or swap agreements, and
purchasing indexed securities.
FMR can use these practices to adjust the risk and return characteristics
of a fund's portfolio of investments. If FMR judges market conditions
incorrectly or employs a strategy that does not correlate well with a
fund's investments, these techniques could result in a loss, regardless of
whether the intent was to reduce risk or increase return. These techniques
may increase the volatility of a fund and may involve a small investment of
cash relative to the magnitude of the risk assumed. In addition, these
techniques could result in a loss if the counterparty to the transaction
does not perform as promised.
ILLIQUID AND RESTRICTED SECURITIES. Some investments may be determined by
FMR, under the supervision of the Board of Trustees, to be illiquid, which
means that they may be difficult to sell promptly at an acceptable price.
The sale of some illiquid securities, and some other securities, may be
subject to legal restrictions. Difficulty in selling securities may result
in a loss or may be costly to a fund.
RESTRICTIONS: Each fund may not purchase a security if, as a result, more
than 10% of its assets would be invested in illiquid securities.
CASH MANAGEMENT. A fund may invest in money market securities, in
repurchase agreements, and in a money market fund available only to funds
and accounts managed by FMR or its affiliates, whose goal is to seek a high
level of current income while maintaining a stable $1.00 share price. A
major change in interest rates or a default on the money market fund's
investments could cause its share price to change.
DIVERSIFICATION. Diversifying a fund's investment portfolio can reduce the
risks of investing. This may include limiting the amount of money invested
in any one issuer or, on a broader scale, in any one industry. Economic,
business, or political changes can affect all securities of a similar type.
A fund that is not diversified may be more sensitive to changes in the
market value of a single issuer or industry.
RESTRICTIONS: Each fund (except Financial Services and Natural Resources)
is considered non-diversified. Generally, to meet federal tax requirements
at the close of each quarter, each fund (except Financial Services and
Natural Resources) does not invest more than 25% of its total assets in any
one issuer and, with respect to 50% of total assets, does not invest more
than 5% of its total assets in any one issuer. With respect to 75% of its
total assets, each of Financial Services and Natural Resources may not
purchase a security if, as a result, more than 5% would be invested in the
securities of any one issuer. These limitations do not apply to U.S.
Government securities or, except Natural Resource s, securities of other
investment companies .
Each fund normally invests at least 80% of its assets, but always invests
at least 25% of its total assets, in securities of companies principally
engaged in the business activities of the industries in the market sector
identified for the fund. Natural Resources may not invest more than 25% of
its total assets in any one industry. This limitation does not apply to
U.S. Government securities.
BORROWING. Each fund may borrow from banks or from other funds advised by
FMR, or through reverse repurchase agreements. If a fund borrows money, its
share price may be subject to greater fluctuation until the borrowing is
paid off. If a fund makes additional investments while borrowings are
outstanding, this may be considered a form of leverage.
RESTRICTIONS: Each fund may borrow only for temporary or emergency
purposes, but not in an amount exceeding 331/3% of its total assets.
LENDING securities to broker-dealers and institutions, including Fidelity
Brokerage Services, Inc. (FBSI), an affiliate of FMR, is a means of earning
income. This practice could result in a loss or a delay in recovering a
fund's securities. A fund may also lend money to other funds advised by
FMR.
RESTRICTIONS: Loans, in the aggregate, may not exceed 331/3% of a fund's
total assets.
FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS
Some of the policies and restrictions discussed on the preceding pages are
fundamental, that is, subject to change only by shareholder approval. The
following paragraphs restate all those that are fundamental. All policies
stated throughout this prospectus, other than those identified in the
following paragraphs, can be changed without shareholder approval.
CONSUMER INDUSTRIES FUND invests primarily in companies engaged in the
manufacture and distribution of goods to consumers both domestically and
internationally.
CYCLICAL INDUSTRIES FUND invests primarily in companies engaged in the
research, development, manufacture, distribution, supply or sale of
materials, equipment, products or services related to cyclical industries.
FINANCIAL SERVICES FUND invests primarily in companies providing financial
services to consumers and industry.
HEALTH CARE FUND invests primarily in companies engaged in the design,
manufacture, or sale of products or services used for or in connection with
health care or medicine.
NATURAL RESOURCES FUND seeks long-term growth of capital and protection of
the purchasing power of shareholders' capital by investing primarily in
securities of foreign and domestic companies that own or develop natural
resources, or supply goods and services to such companies, or in physical
commodities.
TECHNOLOGY FUND invests primarily in companies which have or will develop,
products, processes or services that will provide or will benefit
significantly from technological advances and improvements.
UTILITIES GROWTH FUND invests primarily in companies in the public
utilities industry and companies deriving a majority of their revenues from
their public utility operations.
EACH FUND (except Natural Resources) seeks capital appreciation.
Each fund (except Natural Resources) invests at least 25% of its total
assets in securities of companies principally engaged in the business
activities of the industries in the market sector identified for the fund.
Natural Resources may not invest more than 25% of its total assets in any
one industry. This limitation does not apply to U.S. Government securities.
With respect to 75% of its total assets, Financial Services and Natural
Resources may not purchase a security if, as a result, more than 5% would
be invested in the securities of any one issuer and may not purchase more
than 10% of the outstanding voting securities of a single issuer. These
limitations do not apply to U.S. Government securities or, except Natural
Resources, securities of other investment companies.
Each fund may borrow only for temporary or emergency purposes, but not in
an amount exceeding 331/3% of its total assets.
Loans, in the aggregate, may not exceed 33 1/3% of each fund's total
assets.
BREAKDOWN OF EXPENSES
Like all mutual funds, the funds pay fees related to their daily
operations. Expenses paid out of each class's assets are reflected in that
class's share price or dividends; they are neither billed directly to
shareholders nor deducted from shareholder accounts.
Each fund pays a MANAGEMENT FEE to FMR for managing its investments and
business affairs. FMR in turn pays fees to affiliates who provide
assistance with these services. Each fund also pays OTHER EXPENSES, which
are explained on page .
FMR may, from time to time, agree to reimburse a fund for management fees
and other expenses above a specified limit. FMR retains the ability to be
repaid by a fund if expenses fall below the specified limit prior to the
end of the fiscal year. Reimbursement arrangements, which may be terminated
at any time without notice, can decrease a fund's expenses and boost its
performance.
MANAGEMENT FEE
The management fee is calculated and paid to FMR every month. The fee is
calculated by adding a group fee rate to an individual fund fee rate, and
multiplying the result by the fund's average net assets.
The group fee rate is based on the average net assets of all the mutual
funds advised by FMR. This rate cannot rise above 0.52%, and it drops as
total assets under management increase.
The individual fund fee rate for each fund is 0.30%. The following table
states the estimated management fees for each fund (except Natural
Resources) and, for Natural Resources, the management fee for its most
recent fiscal year end.
Group Individual Total
Fee Rate Fund Fee Management
Rate Fee

Consumer Industries 0.31%[ 0.30% 0.61%[A]
A]

Cyclical Industries 0.31%[ 0.30% 0.61%[A]
A]

Financial Services 0.31%[ 0.30% 0.61%[A]
A]

Health Care 0.31%[ 0.30% 0.61%[A]
A]

Natural Resources 0.30% 0.42%[B 0.72%[B]
]

Technology 0.31%[ 0.30% 0.61%[A]
A]

Utilities Growth 0.31%[ 0.30% 0.61%[A]
A]

TYPES OF ACCOUNTS
When you invest through an investment professional, your investment
professional, including a broker-dealer or financial institution, may
charge you a transaction fee with respect to the purchase and sale of fund
shares. Read your investment professional's program materials in
conjunction with this prospectus for additional service features or fees
that may apply. Certain features of the funds, such as minimum initial or
subsequent investment amounts, may be modified.
The different ways to set up (register) your account with Fidelity are
listed at right.
The account guidelines that follow may not apply to certain retirement
accounts. If you are investing through a retirement account or if your
employer offers a fund through a retirement program, you may be subject to
additional fees. For more information, please refer to your program
materials, contact your employer, or call your retirement benefits number
or your investment professional directly, as appropriate.
WAYS TO SET UP YOUR ACCOUNT
INDIVIDUAL OR JOINT TENANT
FOR YOUR GENERAL INVESTMENT NEEDS
Individual accounts are owned by one person. Joint accounts can have two or
more owners (tenants).
RETIREMENT
TO SHELTER YOUR RETIREMENT SAVINGS FROM TAXES
Retirement plans allow individuals to shelter investment income and
capital gains from current taxes. In addition, contributions to these
accounts may be tax deductible. Retirement accounts require special
applications and typically have lower minimums.
(solid bullet) INDIVIDUAL RETIREMENT ACCOUNTS (IRAS) allow anyone of legal
age under 701/2 with earned income to invest up to $2,000 per tax year.
Individuals can also invest in a spouse's IRA if the spouse has earned
income of less than $250.
(solid bullet) ROLLOVER IRAS retain special tax advantages for certain
distributions from employer-sponsored retirement plans.
(solid bullet) SIMPLIFIED EMPLOYEE PENSION PLANS (SEP-IRAS) provide small
business owners or those with self-employed income (and their eligible
employees) with many of the same advantages as a Keogh, but with fewer
administrative requirements.
(solid bullet) 401(K) PLANS allow employees of corporations of all sizes to
contribute a percentage of their wages on a tax-deferred basis. These
accounts need to be established by the trustee of the plan.
(solid bullet) MONEY PURCHASE/PROFIT SHARING PLANS (KEOGH PLANS) are
tax-deferred pension accounts designated for employees of unincorporated
businesses or for persons who are self-employed.
GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA)
TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS
These custodial accounts provide a way to give money to a child and obtain
tax benefits. An individual can give up to $10,000 a year per child without
paying federal gift tax. Depending on state laws, you can set up a
custodial account under the Uniform Gifts to Minors Act (UGMA) or the
Uniform Transfers to Minors Act (UTMA). Contact your investment
professional.
TRUST
FOR MONEY BEING INVESTED BY A TRUST
The trust must be established before an account can be opened.
BUSINESS OR ORGANIZATION
FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS, OR OTHER
GROUPS
Contact your investment professional.
HOW TO BUY SHARES
INSTITUTIONAL CLASS'S SHARE PRICE, called NAV, is calculated every business
day. Institutional Class shares are sold without a sales charge.
Shares are purchased at the next NAV calculated after your order is
received and accepted. NAV is normally calculated at 4:00 p.m. Eastern
time.
It is the responsibility of your investment professional to transmit your
order to buy shares to Fidelity before the close of business on the day you
place your order.
Fidelity must receive payment within three business days after an order for
shares is placed; otherwise your purchase order may be canceled and you
could be held liable for resulting fees and/or losses.
Share certificates are not available for Institutional Class shares.
IF YOU ARE NEW TO THE FIDELITY ADVISOR FUNDS, complete and sign an account
application and mail it along with your check. You may also open your
account by wire as described on page . If there is no account application
accompanying this prospectus, call your investment professional or
1-800-843-3001.
If you are investing through a tax-sheltered retirement plan, such as an
IRA, for the first time, you will need a special application. Contact your
investment professional for more information and a retirement account
application.
IF YOU ALREADY HAVE MONEY INVESTED IN A FIDELITY ADVISOR FUND, you can:
(small solid bullet) Mail an account application with a check,
(small solid bullet) Place an order and wire money into your account,
(small solid bullet) Open your account by exchanging from the same class of
another Fidelity Advisor fund or from another Fidelity fund, or
(small solid bullet) Contact your investment professional.
MINIMUM INVESTMENTS
TO OPEN AN ACCOUNT $2,500*
For Fidelity Advisor IRA, Rollover IRA, SEP-IRA and Keogh accounts $500
Through regular investment plans** $1,000*
TO ADD TO AN ACCOUNT $250*
For Fidelity Advisor IRA, Rollover IRA, SEP-IRA and Keogh accounts $100
Through regular investment plans $100*
MINIMUM BALANCE $1,000**
For Fidelity Advisor IRA, Rollover IRA, SEP-IRA and Keogh accounts NONE
* INVESTMENT MINIMUMS AND MINIMUM ACCOUNT BALANCES ARE ALSO WAIVED FOR
INVESTMENTS IN CERTAIN RETIREMENT ACCOUNTS FUNDED THROUGH SALARY REDUCTION,
OR ACCOUNTS FUNDED WITH THE PROCEEDS OF DISTRIBUTIONS FROM SUCH FIDELITY
RETIREMENT ACCOUNTS.
** AN ACCOUNT MAY BE OPENED WITH A MINIMUM OF $1,000, PROVIDED THAT A
REGULAR INVESTMENT PLAN IS ESTABLISHED AT THE TIME THE ACCOUNT IS OPENED.
FOR MORE INFORMATION ABOUT REGULAR INVESTMENT PLANS, PLEASE REFER TO
"INVESTOR SERVICES," PAGE .
For further information on opening an account, please consult your
investment professional or refer to the account application.

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TO OPEN AN ACCOUNT

PHONE (small solid bullet) Exchange from the same class of another (small solid bullet)
Exchange from the same class of
another
1-800-843-3001 OR YOUR Fidelity Advisor fund or from another Fidelity Advisor fund or from
another
INVESTMENT PROFESSIONAL Fidelity fund account with the same Fidelity fund account with the
same
registration, including name, address, and registration, including name,
address, and
taxpayer ID number. taxpayer ID number.

Mail (mail_graphic) (small solid bullet) Complete and sign the account application. (small solid bullet) Make your
check payable to the complete
Make your check payable to the complete name of the fund of your choice
and note
name of the fund of your choice and note the applicable class. Indicate
your fund
the applicable class. Mail to the address account number on your check
and mail to
indicated on the application. the address printed on your
account
statement.
(small solid bullet) Exchange
by mail: call 1-800-843-3001 or
your investment professional
for instructions.

In Person (hand_graphic) (small solid bullet) Bring your account application and check to (small solid bullet) Bring your
check to your investment
your investment professional. professional.

Wire (wire_graphic) (small solid bullet) Call 1-800-843-3001 to set up your account (small solid bullet) Not
available for retirement
accounts.
and to arrange a wire transaction. Not (small solid bullet) Wire to:
available for retirement accounts. Banker's Trust Co.
(small solid bullet) Wire to: Routing #021001033
Banker's Trust Co. Fidelity DART Depository
Routing # 021001033 Account #00159759
Fidelity DART Depository FBO: (account name)
Account #00159759 (account number)
FBO: (account name)
(account number) Specify the complete name of
the fund of
your choice, note the
applicable class and
Specify the complete name of the fund of include your account number and
your
your choice, note the applicable class and name.
include your new account number and your
name.

Automatically (automatic_graphic) (small solid bullet) Not available (small solid bullet) Use
Fidelity Advisor Systematic
Investment Program. Sign up for
this
service when opening your
account, or
call your investment
professional to begin
the program.

</TABLE>

HOW TO SELL SHARES
You can arrange to take money out of your fund account at any time by
selling (redeeming) some or all of your shares. Your shares will be sold at
the next NAV calculated after your order is received and accepted. NAV is
normally calculated at 4:00 p.m. Eastern time.
It is the responsibility of your investment professional to transmit your
order to sell shares to Fidelity before the close of business on the day
you place your order.
TO SELL SHARES IN A NON-RETIREMENT ACCOUNT, you may use any of the methods
described on these two pages.
TO SELL SHARES IN A FIDELITY ADVISOR RETIREMENT ACCOUNT, your request must
be made in writing, except for exchanges to shares of the same class of
another Fidelity Advisor fund or shares of other Fidelity funds, which can
be requested by phone or in writing.
IF YOU ARE SELLING SOME BUT NOT ALL OF YOUR SHARES, please leave at least
$1,000 worth of shares in the account to keep it open (Account minimum
balances do not apply to retirement accounts).
TO SELL SHARES BY BANK WIRE, you will need to sign up for this service in
advance.
CERTAIN REQUESTS MUST INCLUDE A SIGNATURE GUARANTEE. It is designed to
protect you and Fidelity from fraud. Your request must be made in writing
and include a signature guarantee if any of the following situations apply:
(small solid bullet) You wish to redeem more than $100,000 worth of shares,
(small solid bullet) Your account registration has changed within the last
30 days,
(small solid bullet) The check is being mailed to a different address than
the one on your account (record address),
(small solid bullet) The check is being made payable to someone other than
the account owner,
(small solid bullet) The redemption proceeds are being transferred to a
Fidelity account with a different registration,
(small solid bullet) You wish to set up the bank wire feature, or
(small solid bullet) You wish to have redemption proceeds wired to a
non-predesignated bank account.
You should be able to obtain a signature guarantee from a bank, broker,
dealer, credit union (if authorized under state law), securities exchange
or association, clearing agency, or savings association. A notary public
cannot provide a signature guarantee.
SELLING SHARES IN WRITING
Write a "letter of instruction" with:
(small solid bullet) Your name,
(small solid bullet) The fund's name,
(small solid bullet) The applicable class name,
(small solid bullet) Your fund account number,
(small solid bullet) The dollar amount or number of shares to be redeemed,
and
(small solid bullet) Any other applicable requirements listed in the table
on page .
Deliver your letter to your investment professional, or mail it to the
following address:
Fidelity Investments
P.O. Box 770002
Cincinnati, OH 45277-0081
Unless otherwise instructed, Fidelity will send a check to the record
address.
ACCOUNT TYPE SPECIAL REQUIREMENTS

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PHONE All account types except retirement (small solid bullet) Maximum check request: $100,000.
1-800-843-
3001 OR YOUR
INVESTMENT
PROFESSIONAL

(phone_
graphic) All account types (small solid bullet) You may exchange to the same class of
other Fidelity Advisor funds or to other
Fidelity funds if both accounts are
registered with the same name(s),
address, and taxpayer ID number.

Mail or in
Person (mail_
graphic)(hand_
graphic) Individual, Joint Tenant, Sole Proprietorship, (small solid bullet) The letter of instruction (with signature
UGMA, UTMA guarantee) must be signed by all persons
required to sign for transactions, exactly as
Retirement account their names appear on the account.
(small solid bullet) The account owner should complete a
retirement distribution form. Call
1-800-843-3001 or your investment
professional to request one.

Trust (small solid bullet) The trustee must sign the letter indicating
capacity as trustee. If the trustee's name is
not in the account registration, provide a
copy of the trust document certified within
the last 60 days.

Business or Organization (small solid bullet) At least one person authorized by
corporate resolution to act on the account
must sign the letter (with signature
guarantee).

Executor, Administrator, (small solid bullet) Call 1-800-843-3001 or your investment
Conservator/Guardian professional for instructions.

Wire (wire_
graphic) All account types except retirement (small solid bullet) You must sign up for the wire feature
before using it. To verify that it is in place,
call 1-800-843-3001. Minimum wire:
$1,000
(small solid bullet) Your wire redemption request must be
received and accepted by the transfer
agent before 4:00 p.m. Eastern time for
money to be wired on the next business
day.

</TABLE>

INVESTOR SERVICES
Fidelity Advisor funds provide a variety of services to help you manage
your account.
INFORMATION SERVICES
STATEMENTS AND REPORTS that Fidelity sends to you include the following:
(small solid bullet) Confirmation statements (after every transaction that
affects your account balance or your account registration)
(small solid bullet) Account statements (quarterly)
(small solid bullet) Financial reports (every six months)
To reduce expenses, only one copy of most financial reports and
prospectuses will be mailed, even if you have more than one account in a
fund. Call your investment professional if you need additional copies of
financial reports and prospectuses.
TRANSACTION SERVICES
EXCHANGE PRIVILEGE. You may sell your Institutional Class shares and buy
Institutional Class shares of other Fidelity Advisor Funds or shares of
other Fidelity funds, by telephone or in writing.
Note that exchanges out of the funds into another Advisor Focus Fund are
unlimited, but that exchanges into other Advisor funds are limited to four
per calendar year, and that they may have tax consequences for you. For
details on policies and restrictions governing exchanges, including
circumstances under which a shareholder's exchange privilege may be
suspended or revoked, see "Exchange Restrictions," page .
FIDELITY ADVISOR SYSTEMATIC WITHDRAWAL PROGRAM lets you set up periodic
redemptions from your account. Accounts with a value of $10,000 or more in
Institutional Class shares are eligible for this program.
One easy way to pursue your financial goals is to invest money regularly.
Fidelity Advisor funds offer convenient services that let you transfer
money into your fund account, or between fund accounts, automatically.
While regular investment plans do not guarantee a profit and will not
protect you against loss in a declining market, they can be an excellent
way to invest for retirement, a home, educational expenses, and other
long-term financial goals. Certain restrictions apply for retirement
accounts. Call your investment professional for more information.
REGULAR INVESTMENT PLANS
FIDELITY ADVISOR SYSTEMATIC INVESTMENT PROGRAM
TO MOVE MONEY FROM YOUR BANK ACCOUNT TO A FIDELITY ADVISOR FUND

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MINIMUM MINIMUM
INITIAL ADDITIONAL FREQUENCY SETTING UP OR CHANGING
$1,000 $100 Monthly, bimonthly, (small solid bullet) For a new account, complete the appropriate section on the
quarterly, application.
or semi-annually (small solid bullet) For existing accounts, call your investment professional for an
application.
(small solid bullet) To change the amount or frequency of your investment, contact
your investment professional directly, or call 1-800-843-3001. Call
at least 10 business days prior to your next scheduled investment
date.

</TABLE>

SHAREHOLDER AND ACCOUNT POLICIES

DIVIDENDS, CAPITAL GAINS, AND TAXES
Each fund distributes substantially all of its net income and capital gains
to shareholders each year. Normally, dividends and capital gains are
distributed December.
DISTRIBUTION OPTIONS
When you open an account, specify on your account application how you want
to receive your distributions. The funds offer four options:
1. REINVESTMENT OPTION. Your dividend and capital gain distributions will
be automatically reinvested in additional shares of the same class of the
fund. If you do not indicate a choice on your application, you will be
assigned this option.
2. INCOME-EARNED OPTION. Your capital gain distributions will be
automatically reinvested in additional shares of the same class of the
fund, but you will be sent a check for each dividend distribution.
3. CASH OPTION. You will be sent a check for your dividend and capital gain
distributions.
4. DIRECTED DIVIDENDS(registered trademark) PROGRAM. Your dividend
distributions will be automatically invested in the same class of shares of
another identically registered Fidelity Advisor fund. You will be sent a
check for your capital gain distributions or your capital gain
distributions will be automatically reinvested in additional shares of the
same class of the fund.
If you select distribution option 2, 3 or 4 and the U.S. Postal Service
cannot deliver your checks, or if your checks remain uncashed for six
months, those checks will be reinvested in your account at the then
current NAV and your election may be converted to the Reinvestment Option.
To change your distribution option, call your investment professional
directly or call 1-800-843-3001.
For retirement accounts, all distributions are automatically reinvested.
When you are over 59 years old, you can receive distributions in cash.
When a fund deducts a distribution from its NAV, the reinvestment price is
the applicable class's NAV at the close of business that day. Distribution
checks will be mailed within seven days.
TAXES
As with any investment, you should consider how your investment in a fund
will be taxed. If your account is not a tax-deferred retirement account,
you should be aware of these tax implications.
TAXES ON DISTRIBUTIONS. Distributions are subject to federal income tax,
and may also be subject to state or local taxes. If you live outside the
United States, your distributions could also be taxed by the country in
which you reside. Your distributions are taxable when they are paid,
whether you take them in cash or reinvest them. However, distributions
declared in December and paid in January are taxable as if they were paid
on December 31.
For federal tax purposes, each fund's income and short-term capital gain
distributions are taxed as dividends; long-term capital gain distributions
are taxed as long-term capital gains.
Every January, Fidelity will send you and the IRS a statement showing the
taxable distributions paid to you in the previous year.
TAXES ON TRANSACTIONS. Your redemptions - including exchanges - are subject
to capital gains tax. A capital gain or loss is the difference between the
cost of your shares and the price you receive when you sell them.
Whenever you sell shares of a fund, Fidelity will send you a confirmation
statement showing how many shares you sold and at what price.
You will also receive a consolidated transaction statement at least
quarterly. However, it is up to you or your tax preparer to determine
whether this sale resulted in a capital gain and, if so, the amount of tax
to be paid. BE SURE TO KEEP YOUR REGULAR ACCOUNT STATEMENTS; the
information they contain will be essential in calculating the amount of
your capital gains.
"BUYING A DIVIDEND." If you buy shares when a class has realized but not
yet distributed income or capital gains, you will pay the full price for
the shares and then receive a portion of the price back in the form of a
taxable distribution.
CURRENCY CONSIDERATIONS. For funds that can invest in foreign securities,
if a fund's dividends exceed its taxable income in any year, which is
sometimes the result of currency-related losses, all or a portion of the
fund's dividends may be treated as a return of capital to shareholders for
tax purposes. To minimize the risk of a return of capital, each fund may
adjust its dividends to take currency fluctuations into account, which may
cause the dividends to vary. Any return of capital will reduce the cost
basis of your shares, which will result in a higher reported capital gain
or a lower reported capital loss when you sell your shares. The statement
you receive in January will specify if any distributions included a return
of capital.
Undistributed net gains from currency transactions, if any, will generally
be distributed as a separate dividend in December.
EFFECT OF FOREIGN TAXES. Foreign governments may impose taxes on each of
the funds and its investments and these taxes generally will reduce the
fund's distributions. However, an offsetting tax credit or deduction may be
available to you. If so, your tax statement will show more taxable income
or capital gains than were actually distributed by the funds, but will also
show the amount of the available offsetting credit or deduction.
There are tax requirements that all funds must follow in order to avoid
federal taxation. In its effort to adhere to these requirements, a fund may
have to limit its investment activity in some types of instruments.
TRANSACTION DETAILS
THE FUNDS ARE OPEN FOR BUSINESS each day the New York Stock Exchange (NYSE)
is open. Each class's NAV is normally calculated as of the close of
business of the NYSE, normally 4:00 p.m. Eastern time.
A CLASS'S NAV is the value of a single share. The NAV of each class is
computed by adding that class's pro rata share of the value of the
applicable fund's investments, cash, and other assets, subtracting that
class's pro rata share of the value of the applicable fund's liabilities,
subtracting the liabilities allocated to that class, and dividing the
result by the number of shares of that class that are outstanding.
Each fund's assets are valued primarily on the basis of market quotations.
Foreign securities are valued on the basis of quotations from the primary
market in which they are traded, and are translated from the local currency
into U.S. dollars using current exchange rates. Short-term securities with
remaining maturities of sixty days or less for which quotations are not
readily available are valued on the basis of amortized cost. This method
minimizes the effect of changes in a security's market value. In addition,
if quotations are not readily available, or if the values have been
materially affected by events occurring after the closing of a foreign
market, assets may be valued by a method that the Board of Trustees
believes accurately reflects fair value.
THE OFFERING PRICE (price to buy one share) of Institutional Class
shares is its NAV. The REDEMPTION PRICE (price to sell one share) of
Institutional Class shares is its NAV minus the fund's redemption fee, if
applicable.
WHEN YOU SIGN YOUR ACCOUNT APPLICATION, you will be asked to certify that
your social security or taxpayer identification number is correct and that
you are not subject to 31% backup withholding for failing to report income
to the IRS. If you violate IRS regulations, the IRS can require a fund to
withhold 31% of your taxable distributions and redemptions.
YOU MAY INITIATE MANY TRANSACTIONS BY TELEPHONE. Fidelity may only be
liable for losses resulting from unauthorized transactions if it does not
follow reasonable procedures designed to verify the identity of the caller.
Fidelity will request personalized security codes or other information, and
may also record calls. You should verify the accuracy of the confirmation
statements immediately after receipt. If you do not want the ability to
redeem and exchange by telephone, call Fidelity for instructions.
Additional documentation may be required from corporations, associations,
and certain fiduciaries.
IF YOU ARE UNABLE TO REACH FIDELITY BY PHONE (for example, during periods
of unusual market activity), consider placing your order by mail.
EACH FUND RESERVES THE RIGHT TO SUSPEND THE OFFERING OF SHARES for a period
of time. Each fund also reserves the right to reject any specific purchase
order, including certain purchases by exchange. See "Exchange Restrictions"
on page . Purchase orders may be refused if, in FMR's opinion, they would
disrupt management of a fund.
WHEN YOU PLACE AN ORDER TO BUY SHARES, your shares will be purchased at the
next NAV calculated after your order is received and accepted. Note the
following:
(small solid bullet) All of your purchases must be made in U.S. dollars and
checks must be drawn on U.S. banks.
(small solid bullet) Fidelity does not accept cash.
(small solid bullet) When making a purchase with more than one check, each
check must have a value of at least $50.
(small solid bullet) Each fund reserves the right to limit the number of
checks processed at one time.
(small solid bullet) If your check does not clear, your purchase will be
canceled and you could be liable for any losses or fees a fund or Fidelity
has incurred.
AUTOMATED PURCHASE ORDERS. Institutional Class shares can be purchased or
sold through investment professionals utilizing an automated order
placement and settlement system that guarantees payment for orders on a
specified date.
CONFIRMED PURCHASES. Certain financial institutions that meet FDC's
creditworthiness criteria may enter confirmed purchase orders on behalf of
customers by phone, with payment to follow no later than close of business
on the next business day. If payment is not received by the next business
day, the order will be canceled and the financial institutions will be
liable for any losses.
TO AVOID THE COLLECTION PERIOD associated with check purchases, consider
buying shares by bank wire, U.S. Postal money order, U.S. Treasury check,
Federal Reserve check, or automatic investment plans.
WHEN YOU PLACE AN ORDER TO SELL SHARES, your shares will be sold at the
next NAV, minus any applicable redemption fee, calculated after your order
is received and accepted. Note the following:
(small solid bullet) Normally, redemption proceeds will be mailed to you on
the next business day, but if making immediate payment could adversely
affect a fund, it may take up to seven days to pay you.
(small solid bullet) Each fund may hold payment on redemptions until it is
reasonably satisfied that investments made by check have been collected,
which can take up to seven business days.
(small solid bullet) Redemptions may be suspended or payment dates
postponed when the NYSE is closed (other than weekends or holidays), when
trading on the NYSE is restricted, or as permitted by the SEC.
A REDEMPTION FEE, if applicable, of 1.00% for shares held less than 60 days
will be deducted from the amount of your redemption. This fee is paid to
the fund rather than FMR, and it does not apply to shares that were
acquired through reinvestment of distributions. If you bought shares on
different days, the shares you held longest will be redeemed first for
purposes of determining whether the redemption fee applies. Any applicable
contingent deferred sales charge is calculated based on your original
redemption amount.
FIDELITY RESERVES THE RIGHT TO DEDUCT AN ANNUAL MAINTENANCE FEE, of $12.00
from accounts with a value of less than $2,500, subject to an annual
maximum charge of $60.00 per shareholder. Accounts opened after September
30 will not be subject to the fee for that year. The fee, which is payable
to the transfer agent, is designed to offset in part the relatively higher
costs of servicing smaller accounts. The fee will not be deducted from
retirement accounts (except non-prototype retirement accounts), accounts
using a systematic investment program, certain (Network Level I and III)
accounts which are maintained through National Securities Clearing
Corporation (NSCC), or if total assets in Fidelity mutual funds exceed
$50,000. Eligibility for the $50,000 waiver is determined by aggregating
Fidelity mutual fund accounts (excluding contractual plans) maintained (i)
by FIIOC and (ii) through NSCC; provided those accounts are registered
under the same primary social security number.
IF YOUR NON-RETIREMENT ACCOUNT BALANCE FALLS BELOW $1,000, you will be
given 30 days' notice to reestablish the minimum balance. If you do not
increase your balance, Fidelity reserves the right to close your account
and send the proceeds to you. Your shares will be redeemed at the NAV, on
the day your account is closed.
FIDELITY MAY CHARGE A FEE FOR SPECIAL SERVICES, such as providing
historical account documents, that are beyond the normal scope of its
services.
FDC will, at its expense, provide promotional incentives such as sales
contests and luxury trips to investment professionals who support the sale
of shares of the funds. In some instances, these incentives will be offered
only to certain types of investment professionals, such as bank-affiliated
or non-bank affiliated broker-dealers, or to investment professionals whose
representatives provide services in connection with the sale or expected
sale of significant amounts of shares.
EXCHANGE RESTRICTIONS
As a shareholder, you have the privilege of exchanging your Institutional
Class shares for Institutional Class shares of another Fidelity Advisor
Focus Fund or other Fidelity Advisor funds, or for shares of other
Fidelity funds. However, you should note the following:
(small solid bullet) The fund or class you are exchanging into must be
available for sale in your state.
(small solid bullet) You may only exchange between accounts that are
registered in the same name, address, and taxpayer identification number.
(small solid bullet) Before exchanging into a fund or class, read its
prospectus.
(small solid bullet) If you exchange into a fund with a sales charge, you
pay the percentage point difference between that fund's sales charge and
any sales charge you may have previously paid in connection with the shares
you are exchanging. For example, if you had already paid a sales charge of
2% on your shares and you exchange them into a fund with a 3% sales charge,
you would pay an additional 1% sales charge.
(small solid bullet) Exchanges may have tax consequences for you.
(small solid bullet) Although there is no limit on the exchanges you may
make between the Advisor Focus funds, the funds reserve the right to enact
limitations in the future. Because excessive trading can hurt fund
performance and shareholders, each fund reserves the right to temporarily
or permanently terminate the exchange privilege of any investor who makes
more than four exchanges out of a fund into a Fidelity Advisor fund per
calendar year. Accounts under common ownership or control, including
accounts with the same taxpayer identification number, will be counted
together for purposes of the four exchange limit.
(small solid bullet) Each fund reserves the right to reject exchange
purchases in excess of 1% of its net assets or $1 million, whichever is
less. For purposes of this policy, accounts under common ownership will be
aggregated.
(small solid bullet) Each fund reserves the right to refuse exchange
purchases by any person or group if, in FMR's judgment, the fund would be
unable to invest the money effectively in accordance with its investment
objective and policies, or would otherwise potentially be adversely
affected.
(small solid bullet) Your exchanges may be restricted or refused if a fund
receives or anticipates simultaneous orders affecting significant portions
of the fund's assets. In particular, a pattern of exchanges that coincides
with a "market timing" strategy may be disruptive to a fund.
Although the funds will attempt to give you prior notice whenever they are
reasonably able to do so, they may impose these restrictions at any time.
The funds reserve the right to terminate or modify these exchange
privileges in the future.
No dealer, sales representative, or any other person has been authorized to
give any information or to make any representations, other than those
contained in this Prospectus and in the related SAI, in connection with the
offer contained in this Prospectus. If given or made, such other
information or representations must not be relied upon as having been
authorized by the funds or FDC. This Prospectus and the related SAI do not
constitute an offer by the funds or by FDC to sell or to buy shares of the
funds to any person to whom it is unlawful to make such offer.

