Fidelity Advisor Low-Priced Stock Fund I (FLPFX)

Overview

The fund operates with a strategy of primarily investing in common stocks, focusing its investments on low-priced stocks, defined as those priced at or below $35 per share or having an earnings yield at or above the median for the Russell 2000 ® Index. This investment approach often leads the fund to concentrate on small and medium-sized companies, which may offer significant growth potential. However, the fund is not exclusively bound to low-priced stocks; it also allows for investments in stocks not considered low-priced as well as in both domestic and foreign issuers. The fund's investment strategy is flexible, encompassing both "growth" stocks, which are expected to grow at an above-average rate compared to other companies, and "value" stocks, which are believed to be undervalued in comparison to their actual financial worth. This dual approach allows the fund to diversify its portfolio across different sectors and geographies, aiming to maximize returns for its investors while carefully managing risk.

Products and Services

The fund offers a range of investment products and services designed to meet the needs of a diverse investor base, focusing on low-priced stock investments but with the flexibility to explore other opportunities. Here is a deeper look into what the fund provides:

• Investment in Common Stocks - The fund primarily invests in common stocks, seeking to capitalize on the growth potential of companies through ownership shares. This forms the core of the fund's investment strategy.
• Focus on Low-Priced Stocks - A significant portion of the fund's strategy is to invest at least 80% of its assets in stocks priced at or below $35 per share or those with an earnings yield at or above the median for the Russell 2000 ® Index. This approach targets small and medium-sized companies that might offer higher growth potential compared to their larger counterparts.
• Investments Beyond Low-Priced Stocks - While the fund focuses on low-priced stocks, it retains the flexibility to invest in stocks not considered low-priced. This allows for broader diversification and the ability to capitalize on opportunities that may arise outside of the fund's primary investment focus.
• Domestic and Foreign Issuers - The fund is not limited to investments in U.S.-based companies. It can also invest in foreign issuers, providing investors with global exposure and the chance to benefit from potential growth in international markets.
• Growth and Value Stocks - The fund invests in both "growth" and "value" stocks. Growth stocks are those expected to grow at an above-average rate in revenue and earnings, offering the potential for high returns. Value stocks, on the other hand, are seen as undervalued compared to their actual financial performance and market potential, presenting a different type of investment opportunity. This dual strategy aims to balance the portfolio across different market cycles and investment styles.