Fidelity Balanced Fund

QUARTERLY FUND REVIEW | AS OF JUNE 30, 2023

Fidelity? Balanced Fund

Investment Approach

? Fidelity? Balanced Fund invests across a mix of stocks and bonds ? with a 60%/40% neutral allocation ? in seeking income and capital growth.

? The fund is managed by multiple portfolio managers, with each member dedicated to a particular asset class or market segment, plus a lead manager responsible for determining the appropriate asset allocation, general team oversight, cash management and risk monitoring.

? The equity subportfolio is largely sector-neutral and run by a team of sector-focused managers who look to add value through active stock selection.

? The investment-grade bond strategy seeks outperformance through sector and security selection and yield-curve positioning. The fund also has a dedicated high-yield bond portfolio, considered out-of-benchmark.

? Focused sector and asset class expertise, supported by our deep research infrastructure, is combined with disciplined portfolio construction to provide investment-process consistency in seeking to deliver attractive risk-adjusted returns over time.

PERFORMANCE SUMMARY

Fidelity Balanced Fund Gross Expense Ratio: 0.50%2

Cumulative

3 Month

YTD

1 Year

Annualized

3 Year

5 Year

10 Year/ LOF1

5.94% 13.94% 13.78% 9.81% 9.30% 9.64%

S&P 500 Index Fidelity Balanced Hybrid Composite Index (40% Bloomberg Aggr/60% S&P 500) Morningstar Fund Moderate Allocation

% Rank in Morningstar Category (1% = Best)

# of Funds in Morningstar Category

8.74% 4.86% 3.44%

---

16.89% 19.59% 14.60% 12.31% 12.86%

10.81% 11.24% 7.09% 7.94% 8.45%

7.51% ---

8.56% 7% 739

6.44% 7% 679

5.68% 4% 647

6.45% 3% 484

1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 11/06/1986. 2 This expense ratio is from the most recent prospectus and generally is based on amounts incurred during the

most recent fiscal year, or estimated amounts for the current fiscal year in the case of a newly launched fund. It does not include any fee waivers or reimbursements, which would be reflected in the fund's net expense ratio.

Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance stated. Performance shown is that of the fund's Retail Class shares (if multiclass). You may own another share class of the fund with a different expense structure and, thus, have different returns. To learn more or to obtain the most recent month-end or other share-class performance, visit performance, institutional., or . Total returns are historical and include change in share value and reinvestment of dividends and capital gains, if any. Cumulative total returns are reported as of the period indicated.

For definitions and other important information, please see the Definitions and Important Information section of this Fund Review.

FUND INFORMATION

Manager(s): Team Managed

Trading Symbol: FBALX

Start Date: November 06, 1986

Size (in millions): $40,677.02

Morningstar Category: Fund Moderate Allocation Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk and inflation risk. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. Lower-quality bonds can be more volatile and have greater risk of default than higher-quality bonds. Leverage can increase market exposure and magnify investment risk.

Not FDIC Insured ? May Lose Value ? No Bank Guarantee

QUARTERLY FUND REVIEW: Fidelity? Balanced Fund | AS OF JUNE 30, 2023

Market Review

U.S. equities gained 8.74% in the second quarter, according to the bellwether S&P 500? index, as continued global economic expansion, falling commodity prices and a slowing in the pace of inflation provided a favorable backdrop for risk assets. U.S. large-cap stocks spearheaded the rally, which was driven by the shares of a narrow set of mega-cap companies concentrated in the information technology and communication services sectors, largely due to exuberance related to artificial intelligence.

Aggressive monetary tightening by major central banks, including the U.S. Federal Reserve, continued amid signs of consistent pressure on core inflation, a closely watched measure that excludes food and energy. Since March 2022, the Fed has hiked its benchmark interest rate 10 times, by 5 percentage points ? the fastest-ever pace of monetary tightening ? while also shrinking its massive asset portfolio. The latest bump came in early May, a third consecutive raise of a stepped down 25 basis points.