FIDELITY ADVISOR FOCUS FUNDS: CLASS A, CLASS T, CLASS B &
INSTITUTIONAL CLASS
STATEMENT OF ADDITIONAL INFORMATION
CROSS REFERENCE SHEET
FORM N-1A

ITEM NUMBER STATEMENT OF ADDITIONAL INFORMATION SECTION

<TABLE>
<CAPTION>
<S> <C> <C> <C>
10 ............................ Cover Page

11 ............................ Table of Contents

12 ............................ Description of the Trusts

13 a - c ............................ Investment Policies and Limitations

d ............................ Portfolio Transactions

14 a - c ............................ Trustees and Officers

15 a - c ............................ Trustees and Officers

16 a (i) ............................ FMR; Portfolio Transactions

(ii) ............................ Trustees and Officers

(iii) ............................ Management Contracts

b ............................ Management Contracts

c - d ............................ Contracts with FMR Affiliates

e ............................ *

f ............................ Distribution and Service Plans

g ............................ *

h ............................ Description of the Trusts

i ............................ Contracts with FMR Affiliates

17 a-d ............................ Portfolio Transactions

e ............................ *

18 a ............................ Description of the Trusts

b ............................ *

19 a ............................ Additional Purchase, Exchange and Redemption
Information

b ............................ Additional Purchase, Exchange and Redemption
Information; Valuation

c ............................ *

20 ............................ Distributions and Taxes

21 a, b ............................ Contracts with FMR Affiliates

c ............................ *

22 a ............................ *

b ............................ Performance

23 ............................ Financial Statements

</TABLE>

* Not Applicable

FIDELITY ADVISOR 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
CLASS A, CLASS T, CLASS B, AND INSTITUTIONAL CLASS
STATEMENT OF ADDITIONAL INFORMATION
MARCH 24 , 1997
This Statement of Additional Information (SAI) is not a prospectus but
should be read in conjunction with the funds' current Prospectuses (dated
March 24 , 1997) for Class A, Class T, Class B, and Institutional
Class shares. Please retain this document for future reference. Natural
Resources' fund's Annual Report is a separate document supplied with
this SAI . To obtain a free additional copy of this Prospectus,
or Natural Resources' Annual Report, please call Fidelity Distributors
Corporation (FDC) at 1-800-544-8888, or your investment
professional .
TABLE OF CONTENTS PAGE

