SUPPLEMENT TO THE
FIDELITY BALANCED FUND AND FIDELITY GLOBAL BALANCED FUND
PROSPECTUS
DATED SEPTEMBER 29, 1995
Effective August 1, 1996, FMR has voluntarily agreed to reduce Balanced
Fund's individual fund fee rate from .20% to .15%.
The following information replaces the similar information found in the
Expenses section beginning on page 5.
The following are projections based on historical expenses, adjusted to
reflect current fees, and are calculated as a percentage of average net
assets. A portion of the brokerage commissions that the funds paid was used
to reduce fund expenses. If this reduction is included, the total operating
expenses presented in the table would be .84% for Balanced, and 1.34% for
Global Balanced.
BALANCED
BALANCED
Management fee .46%
12b-1 fee None
Other expenses .39%
Total fund operating .85%
expenses
EXAMPLES: Let's say, hypothetically, that the fund's annual
return is 5% and that its operating expenses are exactly as just described.
For every $1,000 you invested, here's how much you would pay in total
expenses if you close your account after the number of years indicated:
BALANCED
BALANCED
After 1 year $ 9
After 3 years $ 27
After 5 years $ 47
After 10 years $ 10
5
The following information replaces the similar information found in the
Management Fee section beginning on page 18.
For July 1995, the group fee rate was .3129%. Effective August 1, 1996 the
individual fund fee rate is .15% for Balanced Fund and .45% for Global
Balanced. The total management fee for fiscal 1995 was .52% for Balanced
and .77% for Global Balanced. For Global Balanced, this rate was higher
than those of most other mutual funds.
The following information replaces the similar information found in the
Charter section beginning on page 11.
Michael Gray is vice president of Balanced and manager of its fixed-income
investments, which he has managed since March 1996. He also manages
Investment Grade Bond, Spartan Investment Grade Bond, and VIP II:
Investment Grade Bond. In addition, he manages Asset Manager, Asset
Manager: Growth, Asset Manager: Income, VIP II: Asset Manager, and VIP II:
Asset Manager Growth. Mr. Gray joined Fidelity in 1982.
Stephen Petersen is lead manager and vice president of Balanced, which he
has managed since March 1996. He also manages Equity-Income. Previously, he
managed several trust accounts. Mr. Petersen joined Fidelity in 1980.
Richard Mace is manager and vice president of Global Balanced, which he has
managed since March 1996. He previously had co-managed Global Balanced from
February 1993 until February 1994 and from January 1995 until March 1996.
He also manages Overseas, VIP Overseas, Advisor Overseas, Advisor Annuity
Overseas, and International Value. Previously, he managed International
Growth & Income, Select Transportation, Select Industrial Materials, and
Select Chemicals. Mr. Mace joined Fidelity in 1987.