Against this dynamic backdrop, the S&P 500? rose 1.56% in April, supported by moderating inflation data, a resilient labor market and indications the Fed was nearing the end of its interest rate-hiking regime. Uncertainty about the debt ceiling resulted in some ups and downs in May (+0.43%) but did not meaningfully alter the uptrend. In June, the Fed held interest rates steady ? its first pause this cycle ? and signaled it was prepared to raise rates next month if the economy and inflation don't cool more. The S&P 500? gained 6.61% for the month, raising hopes for a "soft landing" of the economy and bringing the index's year-to-date result to 16.89%.

June saw the long-awaited return of market breadth and lower dispersion. Smaller-cap stocks had a particularly strong month, achieving the best result for the category since January. Within the S&P 500, value stocks (+6.88%) edged growth (+6.38%). All 11 sectors in the index gained strongly in June.

For the full quarter, growth shares outpaced value, while larger-cap stocks topped small-caps. By sector, three growth-oriented groups stood out: Information technology (+17%), consumer discretionary (+15%) and communication services (+13%). In sharp contrast, energy returned -1% amid falling prices for oil. The defensive utilities (-2.5%), consumer staples (+0.5%) and health care (+3%) sectors also notably lagged. Financials rose roughly 5% for the three months, as banks (+5%) recovered from turmoil in March.

U.S. taxable investment-grade bonds returned -0.84% in Q2, as measured by the Bloomberg U.S. Aggregate Bond Index.

Shifting market sentiment was evident in the quarter's month-tomonth results. The index gained 0.61% in April, in a continuation of the bond market upturn that began late last year. In May, the index returned -1.09% amid worries about the U.S. debt ceiling and the prospect of a U.S. government default. The index returned -0.36% in June, when persistently strong economic data suggested that the central bank might need to keep raising rates, and to keep them higher, for longer than previously anticipated.

Against this backdrop, most major segments of the bond market finished in negative territory for the three months. In general, shortterm bonds outperformed longer-term issues, while riskier, creditsensitive assets outpaced higher-quality debt.

Yield-advantaged, investment-grade corporate bonds (-0.29%) notably bettered U.S. Treasuries (-1.38%); within corporates, the debt of financial institutions outperformed that of industrial and utility names, reversing the previous quarter's trend, when financials were hurt after the failure of two U.S. regional banks in March.

Two securitized segments, mortgage-backed securities (-0.64%) and commercial mortgage-backed securities (-0.60%), underperformed corporates. Asset-backed securities (-0.12%) outpaced the broader market, while government-related debt returned -0.47%.

U.S. TREASURY YIELD CURVE

6

5

4

Percent (%)

3

2

1

0

02

5

10 Years

03/31/2023 Source: Bloomberg

06/30/2023

THREE-MONTH EQUITY SECTOR RETURNS

Sector Information Technology Consumer Discretionary Communication Services Industrials Financials Materials Health Care Real Estate Consumer Staples Energy Utilities Source: Standard & Poor's

Total Return 17.20% 14.58% 13.06% 6.49% 5.33% 3.31% 2.95% 1.81% 0.45% -0.89% -2.53%

30

2 | For definitions and other important information, please see Definitions and Important Information section of this Fund Review.

QUARTERLY FUND REVIEW: Fidelity? Balanced Fund | AS OF JUNE 30, 2023

Performance Review

For the three months ending June 30, 2023, the fund's Retail Class shares gained 5.94%, topping the 4.86% advance of the Fidelity Balanced Hybrid Composite IndexSM.

Within the portfolio, equities represented roughly 63% of assets, on average, during the second quarter. This was about even with the prior quarter but higher than the 60% average stock allocation in the Composite index. Meanwhile, investment-grade bonds comprised about 37% of the fund's assets, on average, versus the average Composite index weighting of 40% in Q2. The remainder of the portfolio was comprised of a modest cash position. The fund did not have any high-yield bond exposure this period.