Investment Policies and Limitations

Portfolio Transactions

Valuation

Performance

Additional Purchase, Exchange, and Redemption Information

Distributions and Taxes

FMR

Trustees and Officers

Management Contracts

Contracts with FMR Affiliates

Distribution and Service Plans

Description of the Trusts

Financial Statements

INVESTMENT ADVISER
Fidelity Management & Research Company (FMR)
INVESTMENT SUB-ADVISERS
Fidelity Management & Research (U.K.) Inc. (FMR U.K.)
Fidelity Management & Research (Far East) Inc. (FMR Far East)
DISTRIBUTOR
Fidelity Distributors Corporation (FDC)
TRANSFER AGENT
Fidelity Investments Institutional Operations Company, Inc. (FIIOC)
AFOC/AFOCI-ptb-0 2 97 -01
INVESTMENT POLICIES AND LIMITATIONS
The following policies and limitations supplement those set forth in the
Prospectus. Unless otherwise noted, whenever an investment policy or
limitation states a maximum percentage of a fund's assets that may be
invested in any security or other asset, or sets forth a policy regarding
quality standards, such standard or percentage limitation will be
determined immediately after and as a result of the fund's acquisition of
such security or other asset. Accordingly, any subsequent change in values,
net assets or other circumstances will not be considered when determining
whether the investment complies with a fund's investment policies and
limitations.
A fund's fundamental investment policies and limitations cannot be changed
without approval by a "majority of the outstanding voting securities" (as
defined in the Investment Company Act of 1940 (1940 Act)) of the fund.
However, except for the fundamental investment limitations listed below,
the investment policies and limitations described in this SAI are not
fundamental and may be changed without shareholder approval.
THE FOLLOWING ARE THE FUNDAMENTAL INVESTMENT LIMITATIONS FOR CONSUMER
INDUSTRIES FUND SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that each fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that a
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer if, as a result, less than 25% of
the fund's total assets would be invested in the securities of issuers
principally engaged in the business activities of the industries in the
consumer industries sector;
(5) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent a fund from
investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(6) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent
each fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities); or
(7) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements.
THE FOLLOWING INVESTMENT LIMITATIONS FOR CONSUMER INDUSTRIES FUND ARE NOT
FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the fund
currently intends to comply with certain diversification limits imposed by
Subchapter M.
(ii) The fund does not currently intend to sell securities short, unless it
owns or has the right to obtain securities equivalent in kind and amount to
the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iv) The fund does not currently intend to hedge more than 40% of its total
assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (2)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(vi) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(v i i) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser or (b) acquiring
loans, loan participations, or other forms of direct debt instruments and,
in connection therewith, assuming any associated unfunded commitments of
the sellers. (This limitation does not apply to purchases of debt
securities or to repurchase agreements.)
Subchapter M generally requires the fund to invest no more than 25% of its
total assets in securities of any one issuer and to invest at least 50% of
its total assets so that no more than 5% of the fund's total assets are
invested in securities of any one issuer. However, Subchapter M allows
unlimited investments in cash, cash items, government securities (as
defined in Subchapter M) and securities of other investment companies.
These tax requirements are generally applied at the end of each quarter of
the fund's taxable year.
For purposes of limitation (4), FMR considers an issuer to be principally
engaged in a business activity normally based on standard industry
classifications published by the U.S. Government. However, FMR may consider
an issuer to be principally engaged in a business activity if at least 50%
of its assets, gross income, or net profits are committed to, or derived
from, that activity.
For the fund's limitations on futures and options transactions, see the
section entitled " Limitations on Futures and Options
Transactions " on page .
For the fund's policies on foreign investments, see the section entitled
"Exposure to Foreign Markets" on page .
THE FOLLOWING ARE THE FUNDAMENTAL INVESTMENT LIMITATIONS FOR CYCLICAL
INDUSTRIES FUND SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that each fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that a
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer if, as a result, less than 25% of
the fund's total assets would be invested in the securities of issuers
principally engaged in the business activities of the industries in the
cyclical industries sector;
(5) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent a fund from
investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(6) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent
each fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities); or
(7) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements.
THE FOLLOWING INVESTMENT LIMITATIONS FOR CYCLICAL INDUSTRIES FUND ARE NOT
FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the fund
currently intends to comply with certain diversification limits imposed by
Subchapter M.
(ii) The fund does not currently intend to sell securities short, unless it
owns or has the right to obtain securities equivalent in kind and amount to
the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iv) The fund does not currently intend to hedge more than 40% of its total
assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (2)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(vi) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser or (b) acquiring
loans, loan participations, or other forms of direct debt instruments and,
in connection therewith, assuming any associated unfunded commitments of
the sellers. (This limitation does not apply to purchases of debt
securities or to repurchase agreements.)
Subchapter M generally requires the fund to invest no more than 25% of its
total assets in securities of any one issuer and to invest at least 50% of
its total assets so that no more than 5% of the fund's total assets are
invested in securities of any one issuer. However, Subchapter M allows
unlimited investments in cash, cash items, government securities (as
defined in Subchapter M) and securities of other investment companies.
These tax requirements are generally applied at the end of each quarter of
the fund's taxable year.
For purposes of limitation (4), FMR considers an issuer to be principally
engaged in a business activity normally based on standard industry
classifications published by the U.S. Government. However, FMR may consider
an issuer to be principally engaged in a business activity if at least 50%
of its assets, gross income, or net profits are committed to, or derived
from, that activity.
For the fund's limitations on futures and options transactions, see the
section entitled " Limitations on Futures and Options
Transactions " on page .
For the fund's policies on foreign investments, see the section entitled
"Exposure to Foreign Markets" on page .
THE FOLLOWING ARE THE FUNDAMENTAL INVESTMENT LIMITATIONS FOR HEALTH CARE
FUND SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that each fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that a
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer if, as a result, less than 25% of
the fund's total assets would be invested in the securities of issuers
principally engaged in the business activities of the industries in the
health care sector;
(5) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent a fund from
investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(6) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent
each fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities); or
(7) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements.
THE FOLLOWING INVESTMENT LIMITATIONS FOR HEALTH CARE FUND ARE NOT
FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the fund
currently intends to comply with certain diversification limits imposed by
Subchapter M.
(ii) The fund does not currently intend to sell securities short, unless it
owns or has the right to obtain securities equivalent in kind and amount to
the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iv) The fund does not currently intend to hedge more than 40% of its total
assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (2)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(vi) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser or (b) acquiring
loans, loan participations, or other forms of direct debt instruments and,
in connection therewith, assuming any associated unfunded commitments of
the sellers. (This limitation does not apply to purchases of debt
securities or to repurchase agreements.)
Subchapter M generally requires the fund to invest no more than 25% of its
total assets in securities of any one issuer and to invest at least 50% of
its total assets so that no more than 5% of the fund's total assets are
invested in securities of any one issuer. However, Subchapter M allows
unlimited investments in cash, cash items, government securities (as
defined in Subchapter M) and securities of other investment companies.
These tax requirements are generally applied at the end of each quarter of
the fund's taxable year.
For purposes of limitation (4), FMR considers an issuer to be principally
engaged in a business activity normally based on standard industry
classifications published by the U.S. Government. However, FMR may consider
an issuer to be principally engaged in a business activity if at least 50%
of its assets, gross income, or net profits are committed to, or derived
from, that activity.
For the fund's limitations on futures and options transactions, see the
section entitled " Limitations on Futures and Options
Transactions " on page .
For the fund's policies on foreign investments, see the section entitled
"Exposure to Foreign Markets" on page .
THE FOLLOWING ARE THE FUNDAMENTAL INVESTMENT LIMITATIONS FOR TECHNOLOGY
FUND SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that each fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that a
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer if, as a result, less than 25% of
the fund's total assets would be invested in the securities of issuers
principally engaged in the business activities of the industries in the
technology sector;
(5) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent a fund from
investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(6) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent
each fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities); or
(7) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements.
THE FOLLOWING INVESTMENT LIMITATIONS FOR TECHNOLOGY FUND ARE NOT
FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the fund
currently intends to comply with certain diversification limits imposed by
Subchapter M.
(ii) The fund does not currently intend to sell securities short, unless it
owns or has the right to obtain securities equivalent in kind and amount to
the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iv) The fund does not currently intend to hedge more than 40% of its total
assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (2)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(vi) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser or (b) acquiring
loans, loan participations, or other forms of direct debt instruments and,
in connection therewith, assuming any associated unfunded commitments of
the sellers. (This limitation does not apply to purchases of debt
securities or to repurchase agreements.)
Subchapter M generally requires the fund to invest no more than 25% of its
total assets in securities of any one issuer and to invest at least 50% of
its total assets so that no more than 5% of the fund's total assets are
invested in securities of any one issuer. However, Subchapter M allows
unlimited investments in cash, cash items, government securities (as
defined in Subchapter M) and securities of other investment companies.
These tax requirements are generally applied at the end of each quarter of
the fund's taxable year.
For purposes of limitation (4), FMR considers an issuer to be principally
engaged in a business activity normally based on standard industry
classifications published by the U.S. Government. However, FMR may consider
an issuer to be principally engaged in a business activity if at least 50%
of its assets, gross income, or net profits are committed to, or derived
from, that activity.
For the fund's limitations on futures and options transactions, see the
section entitled " Limitations on Futures and Options
Transactions " on page .
For the fund's policies on foreign investments, see the section entitled
"Exposure to Foreign Markets" on page .
THE FOLLOWING ARE THE FUNDAMENTAL INVESTMENT LIMITATIONS FOR UTILITIES
GROWTH FUND SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that each fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that a
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer if, as a result, less than 25% of
the fund's total assets would be invested in the securities of issuers
principally engaged in the business activities of the industries in the
utilities sector;
(5) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent a fund from
investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(6) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent
each fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities); or
(7) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements.
THE FOLLOWING INVESTMENT LIMITATIONS FOR UTILITIES GROWTH FUND ARE NOT
FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the fund
currently intends to comply with certain diversification limits imposed by
Subchapter M.
(ii) The fund does not currently intend to sell securities short, unless it
owns or has the right to obtain securities equivalent in kind and amount to
the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iv) The fund does not currently intend to hedge more than 40% of its total
assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (2)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(vi) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser or (b) acquiring
loans, loan participations, or other forms of direct debt instruments and,
in connection therewith, assuming any associated unfunded commitments of
the sellers. (This limitation does not apply to purchases of debt
securities or to repurchase agreements.)
Subchapter M generally requires the fund to invest no more than 25% of its
total assets in securities of any one issuer and to invest at least 50% of
its total assets so that no more than 5% of the fund's total assets are
invested in securities of any one issuer. However, Subchapter M allows
unlimited investments in cash, cash items, government securities (as
defined in Subchapter M) and securities of other investment companies.
These tax requirements are generally applied at the end of each quarter of
the fund's taxable year.
For purposes of limitation (4), FMR considers an issuer to be principally
engaged in a business activity normally based on standard industry
classifications published by the U.S. Government. However, FMR may consider
an issuer to be principally engaged in a business activity if at least 50%
of its assets, gross income, or net profits are committed to, or derived
from, that activity.
For the fund's limitations on futures and options transactions, see the
section entitled " Limitations on Futures and Options
Transactions " on page .
For the fund's policies on foreign investments, see the section entitled
"Exposure to Foreign Markets" on page .
THE FOLLOWING ARE THE FINANCIAL SERVICES FUND'S FUNDAMENTAL INVESTMENT
LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) 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.
(2) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(3) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(4) underwrite securities issued by others, except to the extent that the
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(5) purchase the securities of any issuer if, as a result, less than 25% of
the fund's total assets would be invested in the securities of issuers
principally engaged in the business activities of the industries in the
financial services sector;
(6) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent the fund
from investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(7) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent
the fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities); or
(8) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements.
THE FOLLOWING INVESTMENT LIMITATIONS FOR FINANCIAL SERVICES FUND ARE NOT
FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) The fund does not currently intend to sell securities short, unless it
owns or has the right to obtain securities equivalent in kind and amount to
the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(ii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iii) The fund does not currently intend to hedge more than 40% of its
total assets with short sales against the box under normal conditions.
(iv) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (3)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(v) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vi) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser or (b) acquiring
loans, loan participations, or other forms of direct debt instruments and,
in connection therewith, assuming any associated unfunded commitments of
the sellers. (This limitation does not apply to purchases of debt
securities or to repurchase agreements.)
For purposes of limitation (5), FMR considers an issuer to be principally
engaged in a business activity normally based on standard industry
classifications published by the U.S. Government. However, FMR may consider
an issuer to be principally engaged in a business activity if at least 50%
of its assets, gross income, or net profits are committed to, or derived
from, that activity.
For the fund's limitations on futures and options transactions, see the
section entitled " Limitations on Futures and Options Transactions
" on page .
For the fund's policies on foreign investments, see the section entitled
"Exposure to Foreign Markets" on page .
THE FOLLOWING ARE THE FUNDAMENTAL INVESTMENT LIMITATIONS FOR NATURAL
RESOURCES FUND SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) 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) 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;
(2) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(3) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(4) underwrite securities issued by others, except to the extent that the
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(5) purchase the securities of any issuer (other than securities issued or
guaranteed by the U.S. government or any of its agencies or
instrumentalities) if, as a result, more than 25% of the fund's total
assets would be invested in the securities of companies whose principal
business activities are in the same industry;
(6) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent the fund
from investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business); or
(7) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements.
(8) 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 with substantially the same
fundamental investment objective, policies, and limitations as the fund.
THE FOLLOWING LIMITATIONS FOR NATURAL RESOURCES FUND ARE NOT FUNDAMENTAL
AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) The fund does not currently intend to sell securities short, unless it
owns or has the right to obtain securities equivalent in kind and amount to
the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(ii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iii) The fund does not currently intend to hedge more than 40% of its
total assets with short sales against the box under normal conditions.
(iv) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (3)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(v) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vi) The fund does not currently intend to invest in physical commodities
other than precious metals (i.e., gold, palladium, platinum and silver) and
it intends to limit such investments to not more than 25% of the fund's
total assets. The fund may receive no more than 10% of its yearly income
from gains resulting from selling metals or any other physical commodity.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser or (b) acquiring
loans, loan participations, or other forms of direct debt instruments and,
in connection therewith, assuming any associated unfunded commitments of
the sellers. (This limitation does not apply to purchases of debt
securities or to repurchase agreements.)
( vii i) The fund does not currently intend to invest all of its
assets in the securities of a single open-end management investment company
with substantially the same fundamental investment objective, policies, and
limitations as the fund.
For purposes of limitation (5), FMR considers an issuer to be principally
engaged in a business activity normally based on standard industry
classifications published by the U.S. Government. However, FMR may consider
an issuer to be principally engaged in a business activity if at least 50%
of its assets, gross income, or net profits are committed to, or derived
from, that activity.
For the fund's limitations on futures contracts and options, see the
section entitled " Limitations on Futures and Options
Transactions " on page .
For the fund's policies on foreign investments, see the section entitled
"Exposure to Foreign Markets" on page .
FINANCIAL SERVICES FUND Rule 12d3-1 under the 1940 Act, allows investment
portfolios such as this fund to invest in companies engaged in
securities-related activities subject to certain conditions. Purchases of
securities of a company that derived 15% or less of gross revenues during
its most recent fiscal year from securities-related activities (i.e.,
broker/dealer, underwriting, or investment advisory activities) are subject
only to the same percentage limitations as would apply to any other
security the funds may purchase. The fund may purchase securities of an
issuer that derived more than 15% of its gross revenues in its most recent
fiscal year from securities-related activities, subject to the following
conditions:
a. the purchase cannot cause more than 5% of the fund's total assets to be
invested in securities of that issuer;
b. for an equity security, the purchase cannot result in the fund owning
more than 5% of the issuer's outstanding securities in that class;
c. for a debt security, the purchase cannot result in the fund owning more
than 10% of the outstanding principal amount of the issuer's debt
securities.
In applying the gross revenue test, an issuer's own securities-related
activities must be combined with its ratable share of securities-related
revenues from enterprises in which it owns a 20% or greater voting or
equity interest. All of the above percentage limitations, as well as the
issuer's gross revenue test, are applicable at the time of purchase. With
respect to warrants, rights, and convertible securities, a determination of
compliance with the above limitations shall be made as though such warrant,
right, or conversion privilege had been exercised. The fund will not be
required to divest its holdings of a particular issuer when circumstances
subsequent to the purchase cause one of the above conditions to not be met.
The fund is not permitted to acquire any security issued by FMR, FDC, or
any affiliated company of these companies that is a securities-related
business. The purchase of a general partnership interest in a
securities-related business is prohibited.
FUND DESCRIPTIONS
THE FUNDS INVEST PRIMARILY WITHIN THE INVESTMENT AREAS DESCRIBED BELOW.
CONSUMER INDUSTRIES FUND: COMPANIES ENGAGED IN THE MANUFACTURE AND
DISTRIBUTION OF GOODS TO CONSUMERS BOTH DOMESTICALLY AND INTERNATIONALLY.
The fund may invest in companies that manufacture or sell durable products
such as homes, cars, boats, furniture, major appliances, and personal
computers.
The fund will also invest in companies that manufacture, wholesale, or
retail non-durable goods such as food, beverages, tobacco, health care
products, household and personal care products, apparel, and entertainment
products (books, magazines, TV, cable, movies, music). Consumer products
and services such as lodging, child care, convenience stores, and car
rentals may also be represented in the fund.
The success of durable goods manufacturers and retailers is closely tied to
the performance of the overall economy, interest rates, and consumer
confidence. These segments are very competitive; success depends heavily on
household disposable income and consumer spending. Consumer products and
retailing concepts tend to rise and fall with changes in demographics and
consumer tastes.
CYCLICAL INDUSTRIES FUND: COMPANIES ENGAGED IN THE RESEARCH, DEVELOPMENT,
MANUFACTURE, DISTRIBUTION, SUPPLY, OR SALE OF MATERIALS, EQUIPMENT,
PRODUCTS, OR SERVICES RELATED TO CYCLICAL INDUSTRIES. These may include the
automotive, chemical, construction and housing, defense and aerospace,
environmental services, industrial equipment and materials, paper and
forest products, and transportation industries.
Many companies in these industries are significantly affected by general
economic trends including employment, economic growth, and interest rates.
Other factors that may affect these industries are changes in consumer
sentiment and spending, commodity prices, legislation, government
regulation and spending, import controls, and worldwide competition. At
times, worldwide production of these materials used in cyclical industries
has exceeded demand as a result of, for example, over-building or economic
downturns. During these times, commodity price declines and unit volume
reductions resulted in poor investment returns and losses. Furthermore, a
company in the cyclical industries may be subject to liability for
environmental damage, depletion of resources, and mandated expenditures for
safety and pollution control.
FINANCIAL SERVICES FUND: COMPANIES PROVIDING FINANCIAL SERVICES TO
CONSUMERS AND INDUSTRY. Companies in the financial services sector include:
commercial banks, savings and loan associations, consumer and industrial
finance companies, securities brokerage companies, real estate-related
companies, leasing companies, and a variety of firms in all segments of the
insurance field such as multi-line, property and casualty, and life
insurance.
The financial services area is currently undergoing relatively rapid change
as existing distinctions between financial service segments become less
clear. For instance, recent business combinations have included insurance,
finance, and securities brokerage under single ownership. Some primarily
retail corporations have expanded into securities and insurance fields.
Moreover, the federal laws generally separating commercial and investment
banking are currently being studied by Congress.
Banks, savings and loan associations, and finance companies are subject to
extensive governmental regulation which may limit both the amounts and
types of loans and other financial commitments they can make and the
interest rates and fees they can charge. The profitability of these groups
is largely dependent on the availability and cost of capital funds, and can
fluctuate significantly when interest rates change. In addition, general
economic conditions are important to the operations of these concerns, with
exposure to credit losses resulting from possible financial difficulties of
borrowers potentially having an adverse effect. Insurance companies are
likewise subject to substantial governmental regulation, predominantly at
the state level, and may be subject to severe price competition.
Securities and Exchange Commission regulations provide that the fund may
not invest more than 5% of its assets in the securities of any one company
that derives more than 15% of its revenues from brokerage or investment
management activities.
NATURAL RESOURCES FUND: cOMPANIES THAT OWN OR DEVELOP NATURAL RESOURCES, OR
SUPPLY GOODS AND SERVICES TO SUCH COMPANIES, OR IN PHYSICAL COMMODITIES.
Natural resources include precious metals (e.g., gold, platinum and
silver), ferrous and nonferrous metals (e.g., iron, aluminum and copper),
strategic metals (e.g., uranium and titanium), hydrocarbons (e.g., coal,
oil and natural gases), chemicals, forest products, real estate, food
products and other basic commodities. Exploring, mining, refining,
processing, transporting, and fabricating are examples of activities of
companies in the natural resources sector.
Precious metals, at times, have been subject to substantial price
fluctuations over short periods of time and may be affected by
unpredictable international monetary and political policies such as
currency devaluations or revaluations, economic and social conditions
within a country, trade imbalances, or trade or currency restrictions
between countries.
As a practical matter, investments in physical commodities can present
concerns such as delivery, storage and maintenance, possible illiquidity
and the unavailability of accurate market valuations. FMR, in addressing
these concerns, currently intends to purchase only readily marketable
precious metals and to deliver and store them with a qualified U.S. bank.
Investments in bullion earn no investment income and may involve higher
custody and transaction costs than investments in securities. In order to
qualify as a regulated investment company, gains from selling precious
metals or any other physical commodity may not exceed 10% of the fund's
annual gross income. This tax treatment could cause the fund to hold or
sell bullion or securities when it would not otherwise do so.
HEALTH CARE FUND: COMPANIES ENGAGED IN THE DESIGN, MANUFACTURE, OR SALE OF
PRODUCTS OR SERVICES USED FOR OR IN CONNECTION WITH HEALTH CARE OR
MEDICINE. Companies in the health care sector include pharmaceutical
companies; firms that design, manufacture, sell, or supply medical, dental,
and optical products, hardware or services; companies involved in
biotechnology, medical diagnostic, and biochemical research and
development, as well as companies involved in the operation of health care
facilities. Many of these companies are subject to government regulation of
their products and services, a factor which could have a significant and
possibly unfavorable effect on the price and availability of such products
or services. Furthermore, the types of products or services produced or
provided by these companies may become obsolete quickly.
TECHNOLOGY FUND: COMPANIES WHICH HAVE OR WILL DEVELOP, PRODUCTS, PROCESSES
OR SERVICES THAT WILL PROVIDE OR WILL BENEFIT SIGNIFICANTLY FROM
TECHNOLOGICAL ADVANCES AND IMPROVEMENTS. The technology sector may include
such products or services as computers, semi-conductors, communications,
communications equipment, software, health care, biotechnology, consulting,
or the distribution of technology products and such companies.
The prime emphasis of the fund will be to identify those companies
positioned to benefit from technological advances in areas such as
semiconductors, minicomputers and peripheral equipment, scientific
instruments, computer software, communications, and future automation
trends in both office and factory settings.
Competitive pressures may have a significant effect on the financial
condition of companies in the technology sector. For example, if technology
continues to advance at an accelerated rate, and the number of companies
and product offerings continue to expand, these companies could become
increasingly sensitive to short product cycles and aggressive pricing.
UTILITIES GROWTH FUND: COMPANIES IN THE PUBLIC UTILITIES INDUSTRY AND
COMPANIES DERIVING A MAJORITY OF THEIR REVENUES FROM THEIR PUBLIC UTILITY
OPERATIONS. Public utility investments will include companies engaged in
the manufacture, production, generation, transmission and sale of gas and
electric energy, and companies engaged in the communications field,
including telephone, telegraph, satellite, microwave and the provision of
other communication facilities for the public benefit (not including
companies involved in public broadcasting). Public utility stocks have
traditionally produced above-average dividend income, but the fund's
investments are made based on capital appreciation potential. The fund may
not own more than 5% of the outstanding voting securities of more than one
public utility company as defined by the Public Utility Holding Company Act
of 1935. This policy is non-fundamental and may be changed by the Board of
Trustees.
THE FOLLOWING PAGES CONTAIN MORE DETAILED INFORMATION ABOUT TYPES OF
INSTRUMENTS IN WHICH A FUND MAY INVEST, STRATEGIES FMR MAY EMPLOY IN
PURSUIT OF A FUND'S INVESTMENT OBJECTIVE, AND A SUMMARY OF RELATED RISKS.
FMR MAY NOT BUY ALL OF THESE INSTRUMENTS OR USE ALL OF THESE TECHNIQUES
UNLESS IT BELIEVES THAT DOING SO WILL HELP THE FUND ACHIEVE ITS GOAL.
AFFILIATED BANK TRANSACTIONS. A fund may engage in transactions with
financial institutions that are, or may be considered to be, "affiliated
persons" of the fund under the 1940 Act. These transactions may include
repurchase agreements with custodian banks; short-term obligations of, and
repurchase agreements with, the 50 largest U.S. banks (measured by
deposits); municipal securities; U.S. Government securities with affiliated
financial institutions that are primary dealers in these securities;
short-term currency transactions; and short-term borrowings. In accordance
with exemptive orders issued by the Securities and Exchange Commission
(SEC), the Board of Trustees has established and periodically reviews
procedures applicable to transactions involving affiliated financial
institutions.
CLOSED-END INVESTMENT COMPANIES. Each fund may purchase the shares of
closed-end investment companies to facilitate investment in certain
countries. Shares of closed-end investment companies may trade at a premium
or a discount to their net asset value.
EXPOSURE TO FOREIGN MARKETS. Foreign securities, foreign currencies, and
securities issued by U.S. entities with substantial foreign operations may
involve significant risks in addition to the risks inherent in U.S.
investments. The value of securities denominated in foreign currencies, and
of dividends and interest paid with respect to such securities will
fluctuate based on the relative strength of the U.S. dollar.
Foreign investments involve a risk of local political, economic, or social
instability, military action or unrest, or adverse diplomatic developments,
and may be affected by actions of foreign governments adverse to the
interests of U.S. investors. Such actions may include the possibility of
expropriation or nationalization of assets, confiscatory taxation,
restrictions on U.S. investment or on the ability to repatriate assets or
convert currency into U.S. dollars, or other government intervention. There
is no assurance that FMR will be able to anticipate these potential events
or counter their effects. These risks are magnified for investments in
developing countries, which may have relatively unstable governments,
economies based on only a few industries, and securities markets that trade
a small number of securities.
Economies of particular countries or areas of the world may differ
favorably or unfavorably from the economy of the United States. Foreign
markets may offer less protection to investors than U.S. markets. It is
anticipated that in most cases the best available market for foreign
securities will be on an exchange or in over-the-counter markets located
outside of the United States. Foreign stock markets, while growing in
volume and sophistication, are generally not as developed as those in the
United States, and securities of some foreign issuers (particularly those
located in developing countries) may be less liquid and more volatile than
securities of comparable U.S. issuers. Foreign security trading practices,
including those involving securities settlement where fund assets may be
released prior to receipt of payment, may result in increased risk in the
event of a failed trade or the insolvency of a foreign broker-dealer, and
may involve substantial delays. In addition, the costs of foreign
investing, including withholding taxes, brokerage commissions and custodial
costs, are generally higher than for U.S. investors. In general, there is
less overall governmental supervision and regulation of securities
exchanges, brokers, and listed companies than in the United States. It may
also be difficult to enforce legal rights in foreign countries. Foreign
issuers are generally not bound by uniform accounting, auditing, and
financial reporting requirements and standards of practice comparable to
those applicable to U.S. issuers.
Some foreign securities impose restrictions on transfer within the United
States or to U.S. persons. Although securities subject to such transfer
restrictions may be marketable abroad, they may be less liquid than foreign
securities of the same class that are not subject to such restrictions.
American Depositary Receipts (ADRs), as well as other "hybrid" forms of
ADRs, including European Depositary Receipts (EDRs) and Global Depositary
Receipts (GDRs), are certificates evidencing ownership of shares of a
foreign issuer. These certificates are issued by depository banks and
generally trade on an established market in the United States or elsewhere.
The underlying shares are held in trust by a custodian bank or similar
financial institution in the issuer's home country. The depository bank may
not have physical custody of the underlying securities at all times and may
charge fees for various services, including forwarding dividends and
interest and corporate actions. ADRs are alternatives to directly
purchasing the underlying foreign securities in their national markets and
currencies. However, ADRs continue to be subject to many of the risks
associated with investing directly in foreign securities. These risks
include foreign exchange risk as well as the political and economic risks
of the underlying issuer's country.
FOREIGN CURRENCY TRANSACTIONS. A fund may conduct foreign currency
transactions on a spot (i.e., cash) or forward basis (i.e., by entering
into forward contracts to purchase or sell foreign currencies). Although
foreign exchange dealers generally do not charge a fee for such
conversions, they do realize a profit based on the difference between the
prices at which they are buying and selling various currencies. Thus, a
dealer may offer to sell a foreign currency to a fund at one rate, while
offering a lesser rate of exchange should the counterparty desire to resell
that currency to the dealer. Forward contracts are customized transactions
that require specific amount of a currency to be delivered at a specific
exchange rate on a specific date or range of dates in the future. Forward
contracts are generally traded in an interbank market directly between
currency traders (usually large commercial banks) and their customers. The
parties to a forward contract may agree to offset or terminate the contract
before its maturity, or may hold the contract to maturity and complete the
contemplated currency exchange. A fund may use currency forward contracts
for any purpose consistent with its investment objective.
The following discussion summarizes the principal currency management
strategies involving forward contracts that could be used by a fund. A fund
may also use swap agreements, indexed securities, and options and futures
contracts relating to foreign currencies for the same purposes.
A "settlement hedge" or "transaction hedge" is designed to protect a fund
against an adverse change in foreign currency values between the date a
security is purchased or sold and the date on which payment is made or
received. Entering into a forward contract for the purchase or sale of the
amount of foreign currency involved in an underlying security transaction
for a fixed amount of U.S dollars "locks in" the U.S. dollar price of the
security. Forward contracts to purchase or sell a foreign currency may also
be used by a fund in anticipation of future purchases or sales of
securities denominated in foreign currency, even if the specific
investments have not yet been selected by FMR.
A fund may also use forward contracts to hedge against a decline in the
value of existing investments denominated in foreign currency. For example,
if a fund owned securities denominated in pounds sterling, it could enter
into a forward contract to sell pounds sterling in return for U.S. dollars
to hedge against possible declines in the pound's value. Such a hedge,
sometimes referred to as a "position hedge," would tend to offset both
positive and negative currency fluctuations, but would not offset changes
in security values caused by other factors. A fund could also hedge the
position by selling another currency expected to perform similarly to the
pound sterling. This type of hedge, sometimes referred to as a "proxy
hedge," could offer advantages in terms of cost, yield, or efficiency, but
generally would not hedge currency exposure as effectively as a direct
hedge into U.S. dollars. Proxy hedges may result in losses if the currency
used to hedge does not perform similarly to the currency in which the
hedged securities are denominated.
A fund may enter into forward contracts to shift its investment exposure
from one currency into another. This may include shifting exposure from
U.S. dollars to a foreign currency, or from one foreign currency to another
foreign currency. This type of strategy, sometimes known as a
"cross-hedge," will tend to reduce or eliminate exposure to the currency
that is sold, and increase exposure to the currency that is purchased much
as if a fund had sold a security denominated in one currency and purchased
an equivalent security denominated in another. Cross-hedges protect against
losses resulting from a decline in the hedged currency, but will cause a
fund to assume the risk of fluctuations in the value of the currency it
purchases.
Under certain conditions, SEC guidelines require mutual funds to set aside
appropriate liquid assets in a segregated custodial account to cover
currency forward contracts. As required by SEC guidelines, a fund will
segregate assets to cover currency forward contracts, if any, whose purpose
is essentially speculative. A fund will not segregate assets to cover
forward contracts entered into for hedging purposes, including settlement
hedges, position hedges, and proxy hedges.
Successful use of currency management strategies will depend on FMR's skill
in analyzing currency values. Currency management strategies may
substantially change a fund's investment exposure to changes in currency
exchange rates and could result in losses to a fund if currencies do not
perform as FMR anticipates. For example, if a currency's value rose at a
time when FMR had hedged a fund by selling that currency in exchange for
dollars, a fund would not participate in the currency's appreciation. If
FMR hedges currency exposure through proxy hedges, a fund could realize
currency losses from both the hedge and the security position if the two
currencies do not move in tandem. Similarly, if FMR increases a fund's
exposure to a foreign currency and that currency's value declines, a fund
will realize a loss. There is no assurance that FMR's use of currency
management strategies will be advantageous to a fund or that it will hedge
at appropriate times.
FUNDS' RIGHTS AS SHAREHOLDERS. Each fund does not intend to direct or
administer the day-to-day operations of any company. A fund, however, may
exercise its rights as a shareholder and may communicate its views on
important matters of policy to management, the Board of Directors, and
shareholders of a company when FMR determines that such matters could have
a significant effect on the value of the fund's investment in the company.
The activities that each fund may engage in, either individually or in
conjunction with others, may include, among others, supporting or opposing
proposed changes in a company's corporate structure or business activities;
seeking changes in a company's directors or management; seeking changes in
a company's direction or policies; seeking the sale or reorganization of
the company or a portion of its assets; or supporting or opposing
third-party takeover efforts. This area of corporate activity is
increasingly prone to litigation and it is possible that a fund could be
involved in lawsuits related to such activities. FMR will monitor such
activities with a view to mitigating, to the extent possible, the risk of
litigation against a fund and the risk of actual liability if a fund is
involved in litigation. No guarantee can be made, however, that litigation
against a fund will not be undertaken or liabilities incurred.
FUTURES AND OPTIONS. The following paragraphs pertain to futures and
options; Asset Coverage for Futures and Options Positions, Combined
Positions, Correlation of Price Changes, Futures Contracts, Futures Margin
Payments, Limitations on Futures and Options Transactions, Liquidity of
Options and Futures Contracts, Options and Futures Relating to Foreign
Currencies, OTC Options, Purchasing Put and Call Options, and Writing Put
and Call Options.
ASSET COVERAGE FOR FUTURES AND OPTIONS POSITIONS. The funds will comply
with guidelines established by the SEC with respect to coverage of options
and futures strategies by mutual funds, and if the guidelines so require,
will set aside appropriate liquid assets in a segregated custodial account
in the amount prescribed. Securities held in a segregated account cannot be
sold while the futures or option strategy is outstanding, unless they are
replaced with other suitable assets. As a result, there is a possibility
that segregation of a large percentage of a fund's assets could impede
portfolio management or the fund's ability to meet redemption requests or
other current obligations.
COMBINED POSITIONS. A fund may purchase and write options in combination
with each other, or in combination with futures or forward contracts, to
adjust the risk and return characteristics of the overall position. For
example, a fund may purchase a put option and write a call option on the
same underlying instrument, in order to construct a combined position whose
risk and return characteristics are similar to selling a futures contract.
Another possible combined position would involve writing a call option at
one strike price and buying a call option at a lower price, in order to
reduce the risk of the written call option in the event of a substantial
price increase. Because combined options positions involve multiple trades,
they result in higher transaction costs and may be more difficult to open
and close out.
CORRELATION OF PRICE CHANGES. Because there are a limited number of types
of exchange-traded options and futures contracts, it is likely that the
standardized contracts available will not match a fund's current or
anticipated investments exactly. A fund may invest in options and futures
contracts based on securities with different issuers, maturities, or other
characteristics from the securities in which it typically invests, which
involves a risk that the options or futures position will not track the
performance of a fund's other investments.
Options and futures prices can also diverge from the prices of their
underlying instruments, even if the underlying instruments match a fund's
investments well. Options and futures prices are affected by such factors
as current and anticipated short-term interest rates, changes in volatility
of the underlying instrument, and the time remaining until expiration of
the contract, which may not affect security prices the same way. Imperfect
correlation may also result from differing levels of demand in the options
and futures markets and the securities markets, from structural differences
in how options and futures and securities are traded, or from imposition of
daily price fluctuation limits or trading halts. A fund may purchase or
sell options and futures contracts with a greater or lesser value than the
securities it wishes to hedge or intends to purchase in order to attempt to
compensate for differences in volatility between the contract and the
securities, although this may not be successful in all cases. If price
changes in a fund's options or futures positions are poorly correlated with
its other investments, the positions may fail to produce anticipated gains
or result in losses that are not offset by gains in other investments.
FUTURES CONTRACTS. When a fund purchases a futures contract, it agrees to
purchase a specified underlying instrument at a specified future date. When
a fund sells a futures contract, it agrees to sell the underlying
instrument at a specified future date. The price at which the purchase and
sale will take place is fixed when a fund enters into the contract. Some
currently available futures contracts are based on specific securities,
such as U.S. Treasury bonds or notes, and some are based on indices of
securities prices, such as the Standard & Poor's 500 Index (S&P
500(registered trademark)). Futures can be held until their delivery dates,
or can be closed out before then if a liquid secondary market is available.
The value of a futures contract tends to increase and decrease in tandem
with the value of its underlying instrument. Therefore, purchasing futures
contracts will tend to increase a fund's exposure to positive and negative
price fluctuations in the underlying instrument, much as if it had
purchased the underlying instrument directly. When a fund sells a futures
contract, by contrast, the value of its futures position will tend to move
in a direction contrary to the market. Selling futures contracts,
therefore, will tend to offset both positive and negative market price
changes, much as if the underlying instrument had been sold.
FUTURES MARGIN PAYMENTS. The purchaser or seller of a futures contract is
not required to deliver or pay for the underlying instrument unless the
contract is held until the delivery date. However, both the purchaser and
seller are required to deposit "initial margin" with a futures broker,
known as a futures commission merchant (FCM), when the contract is entered
into. Initial margin deposits are typically equal to a percentage of the
contract's value. If the value of either party's position declines, that
party will be required to make additional "variation margin" payments to
settle the change in value on a daily basis. The party that has a gain may
be entitled to receive all or a portion of this amount. Initial and
variation margin payments do not constitute purchasing securities on margin
for purposes of a fund's investment limitations. In the event of the
bankruptcy of an FCM that holds margin on behalf of a fund, the fund may be
entitled to return of margin owed to it only in proportion to the amount
received by the FCM's other customers, potentially resulting in losses to
the fund.
LIMITATIONS ON FUTURES AND OPTIONS TRANSACTIONS. Each fund has filed
a notice of eligibility for exclusion from the definition of the term
"commodity pool operator" with the Commodity Futures Trading Commission
(CFTC) and the National Futures Association, which regulate trading in the
futures markets before engaging in any purchases or sales of futures
contracts or options on futures contracts. Each fund intends to comply with
Rule 4.5 under the Commodity Exchange Act, which limits the extent to which
the fund can commit assets to initial margin deposits and option premiums.
In addition, each fund will not: (a) sell futures contracts, purchase put
options, or write call options if, as a result, more than 25% of the fund's
total assets would be hedged with futures and options under normal
conditions; (b) purchase futures contracts or write put options if, as a
result, the fund's total obligations upon settlement or exercise of
purchased futures contracts and written put options would exceed 25% of its
total assets; or (c) purchase call options if, as a result, the current
value of option premiums for call options purchased by the fund would
exceed 5% of the fund's total assets. These limitations do not apply to
options attached to or acquired or traded together with their underlying
securities, and do not apply to securities that incorporate features
similar to options.
The above limitations on each fund's investments in futures contracts and
options, and each fund's policies regarding futures contracts and options
discussed elsewhere in this SAI, may be changed as regulatory agencies
permit.
LIQUIDITY OF OPTIONS AND FUTURES CONTRACTS. There is no assurance a liquid
secondary market will exist for any particular options or futures contract
at any particular time. Options may have relatively low trading volume and
liquidity if their strike prices are not close to the underlying
instrument's current price. In addition, exchanges may establish daily
price fluctuation limits for options and futures contracts, and may halt
trading if a contract's price moves upward or downward more than the limit
in a given day. On volatile trading days when the price fluctuation limit
is reached or a trading halt is imposed, it may be impossible for a fund to
enter into new positions or close out existing positions. If the secondary
market for a contract is not liquid because of price fluctuation limits or
otherwise, it could prevent prompt liquidation of unfavorable positions,
and potentially could require a fund to continue to hold a position until
delivery or expiration regardless of changes in its value. As a result, the
funds' access to other assets held to cover its options or futures
positions could also be impaired.
OPTIONS AND FUTURES RELATING TO FOREIGN CURRENCIES. Currency futures
contracts are similar to forward currency exchange contracts, except that
they are traded on exchanges (and have margin requirements) and are
standardized as to contract size and delivery date. Most currency futures
contracts call for payment or delivery in U.S. dollars. The underlying
instrument of a currency option may be a foreign currency, which generally
is purchased or delivered in exchange for U.S. dollars, or may be a futures
contract. The purchaser of a currency call obtains the right to purchase
the underlying currency, and the purchaser of a currency put obtains the
right to sell the underlying currency.
The uses and risks of currency options and futures are similar to options
and futures relating to securities or indices, as discussed above. A fund
may purchase and sell currency futures and may purchase and write currency
options to increase or decrease its exposure to different foreign
currencies. A fund may also purchase and write currency options in
conjunction with each other or with currency futures or forward contracts.
Currency futures and options values can be expected to correlate with
exchange rates, but may not reflect other factors that affect the value of
a fund's investments. A currency hedge, for example, should protect a
Yen-denominated security from a decline in the Yen, but will not protect a
fund against a price decline resulting from deterioration in the issuer's
creditworthiness. Because the value of a fund's foreign-denominated
investments changes in response to many factors other than exchange rates,
it may not be possible to match the amount of currency options and futures
to the value of the fund's investments exactly over time.
OTC OPTIONS. Unlike exchange-traded options, which are standardized with
respect to the underlying instrument, expiration date, contract size, and
strike price, the terms of over-the-counter options (OTC) (options not
traded on exchanges) generally are established through negotiation with the
other party to the option contract. While this type of arrangement allows
the funds greater flexibility to tailor an option to its needs, OTC options
generally involve greater credit risk than exchange-traded options, which
are guaranteed by the clearing organization of the exchanges where they are
traded.
PURCHASING PUT AND CALL OPTIONS. By purchasing a put option, a fund obtains
the right (but not the obligation) to sell the option's underlying
instrument at a fixed strike price. In return for this right, the fund pays
the current market price for the option (known as the option premium).
Options have various types of underlying instruments, including specific
securities, indices of securities prices, and futures contracts. A fund may
terminate its position in a put option it has purchased by allowing it to
expire or by exercising the option. If the option is allowed to expire, the
fund will lose the entire premium it paid. If the fund exercises the
option, it completes the sale of the underlying instrument at the strike
price. A fund may also terminate a put option position by closing it out in
the secondary market at its current price, if a liquid secondary market
exists.
The buyer of a typical put option can expect to realize a gain if security
prices fall substantially. However, if the underlying instrument's price
does not fall enough to offset the cost of purchasing the option, a put
buyer can expect to suffer a loss (limited to the amount of the premium
paid, plus related transaction costs).
The features of call options are essentially the same as those of put
options, except that the purchaser of a call option obtains the right to
purchase, rather than sell, the underlying instrument at the option's
strike price. A call buyer typically attempts to participate in potential
price increases of the underlying instrument with risk limited to the cost
of the option if security prices fall. At the same time, the buyer can
expect to suffer a loss if security prices do not rise sufficiently to
offset the cost of the option.
WRITING PUT AND CALL OPTIONS. When a fund writes a put option, it takes the
opposite side of the transaction from the option's purchaser. In return for
receipt of the premium, the fund assumes the obligation to pay the strike
price for the option's underlying instrument if the other party to the
option chooses to exercise it. When writing an option on a futures
contract, a fund will be required to make margin payments to an FCM as
described above for futures contracts. A fund may seek to terminate its
position in a put option it writes before exercise by closing out the
option in the secondary market at its current price. If the secondary
market is not liquid for a put option a fund has written, however, the fund
must continue to be prepared to pay the strike price while the option is
outstanding, regardless of price changes, and must continue to set aside
assets to cover its position.
If security prices rise, a put writer would generally expect to profit,
although its gain would be limited to the amount of the premium it
received. If security prices remain the same over time, it is likely that
the writer will also profit, because it should be able to close out the
option at a lower price. If security prices fall, the put writer would
expect to suffer a loss. This loss should be less than the loss from
purchasing the underlying instrument directly, however, because the premium
received for writing the option should mitigate the effects of the decline.
Writing a call option obligates a fund to sell or deliver the option's
underlying instrument, in return for the strike price, upon exercise of the
option. The characteristics of writing call options are similar to those of
writing put options, except that writing calls generally is a profitable
strategy if prices remain the same or fall. Through receipt of the option
premium, a call writer mitigates the effects of a price decline. At the
same time, because a call writer must be prepared to deliver the underlying
instrument in return for the strike price, even if its current value is
greater, a call writer gives up some ability to participate in security
price increases.
ILLIQUID INVESTMENTS are investments that cannot be sold or disposed of in
the ordinary course of business at approximately the prices at which they
are valued. Under the supervision of the Board of Trustees, FMR determines
the liquidity of a fund's investments and, through reports from FMR, the
Board monitors investments in illiquid instruments. In determining the
liquidity of a fund's investments, FMR may consider various factors,
including (1) the frequency of trades and quotations, (2) the number of
dealers and prospective purchasers in the marketplace, (3) dealer
undertakings to make a market, (4) the nature of the security (including
any demand or tender features) and (5) the nature of the marketplace for
trades (including the ability to assign or offset the fund's rights and
obligations relating to the investment).
Investments currently considered by the funds to be illiquid include
repurchase agreements not entitling the holder to payment of principal and
interest within seven days, over-the-counter options, and
non-government-stripped fixed-rate mortgage-backed securities. Also, FMR
may determine some restricted securities, government-stripped fixed-rate
mortgage-backed securities, loans and other direct debt instruments,
emerging market securities, and swap agreements to be illiquid. However,
with respect to over-the-counter options a fund writes, all or a portion of
the value of the underlying instrument may be illiquid depending on the
assets held to cover the option and the nature and terms of any agreement
the fund may have to close out the option before expiration.
In the absence of market quotations, illiquid investments are priced at
fair value as determined in good faith by a committee appointed by the
Board of Trustees. If through a change in values, net assets, or other
circumstances, a fund were in a position where more than 10% of its net
assets was invested in illiquid securities, it would seek to take
appropriate steps to protect liquidity.
INDEXED SECURITIES. Each fund may purchase securities whose prices are
indexed to the prices of other securities, securities indices, currencies,
precious metals or other commodities, or other financial indicators.
Indexed securities typically, but not always, are debt securities or
deposits whose value at maturity or coupon rate is determined by reference
to a specific instrument or statistic. Gold indexed securities, for
example, typically provide for a maturity value that depends on the price
of gold, resulting in a security whose price tends to rise and fall
together with gold prices. Currency-indexed securities typically are
short-term to intermediate-term debt securities whose maturity values or
interest rates are determined by reference to the values of one or more
specified foreign currencies, and may offer higher yields than U.S.
dollar-denominated securities of equivalent issuers. Currency-indexed
securities may be positively or negatively indexed; that is, their maturity
value may increase when the specified currency value increases, resulting
in a security that performs similarly to a foreign-denominated instrument,
or their maturity value may decline when foreign currencies increase,
resulting in a security whose price characteristics are similar to a put on
the underlying currency. Currency-indexed securities may also have prices
that depend on the values of a number of different foreign currencies
relative to each other.
The performance of indexed securities depends to a great extent on the
performance of the security, currency, or other instrument to which they
are indexed, and may also be influenced by interest rate changes in the
United States and abroad. At the same time, indexed securities are subject
to the credit risks associated with the issuer of the security, and their
values may decline substantially if the issuer's creditworthiness
deteriorates. Recent issuers of indexed securities have included banks,
corporations, and certain U.S. Government agencies. Indexed securities may
be more volatile than the underlying instruments.
INTERFUND BORROWING AND LENDING PROGRAM. Pursuant to an exemptive order
issued by the SEC, each fund has received permission to lend money to, and
borrow money from, other funds advised by FMR or its affiliates. Interfund
loans and borrowings normally extend overnight, but can have a maximum
duration of seven days. Loans may be called on one day's notice. A fund
will lend through the program only when the returns are higher than those
available from an investment in repurchase agreements, and will borrow
through the program only when the costs are equal to or lower than the cost
of bank loans. A fund may have to borrow from a bank at a higher interest
rate if an interfund loan is called or not renewed. Any delay in repayment
to a lending fund could result in a lost investment opportunity or
additional borrowing costs.
LOANS AND OTHER DIRECT DEBT INSTRUMENTS are interests in amounts owed by a
corporate, governmental, or other borrower to another party. They may
represent amounts owed to lenders or lending syndicates (loans and loan
participations), to suppliers of goods or services (trade claims or other
receivables), or to other parties. Direct debt instruments involve a
risk of loss in case of default or insolvency of the borrower and may offer
less legal protection to the fund in the event of fraud or
misrepresentation. In addition, loan participations involve a risk of
insolvency of the lending bank or other financial intermediary. Direct debt
instruments may also include standby financing commitments that obligate
a fund to supply additional cash to the borrower on demand.
LOWER-QUALITY DEBT SECURITIES. Each fund may purchase lower-quality debt
securities that have poor protection with respect to the payment of
interest and repayment of principal, or may be in default. These securities
are often considered to be speculative and involve greater risk of loss or
price changes due to changes in the issuer's capacity to pay. The market
prices of lower-quality debt securities may fluctuate more than those of
higher-quality debt securities and may decline significantly in periods of
general economic difficulty, which may follow periods of rising interest
rates.
While the market for high-yield corporate debt securities has been in
existence for many years and has weathered previous economic downturns, the
1980s brought a dramatic increase in the use of such securities to fund
highly leveraged corporate acquisitions and restructurings. Past experience
may not provide an accurate indication of the future performance of the
high-yield bond market, especially during periods of economic recession.
The market for lower-quality debt securities may be thinner and less active
than that for higher-quality debt securities, which can adversely affect
the prices at which the former are sold. If market quotations are not
available, lower-quality debt securities will be valued in accordance with
procedures established by the Board of Trustees, including the use of
outside pricing services. Judgment plays a greater role in valuing
high-yield corporate debt securities than is the case for securities for
which more external sources for quotations and last-sale information are
available. Adverse publicity and changing investor perceptions may affect
the ability of outside pricing services to value lower-quality debt
securities and a fund's ability to dispose of these securities.
Since the risk of default is higher for lower-quality debt securities,
FMR's research and credit analysis are an especially important part of
managing securities of this type held by a fund. In considering investments
for a fund, FMR will attempt to identify those issuers of high-yielding
securities whose financial condition is adequate to meet future
obligations, has improved, or is expected to improve in the future. FMR's
analysis focuses on relative values based on such factors as interest or
dividend coverage, asset coverage, earnings prospects, and the experience
and managerial strength of the issuer.
A fund may choose, at its expense or in conjunction with others, to
pursue litigation or otherwise to exercise its rights as a security holder
to seek to protect the interests of security holders if it determines this
to be in the best interest of the fund's shareholders.
REAL ESTATE-RELATED INSTRUMENTS include real estate investment trusts,
commercial and residential mortgage-backed securities, and real estate
financings. Real estate-related instruments are sensitive to factors such
as changes in real estate values and property taxes, interest rates, cash
flow of underlying real estate assets, overbuilding, and the management
skill and creditworthiness of the issuer. Real estate-related instruments
may also be affected by tax and regulatory requirements, such as those
relating to the environment.
REPURCHASE AGREEMENTS. In a repurchase agreement, a fund purchases a
security and simultaneously commits to sell that security back to the
original seller at an agreed-upon price. The resale price reflects the
purchase price plus an agreed-upon incremental amount which is unrelated to
the coupon rate or maturity of the purchased security. To protect the fund
from the risk that the original seller will not fulfill its obligation, the
securities are held in an account of the fund at a bank, marked-to-market
daily, and maintained at a value at least equal to the sale price plus the
accrued incremental amount. While it does not presently appear possible to
eliminate all risks from these transactions (particularly the possibility
that the value of the underlying security will be less than the resale
price, as well as delays and costs to a fund in connection with bankruptcy
proceedings), it is each fund's current policy to engage in repurchase
agreement transactions with parties whose creditworthiness has been
reviewed and found satisfactory by FMR.
RESTRICTED SECURITIES generally can be sold in privately negotiated
transactions, pursuant to an exemption from registration under the
Securities Act of 1933, or in a registered public offering. Where
registration is required, a fund may be obligated to pay all or part of the
registration expense and a considerable period may elapse between the time
it decides to seek registration and the time it may be permitted to sell a
security under an effective registration statement. If, during such a
period, adverse market conditions were to develop, a fund might obtain a
less favorable price than prevailed when it decided to seek registration of
the security.
REVERSE REPURCHASE AGREEMENTS. In a reverse repurchase agreement, a fund
sells a portfolio instrument to another party, such as a bank or
broker-dealer, in return for cash and agrees to repurchase the instrument
at a particular price and time. While a reverse repurchase agreement is
outstanding, the fund will maintain appropriate liquid assets in a
segregated custodial account to cover its obligation under the agreement. A
fund will enter into reverse repurchase agreements only with parties whose
creditworthiness has been found satisfactory by FMR. Such transactions may
increase fluctuations in the market value of a fund's assets and may be
viewed as a form of leverage.
SECURITIES LENDING. A fund may lend securities to parties such as
broker-dealers or institutional investors, including Fidelity Brokerage
Services, Inc. (FBSI). FBSI is a member of the New York Stock Exchange
(NYSE) and a subsidiary of FMR Corp.
Securities lending allows a fund to retain ownership of the securities
loaned and, at the same time, to earn additional income. Since there may be
delays in the recovery of loaned securities, or even a loss of rights in
collateral supplied should the borrower fail financially, loans will be
made only to parties deemed by FMR to be of good standing. Furthermore,
they will only be made if, in FMR's judgment, the consideration to be
earned from such loans would justify the risk.
FMR understands that it is the current view of the SEC Staff that a fund
may engage in loan transactions only under the following conditions: (1)
the fund must receive 100% collateral in the form of cash or cash
equivalents (e.g., U.S. Treasury bills or notes) from the borrower; (2) the
borrower must increase the collateral whenever the market value of the
securities loaned (determined on a daily basis) rises above the value of
the collateral; (3) after giving notice, the fund must be able to terminate
the loan at any time; (4) the fund must receive reasonable interest on the
loan or a flat fee from the borrower, as well as amounts equivalent to any
dividends, interest, or other distributions on the securities loaned and to
any increase in market value; (5) the fund may pay only reasonable
custodian fees in connection with the loan; and (6) the Board of Trustees
must be able to vote proxies on the securities loaned, either by
terminating the loan or by entering into an alternative arrangement with
the borrower.
Cash received through loan transactions may be invested in any security in
which a fund is authorized to invest. Investing this cash subjects that
investment, as well as the security loaned, to market forces (i.e., capital
appreciation or depreciation).
SHORT SALES "AGAINST THE BOX." A fund may sell securities short when it
owns or has the right to obtain securities equivalent in kind or amount to
the securities sold short. Short sales could be used to protect the net
asset value per share of the fund in anticipation of increased interest
rates, without sacrificing the current yield of the securities sold short.
If a fund enters into a short sale against the box, it will be required to
set aside securities equivalent in kind and amount to the securities sold
short (or securities convertible or exchangeable into such securities) and
will be required to hold such securities while the short sale is
outstanding. The fund may incur transaction costs, including interest
expenses, in connection with opening, maintaining, and closing short sales
against the box.
When a fund enters into a short sale, it will be required to set aside
securities equivalent in kind and amount to the securities sold short (or
securities convertible or exchangeable into such securities) and will be
required to hold them aside while the short sale is outstanding. A fund
will incur transaction costs, including interest expense, in connection
with opening, maintaining, and closing short sales.
SWAP AGREEMENTS. Swap agreements can be individually negotiated and
structured to include exposure to a variety of investments or market
factors. Depending on their structure, swap agreements may increase or
decrease a fund's exposure to long-or short-term interest rates (in the
United States or abroad), foreign currency values, mortgage securities,
corporate borrowing rates, or other factors such as security prices or
inflation rates. Swap agreements can take many different forms and are
known by a variety of names. A fund is not limited to any particular form
of swap agreement if FMR determines it is consistent with a fund's
investment objective and policies.
In a typical cap or floor agreement, one party agrees to make payments only
under specified circumstances, usually in return for payment of a fee by
the other party. For example, the buyer of an interest rate cap obtains the
rights to receive payments to the extent that a specified interest rate
exceeds an agreed-upon level, while the seller of an interest rate floor is
obligated to make payments to the extent that a specified interest rate
falls below an agreed-upon level. An interest rate collar combines elements
of buying a cap and selling a floor.
Swap agreements will tend to shift a fund's investment exposure from one
type of investment to another. For example, if a fund agreed to exchange
payments in dollars for payments in foreign currency, the swap agreement
would tend to decrease a fund's exposure to U.S. interest rates and
increase its exposure to foreign currency and interest rates. Caps and
floors have an effect similar to buying or writing options. Depending on
how they are used, swap agreements may increase or decrease the overall
volatility of a fund's investments and its share price.
The most significant factor in the performance of swap agreements is the
change in the specific interest rate, currency, or other factors that
determine the amounts of payments due to and from a fund. If a swap
agreement calls for payments by the fund, the fund must be prepared to make
such payments when due. In addition, if the counterparty's creditworthiness
declined, the value of a swap agreement would be likely to decline,
potentially resulting in losses. Each fund expects to be able to eliminate
its exposure under swap agreements either by assignment or other
disposition, or by entering into an offsetting swap agreement with the same
party or a similarly creditworthy party.
Each fund will maintain appropriate liquid assets in a segregated custodial
account to cover its current obligations under swap agreements. If a fund
enters into a swap agreement on a net basis, it will segregate assets with
a daily value at least equal to the excess, if any, of the fund's accrued
obligations under the swap agreement over the accrued amount the fund is
entitled to receive under the agreement. If a fund enters into a swap
agreement on other than a net basis, it will segregate assets with a value
equal to the full amount of the fund's accrued obligations under the
agreement.
PORTFOLIO TRANSACTIONS
All orders for the purchase or sale of portfolio securities are placed on
behalf of each fund by FMR pursuant to authority contained in the
management contract. If FMR grants investment management authority to the
sub-advisers (see the section entitled "Management Contracts"), the
sub-advisers are authorized to place orders for the purchase and sale of
portfolio securities, and will do so in accordance with the policies
described below. FMR is also responsible for the placement of transaction
orders for other investment companies and accounts for which it or its
affiliates act as investment adviser. In selecting broker-dealers, subject
to applicable limitations of the federal securities laws, FMR considers
various relevant factors, including, but not limited to: the size and type
of the transaction; the nature and character of the markets for the
security to be purchased or sold; the execution efficiency, settlement
capability, and financial condition of the broker-dealer firm; the
broker-dealer's execution services rendered on a continuing basis; the
reasonableness of any commissions; and arrangements for payment of fund
expenses. Generally, commissions for investments traded on foreign
exchanges will be higher than for investments traded on U.S. exchanges and
may not be subject to negotiation.
The funds may execute portfolio transactions with broker-dealers who
provide research and execution services to the funds or other accounts over
which FMR or its affiliates exercise investment discretion. Such services
may include advice concerning the value of securities; the advisability of
investing in, purchasing, or selling securities; and the availability of
securities or the purchasers or sellers of securities. In addition, such
broker-dealers may furnish analyses and reports concerning issuers,
industries, securities, economic factors and trends, portfolio strategy,
and performance of accounts; effect securities transactions, and perform
functions incidental thereto (such as clearance and settlement). The
selection of such broker-dealers generally is made by FMR (to the extent
possible consistent with execution considerations) in accordance with a
ranking of broker-dealers determined periodically by FMR's investment staff
based upon the quality of research and execution services provided.
The receipt of research from broker-dealers that execute transactions on
behalf of the funds may be useful to FMR in rendering investment management
services to the funds or its other clients, and conversely, such research
provided by broker-dealers who have executed transaction orders on behalf
of other FMR clients may be useful to FMR in carrying out its obligations
to the funds. The receipt of such research has not reduced FMR's normal
independent research activities; however, it enables FMR to avoid the
additional expenses that could be incurred if FMR tried to develop
comparable information through its own efforts.
Subject to applicable limitations of the federal securities laws,
broker-dealers may receive commissions for agency transactions that are in
excess of the amount of commissions charged by other broker-dealers in
recognition of their research and execution services. In order to cause
each fund to pay such higher commissions, FMR must determine in good faith
that such commissions are reasonable in relation to the value of the
brokerage and research services provided by such executing broker-dealers,
viewed in terms of a particular transaction or FMR's overall
responsibilities to the funds and its other clients. In reaching this
determination, FMR will not attempt to place a specific dollar value on the
brokerage and research services provided, or to determine what portion of
the compensation should be related to those services.
FMR is authorized to use research services provided by and to place
portfolio transactions with brokerage firms that have provided assistance
in the distribution of shares of the funds or shares of other Fidelity
funds to the extent permitted by law. FMR may use research services
provided by and place agency transactions with Fidelity Brokerage Services,
Inc. (FBSI) and Fidelity Brokerage Services (FBS), subsidiaries of FMR
Corp., if the commissions are fair, reasonable, and comparable to
commissions charged by non-affiliated, qualified brokerage firms for
similar services. From September 1992 through December 1994, FBS operated
under the name Fidelity Brokerage Services Limited, (FBSL). As of January
1995, FBSL was converted to an unlimited liability company and assumed the
name FBS.
FMR may allocate brokerage transactions to broker-dealers who have entered
into arrangements with FMR under which the broker-dealer allocates a
portion of the commissions paid by a fund toward payment of that fund's
expenses, such as transfer agent fees or custodian fees. The transaction
quality must, however, be comparable to those of other qualified
broker-dealers.
Section 11(a) of the Securities Exchange Act of 1934 prohibits members of
national securities exchanges from executing exchange transactions for
accounts which they or their affiliates manage, unless certain requirements
are satisfied. Pursuant to such requirements, the Board of Trustees has
authorized FBSI to execute portfolio transactions on national securities
exchanges in accordance with approved procedures and applicable SEC rules.
Each fund's Trustees periodically review FMR's performance of its
responsibilities in connection with the placement of portfolio transactions
on behalf of the funds and review the commissions paid by each fund over
representative periods of time to determine if they are reasonable in
relation to the benefits to the fund.
For the fiscal periods ended October 31, 1996, and 1995, the portfolio
turnover rates were 137% and 161%, respectively for Natural Resources.
The annualized turnover rate for each fund (other than Natural Resources
and Technology) for its first fiscal period is not expected to exceed 200%.
The annualized turnover rate for Technology for its first fiscal period is
not expected to exceed 400%. Because a high turnover rate increases
transaction costs and may increase taxable gains, FMR carefully weighs the
anticipated benefits of short-term investing against these consequences. An
increased turnover rate is due to a greater volume of shareholder purchase
orders, short-term interest rate volatility and other special market
conditions.
For fiscal 1996, 1995, and 1994, Natural Resources paid brokerage
commissions of $1,485,040, $947,646 and $630,752, respectively. The fund
pays both commissions and spreads in connection with the placement of
portfolio transactions. FBSI is paid on a commission basis. During fiscal
1996, 1995, and 1994, the fund paid brokerage commissions of $288,669,
$243,517, and $195,272, respectively, to FBSI. During fiscal 1996, this
amounted to approximately 1 9 . 44 % of the aggregate brokerage
commissions paid by the fund for transactions involving approximately
31 . 89 % of the aggregate dollar amount of transactions for
which the fund paid brokerage commissions. The difference between the
percentage of brokerage commissions paid to and the percentage of the
dollar amount of transactions effected through FBSI is a result of the low
commission rates charged by FBSI.
During the fiscal year ended October 1996, Natural Resources paid brokerage
commissions of $10,616 to FBS. During the fiscal year ended
October 1996, this amounted to approximately .71% of the aggregate
brokerage commissions paid by the fund involving approximately .58% of the
aggregate dollar amount of transactions for which the fund paid brokerage
commissions.
From time to time the Trustees will review whether the recapture for the
benefit of the funds of some portion of the brokerage commissions or
similar fees paid by the funds on portfolio transactions is legally
permissible and advisable. Each fund seeks to recapture soliciting
broker-dealer fees on the tender of portfolio securities, but at present no
other recapture arrangements are in effect. The Trustees intend to continue
to review whether recapture opportunities are available and are legally
permissible and, if so, to determine in the exercise of their business
judgment whether it would be advisable for each fund to seek such
recapture.
Although the Trustees and officers of each fund are substantially the same
as those of other funds managed by FMR, investment decisions for each fund
are made independently from those of other funds managed by FMR or accounts
managed by FMR affiliates. It sometimes happens that the same security is
held in the portfolio of more than one of these funds or accounts.
Simultaneous transactions are inevitable when several funds and accounts
are managed by the same investment adviser, particularly when the same
security is suitable for the investment objective of more than one fund or
account.
When two or more funds are simultaneously engaged in the purchase or sale
of the same security, the prices and amounts are allocated in accordance
with procedures believed to be appropriate and equitable for each fund. In
some cases this system could have a detrimental effect on the price or
value of the security as far as each fund is concerned. In other cases,
however, the ability of the funds to participate in volume transactions
will produce better executions and prices for the funds. It is the current
opinion of the Trustees that the desirability of retaining FMR as
investment adviser to each fund outweighs any disadvantages that may be
said to exist from exposure to simultaneous transactions.
VALUATION
Fidelity Service Company, Inc. (FSC) normally determines each class's net
asset value per share (NAV) as of the close of the NYSE (normally 4:00 p.m.
Eastern time). The valuation of portfolio securities is determined as of
this time for the purpose of computing each class's NAV.
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 United States 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 United States are valued using
the official closing price or the last sale price in the principal market
in which they are traded. If the last sale price (on the local exchange) is
unavailable, the last evaluated quote or last bid price normally is
used. Securities of other open-end investment companies are valued at
their respective NAVs.
Fixed-income securities and other assets for which market quotations are
readily available may be valued at market values determined by such
securities' most recent bid prices (sales prices if the principal market is
an exchange) in the principal market in which they normally are traded, as
furnished by recognized dealers in such securities or assets . Or,
f ixed-income securities and convertible securities may be valued on the
basis of information furnished by a pricing service that uses a valuation
matrix which incorporates both dealer-supplied valuations and electronic
data processing techniques. Use of pricing services has been approved by
the Board of Trustees. A number of pricing services are available, and the
funds may use various pricing services or discontinue the use of any
pricing service.
Futures contracts and options are valued on the basis of market quotations,
if available.
Foreign securities are valued based on prices furnished by independent
brokers or quotation services which express the value of securities in
their local currency. FSC gathers all exchange rates daily at the close of
the NYSE using the last quoted price on the local currency and then
translates the value of foreign securities from their local currencies into
U.S. dollars. Any changes in the value of forward contracts due to exchange
rate fluctuations and days to maturity are included in the calculation of
NAV. If an extraordinary event that is expected to materially affect the
value of a portfolio security occurs after the close of an exchange on
which that security is traded, then that security will be valued as
determined in good faith by a committee appointed by the Board of Trustees.
Short-term securities with remaining maturities of sixty days or less for
which market quotations are not readily available are valued either at
amortized cost or at original cost plus accrued interest, both of which
approximate current value. In addition, securities and other assets for
which there is no readily available market value may be valued in good
faith by a committee appointed by the Board of Trustees. The procedures set
forth above need not be used to determine the value of the securities owned
by a fund if, in the opinion of a committee appointed by the Board of
Trustees, some other method would more accurately reflect the fair market
value of such securities.
PERFORMANCE
Each class of shares may quote performance in various ways. All performance
information supplied by the funds in advertising is historical and is not
intended to indicate future returns. Each fund's share price, yield, and
total return fluctuate in response to market conditions and other factors,
and the value of shares when redeemed may be more or less than their
original cost.
TOTAL RETURN CALCULATIONS. Total returns quoted in advertising reflect all
aspects of a class's return, including the effect of reinvesting dividends
and capital gain distributions, and any change in a class's NAV over a
stated period. Average annual total returns are calculated by determining
the growth or decline in value of a hypothetical historical investment in
the class over a stated period, and then calculating the annually
compounded percentage rate that would have produced the same result if the
rate of growth or decline in value had been constant over the period. For
example, a cumulative total return of 100% over ten years would produce an
average annual total return of 7.18%, which is the steady annual rate of
return that would equal 100% growth on a compounded basis in ten years.
Average annual total returns covering periods of less than one year are
calculated by determining a class's total return for the period, extending
that return for a full year (assuming that return remains constant over the
year), and quoting the result as an annual return. While average annual
total returns are a convenient means of comparing investment alternatives,
investors should realize that performance is not constant over time, but
changes from year to year, and that average annual total returns represent
averaged figures as opposed to the actual year-to-year performance of the
class .
In addition to average annual total returns, a class may quote unaveraged
or cumulative total returns reflecting the simple change in value of an
investment over a stated period. Average annual and cumulative total
returns may be quoted as a percentage or as a dollar amount, and may be
calculated for a single investment, a series of investments, or a series of
redemptions, over any time period. Total returns may be broken down into
their components of income and capital (including capital gains and changes
in share price) in order to illustrate the relationship of these factors
and their contributions to total return. Total returns may be quoted on a
before-tax or after-tax basis and may be quoted with or without taking a
class's maximum sales charge into account and may or may not include the
effect of a class's redemption fees. Excluding a sales charge/redemption
fee from a total return calculation produces a higher total return figure.
Total returns, yields, and other performance information may be quoted
numerically or in a table, graph, or similar illustration.
NET ASSET VALUE. Charts and graphs using NAVs, adjusted NAVs, and benchmark
indices may be used to exhibit performance. An adjusted NAV includes any
distributions paid by a fund and reflects all elements of its return.
Unless otherwise indicated, adjusted NAVs are not adjusted for sales
charges, if any.
MOVING AVERAGES. A fund may illustrate performance using moving averages. A
long-term moving average is the average of each week's adjusted closing NAV
for a specified period. A short-term moving average is the average of each
day's adjusted closing NAV for a specified period. Moving Average Activity
Indicators combine adjusted closing NAVs from the last business day of each
week with moving averages for a specified period to produce indicators
showing when a NAV has crossed, stayed above, or stayed below its moving
average. On October 25, 1996, the 13-week and 39-week short-term moving
averages for Class A, Class T, Class B, and Institutional Class were
$2 3 . 98 and $23. 17 , $23.9 8 and $23. 17 ,
$2 3 . 77 and $23. 01 , and $24.02 and $23.20
respectively, for Fidelity Advisor Natural Resources Fund.
HISTORICAL FUND RESULTS. The following table shows Natural Resources' total
returns for periods ended October 31, 1996.
Average Annual Total Cumulative Total
Returns1 Returns1

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
One Five Life One Five Life of
Year Years of Fund* Year Years Fund*

Natural Resources - Class A 27.87% 17.22% 16.49% 27.87% 121.36% 286.10%

Natural Resources - Class T 30.28% 17.66% 16.74% 30.28% 125.54% 293.39%

Natural Resources - Class B 28.87% 18.07% 17.08% 28.87% 129.50% 303.79%

Natural Resources - Institutional 35.13% 18.55% 17.24% 35.13% 134.17% 308.45%

</TABLE>

* From December 29, 1987 (commencement of operations).
1 Average annual and cumulative total returns for Class A shares include
the effect of paying Class A's maximum applicable front-end sales charge of
5.25%. Average annual and cumulative total returns for Class T shares
include the effect of paying Class T's maximum applicable front-end sales
charge of 3.50%. Average annual and cumulative total returns for Class B
shares include the effect of paying Class B's CDSC upon redemption based on
the following schedule: one year or less, 5%; greater than one year to two
years, 4%; greater than 2 years to four years, 3%; greater than four years
to five years, 2%; greater than five years to six years, 1%; greater than
six years, 0%. Initial offering of Class A shares took place on September
3, 1996. Returns prior to that date are those of Class T, the original
class of the fund, and reflect Class T's 0.50% 12b-1 fee ( 0 .65%
prior to January 1, 1996). Initial offering of Institutional Class took
place on July 3, 1995. Institutional Class shares do not bear a sales load
or 12b-1 fee. Returns prior to July 3, 1995 are those of Class T, the
original class of the fund and include a Class T 12b-1 fee (at a then
currently applicable rate of 0.65%). Class B returns prior to July 3, 1995
are those of Class T shares and include the applicable Class T 12b-1 fees
discussed above.
If FMR had not reimbursed certain fund expenses during these periods,
Natural Resources' total returns would have been lower.
The following tables show the income and capital elements of each class's
cumulative total return. The table compares each class's return to the
record of the S&P 500, the Dow Jones Industrial Average (DJIA), and the
cost of living, as measured by the Consumer Price Index (CPI), over the
same period. The CPI information is as of the month end closest to the
initial investment date for each class. The S&P 500 and DJIA comparisons
are provided to show how each class's total return compared to the record
of a broad unmanaged index of common stocks and a narrower set of stocks of
major industrial companies, respectively, over the same period. Each fund
has the ability to invest in securities not included in either index, and
its investment portfolio may or may not be similar in composition to the
indexes. The S&P 500 and DJIA returns are based on the prices of unmanaged
groups of stocks and, unlike each class's returns, do not include the
effect of brokerage commissions or other costs of investing.
The following tables show the growth in value of a hypothetical $10,000
investment in each class of Natural Resources during the life of the fund,
assuming all distributions were reinvested. The figures below reflect the
fluctuating interest rates, bond prices, and stock prices of the specified
periods and should not be considered representative of the dividend income
or capital gain or loss that could be realized from an investment in the
class today. Tax consequences of different investments have not been
factored into the figures below.
During the period from December 29, 1987 (commencement of operations) to
October 31, 1996, a hypothetical $10,000 investment in Class A of Natural
Resources would have grown to $38,610, including the effect of Class A's
5.25% maximum sales charge.
NATURAL RESOURCES - CLASS A INDICES

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Period Ended Value of Value of Value of Total S&P 500 DJIA Cost of
October 31 Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions

1996 $ 23,792 $ 164 $ 14,654 $ 38,610 $ 37,635 $ 40,742 $ 13,718

1995 $ 18,239 $ 127 $ 10,244 $ 28,610 $ 30,328 $ 31,450 $ 13,319

1994 $ 16,638 $ 115 $ 8,929 $ 25,682 $ 23,986 $ 25,207 $ 12,955

1993 $ 16,667 $ 115 $ 7,920 $ 24,702 $ 23,093 $ 23,104 $ 12,626

1992 $ 13,151 $ 91 $ 4,271 $ 17,513 $ 20,090 $ 19,672 $ 12,288

1991 $ 13,369 $ 93 $ 3,065 $ 16,527 $ 18,268 $ 18,172 $ 11,906

1990 $ 11,654 $ 81 $ 2,095 $ 13,830 $ 13,683 $ 13,970 $ 11,568

1989 $ 11,939 $ 0 $ 1,062 $ 13,001 $ 14,791 $ 14,557 $ 10,884

1988* $ 10,868 $ 0 $ 0 $ 10,868 $ 11,702 $ 11,395 $ 10,416

</TABLE>

* From December 29, 1987 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class A of
Natural Resources on December 29, 1987, assuming the 5.25% maximum sales
charge had been in effect, the net amount invested in Class A shares was
$9,475. The cost of the initial investment ($10,000), together with the
aggregate cost of reinvested dividends and capital gain distributions for
the period covered (their cash value at the time they were reinvested)
amounted to $17,828. If distributions had not been reinvested, the amount
of distributions earned from the class over time would have been smaller,
and cash payments for the period would have amounted to $76 for dividends
and $6,102 for capital gains distributions. Tax consequences of different
investments have not been factored into the figures. The figures do not
include the effect of the fund's 1.00% redemption fee applicable to shares
purchased on or after March 1, 1997 and held less than 60 days.
During the period from December 29, 1987 (commencement of operations) to
October 31, 1996, a hypothetical $10,000 investment in Class T of Natural
Resources would have grown to $39,339, including the effect of Class T's
3.50% maximum sales charge.
NATURAL RESOURCES - CLASS T INDICES

1996 $ 24,241 $ 167 $ 14,931 $ 39,339 $ 37,635 $ 40,742 $ 13,718

1995 $ 18,576 $ 128 $ 10,434 $ 29,138 $ 30,328 $ 31,450 $ 13,319

1994 $ 16,945 $ 117 $ 9,094 $ 26,156 $ 23,986 $ 25,207 $ 12,955

1993 $ 16,974 $ 118 $ 8,066 $ 25,158 $ 23,093 $ 23,104 $ 12,626

1992 $ 13,394 $ 93 $ 4,350 $ 17,837 $ 20,090 $ 19,672 $ 12,288

1991 $ 13,616 $ 94 $ 3,122 $ 16,832 $ 18,268 $ 18,172 $ 11,906

1990 $ 11,870 $ 82 $ 2,133 $ 14,085 $ 13,683 $ 13,970 $ 11,568

1989 $ 12,159 $ 0 $ 1,082 $ 13,241 $ 14,791 $ 14,557 $ 10,884

1988* $ 11,069 $ 0 $ 0 $ 11,069 $ 11,702 $ 11,395 $ 10,416

</TABLE>

* From December 29, 1987 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class T of
Natural Resources on December 29, 1987, assuming the 3.50% maximum sales
charge had been in effect, the net amount invested in Class T shares was
$9,650. The cost of the initial investment ($10,000), together with the
aggregate cost of reinvested dividends and capital gain distributions for
the period covered (their cash value at the time they were reinvested)
amounted to $17,973. If distributions had not been reinvested, the amount
of distributions earned from the class over time would have been smaller,
and cash payments for the period would have amounted to $77 for dividends
and $6,215 for capital gains distributions. Tax consequences of different
investments have not been factored into the figures. The figures do not
include the effect of the fund's 1.00% redemption fee applicable to shares
purchased on or after March 1, 1997 and held less than 60 days.
During the period from December 29, 1987 (commencement of operations) to
October 31, 1996, a hypothetical $10,000 investment in Class B of Natural
Resources would have grown to $40,379.
NATURAL RESOURCES - CLASS B INDICES

1996 $ 24,880 $ 172 $ 15,327 $ 40,379 $ 37,635 $ 40,742 $ 13,718

1995 $ 19,230 $ 133 $ 10,801 $ 30,164 $ 30,328 $ 31,450 $ 13,319

1994 $ 17,560 $ 121 $ 9,424 $ 27,105 $ 23,986 $ 25,207 $ 12,955

1993 $ 17,590 $ 121 $ 8,359 $ 26,070 $ 23,093 $ 23,104 $ 12,626

1992 $ 13,880 $ 96 $ 4,508 $ 18,484 $ 20,090 $ 19,672 $ 12,288

1991 $ 14,110 $ 98 $ 3,235 $ 17,443 $ 18,268 $ 18,172 $ 11,906

1990 $ 12,300 $ 85 $ 2,211 $ 14,596 $ 13,683 $ 13,970 $ 11,568

1989 $ 12,600 $ 0 $ 1,121 $ 13,721 $ 14,791 $ 14,557 $ 10,884

1988* $ 11,470 $ 0 $ 0 $ 11,470 $ 11,702 $ 11,395 $ 10,416

</TABLE>

* From December 29, 1987 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class B of
Natural Resources on December 29, 1987, the net amount invested in Class B
shares was $10,000. The cost of the initial investment ($10,000), together
with the aggregate cost of reinvested dividends and capital gain
distributions for the period covered (their cash value at the time they
were reinvested) amounted to $18,262. If distributions had not been
reinvested, the amount of distributions earned from the class over time
would have been smaller, and cash payments for the period would have
amounted to $80 for dividends and $6,440 for capital gains distributions.
Tax consequences of different investments have not been factored into the
figures. The figures do not include the effect of the fund's 1.00%
redemption fee applicable to shares purchased on or after March 1, 1997 and
held less than 60 days.
During the period from December 29, 1987 (commencement of operations) to
October 31, 1996, a hypothetical $10,000 investment in Institutional Class
of Natural Resources would have grown to $40,845.