There was a sizable difference in the returns of stocks and investment-grade bonds this quarter, with the former delivering a high-single-digit gain and bonds finishing with a small loss. Thus, the fund's overweight in stocks and underweight in bonds both contributed to performance versus the Composite index. With that said, security selection in the equity subportfolio was the primary driver of the fund's favorable relative result the past three months, with a much smaller boost from picks in the bond central fund.

The fund's equity investments gained 9.98% this past quarter, outpacing the 8.74% advance of the benchmark S&P 500? index. Security selection in the health care sector contributed most, although active management added value in nine of 11 sectors this period.

Among individual holdings, the decision to avoid AbbVie contributed most to performance versus the benchmark. The stock returned about -15% for the quarter, sliding after the drugmaker reported mixed first-quarter financial results in late April. Despite meeting consensus estimates, revenue declined compared with the record level achieved just a year ago. Sales of the firm's blockbuster arthritis treatment, Humira?, fell by more than 25% in the face of patent-protection losses in Europe and generic U.S. alternatives.

Out-of-benchmark exposure to MongoDB (+76%) also proved beneficial in terms of the portfolio's relative result the past three months. In June, the database platform provider reported significantly better-than-expected earnings growth for the company' s fiscal first quarter, driven by higher revenue. In its quarterly report,

MongoDB also raised financial guidance for the remainder of its current fiscal year because management expects the company to benefit from the broad adoption of AI, increasing the demand for modern platforms. In late June, the company announced the development of new products, including generative AI-based applications.

On the other hand, investment choices among financials and energy stocks detracted a bit in Q2. Drilling down further, a non-benchmark stake in Sea Limited hurt materially given its return of roughly -33%. The Singapore-headquartered tech conglomerate, operating in three core businesses in the Southeast Asia region ? digital entertainment (Garena), e-commerce (Shopee) and online payments processing (SeaMoney) ? has been among the most volatile global stocks in recent years. After gaining about 66% in the first quarter of 2023 amid a broad rebound in growth-oriented tech stocks, the company's shares fell back in Q2 following a quarterly earnings report in May that fell significantly short of expectations. A decrease in digital gaming revenue and a sharp increase in reserve holdings for debt repayment were the main reasons for financial underperformance.

Turning to investment-grade bonds, the central fund generated a return of -0.49%, outpacing the -0.84% result of the Bloomberg U.S. Aggregate Bond Index. It was a mixed quarter for high-quality bonds, with rising U.S. Treasury yields being a headwind. During the period, the Fed lifted its key policy rate once in May by 0.25% before standing pat at the Fed Open Market Committee meeting in June.

Versus the Bloomberg index, the investment-grade bond central fund's sector allocation contributed this quarter. Exposure to financial institutions had a positive impact, with half of the contribution coming from the banking industry. An overweight in the bonds of Ally Financial in particular helped. Elsewhere, outsized exposure to Charter Communications' debt provided an added lift, whereas holdings in Mexico's government-related energy firm, PEMEX, notably detracted.

Yield-curve positioning was positive in Q2. Underweighting the front end of the curve proved timely, as rates in those maturities rose during the quarter.

LARGEST EQUITY CONTRIBUTORS VS. BENCHMARK

Holding

Market Segment

Average Relative Relative Contribution Weight (basis points)*

AbbVie, Inc.

Health Care

-0.74%

19

MongoDB, Inc. Class A

Information Technology

0.26%

15

Meta Platforms, Inc. Class Communication

A

Services

0.58%

15

Eli Lilly & Co.

Health Care

0.52%

13

Pfizer, Inc.

Health Care

-0.62%

12

* 1 basis point = 0.01%.

LARGEST EQUITY DETRACTORS VS. BENCHMARK

Holding

Market Segment

Average Relative Relative Contribution Weight (basis points)*

Broadcom, Inc.