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
NATURAL RESOURCES - INSTITUTIONAL CLASS INDICES

</TABLE>

1996 $ 25,170 $ 174 $ 15,501 $ 40,845 $ 37,635 $ 40,742 $ 13,718

1995 $ 19,270 $ 133 $ 10,823 $ 30,226 $ 30,328 $ 31,450 $ 13,319

1994 $ 17,560 $ 121 $ 9,424 $ 27,105 $ 23,986 $ 25,207 $ 12,955

1993 $ 17,590 $ 121 $ 8,359 $ 26,070 $ 23,093 $ 23,104 $ 12,626

1992 $ 13,880 $ 96 $ 4,508 $ 18,484 $ 20,090 $ 19,672 $ 12,288

1991 $ 14,110 $ 98 $ 3,235 $ 17,443 $ 18,268 $ 18,172 $ 11,906

1990 $ 12,300 $ 85 $ 2,211 $ 14,596 $ 13,683 $ 13,970 $ 11,568

1989 $ 12,600 $ 0 $ 1,121 $ 13,721 $ 14,791 $ 14,557 $ 10,884

1988* $ 11,470 $ 0 $ 0 $ 11,470 $ 11,702 $ 11,395 $ 10,416

</TABLE>

* From December 29, 1987 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Institutional
Class of Natural Resources on December 29, 1987, the net amount invested in
Institutional Class shares was $10,000. The cost of the initial investment
($10,000), together with the aggregate cost of reinvested dividends and
capital gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $18,262. If distributions had not
been reinvested, the amount of distributions earned from the class over
time would have been smaller, and cash payments for the period would have
amounted to $80 for dividends and $6,440 for capital gains distributions.
Tax consequences of different investments have not been factored into the
figures. The figures do not include the effect of the fund's 1.00%
redemption fee applicable to shares purchased on or after March 1, 1997 and
held less than 60 days.
PERFORMANCE COMPARISONS. A class's performance may be compared to the
performance of other mutual funds in general, or to the performance of
particular types of mutual funds. These comparisons may be expressed as
mutual fund rankings prepared by Lipper Analytical Services, Inc. (Lipper),
an independent service located in Summit, New Jersey that monitors the
performance of mutual funds. Generally, Lipper rankings are based on total
return, assume reinvestment of distributions, do not take sales charges or
redemption fees into consideration, and are prepared without regard to tax
consequences. In addition to the mutual fund rankings, performance may be
compared to stock, bond, and money market mutual fund performance indices
prepared by Lipper or other organizations. When comparing these indices, it
is important to remember the risk and return characteristics of each type
of investment. For example, while stock mutual funds may offer higher
potential returns, they also carry the highest degree of share price
volatility. Likewise, money market funds may offer greater stability of
principal, but generally do not offer the higher potential returns
available from stock mutual funds.
From time to time, performance may also be compared to other mutual funds
tracked by financial or business publications and periodicals. For example,
a class may quote Morningstar, Inc. in its advertising materials.
Morningstar, Inc. is a mutual fund rating service that rates mutual funds
on the basis of risk-adjusted performance. Rankings that compare the
performance of Fidelity funds to one another in appropriate categories over
specific periods of time may also be quoted in advertising.
A class's performance may also be compared to that of a benchmark index
representing the universe of securities in which the fund may invest. The
total return of a benchmark index reflects reinvestment of all dividends
and capital gains paid by securities included in the index. Unlike a fund's
returns, however, the index returns do not reflect brokerage commissions,
transaction fees, or other costs of investing directly in the securities
included in the index.
Each fund may compare its performance to that of the Standard & Poor's 500
Index, a widely recognized, unmanaged index of common stocks.
A class may be compared in advertising to Certificates of Deposit (CDs) or
other investments issued by banks or other depository institutions. Mutual
funds differ from bank investments in several respects. For example, a fund
may offer greater liquidity or higher potential returns than CDs, a fund
does not guarantee your principal or your return, and fund shares are not
FDIC insured.
Fidelity may provide information designed to help individuals understand
their investment goals and explore various financial strategies. Such
information may include information about current economic, market, and
political conditions; materials that describe general principles of
investing, such as asset allocation, diversification, risk tolerance, and
goal setting; questionnaires designed to help create a personal financial
profile; worksheets used to project savings needs based on assumed rates of
inflation and hypothetical rates of return; and action plans offering
investment alternatives. Materials may also include discussions of
Fidelity's asset allocation funds and other Fidelity funds, products, and
services.
Ibbotson Associates of Chicago, Illinois (Ibbotson) provides historical
returns of the capital markets in the United States, including common
stocks, small capitalization stocks, long-term corporate bonds,
intermediate-term government bonds, long-term government bonds, Treasury
bills, the U.S. rate of inflation (based on the CPI), and combinations of
various capital markets. The performance of these capital markets is based
on the returns of different indices.
Fidelity funds may use the performance of these capital markets in order to
demonstrate general risk-versus-reward investment scenarios. Performance
comparisons may also include the value of a hypothetical investment in any
of these capital markets. The risks associated with the security types in
any capital market may or may not correspond directly to those of the
funds. Ibbotson calculates total returns in the same method as the classes.
The classes may also compare performance to that of other compilations or
indices that may be developed and made available in the future.
In advertising materials, Fidelity may reference or discuss its products
and services, which may include the following: other Fidelity funds;
retirement investing; model portfolios or allocations; and saving for
college or other goals. In addition, Fidelity may quote or reprint
financial or business publications and periodicals, as they relate to
current economic and political conditions, fund management, portfolio
composition, investment philosophy, investment techniques, the desirability
of owning a particular mutual fund, and Fidelity services and products.
Each fund may be advertised as part of certain asset allocation programs
involving other Fidelity or non-Fidelity mutual funds. These asset
allocation programs may advertise a model portfolio and its performance
results.
Each fund may be advertised as part of a no transaction fee (NTF) program
in which Fidelity and non-Fidelity mutual funds are offered. An NTF program
may advertise performance results.
Each fund may present its fund number, Quotron(trademark) number, and CUSIP
number, and discuss or quote its current portfolio manager.
VOLATILITY. A class may quote various measures of volatility and benchmark
correlation in advertising. In addition, the fund may compare these
measures to those of other funds. Measures of volatility seek to compare a
class's historical share price fluctuations or total returns to those of a
benchmark. Measures of benchmark correlation indicate how valid a
comparative benchmark may be. All measures of volatility and correlation
are calculated using averages of historical data.
MOMENTUM INDICATORS indicate a class's price movements over specific
periods of time. Each point on the momentum indicator represents the
class's percentage change in price movements over that period.
A class may advertise examples of the effects of periodic investment plans,
including the principle of dollar cost averaging. In such a program, an
investor invests a fixed dollar amount in a class at periodic intervals,
thereby purchasing fewer shares when prices are high and more shares when
prices are low. While such a strategy does not assure a profit or guard
against loss in a declining market, the investor's average cost per share
can be lower than if fixed numbers of shares are purchased at the same
intervals. In evaluating such a plan, investors should consider their
ability to continue purchasing shares during periods of low price levels.
A fund may be available for purchase through retirement plans or other
programs offering deferral of, or exemption from, income taxes, which may
produce superior after-tax returns over time. For example, a $1,000
investment earning a taxable return of 10% annually would have an after-tax
value of $1,949 after ten years, assuming tax was deducted from the return
each year at a 31% rate. An equivalent tax-deferred investment would have
an after-tax value of $2,100 after ten years, assuming tax was deducted at
a 31% rate from the tax-deferred earnings at the end of the ten-year
period.
As of January 31, 199 7 , FMR advised over $28 billion in
tax-free fund assets, $96 billion in money market fund assets, $3 16
billion in equity fund assets, $6 3 billion in international fund
assets, and $25 billion in Spartan fund assets. The funds may reference the
growth and variety of money market mutual funds and the adviser's
innovation and participation in the industry. The equity funds under
management figure represents the largest amount of equity fund assets under
management by a mutual fund investment adviser in the United States, making
FMR America's leading equity (stock) fund manager. FMR, its subsidiaries,
and affiliates maintain a worldwide information and communications network
for the purpose of researching and managing investments abroad.
ADDITIONAL PURCHASE, EXCHANGE, AND REDEMPTION INFORMATION
CLASS T SHARES ONLY
Pursuant to Rule 22d-1 under the 1940 Act, FDC exercises its right to waive
Class T's maximum 3.50% front-end sales charge in connection with a fund's
merger with or acquisition of any investment company or trust. In addition,
FDC has chosen to waive Class T's front-end sales charge in certain
instances because of efficiencies involved in those sales of shares. The
sales charge will not apply:
1. to shares purchased by a bank trust officer, registered representative,
or other employee (and their immediate families) of investment
professionals under special arrangements in connection with FDC's sales
activities;
2. to shares purchased by 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 F idelity I nternational
L imited or their 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;
3. to shares purchased by a charitable organization (as defined for
purposes of Section 501(c)(3) of the Internal Revenue Code) investing
$100,000 or more;
4. to shares purchased for a charitable remainder trust or life income pool
established for the benefit of a charitable organization (as defined for
purposes of Section 501(c)(3) of the Internal Revenue Code);
5. to shares in a Fidelity or Fidelity Advisor account purchased (including
purchases by exchange) with proceeds of a distribution (i) from any
employee benefit plan that qualified for waiver (11) or had a minimum of $3
million in plan assets invested in Fidelity funds; or (ii) from an
insurance company separate account qualifying under (6), or used to fund
annuity contracts purchased by employee benefit plans having in the
aggregate at least $3 million in plan assets invested in Fidelity funds.
(Distributions other than those transferred to an IRA account must be
transferred directly into a Fidelity account.);
6. to shares purchased by an insurance company separate account used to
fund annuity contracts purchased by employee benefit plans (including
403(b) programs, but otherwise as defined in ERISA)), which, in the
aggregate, have either more than 200 eligible employees or a minimum of
$1,000,000 in assets invested in Fidelity Advisor funds;
7. to shares purchased by any state, county, city, or government
instrumentality, department or authority or agency;
8. to shares purchased with redemption proceeds from other mutual fund
complexes on which the investor has paid a front-end or contingent deferred
sales charge;
9. to shares purchased by a trust institution or bank trust department,
excluding assets described in (11) and (12) below, that has executed a
Participation Agreement with FDC specifying certain asset minimums and
qualifications, and marketing program restrictions. Assets managed by third
parties do not qualify for this waiver;
10. to shares purchased for use in a broker-dealer managed account program,
provided the broker-dealer has executed a participation agreement with FDC
specifying certain asset minimums and qualifications, and marketing,
program and trading restrictions. Employee benefit plan assets do not
qualify for this waiver;
11. to shares purchased as part of an employee benefit plan having more
than (i) 200 eligible employees or a minimum of $1,000,000 in plan assets
invested in the Fidelity Advisor funds, or (ii) 25 eligible employees or
$250,000 in plan assets invested in Fidelity Advisor funds that subscribes
to Fidelity Advisor Retirement Connection or similar program sponsored by
Fidelity Investments Institutional Services Company, Inc.;
12. to shares purchased as part of an employee benefit plan through an
intermediary that has executed a participation agreement with FDC
specifying certain asset minimums and qualifications, and marketing,
program and trading restrictions;
13. to shares purchased on a discretionary basis by a registered investment
adviser which is not part of an organization primarily engaged in the
brokerage business, that has executed a participation agreement with FDC
specifying certain asset minimums and qualifications, and marketing,
program and trading restrictions. Employee benefit plan assets do not
qualify for this waiver; or
14. to shares purchased with distributions of income, principal, and
capital gains from Fidelity Defined Trusts.
Employee benefit plans that purchased Class T shares load waived prior to
June 30, 1995 but do not meet the qualifications of waiver (12) will be
permitted to make additional purchases of Class T shares on a load
waived basis .
For the purposes of qualifying for waiver (11), employee benefit plans
subscribing to the Premiere Retirement Savings Plan Program offered by
National Financial Correspondent Services may be aggregated.
A sales load waiver form must accompany these transactions.
FINDERS FEE. On eligible purchases of Class T shares in amounts of $1
million or more, investment professionals will be compensated with a fee of
0.25%. Eligible purchases are the following purchases made through
broker-dealers and banks (excluding trust departments): an individual trade
of $1 million or more; a trade which brings the value of the accumulated
account(s) of an investor (including an employee benefit plan) past $1
million; a trade for an investor with an accumulated account value of $1
million or more; and an incremental trade toward an investor's $1 million
"Letter of Intent."
Any assets in relation to which an investment professional has received
such compensation will bear a contingent deferred sales charge (Class T
CDSC) if they do not remain in Class T shares of the Fidelity Advisor
Funds, Initial Class shares of Daily Money Fund: U.S. Treasury Portfolio,
or Daily Money Fund: Money Market Portfolio or Daily Tax-Exempt Money Fund,
for a period of at least one uninterrupted year. The Class T CDSC will be
0.25% of the lesser of the cost of the shares at the initial date of
purchase or the value of the shares at redemption, not including any
reinvested dividends or capital gains. Class T CDSC shares representing
reinvested dividends or capital gains, if any, will be redeemed first,
followed by other Class T CDSC shares that have been held for the longest
period of time.
With respect to employee benefit plans, the Class T CDSC does not apply to
the following types of redemptions: (i) plan loans or distributions or (ii)
exchanges to non-Advisor fund investment options. With respect to
Individual Retirement Accounts, the Class T CDSC does not apply to
redemptions made for disability, payment of death benefits, or required
partial distributions starting at age 70 1/2.
CLASS B SHARES ONLY
The contingent deferred sales charge (CDSC) on Class B shares may be waived
in the case of (1) disability or death, provided that the redemption is
made within one year following the death or initial determination of
disability; or (2) in connection with a total or partial redemption made in
connection with distributions from retirement plan accounts at age 70 1/2,
which are permitted without penalty pursuant to the Internal Revenue Code.
A sales load waiver form must accompany these transactions.
CLASS A , CLASS T, AND CLASS B SHARES ONLY
QUANTITY DISCOUNTS. To obtain a reduction of the front-end sales charge on
Class A or Class T shares, you or your investment professional must notify
the transfer agent at the time of purchase whenever a quantity discount is
applicable to your purchase. Upon such notification, you will receive the
lowest applicable front-end sales charge.
For purposes of qualifying for a reduction in front-end sales charges under
the Combined Purchase, Rights of Accumulation or Letter of Intent programs,
the following may qualify as an individual or a "company" as defined in
Section 2(a)(8) of the 1940 Act: an individual, spouse, and their children
under age 21 purchasing for his, her, or their own account; a trustee,
administrator or other fiduciary purchasing for a single trust estate or a
single fiduciary account or for a single or a parent-subsidiary group of
"employee benefits plans" (as defined in Section 3(3) of ERISA); and
tax-exempt organizations as defined under Section 501(c)(3) of the Internal
Revenue Code.
RIGHTS OF ACCUMULATION permit reduced front-end sales charges on any future
purchases of Class A or Class T shares after you have reached a new
breakpoint in a fund's sales charge schedule. The value of currently held
(i) Fidelity Advisor fund Class A, Class T, Class B shares, (ii) Class B
shares of Daily Money Fund: U.S. Treasury Portfolio, and (iii) Initial
Class of shares of Daily Money Fund: U.S. Treasury Portfolio, Daily Money
Fund: Money Market Portfolio, and Daily Tax-Exempt Money Fund acquired by
exchange from any Fidelity Advisor fund, is determined at the current day's
NAV at the close of business, and is added to the amount of your new
purchase valued at the current offering price to determine your reduced
front-end sales charge.
LETTER OF INTENT. You may obtain Class A or Class T shares at the same
reduced front-end sales charge by filing a non-binding Letter of Intent
(the Letter) within 90 days of the start of Class A or Class T purchases.
Each Class A or Class T investment you make after signing the Letter will
be entitled to the front-end sales charge applicable to the total
investment indicated in the Letter. For example, a $2,500 purchase of Class
A or Class T shares toward a $50,000 Letter would receive the same reduced
sales charge as if the $50,000 had been invested at one time. To ensure
that you receive a reduced front-end sales charge on future purchases, you
or your investment professional must inform the transfer agent that the
Letter is in effect each time Class A or Class T shares are purchased.
Reinvested income and capital gain distributions do not count toward the
completion of the Letter.
Your initial investment must be at least 5% of the total amount you plan to
invest. Out of the initial purchase, Class A or Class T shares equal to 5%
of the dollar amount specified in the Letter will be registered in your
name and held in escrow. The Class A or Class T shares held in escrow
cannot be redeemed or exchanged until the Letter is satisfied or the
additional sales charges have been paid. You will earn income dividends and
capital gain distributions on escrowed Class A or Class T shares. The
escrow will be released when your purchase of the total amount has been
completed. You are not obligated to complete the Letter.
If you purchase more than the amount specified in the Letter and qualify
for a future front-end sales charge reduction, the front-end sales charge
will be adjusted to reflect your total purchase at the end of 13 months.
Surplus funds will be applied to the purchase of additional Class A or
Class T shares at the then-current offering price applicable to the total
purchase.
If you do not complete your purchase under the Letter within the 13-month
period, 30 days' written notice will be provided for you to pay the
increased front-end sales charges due. Otherwise, sufficient escrowed Class
A or Class T shares will be redeemed to pay such charges.
CLASS A, CLASS T, CLASS B , AND INSTITUTIONAL CLASS SHARES
FIDELITY ADVISOR SYSTEMATIC INVESTMENT PROGRAM. You can make regular
investments in Class A, Class T, Class B, or Institutional Class shares of
the funds monthly, bimonthly, quarterly, or semi-annually with the
Systematic Investment Program by completing the appropriate section of the
account application and attaching a voided personal check with your bank's
magnetic ink coding number across the front. If your bank account is
jointly owned, be sure that all owners sign.
You may cancel your participation in the Systematic Investment Program at
any time without payment of a cancellation fee. You will receive a
confirmation from the transfer agent for every transaction, and a debit
entry will appear on your bank statement.
CLASS A, CLASS T , AND INSTITUTIONAL CLASS SHARES
FIDELITY ADVISOR SYSTEMATIC WITHDRAWAL PROGRAM. If you own Class A, Class
T, or Institutional Class shares worth $10,000 or more, you can have
monthly, quarterly or semiannual checks sent from your account to you, to a
person named by you, or to your bank checking account. Your Systematic
Withdrawal Program payments are drawn from Class A, Class T, or
Institutional Class share redemptions. If Systematic Withdrawal Plan
redemptions exceed income dividends earned on your shares, your account
eventually may be exhausted.
ALL CLASSES
Each fund is open for business and the NAV and, where applicable, the
offering price, for each class is calculated each day the New York Stock
Exchange (NYSE) is open for trading. The NYSE has designated the following
holiday closings for 1997: New Year's Day, Washington's Birthday, Good
Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and
Christmas Day. Although FMR expects the same holiday schedule to be
observed in the future, the NYSE may modify its holiday schedule at any
time.
FSC normally determines each class's NAV as of the close of the NYSE
(normally 4:00 p.m. Eastern time). However, the NAV may be calculated
earlier if trading on the NYSE is restricted or as permitted by the SEC. To
the extent that portfolio securities are traded in other markets on days
when the NYSE is closed, a class's NAV may be affected on days when
investors do not have access to the fund to purchase or redeem shares. In
addition, trading in some of a fund's portfolio securities may not occur on
days when the fund is open for business.
If the Trustees determine that existing conditions make cash payments
undesirable, redemption payments may be made in whole or in part in
securities or other property, valued for this purpose as they are valued in
computing a class's NAV. Shareholders receiving securities or other
property on redemption may realize a gain or loss for tax purposes, and
will incur any costs of sale, as well as the associated inconveniences.
Pursuant to Rule 11a-3 under the 1940 Act, each fund is required to give
shareholders at least 60 days' notice prior to terminating or modifying its
exchange privilege. Under the Rule, the 60-day notification requirement may
be waived if (i) the only effect of a modification would be to reduce or
eliminate an administrative fee, redemption fee, or deferred sales charge
ordinarily payable at the time of an exchange, or (ii) the fund suspends
the redemption of the shares to be exchanged as permitted under the 1940
Act or the rules and regulations thereunder, or the fund to be acquired
suspends the sale of its shares because it is unable to invest amounts
effectively in accordance with its investment objective and policies.
In the prospectus, each fund has notified shareholders that it reserves the
right at any time, without prior notice, to refuse exchange purchases by
any person or group if, in FMR's judgment, the fund would be unable to
invest effectively in accordance with its investment objective and
policies, or would otherwise potentially be adversely affected.
DISTRIBUTIONS AND TAXES
DISTRIBUTIONS. If you request to have distributions mailed to you and the
U.S. Postal Service cannot deliver your checks, or if your checks remain
uncashed for six months, Fidelity may reinvest your distributions at the
then-current NAV. All subsequent distributions will then be reinvested
until you provide Fidelity with alternate instructions.
DIVIDENDS. A portion of each fund's income may qualify for the
dividends-received deduction available to corporate shareholders to the
extent that each fund's income is derived from qualifying dividends.
Because each fund may earn other types of income, such as interest, income
from securities loans, non-qualifying dividends, and short-term capital
gains, the percentage of dividends from the funds that qualify for the
deduction generally will be less than 100%. Each fund will notify corporate
shareholders annually of the percentage of fund dividends that qualifies
for the dividends-received deduction. Gains (losses) attributable to
foreign currency fluctuations are generally taxable as ordinary income and,
therefore, will increase (decrease) dividend distributions.
Short-term capital gains are distributed as dividend income.
Each fund will send each shareholder a notice in January describing the tax
status of dividends and capital gain distributions, for the prior year.
CAPITAL GAIN DISTRIBUTIONS. Long-term capital gains earned by each fund on
the sale of securities and distributed to shareholders are federally
taxable as long-term capital gains, regardless of the length of time
shareholders have held their shares. If a shareholder receives a long-term
capital gain distribution on shares of a fund, and such shares are held six
months or less and are sold at a loss, the portion of the loss equal to the
amount of the long-term capital gain distribution will be considered a
long-term loss for tax purposes. Short-term capital gains distributed by
each fund are taxable to shareholders as dividends, not as capital gains.
As of October 31, 1996 Natural Resources Fund hereby designates
approximately $7,167,000 as a capital gain dividend for purposes of the
dividend paid deduction.
FOREIGN TAXES. Foreign governments may withhold taxes on dividends and
interest paid with respect to foreign securities. Foreign governments may
also impose taxes on other payments or gains with respect to foreign
securities. If, at the close of its fiscal year, more than 50% of a fund's
total assets are invested in securities of foreign issuers, the fund may
elect to pass through foreign taxes paid and thereby allow shareholders to
take a credit or deduction on their individual tax returns.
TAX STATUS OF THE FUNDS. Each fund intends to qualify each year as a "
regulated investment company" for tax purposes, so that it will not be
liable for federal tax on income and capital gains distributed to
shareholders. In order to qualify as a regulated investment company and
avoid being subject to federal income or excise taxes at the fund level,
each fund intends to distribute substantially all of its net investment
income and net realized capital gains within each calendar year as well as
on a fiscal year basis. Each fund also intends to comply with other tax
rules applicable to regulated investment companies, including a requirement
that capital gains from the sale of securities held for less than three
months constitute less than 30% of the fund's gross income for each fiscal
year. Gains from some forward currency contracts, futures contracts, and
options are included in this 30% calculation, which may limit a fund's
investments in such instruments.
If a fund purchases shares in certain foreign investment entities, defined
as passive foreign investment companies (PFICs) in the Internal Revenue
Code, it may be subject to U.S. federal income tax on a portion of any
excess distribution or gain from the disposition of such shares. Interest
charges may also be imposed on the fund with respect to deferred taxes
arising from such distributions or gains. Generally, each fund will elect
to mark-to-market any PFIC shares. Unrealized gains will be recognized as
income for tax purposes and must be distributed to shareholders as
dividends.
Each fund is treated as a separate entity from the other funds, if any, in
its trust for tax purposes.
OTHER TAX INFORMATION. The information above is only a summary of some of
the tax consequences generally affecting each fund and its shareholders,
and no attempt has been made to discuss individual tax consequences. In
addition to federal income taxes, shareholders may be subject to state and
local taxes on fund distributions, and shares may also be subject to state
and local personal property taxes. Investors should consult their tax
advisers to determine whether a fund is suitable for their particular tax
situation.
FMR
All of the stock of FMR is owned by FMR Corp., its parent organized in
1972. The voting common stock of FMR Corp. is divided into two classes.
Class B is held predominantly by members of the Edward C. Johnson 3d family
and is entitled to 49% of the vote on any matter acted upon by the voting
common stock. Class A is held predominantly by non-Johnson family member
employees of FMR Corp. and its affiliates and is entitled to 51% of the
vote on any such matter. The Johnson family group and all other Class B
shareholders have entered into a shareholders' voting agreement under which
all Class B shares will be voted in accordance with the majority vote of
Class B shares. Under the 1940 Act, control of a company is presumed where
one individual or group of individuals owns more than 25% of the voting
stock of that company. Therefore, through their ownership of voting common
stock and the execution of the shareholders' voting agreement, members of
the Johnson family may be deemed, under the 1940 Act, to form a controlling
group with respect to FMR Corp.
At present, the principal operating activities of FMR Corp. are those
conducted by its division, Fidelity Investments Retail Marketing Company,
which provides marketing services to various companies within the Fidelity
organization.
Fidelity investment personnel may invest in securities for their own
account pursuant to a code of ethics that sets forth all employees'
fiduciary responsibilities regarding the funds, establishes procedures for
personal investing and restricts certain transactions. For example, all
personal trades in most securities require pre-clearance, and participation
in initial public offerings is prohibited. In addition, restrictions on the
timing of personal investing in relation to trades by Fidelity funds and on
short-term trading have been adopted.
TRUSTEES AND OFFICERS
The Trustees, Members of the Advisory Board, and executive officers of the
trust are listed below. Except as indicated, each individual has held the
office shown or other offices in the same company for the last five years.
All persons named as Trustees and Members of the Advisory Board also serve
in similar capacities for other funds advised by FMR. The business address
of each Trustee and officer who is an "interested person" (as defined in
the Investment Company Act of 1940) is 82 Devonshire Street, Boston,
Massachusetts 02109, which is also the address of FMR. The business address
of all the other Trustees and Members of the Advisory Board is Fidelity
Investments, P.O. Box 9235, Boston, Massachusetts 02205-9235. Those
Trustees who are "interested persons" by virtue of their affiliation with
either the trust or FMR are indicated by an asterisk (*).
*EDWARD C. JOHNSON 3d (66), Trustee and President, is Chairman, Chief
Executive Officer and a Director of FMR Corp.; a Director and Chairman of
the Board and of the Executive Committee of FMR; Chairman and a Director of
FMR Texas Inc., Fidelity Management & Research (U.K.) Inc., and Fidelity
Management & Research (Far East) Inc.
*J. GARY BURKHEAD (55), Trustee and Senior Vice President, is President of
FMR; and President and a Director of FMR Texas Inc., Fidelity Management &
Research (U.K.) Inc., and Fidelity Management & Research (Far East) Inc.
RALPH F. COX (64), Trustee (1991), is a management consultant (1994). Prior
to February 1994, he was President of Greenhill Petroleum Corporation
(petroleum exploration and production). Until March 1990, Mr. Cox was
President and Chief Operating Officer of Union Pacific Resources Company
(exploration and production). He is a Director of Sanifill Corporation
(non-hazardous waste, 1993), CH2M Hill Companies (engineering), Rio Grande,
Inc. (oil and gas production), and Daniel Industries (petroleum measurement
equipment manufacturer). In addition, he is a member of advisory boards of
Texas A&M University and the University of Texas at Austin.
PHYLLIS BURKE DAVIS (64), Trustee (1992). Prior to her retirement in
September 1991, Mrs. Davis was the Senior Vice President of Corporate
Affairs of Avon Products, Inc. She is currently a Director of BellSouth
Corporation (telecommunications), Eaton Corporation (manufacturing, 1991),
and the TJX Companies, Inc. (retail stores), and previously served as a
Director of Hallmark Cards, Inc. (1985-1991) and Nabisco Brands, Inc. In
addition, she is a member of the President's Advisory Council of The
University of Vermont School of Business Administration.
ROBERT M. GATES (53), Trustee (1997) or Member of Advisory Board (1997),
is a consultant, author, and lecturer (1993). Mr. Gates was Director of the
Central Intelligence Agency (CIA) from 1991-1993. From 1989 to 1991, Mr.
Gates served as Assistant to the President of the United States and Deputy
National Security Advisor. Mr. Gates is currently a Trustee for the Forum
For International Policy, a Board Member for the Virginia Neurological
Institute, and a Senior Advisor of the Harvard Journal of World Affairs. In
addition, Mr. Gates also serves as a member of the corporate board for
LucasVarity PLC (automotive components and diesel engines), Charles Stark
Draper Laboratory (non-profit), NACCO Industries, Inc. (mining and
manufacturing), and TRW Inc. (original equipment and replacement products).
Mr. Gates currently serves as a Trustee for the following trust: Fidelity
Advisor Series V. Mr. Gates currently serves as a Member of the Advisory
Board for the following trust: Fidelity Advisor VII.
E. BRADLEY JONES (68), Trustee. Prior to his retirement in 1984, Mr. Jones
was Chairman and Chief Executive Officer of LTV Steel Company. He is a
Director of TRW Inc. (original equipment and replacement products),
Cleveland-Cliffs Inc. (mining), Consolidated Rail Corporation, Birmingham
Steel Corporation, and RPM, Inc. (manufacturer of chemical products), and
he previously served as a Director of NACCO Industries, Inc. (mining and
marketing, 1985-1995) and Hyster-Yale Materials Handling, Inc. (1985-1995).
In addition, he serves as a Trustee of First Union Real Estate Investments,
a Trustee and member of the Executive Committee of the Cleveland Clinic
Foundation, a Trustee and member of the Executive Committee of University
School (Cleveland), and a Trustee of Cleveland Clinic Florida.
DONALD J. KIRK (63), Trustee, is Executive-in-Residence (1995) at Columbia
University Graduate School of Business and a financial consultant. From
1987 to January 1995, Mr. Kirk was a Professor at Columbia University
Graduate School of Business. Prior to 1987, he was Chairman of the
Financial Accounting Standards Board. Mr. Kirk is a Director of General Re
Corporation (reinsurance), and he previously served as a Director of
Valuation Research Corp. (appraisals and valuations, 1993-1995). In
addition, he serves as Chairman of the Board of Directors of the National
Arts Stabilization Fund, Chairman of the Board of Trustees of the Greenwich
Hospital Association, a Member of the Public Oversight Board of the
American Institute of Certified Public Accountants' SEC Practice Section
(1995), and as a Public Governor of the National Association of Securities
Dealers, Inc. (1996).
*PETER S. LYNCH (53), Trustee, is Vice Chairman and Director of FMR (1992).
Prior to May 31, 1990, he was a Director of FMR and Executive Vice
President of FMR (a position he held until March 31, 1991); Vice President
of Fidelity Magellan Fund and FMR Growth Group Leader; and Managing
Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity
Investments Corporate Services (1991-1992). He is a Director of W.R. Grace
& Co. (chemicals) and Morrison Knudsen Corporation (engineering and
construction). In addition, he serves as a Trustee of Boston College,
Massachusetts Eye & Ear Infirmary, Historic Deerfield (1989) and Society
for the Preservation of New England Antiquities, and as an Overseer of the
Museum of Fine Arts of Boston.
WILLIAM O. McCOY (63) Trustee (1997) or Member of the Advisory Board
(1996), is the Vice President of Finance for the University of North
Carolina (16-school system, 1995). Prior to his retirement in December
1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation
(telecommunications, 1984) and President of BellSouth Enterprises (1986).
He is currently a Director of Liberty Corporation (holding company, 1984),
Weeks Corporation of Atlanta (real estate, 1994), Carolina Power and Light
Company (electric utility, 1996) and the Kenan Transport Co. (1996).
Previously, he was a Director of First American Corporation (bank holding
company, 1979-1996). In addition, Mr. McCoy serves as a member of the Board
of Visitors for the University of North Carolina at Chapel Hill (1994) and
for the Kenan-Flager Business School (University of North Carolina at
Chapel Hill, 1988). Mr. McCoy currently serves as a Trustee for the
following trust: Fidelity Advisor Series V. Mr. McCoy currently serves as a
Member of the Advisory Board for the following trust: Fidelity Advisor
Series VII.
GERALD C. McDONOUGH (67), Trustee and Vice-Chairman of the non-interested
Trustees, is Chairman of G.M. Management Group (strategic advisory
services). Prior to his retirement in July 1988, he was Chairman and Chief
Executive Officer of Leaseway Transportation Corp. (physical distribution
services). Mr. McDonough is a Director of Brush-Wellman Inc. (metal
refining), York International Corp. (air conditioning and refrigeration),
Commercial Intertech Corp. (hydraulic systems, building systems, and metal
products, 1992), CUNO, Inc. (liquid and gas filtration products, 1996), and
Associated Estates Realty Corporation (a real estate investment trust,
1993). Mr. McDonough served as a Director of ACME-Cleveland Corp. (metal
working, telecommunications, and electronic products) from 1987-1996.
MARVIN L. MANN (63), Trustee (1993) is Chairman of the Board, President,
and Chief Executive Officer of Lexmark International, Inc. (office
machines, 1991). Prior to 1991, he held the positions of Vice President of
International Business Machines Corporation ("IBM") and President and
General Manager of various IBM divisions and subsidiaries. Mr. Mann is a
Director of M.A. Hanna Company (chemicals, 1993) and Infomart (marketing
services, 1991), a Trammell Crow Co. In addition, he serves as the Campaign
Vice Chairman of the Tri-State United Way (1993) and is a member of the
University of Alabama President's Cabinet.
THOMAS R. WILLIAMS (68), Trustee, is President of The Wales Group, Inc.
(management and financial advisory services). Prior to retiring in 1987,
Mr. Williams served as Chairman of the Board of First Wachovia Corporation
(bank holding company), and Chairman and Chief Executive Officer of The
First National Bank of Atlanta and First Atlanta Corporation (bank holding
company). He is currently a Director of BellSouth Corporation
(telecommunications), ConAgra, Inc. (agricultural products), Fisher
Business Systems, Inc. (computer software), Georgia Power Company (electric
utility), Gerber Alley & Associates, Inc. (computer software), National
Life Insurance Company of Vermont, American Software, Inc., and AppleSouth,
Inc. (restaurants, 1992).
WILLIAM J. HAYES (62), Vice President (1994), is Vice President of
Fidelity's equity funds; Senior Vice President of FMR; and Managing
Director of FMR Corp.
ARTHUR S. LORING (49), Secretary, is Senior Vice President (1993) and
General Counsel of FMR, Vice President-Legal of FMR Corp., and Vice
President and Clerk of FDC.
KENNETH A. RATHGEBER (49), Treasurer (1995), is Treasurer of the Fidelity
funds and is an employee of FMR (1995). Before joining FMR, Mr. Rathgeber
was a Vice President of Goldman Sachs & Co. (1978-1995), where he served in
various positions, including Vice President of Proprietary Accounting
(1988-1992), Global Co-Controller (1992-1994), and Chief Operations Officer
of Goldman Sachs (Asia) LLC (1994-1995).
ROBERT H. MORRISON (56), Manager of Security Transactions of Fidelity's
equity funds is Vice President of FMR.
JOHN H. COSTELLO (50), Assistant Treasurer, is an employee of FMR.
LEONARD M. RUSH (50), Assistant Treasurer (1994), is an employee of FMR
(1994). Prior to becoming Assistant Treasurer of the Fidelity funds, Mr.
Rush was Chief Compliance Officer of FMR Corp. (1993-1994) and Chief
Financial Officer of Fidelity Brokerage Services, Inc. (1990-1993).
The following table sets forth information describing the compensation of
each Trustee or Member of the Advisory Board of each fund for his or her
services as trustee for each fund for its most recent fiscal year end.
COMPENSATION TABLE

Aggregate J. Gary Ralph Phyllis Richard Robert Edward E. Donald Peter S. William Gerald Edward Marvin Thomas
Compen
sati Burkhea F. Cox Burke J. M. Gates C. Bradley J. Kirk Lynch
(double
dagger) O. C. H. L. Mann R.
on from a d(double
dagger) Davis Flynn(double
dagger)
(double
dagger) Johnson Jones McCoy McDono Malone Williams
Fund A 3d (double
dagger) (double
dagger)
(double
dagger)
(double
dagger) ugh (double
dagger)
(double
dagger)

Consumer $ 0 $ 7 $ 7 $ 0 $ 1 $ 0 $ 7 $ 7 $ 0 $ 7 $ 8 $ 0 $ 7 $ 7
Industries*

Cyclical 0 7 7 0 1 0 7 7 0 7 8 0 7 7
Industries*

Financial 0 9 9 0 5 0 9 9 0 9 11 0 9 9
Services*

Health
Care* 0 16 16 0 5 0 16 16 0 16 20 0 16 16

Natural 0 152 146 187 0 0 147 149 0 84 148 148 148 150
Resources**
, B

Techno
logy* 0 16 16 1 6 0 16 16 0 16 20 1 16 16

Utilities 0 12 12 0 1 0 12 12 0 12 15 0 12 12
Growth*

TOTAL 0 137,700 134,700 168,000 0 0 134,700 136,200 0 85,333 136,200 136,200 134,700 136,200
COMPENSATI
ON FROM THE
FUND
COMPLEX +,
A

</TABLE>

* Estimated for the fiscal year ending July 31, 1997.
** Fiscal year ended October 31, 1996.
(double dagger) Interested trustees of each fund are compensated by FMR.
(double dagger)(double dagger) Richard J. Flynn and Edward H. Malone served
on the Board of Trustees through December 31, 1996.
x Mr. Gates was appointed to the Board of Trustees of Fidelity Advisor
Series V and was appointed a Member of the Advisory Board of Fidelity
Advisor Series VII effective March 1, 1997.
(double dagger)(double dagger)(double dagger) During the period from May 1,
1996 through December 31, 1996, William O. McCoy served as a Member of the
Advisory Board of Fidelity Advisor Series V. During the period from May 1,
1996 through the present, Mr. McCoy has served as a Member of the Advisory
Board of Fidelity Advisor Series VII.
+ Information is as of December 31, 1996 for 235 funds in the complex.
A Compensation figures include cash, a pro rata portion of benefits accrued
under the retirement program for the period ended December 30, 1996 and
required to be deferred, and may include amounts deferred at the election
of Trustees.
B The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $6, Phyllis
Burke Davis, $6, Richard J. Flynn, $0, Robert M. Gates, $0, E. Bradley
Jones, $6, Donald J. Kirk, $6, William O. McCoy, $0, Gerald C. McDonough,
$6, Edward H. Malone, $6, Marvin L. Mann, $6, and Thomas R. Williams, $6.
Under a retirement program adopted in July 1988 and modified in November
1995 and November 1996, each non-interested Trustee who retired before
December 30, 1996 may receive payments from a Fidelity fund during his or
her lifetime based on his or her basic trustee fees and length of service.
The obligation of a fund to make such payments is neither secured nor
funded. A Trustee became eligible to participate in the program at the end
of the calendar year in which he or she reached age 72, provided that, at
the time of retirement, he or she had served as a Fidelity fund Trustee for
at least five years.
The non-interested Trustees may elect to defer receipt of all or a
percentage of their annual fees in accordance with the terms of a Deferred
Compensation Plan (the Plan). Under the Plan, compensation deferred by a
Trustee is periodically adjusted as though an equivalent amount had been
invested and reinvested in shares of one or more funds in the complex
designated by such Trustee (designated securities). The amount paid to the
Trustee under the Plan will be determined based upon the performance of
such investments. Deferral of fees in accordance with the Plan will have a
negligible effect on the funds' assets, liabilities, and net income per
share, and will not obligate the funds to retain the services of any
Trustee or to pay any particular level of compensation to the Trustee. The
funds may invest in such designated securities under the Plan without
shareholder approval.
As of December 30, 1996, the non-interested Trustees terminated the
retirement program for Trustees who retire after such date. In connection
with the termination of the retirement program, each existing
non-interested Trustee received a credit to his or her Plan account equal
to the present value of the estimated benefits that would have been payable
under the retirement program. The amounts credited to the non-interested
Trustees' Plan accounts are subject to vesting. The termination of the
retirement program and related crediting of estimated benefits to the
Trustees' Plan accounts did not result in a material cost to the funds.
As of February 28, 1997, approximately 16.69% of Consumer Industries,
15.03% of Cyclical Industries, 2.99% of Financial Services, 3.06% of Health
Care, 2.86% of Technology, and 14.59% of Utilities Growth's total
outstanding shares were held by an FMR affiliate. FMR Corp. is the ultimate
parent company of this FMR affiliate. By virtue of his ownership interest
in FMR Corp., as described in the "FMR" section on page , Mr. Edward C.
Johnson 3d, President and Trustee of the fund, may be deemed to be a
beneficial owner of these shares. As of the above date, with the exception
of Mr. Johnson 3d's deemed ownership of Consumer Industries, Cyclical
Industries, Financial Services, Health Care, Technology, and Utilities
Growth's shares, the Trustees and officers of the funds owned, in the
aggregate, less than 1% of each fund's total outstanding shares.
As of February 28, 1997, the following owned of record or beneficially 5%
or more of the outstanding shares of the classes of the following Fidelity
Advisor Focus Funds:
ADVISOR CONSUMER INDUSTRIES - CLASS A: Sterne, Agee & Leach, Inc.,
Birmingham, AL (16.56%); First Fidelity Bank, Newark, NJ (14.60%); FMR
Corp., Boston, MA (12.53%); PNC Securities, Pittsburgh, PA (9.88%); A.G.
Edwards & Sons, St. Louis, MO (6.99%); First Montauk Securities, Red Bank,
NJ (6.51%).
ADVISOR CONSUMER INDUSTRIES - CLASS T: Royal Alliance Assoc., Inc.,
Birmingham, AL (12.63%); Wise Planning, Hicksville, NY (8.40%); Securities
America Inc., Omaha, NE (8.17%); GW & Wade Asset Management Co., Wellesley,
MA (7.62%); PaineWebber Inc., Weehawken, NJ (5.23%).
ADVISOR CONSUMER INDUSTRIES - INSTITUTIONAL CLASS: FMR Corp., Boston, MA
(83.82%); First Hawaiian Bank, Honolulu, HI (9.56%).
ADVISOR CYCLICAL INDUSTRIES - CLASS A: FMR Corp., Boston, MA (37.86%); PNC
Securities, Pittsburg, PA (17.46%); Lewco Securities Corp., New York, NY
(5.59%); A.G. Edwards & Sons, St. Louis, MO (5.58%).
ADVISOR CYCLICAL INDUSTRIES - CLASS T: GW & Wade Asset Management Co.,
Wellesley, MA (19.66%); Royal Alliance Assoc., Inc., Birmingham, AL
(15.63%); Securities America Inc., Omaha, NE (8.50%); FMR Corp., Boston, MA
(8.27%); Dain Bosworth, Inc., Minneapolis, MN (5.99%).
ADVISOR CYCLICAL INDUSTRIES - INSTITUTIONAL CLASS: Meridian Asset
Management, Englewood, CO (82.71%); FMR Corp., Boston, MA (15.47%).
ADVISOR FINANCIAL SERVICES - CLASS A: Prudential Securities, New York, NY
(18.98%); Merrill Lynch Pierce Fenner, Jacksonville, FL (11.69%); Comerica
Bank Texas, Dallas, TX (7.48%); Dain Bosworth, Inc., Minneapolis, MN
(5.28%).
ADVISOR FINANCIAL SERVICES - CLASS T: Securities America Inc., Omaha, NE
(14.88%); A.G. Edwards & Sons, St. Louis, MO (8.86%); Alpha Equity Research
Inc., Boston, MA (7.23%).
ADVISOR FINANCIAL SERVICES - INSTITUTIONAL CLASS: Charles Schwab and Co.,
Inc., San Francisco, CA (42.09%); FMR Corp., Boston, MA (32.26%); Sampson
Investment Management, Danville, CA (19.47%).
ADVISOR HEALTH CARE - CLASS A: PaineWebber Inc., Weehawken, NJ (8.41%);
Merrill Lynch Pierce Fenner, Jacksonville, FL (7.39%); First Fidelity Bank,
Newark, NJ (6.61%); Prudential Securities, New York, NY (5.30%); A.G.
Edwards & Sons, St. Louis, MO (5.04%).
ADVISOR HEALTH CARE - CLASS T: Donaldson, Lufkin & Jenrette, New York, NY
(10.09%); A.G. Edwards & Sons, St. Louis, MO (9.83%); Securities America
Inc., Omaha, NE (8.34%); Alpha Equity Research Inc., Boston, MA (7.43%).
ADVISOR HEALTH CARE - INSTITUTIONAL CLASS: FMR Corp., Boston, MA (59.25%);
Sampson Investment Management, Danville, CA (17.79%); Charles Schwab and
Co., Inc., San Francisco, CA (8.62%).
ADVISOR NATURAL RESOURCES - CLASS A: Donaldson, Lufkin & Jenrette, New
York, NY (12.34%); A. G. Edwards & Sons, St. Louis, MO (11.65%); Scott &
Stringfellow Inc., Richmond, VA (5.08%).
ADVISOR NATURAL RESOURCES - CLASS T: Smith Barney, Inc., New York, NY
(7.34%); Donaldson, Lufkin & Jenrette, New York, NY (5.97%).
ADVISOR NATURAL RESOURCES - CLASS B: Merrill Lynch Pierce Fenner,
Jacksonville, FL (12.69%); Smith Barney, Inc., New York, NY (8.15%);
Donaldson, Lufkin & Jenrette, New York, NY (6.97%); Royal Alliance Assoc.,
Inc., Birmingham, AL (5.06%).
ADVISOR NATURAL RESOURCES - INSTITUTIONAL CLASS: Charles Schwab and Co.,
Inc., San Francisco, CA (40.89%); Marquette Trust Company, Minnetonka, MN
(18.86%); Resources Trust Company, Englewood, CO (14.76%); Donaldson,
Lufkin & Jenrette, New York, NY (8.97%).
ADVISOR UTILITIES GROWTH - CLASS A: FMR Corp., Boston, MA (23.53%); EQ
Financial Consultants, New York, NY (10.54%); Howe Barnes Investments,
Inc., Chicago, IL (7.22%); Prudential Securities, New York, NY (6.82%);
Dain Bosworth, Inc., Minneapolis, MN (5.70%).
ADVISOR UTILITIES GROWTH - CLASS T: Omega Securities, Inc., Fort Worth, TX
(8.75%); GW & Wade Asset Management Co., Wellesley, MA (8.61%); Sunamerica
Securities Inc., Phoenix, AZ (8.14%); FCS Securities, Marietta, GA (7.25%);
Janney Montgomery Scott, Inc., Philadelphia, PA (5.48%).
ADVISOR UTILITIES GROWTH - INSTITUTIONAL CLASS: FMR Corp., Boston, MA
(50.62%); Bank West, Pierre, SD (44.36%); Charles Schwab and Co., Inc., San
Francisco, CA (5.14%).
ADVISOR TECHNOLOGY - CLASS A: Prudential Securities, New York, NY (18.61%);
A.G. Edwards & Sons, St. Louis, MO (8.16%); Bear Stearns Securities Corp.,
New York, NY (6.09%); Donaldson, Lufkin & Jenrette, New York, NY (5.16%).
ADVISOR TECHNOLOGY - CLASS T: Donaldson, Lufkin & Jenrette, New York, NY
(9.93%); PaineWebber Inc., Weehawken, NJ (7.48%); A.G. Edwards & Sons, St.
Louis, MO (6.48%); Alpha Equity Research Inc., Boston, MA (6.23%);
Prudential Securities, New York, NY (5.68%).
ADVISOR TECHNOLOGY - INSTITUTIONAL CLASS: FMR Corp., Boston, MA (73.90%);
Sampson Investment Management, Danville, CA (15.28%).
A shareholder owning of record or beneficially more than 25% of a fund's
outstanding shares may be considered a controlling person. That
shareholder's vote could have a more significant effect on matters
presented at a shareholders' meeting than votes of other shareholders.
MANAGEMENT CONTRACTS
Each fund employs FMR to furnish investment advisory and other services.
Under its management contract with each fund, FMR acts as investment
adviser and, subject to the supervision of the Board of Trustees, directs
the investments of each fund in accordance with its investment objective,
policies and limitations. FMR also provides each fund with all necessary
office facilities and personnel for servicing each fund's investments,
compensates all officers of each fund and all Trustees who are "interested
persons" of the trust or of FMR, and all personnel of each fund or FMR
performing services relating to research, statistical, and investment
activities.
In addition, FMR or its affiliates, subject to the supervision of the Board
of Trustees, provide the management and administrative services necessary
for the operation of each fund. These services include providing facilities
for maintaining each fund's organization; supervising relations with
custodians, transfer and pricing agents, accountants, underwriters and
other persons dealing with each fund; preparing all general shareholder
communications and conducting shareholder relations; maintaining each
fund's records and the registration of each fund's shares under federal and
state laws; developing management and shareholder services for each fund;
and furnishing reports, evaluations, and analyses on a variety of subjects
to the Trustees.
In addition to the management fee payable to FMR and the fees payable to
the transfer agent and the pricing and bookkeeping agent, each fund pays
all of its expenses, without limitation, that are not assumed by those
parties. Each fund pays for the typesetting, printing, and mailing of its
proxy materials to shareholders, legal expenses, and the fees of the
custodian, auditor and non-interested Trustees. Although each fund's
current management contract provides that each fund will pay for
typesetting, printing, and mailing prospectuses, statements of additional
information, notices and reports to shareholders, each trust, on behalf of
each of fund, has entered into a revised transfer agent agreement, pursuant
to which the transfer agent bears the costs of providing these services to
existing shareholders. Other expenses paid by each fund include interest,
taxes, brokerage commissions, each fund's proportionate share of insurance
premiums and Investment Company Institute dues, and the costs of
registering shares under federal and state securities laws. Each fund is
also liable for such non-recurring expenses as may arise, including costs
of any litigation to which each fund may be a party, and any obligation it
may have to indemnify its officers and Trustees with respect to litigation.
FMR is manager of Consumer Industries, Cyclical Industries, Financial
Services, Health Care, Technology, and Utilities Growth funds pursuant to
management contracts dated July 18, 1996, which were approved by FMR as
sole shareholder on August 30, 1996. FMR is the manager of Natural
Resources pursuant to a management contract dated December 1, 1994, which
was approved by shareholders on November 14, 1994.
For the services of FMR under each contract, each fund pays FMR a monthly
management fee composed of the sum of two elements: a group fee rate and an
individual fund fee rate.
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 and
is calculated on a cumulative basis pursuant to the graduated fee rate
schedule shown on the following page. The schedule below 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 at $4 62 billion of group net
assets - the approximate level for January, 1997 - was .30 14 %
for the funds, which is the weighted average of the respective fee rates
for each level of group net assets up to $4 62 billion.
The following fee schedule is the current fee schedule for Natural
Resources.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES

Average Group Annualized Group Net Effective Annual
Assets Rate Assets Fee 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

210 - 246 .2950

246 - 282 .2900

282 - 318 .2850

318 - 354 .2800

354 - 390 .2750

Over 390 .2700

This fee schedule has been approved by shareholders of Natural Resources.
On January 1, 1996, FMR voluntarily added new breakpoints to the revised
schedule for Natural Resources for average group assets in excess of $390
billion, pending shareholder approval of a new management contract
reflecting the revised schedule and additional breakpoints. The revised
group fee rate schedule and its extensions provide for lower management fee
rates as FMR's assets under management increase. For average group assets
in excess of of $210 billion, the revised group fee rate schedule with
additional breakpoints voluntarily adopted by FMR is as follows:
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES

Average Group Annualized Group Net Effective Annual
Assets Rate Assets Fee Rate

$174 - 210 billion .3000% $150 billion .3371%

210 - 246 .2950 175 .3325

246 - 282 .2900 200 .3284

282 - 318 .2850 225 .3249

318 - 354 .2800 250 .3219

354 - 390 .2750 275 .3190

390 - 426 .2700 300 .3163

426 - 462 .2650 325 .3137

462 - 498 .2600 350 .3113

498 - 534 .2550 375 .3090

Over 534 .2500 400 .3067

425 .3046

450 .3024

475 .3003

500 .2982

525 .2962

550 .2942

The following fee schedule is the current fee schedule for each fund
(except Natural Resources).
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 individual fund fee rates for each fund are set forth in the following
chart. Based on the average group net assets of the funds advised by FMR
for January 199 7 , the annual management fee rate would be
calculated as follows:

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Group Fee Rate Individual Fund Fee Rate Management Fee Rate

Consumer Industries .30 14% + 0.30 % = .60 14%

Cyclical Industries .30 14% + 0.30 % = .60 14%

Financial Services .30 14% + 0.30 % = .60 14%

Natural Resources .30 14% + 0.30 % * = .60 14%

Health Care .30 14% + 0.30 % = .60 14%

Technology .30 14% + 0.30 % = .60 14%

Utilities Growth .30 14% + 0.30 % = .60 14%

</TABLE>

* Effective September 1, 1996, FMR voluntarily reduced Natural Resources'
individual fund fee rate from 0.45% to 0.30%.
One-twelfth (1/12) of this annual management 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.
During the fiscal years ended October 31, 1996, 1995, and 1994, FMR
received $3,344,653, $1,730,945, and $890,892, respectively, for its
services as investment adviser to Natural Resources. These fees were
equivalent to .72%, .76%, and .77%, respectively, of the average net assets
of Natural Resources for each of those years.
FMR may, from time to time, voluntarily reimburse all or a portion of a
class's operating expenses (exclusive of interest, taxes, brokerage
commissions, and extraordinary expenses). FMR retains the ability to be
repaid for these expense reimbursements in the amount that expenses fall
below the limit prior to the end of the fiscal year. Expense reimbursement
by FMR will increase each class's total returns and repayment of the
reimbursement by each class will lower its total returns.
SUB-ADVISERS. On behalf of each fund, FMR has entered into sub-advisory
agreements with FMR U.K. and FMR Far East. Pursuant to the sub-advisory
agreements, FMR may receive investment advice and research services outside
the United States from the sub-advisers.
On behalf of each fund, FMR may also grant FMR U.K. and FMR Far East
investment management authority as well as the authority to buy and sell
securities if FMR believes it would be beneficial to the funds.
Currently, FMR U.K. and FMR Far East each focuses on issuers in countries
other than the United States such as those in Europe, Asia, and the Pacific
Basin.
FMR U.K. and FMR Far East, which were organized in 1986, are wholly owned
subsidiaries of FMR.
Under the sub-advisory agreements, FMR pays the fees of FMR U.K. and FMR
Far East. For providing non-discretionary investment advice and research
services, FMR pays FMR U.K. and FMR Far East fees equal to 110% and 105%,
respectively, of FMR U.K.'s and FMR Far East's costs incurred in connection
with providing investment advice and research services.
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 with respect to each
fund's average net assets managed by the sub-adviser on a discretionary
basis.
For providing investment advice and research services on behalf of
Natural Resources, the fees paid to FMR U.K. for fiscal 1996, 1995, and
1994 were $28,042 , $9,872, and $2,598, respectively.
For providing investment advice and research services on behalf of
Natural Resources, the fees paid to FMR Far East for fiscal 1996, 1995, and
1994 were $28,590 , $9,721, and $2,932, respectively.
CONTRACTS WITH FMR AFFILIATES
FIIOC, an affiliate of FMR, is transfer, dividend disbursing, and
shareholder servicing agent for Class A, Class T, Class B, and the
Institutional Class shares of the funds. Under these arrangements, FIIOC
receives an annual account fee and an asset-based fee each based on account
size and fund type for each retail account and certain institutional
accounts. With respect to certain institutional retirement accounts, FIIOC
receives an annual account fee and an asset-based fee based on account type
or fund type. These annual account fees are subject to increase based on
postal rate changes. The asset-based fees of the funds are subject to
adjustment if the year-to-date total return of the S&P 500 exceeds positive
or negative 15%. FIIOC also collects small account fees from certain
accounts with balances of less than $2,500.
FIIOC bears the expense of typesetting, printing, and mailing prospectuses,
statements of additional information, and all other reports, notices, and
statements to shareholders, with the exception of proxy statements. Also,
FIIOC pays out-of-pocket expenses associated with providing transfer agent
services.
FSC, an affiliate of FMR, performs the calculations necessary to determine
NAV and dividends for Class A, Class T, Class B, and the Institutional
Class of each fund, maintains each fund's accounting records, and
administers each fund's securities lending program. The annual fee rates
for these pricing and bookkeeping services are based on each fund's average
net assets, specifically, 0.06% of the first $500 million of average net
assets and 0.03% of average net assets in excess of $500 million. The fee
is limited to a minimum of $60,000 and a maximum of $800,000 per year.
Pricing and bookkeeping fees, including reimbursement for out-of-pocket
expenses, paid to FSC by Natural Resources for the fiscal years ended 1996,
1995, and 1994 were $323,423, $136,434, and $73,164 respectively.
FSC also receives fees for administering each fund's securities lending
program. Securities lending fees are based on the number and duration of
individual securities loans. For fiscal 1996, 1995, and 1994, Natural
Resources did not incur any securities lending fees.
Each fund has a distribution agreement with FDC, a Massachusetts
corporation organized on July 18, 1960. FDC is a broker-dealer registered
under the Securities Exchange Act of 1934 and is a member of the National
Association of Securities Dealers, Inc. The distribution agreements call
for FDC to use all reasonable efforts, consistent with its other business,
to secure purchasers for shares of each fund, which are continuously
offered. Promotional and administrative expenses in connection with the
offer and sale of shares are paid by FMR. The table below shows the sales
charge revenue paid to, and retained by FDC, for the following fiscal
periods ending:
SALES CHARGE REVENUE CDSC REVENUE

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FISCAL YEAR AMOUNT PAID AMOUNT AMOUNT PAID AMOUNT
ENDED TO FDC RETAINED BY FDC TO FDC RETAINED BY FDC

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Natural Resources: October 31, 1996 $ 61,535 $ 6,151 N/A N/A
Class A

October 31, 1995 N/A N/A N/A N/A

October 31, 1994 N/A N/A N/A N/A

Natural Resources: October 31, 1996 $ 3,256,662 $ 530,816 N/A N/A
Class T

October 31, 1995 $ 2,777,231 $ 431,130 N/A N/A

October 31, 1994 $ 3,854,629 $ 567,671 N/A N/A

Natural Resources: October 31, 1996 N/A N/A $ 21,872 $ 21,872
Class B

October 31, 1995 N/A N/A $ 247 $ 247

October 31, 1994 N/A N/A N/A N/A

</TABLE>

DISTRIBUTION AND SERVICE PLANS
The Trustees have approved Distribution and Service Plans on behalf of each
class of shares of the funds (the Plans) pursuant to Rule 12b-1 under the
1940 Act (the Rule). The Rule provides in substance that a mutual fund may
not engage directly or indirectly in financing any activity that is
primarily intended to result in the sale of shares of the fund except
pursuant to a plan approved on behalf of the fund under the Rule. The
Plans, as approved by the Trustees, allow Class A, Class T, Class B and
Institutional Class shares of each fund and FMR to incur certain expenses
that might be considered to constitute direct or indirect payment by the
funds of distribution expenses.
Pursuant to the Class A Plans, FDC is paid a distribution fee as a
percentage of Class A's average net assets at an annual rate of up to 0.75%
for each fund. Pursuant to the Class T Plans, FDC is paid a distribution
fee as a percentage of Class T's average net assets at an annual rate of up
to 0.75% for each fund (except Natural Resources). Pursuant to Natural
Resources' Class T Plan, FDC is paid a distribution fee as a percentage of
Class T's average net assets at an annual rate of up to 0.65%. Pursuant to
the Class B Plans, FDC is paid a distribution fee as a percentage of Class
B's average net assets at an annual rate of up to 0.75% for each fund. For
the purpose of calculating the distribution fees, average net assets are
determined at the close of business on each day throughout the month.
Currently, the Trustees have approved a distribution fee for Class A at an
annual rate of 0.25% for each fund; a distribution fee for Class T at an
annual rate of 0.50% for each fund; and a distribution fee for Class B at
an annual rate of 0.75% for each fund. These fee rates may be increased
only when, in the opinion of the Trustees, it is in the best interests of
the shareholders of the applicable class to do so. Class B of each fund
also pays investment professionals a service fee at an annual rate of 0.25%
of its average daily net assets determined at the close of business on each
day throughout the month for personal service and/or the maintenance of
shareholder accounts.
For the fiscal year ended October 31, 1996, Class A of Natural Resources
paid a distribution fee of $344, of which $0 was retained by FDC. For the
fiscal years ended October 31, 1996, 1995, and 1994, Class T of Natural
Resources paid distribution fees of $2,272,463, $1,473,539, and $750,888,
respectively, of which $72,772, $340,109, and $173,281, respectively, was
retained by FDC. For the fiscal years ended October 31, 1996 and 1995,
Class B of Natural Resources paid distribution fees of $164,177 and $4,188,
respectively, of which $123,133 and $3,141, respectively, was retained by
FDC.
Under each Plan, if the payment of management fees by the funds to FMR is
deemed to be indirect financing by the funds of the distribution of their
shares, such payment is authorized by the Plans. Each Class A, Class T, and
Class B Plan specifically recognizes that FMR may use its management fee
revenue, as well as its past profits or its other resources, to pay FDC for
expenses incurred in connection with the distribution of the applicable
class's shares, including payments made to third parties that engage in the
sale of the applicable class's shares or to third parties, including banks,
that render shareholder support services. Each Institutional Class Plan
specifically recognizes that FMR may use its management fee revenue, as
well as its past profits or its other resources, to pay FDC for expenses
incurred in connection with the distribution of Institutional Class shares.
FMR directly, or through FDC, may make payments to third parties, such as
banks or broker-dealers, that engage in the sale of Institutional Class
shares or provide shareholder support services. The Board of Trustees
have authorized such payments for all classes of the funds. For the
calendar year ended 1996, payments made by FMR either directly or
indirectly through FDC to third parties, rounded to the nearest one
thousand dollars, amounted to $58,000, $4,000, and $4,000 on behalf of
Class T, Class B, and Institutional Class, respectively, of Natural
Resources.
Prior to approving each Plan, the Trustees carefully considered all
pertinent factors relating to the implementation of each Plan, and
determined that there is a reasonable likelihood that the Plan will benefit
the applicable class of each fund and its shareholders. In particular, the
Trustees noted that the Institutional Class Plans do not authorize payments
by the Institutional Class of each fund other than those made to FMR under
its management contract with the fund. To the extent that each Plan gives
FMR and FDC greater flexibility in connection with the distribution of
shares of the applicable class of each fund, additional sales of fund
shares may result. Furthermore, certain shareholder support services may be
provided more effectively under the Plans by local entities with whom
shareholders have other relationships.
The Class A, Class T, and Class B Plans do not provide for specific
payments by the applicable class of any of the expenses of FDC, or obligate
FDC or FMR to perform any specific type or level of distribution activities
or incur any specific level of expense in connection with distribution
activities. After payments by FDC for advertising, marketing and
distribution, and payments to third parties, the amounts remaining, if any,
may be used as FDC may elect.
The Plans were approved by the shareholders of each class on the dates
shown in the table below:

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
DATE OF SHAREHOLDER APPROVAL