Information Technology

-0.84%

-21

Apple, Inc.

Information Technology

-1.24%

-11

Royalty Pharma PLC

Health Care

0.46%

-11

Sea Ltd. ADR

Communication Services

0.17%

-10

Gilead Sciences, Inc.

Health Care

0.56%

-9

* 1 basis point = 0.01%.

3 | For definitions and other important information, please see Definitions and Important Information section of this Fund Review.

QUARTERLY FUND REVIEW: Fidelity? Balanced Fund | AS OF JUNE 30, 2023

Outlook and Positioning

With inflation a more persistent threat than the Fed originally anticipated, we believe it is important to invest in companies with the pricing power to offset increases in labor and materials costs, and thus maintain profit margins. Broadly speaking, we anticipate that high-quality companies should perform best in a slowing economic environment, so that's where our focus is.

Over the first half of 2023, we made minor adjustments to the equity subportfolio's sector weightings but continued to pursue our essentially sector-neutral approach to investing, which allows meaningful overweights and underweights at the industry and individual stock levels.

We remain confident in our equity investment process, in which a team of sector-focused co-managers are charged with adding value through stock selection. Meanwhile, a group leader is responsible for general team oversight, asset allocation, cash management and risk monitoring.

The equity subportfolio's three largest individual overweightings as of June 30 were Boston Scientific, AmerisourceBergen and Fortive. Outside of the S&P 500?, the fund's largest equity positions were AstraZeneca, Surgery Partners and Taiwan Semiconductor Manufacturing.

In contrast, Apple, Microsoft and Berkshire Hathaway accounted for the equity sleeve's three biggest underweights at quarter-end, as we felt there were more attractively valued opportunities elsewhere. Still, Microsoft and Apple were the two largest equity positions on June 30.

Turning to investment-grade bonds, the Fed's June meeting ? where the U.S. central bank voted to maintain the federal funds rate at its current level ? marked the first time since January 2022 that the Fed did not increase rates, although Chair Powell indicated that further rate hikes are still possible in 2023.

The yield curve remains inverted, meaning rates at the short end are higher than those at the long end. This has been the case for quite a few months and has been a fairly reliable precursor of recessions in the past. Of course, no indicator is 100% reliable, and there is considerable uncertainty about the U.S. economy as we enter the latter half of 2023.

Looking at positioning, the central fund carries a large underweight in short-term U.S. Treasuries, with corresponding overweights in intermediate and long maturities.

We are also overweight corporates in the short and intermediate maturities. More specifically, the central fund is overweight financials. We especially favor bonds of large money-center banks, given their generally solid bank balance sheets.

Additionally, the central fund maintains its underweight among mortgage-backed securities (MBS) in favor of what we consider better opportunities elsewhere.

Overall, the portfolio remains bulleted around the intermediate maturities, with a modestly longer duration versus the benchmark.

EQUITY MARKET-SEGMENT DIVERSIFICATION

Market Segment Information Technology Health Care Financials Consumer Discretionary Communication Services Industrials Consumer Staples Energy Utilities Materials Real Estate Multi Sector Other * % of equity assets

Portfolio Weight*

26.50% 13.31% 12.72%

10.20%

8.91% 8.84% 7.11% 4.09% 2.59% 2.44% 2.27% 1.04% -0.02%

Index Weight

Relative Weight

Relative Change From Prior Quarter

28.26% 13.42% 12.42%

-1.76% -0.11% 0.30%

-0.11% -0.30% 0.19%

10.66% -0.46%

0.05%

8.39% 8.49% 6.67% 4.11% 2.58% 2.50% 2.49%

-0.01%

0.52% 0.35% 0.44% -0.02% 0.01% -0.06% -0.22% 1.04% -0.03%

-0.19% 0.12% 0.14% -0.26% 0.12% -0.15% -0.09% 0.49% -0.01%

FIXED-INCOME MARKET-SEGMENT DIVERSIFICATION

Market Segment U.S. Treasury U.S. Agency Mortgage PassThrough Asset-Backed Securities CMBS CMOs Investment-Grade Credit Municipal Bonds High-Yield Credit Non-U.S. Developed Emerging Markets Other Debt Assets * % of debt assets