FUND CLASS A CLASS T INSTITUTIONAL CLASS B

Consumer Industries 8/30/96 8/30/96 8/30/96 +

Cyclical Industries 8/30/96 8/30/96 8/30/96 +

Financial Services 8/30/96 8/30/96 8/30/96 +

Natural Resources 8/30/96 12/01/94 6/30/95 6/30/95

Health Care 8/30/96 8/30/96 8/30/96 +

Technology 8/30/96 8/30/96 8/30/96 +

Utilities Growth 8/30/96 8/30/96 8/30/96 +

</TABLE>

+ Not applicable
The Glass-Steagall Act generally prohibits federally and state chartered or
supervised banks from engaging in the business of underwriting, selling, or
distributing securities. Although the scope of this prohibition under the
Glass-Steagall Act has not been clearly defined by the courts or
appropriate regulatory agencies, FDC believes that the Glass-Steagall Act
should not preclude a bank from performing shareholder support services, or
servicing and recordkeeping functions. FDC intends to engage banks only to
perform such functions. However, changes in federal or state statutes and
regulations pertaining to the permissible activities of banks and their
affiliates or subsidiaries, as well as further judicial or administrative
decisions or interpretations, could prevent a bank from continuing to
perform all or a part of the contemplated services. If a bank were
prohibited from so acting, the Trustees would consider what actions, if
any, would be necessary to continue to provide efficient and effective
shareholder services. In such event, changes in the operation of the funds
might occur, including possible termination of any automatic investment or
redemption or other services then provided by the bank. It is not expected
that shareholders would suffer any adverse financial consequences as a
result of any of these occurrences. In addition, state securities laws on
this issue may differ from the interpretations of federal law expressed
herein, and banks and other financial institutions may be required to
register as dealers pursuant to state law.
Each fund may execute portfolio transactions with, and purchase securities
issued by, depository institutions that receive payments under the Plans.
No preference for the instruments of such depository institutions will be
shown in the selection of investments.
DESCRIPTION OF THE TRUSTS
TRUST ORGANIZATION. Natural Resources Fund is a fund of Fidelity Advisor
Series V, an open-end management investment company organized as a
Massachusetts business trust by a Declaration of Trust dated April 23,
1986, as amended and restated July 18, 1991, and as supplemented April 15,
1993. On July 18, 1991, the Board of Trustees voted to change the name of
the trust from Plymouth Investment Series to Fidelity Investment Series,
and on April 15, 1993, the Board voted to change the trust's name to
Fidelity Advisor Series V. An amended and restated Declaration of Trust
dated March 16, 1995 was filed on April 12, 1995. Currently, there are four
funds of the trust: Advisor Natural Resources; Advisor High Income
Municipal; Advisor New York Municipal Income; and Advisor California
Municipal Income. The Declaration of Trust permits the Trustees to create
additional funds.
Consumer Industries Fund, Cyclical Industries Fund, Financial Services
Fund, Health Care Fund, Technology Fund, and Utilities Growth Fund are
funds of Fidelity Advisor Series VII, an open-end management investment
management company organized as a Massachusetts business trust by a
Declaration of Trust dated March 21, 1980 as amended and restated July 18,
1991 and as supplemented April 15, 1993. On July 18, 1991, the Board of
Trustees voted to change the name of the trust from Plymouth Securities
Trust to Fidelity Securities Trust, and on April 15, 1993 the Board of
Trustees voted to change the name of the trust to Fidelity Advisor Series
VII. Currently, there are seven funds of the trust: Advisor Consumer
Industries Fund, Advisor Cyclical Industries Fund, Advisor Financial
Services Fund, Advisor Health Care Fund, Advisor Technology Fund, Advisor
Utilities Growth Fund, and Advisor Overseas Fund. The Declaration of Trust
permits the Trustees to create additional funds.
In the event that FMR ceases to be investment adviser to a trust or a fund,
the right of the trust or fund to use the identifying name "Fidelity" may
be withdrawn. There is a remote possibility that one fund might become
liable for any misstatement in its prospectus or statement of additional
information about another fund.
The assets of each trust received for the issue or sale of shares of each
of its funds and all income, earnings, profits, and proceeds thereof,
subject only to the rights of creditors, are especially allocated to such
fund, and constitute the underlying assets of such fund. The underlying
assets of each fund are segregated on the books of account, and are to be
charged with the liabilities with respect to such fund and with a share of
the general expenses of their respective trusts. Expenses with respect to
the trusts are to be allocated in proportion to the asset value of their
respective funds, except where allocations of direct expense can otherwise
be fairly made. The officers of the trusts, subject to the general
supervision of the Boards of Trustees, have the power to determine which
expenses are allocable to a given fund, or which are general or allocable
to all of the funds of a certain trust. In the event of the dissolution or
liquidation of a trust, shareholders of each fund of that trust are
entitled to receive as a class the underlying assets of such fund available
for distribution.
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. Each Declaration of
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 Massachusetts trust and its assets. The Declaration
of Trust provides for indemnification out of each fund's property of any
shareholders held personally liable for the obligations of the fund. Each
Declaration of Trust also provides that each fund 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.
The Declaration of Trust further provides that the Trustees, if they have
exercised reasonable care, will not be liable for any neglect or
wrongdoing, but nothing in the Declaration of Trust protects Trustees
against any liability to which they would otherwise be subject by reason of
willful misfeasance, bad faith, gross negligence, or reckless disregard of
the duties involved in the conduct of their office. Claims asserted against
one class of shares may subject holders of another class of shares to
certain liabilities.
VOTING RIGHTS. Each fund's capital consists of shares of beneficial
interest. Shareholders of Natural Resources receive one vote for each
dollar value of net asset value owned. The shares have no preemptive or
conversion rights; 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 respective
"Shareholder and Trustee Liability" headings above. Shareholders
representing 10% or more of a trust or one of its funds may, as set forth
in the Declaration of Trust or Trust Instrument, call meetings of the 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 on
voting on removal of one or more Trustees.
A trust or any fund may be terminated upon the sale of its assets to
another open-end management investment company or series thereof, or upon
liquidation and distribution of its assets, if approved by vote of the
holders of a majority of the outstanding shares of the funds of Advisor
Series VII, or, as determined by the current value of each shareholder's
investment in Natural Resources. If not so terminated, each trust and funds
will continue indefinitely. Natural Resources may also invest all of its
assets in another investment company.
CUSTODIANS. Brown Brothers Harriman & Co., 40 Water Street, Boston,
Massachusetts, is custodian of the assets of Natural Resources. The Chase
Manhattan Bank, 1 Chase Manhattan Plaza , New York, New York, is the
custodian of the assets of Consumer Industries Fund, Cyclical Industries
Fund, Health Care Fund, Technology Fund, Financial Services Fund and
Utilities Growth Fund. The custodian is responsible for the safekeeping of
the fund's assets and the appointment of subcustodian banks and clearing
agencies. The custodian takes no part in determining the investment
policies of the fund or in deciding which securities are purchased or sold
by a fund.
FMR, its officers and directors, its affiliated companies, and the Board of
Trustees may, from time to time, conduct transactions with various banks,
including banks serving as custodians for certain of the funds advised by
FMR. The Boston branch of the custodian bank of Natural Resources leases
its office space from an affiliate of FMR at a lease payment which, when
entered into, was consistent with prevailing market rates. Transactions
that have occurred to date include mortgages and personal and general
business loans. In the judgment of FMR, the terms and conditions of those
transactions were not influenced by existing or potential custodial or
other fund relationships.
AUDITOR. Coopers & Lybrand L.L.P., One Post Office Square, Boston,
Massachusetts, serves as the independent accountant for each fund. The
auditor examines financial statements for each fund and provides other
audit, tax, and related services.
FINANCIAL STATEMENTS
Natural Resources' audited financial statements and , financial
highlights for the fiscal year ended October 31, 1996 , and report
of the auditor, are included in the fund's Annual Report, which
is a separate report supplied with this SAI. Natural Resources'
financial statements, including the financial highlights , and
report of the auditor are incorporated herein by reference. For a
free additional copy of Natural Resources' Annual Report, contact FDC at
1-800-544-8888, 82 Devonshire Street, Boston, MA 02109, or your investment
professional.
The unaudited financial statements and financial highlights included in the
Semiannual Reports, which are separate reports supplied with this SAI, for
Consumer Industries, Cyclical Industries, Financial Services, Health Care,
Technology, and Utilities Growth for the period September 3, 1996
(commencement of operations) through January 31, 1997 are incorporated
herein by reference.
APPENDIX
DESCRIPTION OF MOODY'S INVESTORS SERVICE RATINGS OF CORPORATE BONDS
Moody's ratings for obligations with an original remaining maturity in
excess of one year fall within nine categories. They range from Aaa
(highest quality) to C (lowest quality). Moody applies numerical modifiers
of 1, 2, or 3 to each generic rating classification from Aa through B. The
modifier 1 indicates that the security ranks in the higher end of its
generic rating category; the modifier 2 indicates a mid-range ranking; and
the modifier 3 indicates that the issue ranks on the lower end of its
generic rating category.
AAA - Bonds that are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to
as "gilt edged." Interest payments are protected by a large or by an
exceptionally stable margin and principal is secure. While the various
protective elements are likely to change, such changes as can be visualized
are most unlikely to impair the fundamentally strong position of such
issues.
AA - Bonds that are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally
known as high-grade bonds. They are rated lower than the best bonds because
margins of protection may not be as large as in Aaa securities or
fluctuation of protective elements may be of greater amplitude or there may
be other elements present which make the long-term risks appear somewhat
larger than the Aaa securities.
A - Bonds that are rated A possess many favorable investment attributes and
are to be considered as upper-medium-grade obligations. Factors giving
security to principal and interest are considered adequate but elements may
be present which suggest a susceptibility to impairment sometime in the
future.
BAA - Bonds that are rated Baa are considered as medium-grade obligations,
(i.e., they are neither highly protected nor poorly secured). Interest
payments and principal security appear adequate for the present but certain
protective elements may be lacking or may be characteristically unreliable
over any great length of time. Such bonds lack outstanding investment
characteristics and in fact have speculative characteristics as well.
BA - Bonds that are rated Ba are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection of
interest and principal payments may be very moderate and thereby not well
safeguarded during both good and bad times over the future. Uncertainty of
position characterizes bonds in this class.
B - Bonds that are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance
of other terms of the contract over any long period of time may be small.
CAA - Bonds that are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to
principal or interest.
CA - Bonds that are rated Ca represent obligations which are speculative in
a high degree. Such issues are often in default or have other marked
short-comings.
C - Bonds that are rated C are the lowest-rated class of bonds and issues
so rated can be regarded as having extremely poor prospects of ever
attaining any real investment standing.
DESCRIPTION OF STANDARD & POOR'S RATINGS OF CORPORATE BONDS
Debt issues may be designated by Standard & Poor's as either investment
grade ("AAA" through "BBB") or speculative grade ("BB" through "D"). While
speculative grade debt will likely have some quality and protective
characteristics, these are outweighed by large uncertainties or major
exposures to adverse conditions. Ratings from AA to CCC may be modified by
the addition of a plus sign (+) or minus sign (-) to show relative standing
within the major rating categories.
AAA - Debt rated AAA has the highest rating assigned by Standard & Poor's
to a debt obligation. Capacity to pay interest and repay principal is
extremely strong.
AA - Debt rated AA has a very strong capacity to pay interest and repay
principal and differs from the higher-rated issues only in small degree.
A - Debt rated A has a strong capacity to pay interest and repay principal,
although it is somewhat more susceptible to the adverse effects of changes
in circumstances and economic conditions than debt in higher rated
categories.
BBB - Debt rated BBB is regarded as having an adequate capacity to pay
interest and repay principal. Whereas it normally exhibits adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal for debt in this category than in higher-rated
categories.
BB - Debt rated BB has less near-term vulnerability to default than other
speculative issues. However, it faces major ongoing uncertainties or
exposure to adverse business, financial, or economic conditions which could
lead to inadequate capacity to meet timely interest and principal payments.
The BB rating category is also used for debt subordinated to senior debt
that is assigned an actual or implied BBB- rating.
B - Debt rated B has a greater vulnerability to default but currently has
the capacity to meet interest payments and principal repayments. Adverse
business, financial, or economic conditions will likely impair capacity or
willingness to pay interest and repay principal. The B rating category is
also used for debt subordinated to senior debt that is assigned an actual
or implied BB or BB- rating.
CCC - Debt rated CCC has a currently identifiable vulnerability to default,
and is dependent upon favorable business, financial, and economic
conditions to meet timely payment of interest and repayment of principal.
In the event of adverse business, financial, or economic conditions, it is
not likely to have the capacity to pay interest and repay principal. The
CCC rating category is also used for debt subordinated to senior debt that
is assigned an actual or implied B or B- rating.
CC - Debt rated CC is typically applied to debt subordinated to senior debt
which is assigned an actual or implied CCC debt rating.
C - The rating C is typically applied to debt subordinated to senior debt
which is assigned an actual or implied CCC- debt rating. The C rating may
be used to cover a situation where a bankruptcy petition has been filed but
debt service payments are continued.
CI - The rating CI is reserved for income bonds on which no interest is
being paid.
D - Debt rated D is in payment default. The D rating category is used when
interest payments or principal payments are not made on the date due even
if the applicable grace period has not expired, unless S&P believes that
such payments will be made during such grace period. The D rating will also
be used upon the filing of a bankruptcy petition if debt service payments
are jeopardized.

PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) (1) Financial Statements and Financial Highlights for Fidelity
Advisor V on behalf of Fidelity Advisor Natural Resources Fund, Fidelity
Advisor California Municipal Income Fund, Fidelity Advisor New York
Municipal Income Fund, and Fidelity Advisor High Income Municipal Fund for
the fiscal year ended October 31, 1996, are included in each fund's
prospectus, are incorporated by reference into each fund's Statement of
Additional Information and were filed on December 24, 1996 for Fidelity
Advisor Series V pursuant to Rule 30d-1 under the Investment Company Act of
1940 and are incorporated herein by reference.
(b) Exhibits
(1) Declaration of Trust, as amended and restated on March 16, 1995, was
electronically filed and is incorporated herein by reference to Exhibit 1
to Post-Effective Amendment No. 27.
(2) Bylaws of the Trust are incorporated herein by reference to Exhibit 2
of Post-Effective Amendment No. 34.
(3) Not applicable.
(4) Form of Share Certificate was electronically filed and is
incorporated herein by reference to Exhibit 4 to Post-Effective Amendment
No. 29.
(5) (a) Management Contract between Fidelity Advisor High Income
Municipal Fund and Fidelity Management & Research Company, dated December
1, 1994, was electronically filed and is incorporated herein by reference
to Exhibit 5(a) to Post-Effective Amendment No. 27.
(b) Management Contract between Fidelity Advisor Global Resources
Fund, (currently known as Fidelity Advisor Natural Resources Fund) and
Fidelity Management & Research Co., dated December 1, 1994, was
electronically filed and is incorporated herein by reference to Exhibit
5(b) to Post-Effective Amendment No. 27.
(c) Management Contract between Fidelity Advisor California
Municipal Income Fund, and Fidelity Management & Research Co., dated
December 14, 1995 was electronically filed and is incorporated herein by
reference to Exhibit 5(c) to Post-Effective Amendment No. 33.
(d) Management Contract between Fidelity Advisor New York
Tax-Free Income Fund, (currently known as Fidelity Advisor New York
Municipal Fund) and Fidelity Management & Research Co., dated November 17,
1994 was electronically filed and is incorporated herein by reference to
Exhibit 5(d) to Post-Effective Amendment No. 26.
(e) Sub-Advisory Agreement between Fidelity Management & Research
Company, on behalf of Fidelity Advisor Global Resources Fund, (currently
known as Fidelity Advisor Natural Resources Fund) and Fidelity Management &
Research (Far East) Inc., dated December 1, 1994, was electronically filed
and is incorporated herein by reference to Exhibit 5(e) to Post-Effective
Amendment No. 27.
(f) Sub-Advisory Agreement between Fidelity Management & Research
Company, on behalf of Fidelity Advisor Global Resources Fund, (currently
known as Fidelity Advisor Natural Resources Fund) and Fidelity Management
and Research (U.K.) dated December 1, 1994, was electronically filed and is
incorporated herein by reference to Exhibit 5(f) to Post-Effective
Amendment No. 27.
(6) (a) General Distribution Agreement between Registrant, on behalf of
Plymouth High Income Municipal Portfolio (currently known as Fidelity
Advisor High Income Municipal Fund) and Fidelity Distributors Corporation,
was electronically filed and is incorporated herein by reference to Exhibit
6(a) to Post-Effective Amendment No. 29.
(b) General Distribution Agreement between Registrant, on behalf
of Plymouth Global Natural Resources Portfolio (currently known as Fidelity
Advisor Natural Resources Fund) and Fidelity Distributors Corporation, was
electronically filed and is incorporated herein by reference to Exhibit
6(b) to Post-Effective Amendment No. 29.
(c) Amendment to the General Distribution Agreements for Plymouth
High Income Municipal Portfolio (currently known as Fidelity Advisor High
Income Municipal Fund) and Plymouth Global Natural Resources Portfolio
(currently known as Fidelity Natural Resources Fund) between the
Registrant, dated January 1, 1988, was electronically filed and is
incorporated herein by reference to Exhibit 6(c) to Post-Effective
Amendment No. 29.
(d) General Distribution Agreement between Fidelity Advisor
California Municipal Income Fund, and Fidelity Distributors Corporation,
was electronically filed and is incorporated herein by reference to Exhibit
6(d) to Post-Effective Amendment No. 32.
(e) General Distribution Agreement between New York Tax-Free
Income Fund, (currently known as Fidelity New York Municipal Income Fund)
and Fidelity Distributors Corporation, dated November 17, 1994 was
electronically filed and is incorporated herein by reference to Exhibit
6(f) to Post-Effective Amendment No. 26.
(f) Form of Bank Agency Agreement (most recently revised January,
1997) was electronically filed and is incorporated herein by reference to
Exhibit 6(f) of Post-Effective Amendment No. 37.
(g) Form of Selling Dealer Agreement (most recently revised
January, 1997) was electronically filed and is incorporated herein by
reference to Exhibit 6(g) of Post-Effective Amendment No. 37.
(h) Form of Selling Dealer Agreement for Bank Related Transactions
(most recently revised January, 1997) was electronically filed and is
incorporated herein by reference to Exhibit 6(h) of Post-Effective
Amendment No. 37.
(i) Amendments to the General Distribution Agreement between
Fidelity Advisor Series V on behalf of Fidelity Advisor Natural Resources
and Fidelity Distributors Corporation, dated March 14, 1996 and July 15,
1996, are incorporated herein by reference to Exhibit 6(a) of Fidelity
Court Street Trust's Post-Effective Amendment No. 61 (File No. 2-58774).
(j) Amendments to the General Distribution Agreement between
Fidelity Advisor Series V on behalf of Fidelity Advisor High Income
Municipal Fund and Fidelity Distributors Corporation, dated March 14, 1996
and July 15, 1996, are incorporated herein by reference to Exhibit 6(a) of
Fidelity Court Street Trust's Post-Effective Amendment No. 61 (File No.
2-58774).
(k) Amendments to the General Distribution Agreement between
Fidelity Advisor Series V on behalf of Fidelity Advisor New York Municipal
Income and Fidelity Distributors Corporation, dated March 14, 1996 and July
15, 1996, are incorporated herein by reference to Exhibit 6(a) of Fidelity
Court Street Trust's Post-Effective Amendment No. 61 (File No. 2-58774).
(l) Amendments to the General Distribution Agreement between
Fidelity Advisor Series V on behalf of Fidelity Advisor California
Municipal Income and Fidelity Distributors Corporation, dated March 14,
1996 and July 15, 1996, are incorporated herein by reference to Exhibit
6(a) of Fidelity Court Street Trust's Post-Effective Amendment No. 61 (File
No. 2-58774).
(7) (a) Retirement Plan for Non Interested Person Trustees, Directors or
General Partners, as amended on November 16, 1995 was electronically filed
and is incorporated herein by reference to Exhibit 7(a) to Fidelity Select
Portfolio's (File No. 2-69972) Post-Effective Amendment No. 54.
(b) The Fee Deferral plan for Non-Interested Person Directors and
Trustees of the Fidelity Funds, effective as of December 1, 1995 was
electronically filed and is incorporated herein by reference to Exhibit
7(b) to Fidelity School Street Trust's (File No. 2-57167) Post-Effective
Amendment No. 47.
(8) (a) Custodian Agreement and Appendix C, dated September 1, 1994,
between Brown Brothers Harriman & Company and Fidelity Advisor Series V on
behalf of Fidelity Advisor Natural Resources Fund was electronically filed
and is incorporated herein by reference to Exhibit 8(a) of Fidelity
Commonwealth Trust's Post-Effective Amendment No. 56 (File No. 2-52322).
(b) Appendix A, dated January 18, 1996, to the Custodian Agreement,
dated September 1, 1994, between Brown Brothers Harriman & Company and
Fidelity Advisor Series V on behalf of Fidelity Advisor Natural Resources
Fund was electronically filed and is incorporated herein by reference to
Exhibit 8(d) of Fidelity Investment Trust's Post-Effective Amendment No. 65
(File No. 2-90649).
(c) Appendix B, dated May 16, 1996, to the Custodian Agreement,
dated September 1, 1994, between Brown Brothers Harriman & Company and
Fidelity Advisor Series V on behalf of Fidelity Advisor Natural Resources
Fund was electronically filed and is incorporated herein by reference to
Exhibit 8(b) of Fidelity Securities Fund's Post-Effective Amendment No. 35
(File No. 2-93601).
(d) Custodian Agreement, Appendix B and Appendix C, dated December
1, 1994, between UMB Bank, n.a. and Fidelity Advisor Series V on behalf of
Fidelity Advisor High Income Municipal Fund, Fidelity Advisor New York
Municipal Income Fund and Fidelity Advisor California Municipal Income Fund
was electronically filed and is incorporated herein by reference to Exhibit
8 of Fidelity California Municipal Trust's Post-Effective Amendment No. 28
(File No. 2-83367).
(e) Appendix A, dated October 17, 1996, to the Custodian Agreement,
dated December 1, 1994, between UMB Bank, n.a. on behalf of Fidelity
Advisor High Income Municipal Fund, Fidelity Advisor New York Municipal
Income Fund and Fidelity Advisor California Municipal Income Fund was
electronically filed and is incorporated herein by reference to Exhibit
8(a) of Fidelity Court Street Trust's Post-Effective Amendment No. 61 (File
No. 2-58774).
(f) Fidelity Group Repo Custodian Agreement among The Bank of New
York, J. P. Morgan Securities, Inc., and Fidelity Advisor Series V on
behalf of Fidelity Advisor Natural Resources Fund, dated February 12, 1996,
was electronically filed and is incorporated herein by reference to Exhibit
8(d) to Fidelity Institutional Cash Portfolios Trust's (File No. 2-74708)
Post-Effective Amendment No. 31.
(g) Schedule 1 to the Fidelity Group Repo Custodian Agreement among
The Bank of New York, J. P. Morgan Securities, Inc., and Fidelity Advisor
Series V on behalf of Fidelity Advisor Natural Resources Fund, dated
February 12, 1996, was electronically filed and is incorporated herein by
reference to Exhibit 8(e) to Fidelity Institutional Cash Portfolios Trust's
Post-Effective Amendment No. 31.
(h) Fidelity Group Repo Custodian Agreement between Chemical Bank,
Greenwich Capital Markets, Inc., and Fidelity Advisor Series V on behalf of
Fidelity Advisor Natural Resources Fund, dated November 13, 1995, was
electronically filed and is incorporated herein by reference to Exhibit
8(f) to Fidelity Institutional Cash Portfolios Trust's Post-Effective
Amendment No. 31.
(i) Schedule 1 to the Fidelity Group Repo Custodian Agreement
between Chemical and Fidelity Advisor Series V on behalf of Fidelity
Advisor Natural Resources Fund, dated November 13, 1995, was electronically
filed and is incorporated herein by reference to Exhibit 8(h) to Fidelity
Institutional Cash Portfolios Trust's Post-Effective Amendment No. 31.
(j) Joint Trading Account Custody Agreement between the The Bank of
New York and Fidelity Advisor Series V on behalf of Fidelity Advisor
Natural Resources Fund, dated May 11, 1995, was electronically filed and is
incorporated herein by reference to Exhibit 8(i) to Fidelity Institutional
Cash Portfolios Trust's Post-Effective Amendment No. 31.
(k) First Amendment to Joint Trading Account Custody Agreement
between the The Bank of New York and Fidelity Advisor Series V on behalf of
Fidelity Advisor Natural Resources Fund, dated July 14, 1995, was
electronically filed and is incorporated herein by reference to Exhibit
8(i) to Fidelity Institutional Cash Portfolios Trust's Post-Effective
Amendment No. 31.
(9) Not applicable.
(10) Not applicable.
(11) Consent of Coopers & Lybrand, L.L.P. is electronically filed herein
as Exhibit 11.
(12) Not applicable.
(13) Not applicable.
(14) (a) Fidelity Institutional Individual Retirement Account Custodial
Agreement and Disclosure Statement, as currently in effect, was
electronically filed and is incorporated herein by reference to Exhibit
14(d) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective
Amendment No. 87.
(b) Plymouth Investments Defined Contribution Retirement Plan and
Trust Agreement, as currently in effect, was electronically filed and is
incorporated herein by reference to Exhibit 14(o) of Fidelity's
Commonwealth Trust's (File No. 2-52322) Post-Effective Amendment No. 57.
(c) The Institutional Prototype Plan Basic Plan Document,
Standardized Adoption Agreement, as currently in effect, was electronically
filed and is incorporated herein by reference to Exhibit 14(o) of
Fidelity's Securities Fund's (File No. 2-93601) Post-Effective Amendment
No. 33.
(d) Fidelity Advisor Funds Individual Retirement Account
Custodial Agreement and Disclosure Statement, as currently in effect, were
electronically filed and are incorporated herein by reference to Exhibit
14(b) to Post-Effective Amendment No. 20.
(15) (a) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor High Income Municipal Fund: Class T (formerly Class A) was
electronically filed and is incorporated herein by reference to Exhibit
15(a) of Post-Effective Amendment No. 37.
(b) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor Natural Resources Fund: Class T (formerly Class A) was
electronically filed and is incorporated herein by reference to Exhibit
15(b) of Post-Effective Amendment No. 37.
(c) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor California Municipal Income Fund: Class T (formerly Class
A) was electronically filed and is incorporated herein by reference to
Exhibit 15(c) of Post-Effective Amendment No. 37.
(d) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor New York Municipal Income Fund: Class T (formerly Class A)
was electronically filed and is incorporated herein by reference to Exhibit
15(d) of Post-Effective Amendment No. 37.
(e) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor New York Municipal Income Fund: Class B was electronically
filed and is incorporated herein by reference to Exhibit 15(e) of
Post-Effective Amendment No. 37.
(f) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor High Income Municipal Fund: Class B was electronically
filed and is incorporated herein by reference to Exhibit 15(f) of
Post-Effective Amendment No. 37.
(g) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor California Municipal Income Fund: Class B was
electronically filed and is incorporated herein by reference to Exhibit
15(g) of Post-Effective Amendment No. 37.
(h) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor Natural Resources Fund: Class B was electronically filed
and is incorporated herein by reference to Exhibit 15(h) of Post-Effective
Amendment No. 37.
(i) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor Natural Resources Fund: Institutional Class was
electronically filed and is incorporated herein by reference to Exhibit
15(i) of Post-Effective Amendment No. 37.
(j) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor High Income Municipal Fund: Institutional Class was
electronically filed and is incorporated herein by reference to Exhibit
15(j) of Post-Effective Amendment No. 37.
(k) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor California Municipal Income Fund: Institutional Class was
electronically filed and is incorporated herein by reference to Exhibit
15(k) of Post-Effective Amendment No. 37.
(l) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor New York Municipal Income Fund: Institutional Class was
electronically filed and is incorporated herein by reference to Exhibit
15(l) of Post-Effective Amendment No. 37.
(m) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor High Income Municipal Fund: Class A was electronically
filed and is incorporated herein by reference to Exhibit 15(m) to
Post-Effective Amendment No. 34.
(n) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor Natural Resources Fund: Class A was electronically filed
and is incorporated herein by reference to Exhibit 15(n) to Post-Effective
Amendment No. 34.
(o) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor New York Municipal Income Fund: Class A was electronically
filed and is incorporated herein by reference to Exhibit 15(o) to
Post-Effective Amendment No. 34.
(p) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor California Municipal Income Fund: Class A was
electronically filed and is incorporated herein by reference to Exhibit
15(p) to Post-Effective Amendment No. 34.
(16) (a) Schedule for computations of cumulative total returns and
average annual returns for Plymouth High Income Municipal Portfolio was
electronically filed and is incorporated herein by reference to Exhibit
16(a) to Post-Effective Amendment No. 29.
(b) Schedule for computations of moving averages and adjusted net
asset value for Plymouth Global Natural Resources Portfolio was
electronically filed and is incorporated herein by reference to Exhibit
16(b) to Post-Effective Amendment No. 29.
(c) Schedule for calculations of 30 day yield and tax equivalent
yield for all bond funds was electronically filed and is incorporated
herein by reference to Exhibit 16(c) to Post-Effective Amendment No. 29.
(17) Financial Data Schedules for Fidelity Advisor Natural Resources Fund
are electronically filed herein as Exhibit 27.
(18) Rule 18f-3 Plan, dated January 1, 1997, was electronically filed and
is incorporated herein by reference to Exhibit 18 of Post-Effective
Amendment No. 37.

Item 25. Persons Controlled by or Under Common Control with Registrant
The Board of Trustees of Registrant is the same as the boards of the other
Fidelity funds, each of which has Fidelity Management & Research Company as
its investment adviser. In addition, the officers of these funds are
substantially identical. Nonetheless, Registrant takes the position that it
is not under common control with these other funds since the power residing
in the respective Boards and officers arises as the result of an official
position with the respective funds.
Item 26. Number of Holders of Securities
January 31, 1997
Title of Class: Shares of Beneficial Interest
Name of Series Number of Record Holders
Fidelity Advisor High Income Municipal Fund: Class A 38
Fidelity Advisor High Income Municipal Fund: Class T 29,315
Fidelity Advisor High Income Municipal Fund: Class B 3,000
Fidelity Advisor High Income Municipal Fund: Institutional Class 69
Fidelity Advisor Natural Resources Fund: Class A 702
Fidelity Advisor Natural Resources Fund: Class T 59,064
Fidelity Advisor Natural Resources Fund: Class B 6,338
Fidelity Advisor Natural Resources Fund: Institutional Class 278
Fidelity Advisor California Municipal Income Fund: Class A 10
Fidelity Advisor California Municipal Income Fund: Class T 135
Fidelity Advisor California Municipal Income Fund: Class B 56
Fidelity Advisor California Municipal Income Fund: Institutional Class 3
Fidelity Advisor New York Municipal Income Fund: Class A 9
Fidelity Advisor New York Municipal Income Fund: Class T 275
Fidelity Advisor New York Municipal Income Fund: Class B 120
Fidelity Advisor New York Municipal Income Fund: Institutional Class 4
Item 27. Indemnification
Article XI, Section 2 of the Declaration of Trust sets forth the
reasonable and fair means for determining whether indemnification shall be
provided to any past or present Trustee or officer. It states that the
Registrant shall indemnify any present or past Trustee or officer to the
fullest extent permitted by law against liability and all expenses
reasonably incurred by him in connection with any claim, action, suit, or
proceeding in which he is involved by virtue of his service as a Trustee,
an officer, or both. Additionally, amounts paid or incurred in settlement
of such matters are covered by this indemnification. Indemnification will
not be provided in certain circumstances, however. These include instances
of willful misfeasance, bad faith, gross negligence, and reckless disregard
of the duties involved in the conduct of the particular office involved.
Pursuant to Section 11 of the Distribution Agreement, the Registrant
agrees to indemnify and hold harmless the Distributor and each of its
directors and officers and each person, if any, who controls the
Distributor within the meaning of Section 15 of the 1933 Act against any
loss, liability, claim, damages or expense arising by reason of any person
acquiring any shares, based upon the ground that the registration
statement, Prospectus, Statement of Additional Information, shareholder
reports or other information filed or made public by the Registrant
included a materially misleading statement or omission. However, the
Registrant does not agree to indemnify the Distributor or hold it harmless
to the extent that the statement or omission was made in reliance upon, and
in conformity with, information furnished to the Registrant by or on behalf
of the Distributor. The Registrant does not agree to indemnify the parties
against any liability to which they would be subject by reason of willful
misfeasance, bad faith, gross negligence, and reckless disregard of the
obligations and duties under the Distribution Agreement.
Pursuant to the agreement by which Fidelity Investments Institutional
Operations Company ("FIIOC") is appointed transfer agent, the Registrant
agrees to indemnify and hold FIIOC harmless against any losses, claims,
damages, liabilities or expenses (including reasonable counsel fees and
expenses) resulting from:
(1) any claim, demand, action or suit brought by any person other than the
Registrant, including by a shareholder, which names FIIOC and/or the
Registrant as a party and is not based on and does not result from FIIOC's
willful misfeasance, bad faith or negligence or reckless disregard of
duties, and arises out of or in connection with FIIOC's performance under
the Transfer Agency Agreement; or
(2) any claim, demand, action or suit (except to the extent contributed to
by FIIOC's willful misfeasance, bad faith or negligence or reckless
disregard of duties) which results from the negligence of the Registrant,
or from FIIOC's acting upon any instruction(s) reasonably believed by it to
have been executed or communicated by any person duly authorized by the
Registrant, or as a result of FIIOC's acting in reliance upon advice
reasonably believed by FIIOC to have been given by counsel for the
Registrant, or as a result of FIIOC's acting in reliance upon any
instrument or stock certificate reasonably believed by it to have been
genuine and signed, countersigned or executed by the proper person.
Item 28. Business and Other Connections of Investment Adviser
FMR serves as investment adviser to a number of other investment
companies. The directors and officers of the Adviser have held, during the
past two fiscal years, the following positions of a substantial nature.

<TABLE>
<CAPTION>
<S> <C>
Edward C. Johnson 3d Chairman of the Executive Committee of FMR;
President and Chief Executive Officer of FMR Corp.;
Chairman of the Board and Director of FMR, FMR
Corp., FMR Texas Inc., FMR (U.K.) Inc., and FMR
(Far East) Inc.; Chairman of the Board and
Representative Director of Fidelity Investments Japan
Limited; President and Trustee of funds advised by
FMR.

J. Gary Burkhead President and Director of FMR, FMR Texas Inc., FMR
(U.K.) Inc., and FMR (Far East) Inc.; Managing
Director of FMR Corp.; Senior Vice President and
Trustee of funds advised by FMR.

Peter S. Lynch Vice Chairman of the Board and Director of FMR.

Marta Amieva Vice President of FMR.

Dwight D. Churchill Vice President of FMR.

John D. Crumrine Assistant Treasurer of FMR, FMR (U.K.) Inc., FMR
(Far East) Inc., and FMR Texas Inc.; Vice President
and Treasurer of FMR Corp.

William Danoff Vice President of FMR and of a fund advised by FMR.

Scott E. DeSano Vice President of FMR.

Craig P. Dinsell Vice President of FMR.

Penelope Dobkin Vice President of FMR and of a fund advised by FMR.

George C. Domolky Vice President of FMR.

Larry A. Domash Vice President of FMR.

Bettina Doulton Vice President of FMR and of funds advised by FMR.

Margaret L. Eagle Vice President of FMR and a fund advised by FMR.

Richard B. Fentin Senior Vice President of FMR and Vice President of a
fund advised by FMR.

Gregory Fraser Vice President of FMR and of a fund advised by FMR.

Jay Freedman Assistant Clerk of FMR; Clerk of FMR Corp., FMR
(U.K.) Inc., and FMR (Far East) Inc.; Secretary of
FMR Texas Inc.

Robert Gervis Vice President of FMR.

David L. Glancy Vice President of FMR and of a fund advised by FMR.

Kevin E. Grant Vice President of FMR and of funds advised by FMR.

Barry A. Greenfield Vice President of FMR and of a fund advised by FMR.

Boyce I. Greer Vice President of FMR.

Bart Grenier Vice President of FMR.

Robert Haber Vice President of FMR.

Richard C. Habermann Senior Vice President of FMR; Vice President of funds
advised by FMR.

William J. Hayes Senior Vice President of FMR; Vice President of
Equity funds advised by FMR.

Richard Hazlewood Vice President of FMR and of a fund advised by FMR.

Fred L. Henning Jr. Senior Vice President of FMR; Vice President of
Fixed-Income funds advised by FMR.

John R. Hickling Vice President of FMR and of a fund advised by FMR.

Robert F. Hill Vice President of FMR; Director of Technical
Research.

Curt Hollingsworth Vice President of FMR and of funds advised by FMR.

Abigail P. Johnson Vice President of FMR and of a fund advised by FMR.

Stephen P. Jonas Vice President of FMR; Treasurer of FMR, FMR
(U.K.) Inc., FMR (Far East) Inc., and FMR Texas Inc.

David B. Jones Vice President of FMR.

Steven Kaye Vice President of FMR and of a fund advised by FMR.

Francis V. Knox Vice President of FMR; Compliance Officer of FMR
(U.K.) Inc.

David P. Kurrasch Vice President of FMR.

Robert A. Lawrence Senior Vice President of FMR; Vice President of High
Income funds advised by FMR.

Alan Leifer Vice President of FMR.

Harris Leviton Vice President of FMR and of a fund advised by FMR.

Bradford E. Lewis Vice President of FMR and of funds advised by FMR.

Arthur S. Loring Senior Vice President, Clerk, and General Counsel of
FMR; Vice President/Legal, and Assistant Clerk of
FMR Corp.; Secretary of funds advised by FMR.

Richard R. Mace Jr. Vice President of FMR and of funds advised by FMR.

Malcolm W. MacNaught II Vice President of FMR and of a fund advised by FMR.

Robert H. Morrison Vice President of FMR; Director of Equity Trading.

David L. Murphy Vice President of FMR and of funds advised by FMR.

Jacques Perold Vice President of FMR.

Anne Punzak Vice President of FMR.

Kenneth A. Rathgeber Vice President of FMR; Treasurer of funds advised by
FMR.

Lee H. Sandwen Vice President of FMR.

Patricia A. Satterthwaite Vice President of FMR and of a fund advised by FMR.

Thomas T. Soviero Vice President of FMR and of a fund advised by FMR.

Richard Spillane Vice President of FMR; Senior Vice President and
Director of Operations and Compliance of FMR (U.K.)
Inc.

Robert E. Stansky Senior Vice President of FMR; Vice President of a
fund advised by FMR.

Thomas Sweeney Vice President of FMR and of a fund advised by FMR.

Beth F. Terrana Senior Vice President of FMR; Vice President of a
fund advised by FMR.

Yoko Tilley Vice President of FMR.

Joel C. Tillinghast Vice President of FMR and of a fund advised by FMR.

Robert Tuckett Vice President of FMR.

Jennifer Uhrig Vice President of FMR and of funds advised by FMR.

George A. Vanderheiden Senior Vice President of FMR; Vice President of funds
advised by FMR.

</TABLE>

(2) FIDELITY MANAGEMENT & RESEARCH (U.K.) INC. (FMR U.K.)
Pembroke Hall, 42 Crow Lane, Pembroke, Bermuda
FMR U.K. provides investment advisory services to Fidelity Management &
Research Company and Fidelity Management Trust Company. The directors and
officers of the Sub-Adviser have held the following positions of a
substantial nature during the past two fiscal years.
Edward C. Johnson 3d Chairman of the Board and Director of FMR U.K.,
FMR, FMR Corp., FMR Texas Inc., and FMR (Far
East) Inc.; Chairman of the Executive Committee of
FMR; President and Chief Executive Officer of FMR
Corp.; Chairman of the Board and Representative
Director of Fidelity Investments Japan Limited;
President and Trustee of funds advised by FMR.

J. Gary Burkhead President and Director of FMR U.K., FMR, FMR (Far
East) Inc., and FMR Texas Inc.; Managing Director of
FMR Corp.; Senior Vice President and Trustee of
funds advised by FMR.

Richard Spillane Senior Vice President and Director of Operations and
Compliance of FMR U.K.; Vice President of FMR.

Stephen P. Jonas Treasurer of FMR U.K., FMR, FMR (Far East) Inc.,
and FMR Texas Inc.; Vice President of FMR.

John D. Crumrine Assistant Treasurer of FMR U.K., FMR, FMR (Far
East) Inc., and FMR Texas Inc.; Vice President and
Treasurer of FMR Corp.

Francis V. Knox Compliance Officer of FMR U.K.; Vice President of
FMR.

Jay Freedman Clerk of FMR U.K., FMR (Far East) Inc., and FMR
Corp.; Assistant Clerk of FMR; Secretary of FMR
Texas Inc.

(3) FIDELITY MANAGEMENT & RESEARCH COMPANY (FAR EAST) INC. (FMR FAR EAST)
Shiroyama JT Mori Bldg., 4-3-1 Toranomon Minato-ku, Tokyo 105, Japan
FMR Far East provides investment advisory services to Fidelity Management
& Research Company and Fidelity Management Trust Company. The directors
and officers of the Sub-Adviser have held the following positions of a
substantial nature during the past two fiscal years.
Edward C. Johnson 3d Chairman of the Board and Director of FMR Far
East, FMR, FMR Corp., FMR Texas Inc., and
FMR (U.K.) Inc.; Chairman of the Executive
Committee of FMR; President and Chief
Executive Officer of FMR Corp.; Chairman of
the Board and Representative Director of
Fidelity Investments Japan Limited; President
and Trustee of funds advised by FMR.

J. Gary Burkhead President and Director of FMR Far East, FMR
Texas Inc., FMR, and FMR (U.K.) Inc.;
Managing Director of FMR Corp.; Senior Vice
President and Trustee of funds advised by FMR.

William R. Ebsworth Vice President of FMR Far East; Director of
FIIA.

Bill Wilder Vice President of FMR Far East; President and
Representative Director of Fidelity Investments
Japan Limited.

Stephen P. Jonas Treasurer of FMR Far East, FMR, FMR (U.K.)
Inc., and FMR Texas Inc.; Vice President of
FMR.

John D. Crumrine Assistant Treasurer of FMR Far East, FMR,
FMR (U.K.) Inc., and FMR Texas Inc.; Vice
President and Treasurer of FMR Corp.

Jay Freedman Clerk of FMR Far East, FMR (U.K.) Inc., and
FMR Corp.; Assistant Clerk of FMR; Secretary
of FMR Texas Inc.

Item 29. Principal Underwriters
(a) Fidelity Distributors Corporation (FDC) acts as distributor for most
funds advised by FMR.
(b)

Name and Principal Positions and Offices Positions and Offices

Business Address* With Underwriter With Registrant

Edward C. Johnson 3d Director Trustee and President

Michael Mlinac Director None

Mark Peterson Director None

Paul Hondros President None

Arthur S. Loring Vice President and Clerk Secretary

Caron Ketchum Treasurer and Controller None

Gary Greenstein Assistant Treasurer None

Jay Freedman Assistant Clerk None

Linda Holland Compliance Officer None

* 82 Devonshire Street, Boston, MA
(c) Not applicable.
Item 30. Location of Accounts and Records
All accounts, books, and other documents required to be maintained by
Section 31a of the 1940 Act and the Rules promulgated thereunder are
maintained by Fidelity Management & Research Company or Fidelity Service
Company, Inc., 82 Devonshire Street, Boston, MA 02109, or the funds'
respective custodian: Brown Brothers Harriman & Co., 40 Water Street,
Boston, MA. and UMB Bank, n.a., 1010 Grand Avenue, Kansas City, MO.
Item 31. Management Services
Not applicable.
Item 32. Undertakings

The Registrant undertakes on behalf of Fidelity California Municipal
Income Fund and Fidelity Advisor New York Municipal Income Fund: (1) to
call a meeting of shareholders for the purpose of voting upon the questions
of removal of a trustee or trustees, when requested to do so by record
holders of not less than 10% of its outstanding shares; and (2) to assist
in communications with other shareholders pursuant to Section 16(c)(1) and
(2) of the 1934 Act, whenever shareholders meeting the qualifications set
forth in Section 16(c) seek the opportunity to communicate with other
shareholders with a view toward requesting a meeting.
The Registrant, on behalf of Fidelity Advisor Natural Resources Fund,
Fidelity Advisor High Income Municipal Fund, Fidelity Advisor New York
Municipal Income Fund, and Fidelity Advisor California Municipal Income
Fund provided the information required by Item 5A is contained in the
annual report, undertakes to furnish to each person to whom a prospectus
has been delivered, upon their request and without charge, a copy of the
Registrant's latest annual report to shareholders.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all
of the requirements for the effectiveness of this Registration Statement
pursuant to Rule 485(b) under the Securities Act of 1933 and has duly
caused this Post-Effective Amendment No. 38 to the Registration Statement
to be signed on its behalf by the undersigned, thereunto duly authorized,
in the City of Boston, and Commonwealth of Massachusetts, on the 20th day
of March 1997.
Fidelity Advisor Series V
By /s/Edward C. Johnson 3d (dagger)
Edward C. Johnson 3d, President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in
the capacities and on the dates indicated.
(Signature) (Title) (Date)

<TABLE>
<CAPTION>
<S> <C> <C>
/s/Edward C. Johnson 3d (dagger) President and Trustee March 20, 1997

Edward C. Johnson 3d (Principal Executive Officer)

/s/Kenneth A. Rathgeber * Treasurer March 20, 1997

Kenneth A. Rathgeber

/s/J. Gary Burkhead Trustee March 20, 1997

J. Gary Burkhead

/s/Ralph F. Cox ** Trustee March 20, 1997

Ralph F. Cox

/s/Phyllis Burke Davis ** Trustee March 20, 1997

Phyllis Burke Davis

/s/Robert M. Gates *** Trustee March 20, 1997

Robert M. Gates

/s/E. Bradley Jones ** Trustee March 20, 1997

E. Bradley Jones

/s/Donald J. Kirk ** Trustee March 20, 1997

Donald J. Kirk

/s/Peter S. Lynch ** Trustee March 20, 1997

Peter S. Lynch

/s/Marvin L. Mann ** Trustee March 20, 1997

Marvin L. Mann

/s/William O. McCoy ** Trustee March 20, 1997

William O. McCoy

/s/Gerald C. McDonough ** Trustee March 20, 1997

Gerald C. McDonough

/s/Thomas R. Williams ** Trustee March 20, 1997

Thomas R. Williams

</TABLE>

(dagger) Signatures affixed by J. Gary Burkhead pursuant to a power of
attorney dated January 3, 1997 and filed herewith.
* Signature affixed by John H. Costello pursuant to a power of attorney
dated December 19, 1996 and filed herewith.
** Signature affixed by Robert C. Hacker pursuant to a power of attorney
dated December 19, 1996 and filed herewith.
*** Signature affixed by Robert C. Hacker pursuant to a power of attorney
dated March 6, 1997 and filed herewith.
POWER OF ATTORNEY
I, the undersigned President and Director, Trustee, or General Partner, as
the case may be, of the following investment companies:

<TABLE>
<CAPTION>
<S> <C>
Fidelity Aberdeen Street Trust Fidelity Government Securities Fund
Fidelity Advisor Annuity Fund Fidelity Hastings Street Trust
Fidelity Advisor Series I Fidelity Hereford Street Trust
Fidelity Advisor Series II Fidelity Income Fund
Fidelity Advisor Series III Fidelity Institutional Cash Portfolios
Fidelity Advisor Series IV Fidelity Institutional Tax-Exempt Cash Portfolios
Fidelity Advisor Series V Fidelity Institutional Trust
Fidelity Advisor Series VI Fidelity Investment Trust
Fidelity Advisor Series VII Fidelity Magellan Fund
Fidelity Advisor Series VIII Fidelity Massachusetts Municipal Trust
Fidelity Beacon Street Trust Fidelity Money Market Trust
Fidelity Boston Street Trust Fidelity Mt. Vernon Street Trust
Fidelity California Municipal Trust Fidelity Municipal Trust
Fidelity California Municipal Trust II Fidelity Municipal Trust II
Fidelity Capital Trust Fidelity New York Municipal Trust
Fidelity Charles Street Trust Fidelity New York Municipal Trust II
Fidelity Commonwealth Trust Fidelity Phillips Street Trust
Fidelity Congress Street Fund Fidelity Puritan Trust
Fidelity Contrafund Fidelity Revere Street Trust
Fidelity Corporate Trust Fidelity School Street Trust
Fidelity Court Street Trust Fidelity Securities Fund
Fidelity Court Street Trust II Fidelity Select Portfolios
Fidelity Covington Trust Fidelity Sterling Performance Portfolio, L.P.
Fidelity Daily Money Fund Fidelity Summer Street Trust
Fidelity Daily Tax-Exempt Fund Fidelity Trend Fund
Fidelity Destiny Plans Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Destiny Portfolios Fidelity U.S. Investments-Government Securities
Fidelity Deutsche Mark Performance Fund, L.P.
Portfolio, L.P. Fidelity Union Street Trust
Fidelity Devonshire Trust Fidelity Union Street Trust II
Fidelity Exchange Fund Fidelity Yen Performance Portfolio, L.P.
Fidelity Financial Trust Variable Insurance Products Fund
Fidelity Fixed-Income Trust Variable Insurance Products Fund II

</TABLE>

plus any other investment company for which Fidelity Management & Research
Company or an affiliate acts as investment adviser and for which the
undersigned individual serves as President and Director, Trustee, or
General Partner (collectively, the "Funds"), hereby constitute and appoint
J. Gary Burkhead my true and lawful attorney-in-fact, with full power of
substitution, and with full power to him to sign for me and in my name in
the appropriate capacity, all Registration Statements of the Funds on Form
N-1A, Form N-8A, Form N-8B-2, or any successor thereto, any and all
subsequent Amendments, Pre-Effective Amendments, or Post-Effective
Amendments to said Registration Statements on Form N-1A or any successor
thereto, any Registration Statements on Form N-14, and any supplements or
other instruments in connection therewith, and generally to do all such
things in my name and behalf in connection therewith as said
attorney-in-fact deems necessary or appropriate, to comply with the
provisions of the Securities Act of 1933 and the Investment Company Act of
1940, and all related requirements of the Securities and Exchange
Commission. I hereby ratify and confirm all that said attorney-in-fact or
his substitutes may do or cause to be done by virtue hereof. This power of
attorney is effective for all documents filed on or after January 3, 1997.
WITNESS my hand on the date set forth below.
/s/Edward C. Johnson 3d January 3, 1997

Edward C. Johnson 3d

POWER OF ATTORNEY
I, the undersigned Treasurer and principal financial and accounting
officer of the following investment companies:

<TABLE>
<CAPTION>
<S> <C>
Fidelity Aberdeen Street Trust Fidelity Government Securities Fund
Fidelity Advisor Annuity Fund Fidelity Hastings Street Trust
Fidelity Advisor Series I Fidelity Hereford Street Trust
Fidelity Advisor Series II Fidelity Income Fund
Fidelity Advisor Series III Fidelity Institutional Cash Portfolios
Fidelity Advisor Series IV Fidelity Institutional Tax-Exempt Cash Portfolios
Fidelity Advisor Series V Fidelity Institutional Trust
Fidelity Advisor Series VI Fidelity Investment Trust
Fidelity Advisor Series VII Fidelity Magellan Fund
Fidelity Advisor Series VIII Fidelity Massachusetts Municipal Trust
Fidelity Beacon Street Trust Fidelity Money Market Trust
Fidelity Boston Street Trust Fidelity Mt. Vernon Street Trust
Fidelity California Municipal Trust Fidelity Municipal Trust
Fidelity California Municipal Trust II Fidelity Municipal Trust II
Fidelity Capital Trust Fidelity New York Municipal Trust
Fidelity Charles Street Trust Fidelity New York Municipal Trust II
Fidelity Commonwealth Trust Fidelity Phillips Street Trust
Fidelity Congress Street Fund Fidelity Puritan Trust
Fidelity Contrafund Fidelity Revere Street Trust
Fidelity Corporate Trust Fidelity School Street Trust
Fidelity Court Street Trust Fidelity Securities Fund
Fidelity Court Street Trust II Fidelity Select Portfolios
Fidelity Covington Trust Fidelity Sterling Performance Portfolio, L.P.
Fidelity Daily Money Fund Fidelity Summer Street Trust
Fidelity Daily Tax-Exempt Fund Fidelity Trend Fund
Fidelity Destiny Portfolios Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Deutsche Mark Performance Fidelity U.S. Investments-Government Securities
Portfolio, L.P. Fund, L.P.
Fidelity Devonshire Trust Fidelity Union Street Trust
Fidelity Exchange Fund Fidelity Union Street Trust II
Fidelity Financial Trust Fidelity Yen Performance Portfolio, L.P.
Fidelity Fixed-Income Trust Variable Insurance Products Fund
Variable Insurance Products Fund II

</TABLE>

plus any other investment company for which Fidelity Management & Research
Company or an affiliate acts as investment adviser and for which the
undersigned individual serves as President and Director, Trustee, or
General Partner (collectively, the "Funds"), hereby constitute and appoint
John H. Costello and John E. Ferris each of them singly my true and lawful
attorneys-in-fact, with full power of substitution, and with full power to
each of them to sign for me and in my name in the appropriate capacity, all
Registration Statements of the Funds on Form N-1A, Form N-8A or any
successor thereto, any and all subsequent Amendments, Pre-Effective
Amendments, or Post-Effective Amendments to said Registration Statements on
Form N-1A or any successor thereto, any Registration Statements on Form
N-14, and any supplements or other instruments in connection therewith, and
generally to do all such things in my name and behalf in connection
therewith as said attorneys-in-fact deems necessary or appropriate, to
comply with the provisions of the Securities Act of 1933 and the Investment
Company Act of 1940, and all related requirements of the Securities and
Exchange Commission. I hereby ratify and confirm all that said
attorneys-in-fact or their substitutes may do or cause to be done by virtue
hereof. This power of attorney is effective for all documents filed on or
after January 1, 1997.
WITNESS my hand on the date set forth below.
/s/Kenneth A. Rathgeber__________ December 19, 1996

Kenneth A. Rathgeber

POWER OF ATTORNEY
We, the undersigned Directors, Trustees, or General Partners, as the case
may be, of the following investment companies:

<TABLE>
<CAPTION>
<S> <C>
Fidelity Aberdeen Street Trust Fidelity Government Securities Fund
Fidelity Advisor Annuity Fund Fidelity Hastings Street Trust
Fidelity Advisor Series I Fidelity Hereford Street Trust
Fidelity Advisor Series II Fidelity Income Fund
Fidelity Advisor Series III Fidelity Institutional Cash Portfolios
Fidelity Advisor Series IV Fidelity Institutional Tax-Exempt Cash Portfolios
Fidelity Advisor Series V Fidelity Institutional Trust
Fidelity Advisor Series VI Fidelity Investment Trust
Fidelity Advisor Series VII Fidelity Magellan Fund
Fidelity Advisor Series VIII Fidelity Massachusetts Municipal Trust
Fidelity Beacon Street Trust Fidelity Money Market Trust
Fidelity Boston Street Trust Fidelity Mt. Vernon Street Trust
Fidelity California Municipal Trust Fidelity Municipal Trust
Fidelity California Municipal Trust II Fidelity Municipal Trust II
Fidelity Capital Trust Fidelity New York Municipal Trust
Fidelity Charles Street Trust Fidelity New York Municipal Trust II
Fidelity Commonwealth Trust Fidelity Phillips Street Trust
Fidelity Congress Street Fund Fidelity Puritan Trust
Fidelity Contrafund Fidelity Revere Street Trust
Fidelity Corporate Trust Fidelity School Street Trust
Fidelity Court Street Trust Fidelity Securities Fund
Fidelity Court Street Trust II Fidelity Select Portfolios
Fidelity Covington Trust Fidelity Sterling Performance Portfolio, L.P.
Fidelity Daily Money Fund Fidelity Summer Street Trust
Fidelity Daily Tax-Exempt Fund Fidelity Trend Fund
Fidelity Destiny Portfolios Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Deutsche Mark Performance Fidelity U.S. Investments-Government Securities
Portfolio, L.P. Fund, L.P.
Fidelity Devonshire Trust Fidelity Union Street Trust
Fidelity Exchange Fund Fidelity Union Street Trust II
Fidelity Financial Trust Fidelity Yen Performance Portfolio, L.P.
Fidelity Fixed-Income Trust Variable Insurance Products Fund
Variable Insurance Products Fund II

</TABLE>

plus any other investment company for which Fidelity Management & Research
Company or an affiliate acts as investment adviser and for which the
undersigned individual serves as Directors, Trustees, or General Partners
(collectively, the "Funds"), hereby constitute and appoint Arthur J. Brown,
Arthur C. Delibert, Stephanie A. Djinis, Robert C. Hacker, Thomas M.
Leahey, Richard M. Phillips, and Dana L. Platt, each of them singly, our
true and lawful attorneys-in-fact, with full power of substitution, and
with full power to each of them, to sign for us and in our names in the
appropriate capacities, all Registration Statements of the Funds on Form
N-1A, Form N-8A or any successor thereto, any and all subsequent
Amendments, Pre-Effective Amendments, or Post-Effective Amendments to said
Registration Statements on Form N-1A or any successor thereto, any
Registration Statements on Form N-14, and any supplements or other
instruments in connection therewith, and generally to do all such things in
our names and behalf in connection therewith as said attorneys-in-fact
deems necessary or appropriate, to comply with the provisions of the
Securities Act of 1933 and the Investment Company Act of 1940, and all
related requirements of the Securities and Exchange Commission. I hereby
ratify and confirm all that said attorneys-in-fact or their substitutes may
do or cause to be done by virtue hereof. This power of attorney is
effective for all documents filed on or after January 1, 1997.
WITNESS our hands on this nineteenth day of December, 1996.

/s/Edward C. Johnson 3d___________ /s/Peter S. Lynch________________

Edward C. Johnson 3d Peter S. Lynch

/s/J. Gary Burkhead_______________ /s/William O. McCoy______________

J. Gary Burkhead William O. McCoy

/s/Ralph F. Cox __________________ /s/Gerald C. McDonough___________

Ralph F. Cox Gerald C. McDonough

/s/Phyllis Burke Davis_____________ /s/Marvin L. Mann________________

Phyllis Burke Davis Marvin L. Mann

/s/E. Bradley Jones________________ /s/Thomas R. Williams ____________

E. Bradley Jones Thomas R. Williams

/s/Donald J. Kirk __________________

Donald J. Kirk

POWER OF ATTORNEY
I, the undersigned Director, Trustee, or General Partner, as the case may
be, of the following investment companies:

<TABLE>
<CAPTION>
<S> <C>
Fidelity Aberdeen Street Trust Fidelity Government Securities Fund
Fidelity Advisor Annuity Fund Fidelity Hastings Street Trust
Fidelity Advisor Series I Fidelity Hereford Street Trust
Fidelity Advisor Series II Fidelity Income Fund
Fidelity Advisor Series III Fidelity Institutional Cash Portfolios
Fidelity Advisor Series IV Fidelity Institutional Tax-Exempt Cash Portfolios
Fidelity Advisor Series V Fidelity Institutional Trust
Fidelity Advisor Series VI Fidelity Investment Trust
Fidelity Advisor Series VII Fidelity Magellan Fund
Fidelity Advisor Series VIII Fidelity Massachusetts Municipal Trust
Fidelity Beacon Street Trust Fidelity Money Market Trust
Fidelity Boston Street Trust Fidelity Mt. Vernon Street Trust
Fidelity California Municipal Trust Fidelity Municipal Trust
Fidelity California Municipal Trust II Fidelity Municipal Trust II
Fidelity Capital Trust Fidelity New York Municipal Trust
Fidelity Charles Street Trust Fidelity New York Municipal Trust II
Fidelity Commonwealth Trust Fidelity Phillips Street Trust
Fidelity Congress Street Fund Fidelity Puritan Trust
Fidelity Contrafund Fidelity Revere Street Trust
Fidelity Corporate Trust Fidelity School Street Trust
Fidelity Court Street Trust Fidelity Securities Fund
Fidelity Court Street Trust II Fidelity Select Portfolios
Fidelity Covington Trust Fidelity Sterling Performance Portfolio, L.P.
Fidelity Daily Money Fund Fidelity Summer Street Trust
Fidelity Daily Tax-Exempt Fund Fidelity Trend Fund
Fidelity Destiny Portfolios Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Deutsche Mark Performance Fidelity U.S. Investments-Government Securities
Portfolio, L.P. Fund, L.P.
Fidelity Devonshire Trust Fidelity Union Street Trust
Fidelity Exchange Fund Fidelity Union Street Trust II
Fidelity Financial Trust Fidelity Yen Performance Portfolio, L.P.
Fidelity Fixed-Income Trust Variable Insurance Products Fund
Variable Insurance Products Fund II

</TABLE>

plus any other investment company for which Fidelity Management & Research
Company or an affiliate acts as investment adviser and for which the
undersigned individual serves as Director, Trustee, or General Partner
(collectively, the "Funds"), hereby constitute and appoint Arthur J. Brown,
Arthur C. Delibert, Stephanie A. Djinis, Robert C. Hacker, Thomas M.
Leahey, Richard M. Phillips, and Dana L. Platt, each of them singly, my
true and lawful attorneys-in-fact, with full power of substitution, and
with full power to each of them, to sign for me and in my name in the
appropriate capacities, all Registration Statements of the Funds on Form
N-1A, Form N-8A or any successor thereto, any and all subsequent
Amendments, Pre-Effective Amendments, or Post-Effective Amendments to said
Registration Statements on Form N-1A or any successor thereto, any
Registration Statements on Form N-14, and any supplements or other
instruments in connection therewith, and generally to do all such things in
my name and behalf in connection therewith as said attorneys-in-fact deem
necessary or appropriate, to comply with the provisions of the Securities
Act of 1933 and the Investment Company Act of 1940, and all related
requirements of the Securities and Exchange Commission. I hereby ratify
and confirm all that said attorneys-in-fact or their substitutes may do or
cause to be done by virtue hereof. This power of attorney is effective for
all documents filed on or after March 1, 1997.
WITNESS my hand on the date set forth below.
/s/Robert M. Gates March 6, 1997

Robert M. Gates

CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference, into the Prospectuses
and Statement of Additional Information in Post-Effective Amendment No. 38
to the Registration Statement on Form N-1A of Fidelity Advisor Series V, on
behalf of Fidelity Advisor Natural Resources Fund, of our report dated
December 13, 1996 on the financial statements and financial highlights
included in the October 31, 1996 Annual Report to Shareholders of Fidelity
Advisor Natural Resources Fund.
We further consent to the references to our Firm under the headings
"Financial Highlights" in the Prospectuses and "Auditor" in the Statement
of Additional Information.
/s/COOPERS & LYBRAND L.L.P.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
March 20, 1997

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<NAME> Advisor Natural Resources Fund-CLASS B
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<NAME> Advisor Natural Resources Fund-CLASS T
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<AVG-DEBT-PER-SHARE> 0

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<NAME> Advisor Natural Resources Fund-INSTITUTIONAL CLASS
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<GROSS-EXPENSE> 7,513

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<PER-SHARE-NAV-BEGIN> 19.270

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