Portfolio Weight* 36.84%

0.00%

20.09%

6.42% 5.67% 1.51%

20.91% 0.41% 1.66% 4.70% 0.96% 0.83%

Index Weight

40.97%

1.08%

Relative Weight

Relative Change From Prior Quarter

-4.13% -4.33%

-1.08%

0.04%

26.63% -6.54%

3.44%

0.46% 1.74% 0.00%

5.96% 3.93% 1.51%

0.73% 0.62% 0.70%

20.93% 0.61% 0.37% 5.87% 1.31% 0.03%

-0.02% -0.20% 1.29% -1.17% -0.35% 0.80%

-1.03% -0.02% -0.24% -0.25% -0.08% 0.42%

4 | For definitions and other important information, please see Definitions and Important Information section of this Fund Review.

QUARTERLY FUND REVIEW: Fidelity? Balanced Fund | AS OF JUNE 30, 2023

LARGEST EQUITY OVERWEIGHTS

Holding

Market Segment

Microsoft Corp.

Information Technology

S&P500 Emini Fut Sep23 Esu3 Futures and Options

Boston Scientific Corp.

Health Care

Exxon Mobil Corp.

Energy

AmerisourceBergen Corp.

Health Care

Relative Weight

1.10% 1.05% 0.85% 0.73% 0.62%

LARGEST EQUITY UNDERWEIGHTS

Holding

Apple, Inc. Berkshire Hathaway, Inc. Class A Johnson & Johnson Broadcom, Inc. MasterCard, Inc. Class A

Market Segment Information Technology

Financials

Health Care Information Technology Financials

Relative Weight -1.30%

-1.29%

-1.16% -0.97% -0.89%

10 LARGEST HOLDINGS

Holding Microsoft Corp. Apple, Inc. , Inc. NVIDIA Corp. U.S. Treasury Notes 1.25% 4/30/28 U.S. Treasury Notes 4.125% 11/15/32 Alphabet, Inc. Class A Meta Platforms, Inc. Class A Exxon Mobil Corp. UnitedHealth Group, Inc. 10 Largest Holdings as a % of Net Assets Total Number of Holdings

Market Segment Information Technology Information Technology Consumer Discretionary Information Technology Bonds Bonds Communication Services Communication Services Energy Health Care

22.13%

5133

The 10 largest holdings are as of the end of the reporting period, and may not be representative of the fund's current or future investments. Holdings do not include money market investments.

ASSET ALLOCATION

Asset Class

Portfolio Weight

Strategic Allocation

Relative Weight

Relative Change From Prior Quarter

Domestic Equities

60.21% 60.00% 0.21%

1.57%

International Equities

4.03%

--

4.03%

0.09%

Developed Markets

3.19%

--

--

--

Emerging Markets

0.84%

--

--

--

Tax-Advantaged Domiciles

0.00%

--

--

--

Bonds

36.58% 40.00% -3.42% -1.45%

Cash & Net Other Assets -0.82%

--

-0.82% -0.21%

Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of the portfolio composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future settlement, Net Other Assets can be a negative number.

"Tax-Advantaged Domiciles" represent countries whose tax policies may be favorable for company incorporation.

3-YEAR RISK/RETURN STATISTICS

Beta Standard Deviation Sharpe Ratio Tracking Error Information Ratio R-Squared

Portfolio 1.12

14.21% 0.60 2.41% 1.13 0.98

Index 1.00 12.59% 0.46

----

5 | For definitions and other important information, please see Definitions and Important Information section of this Fund Review.

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