Fidelity Real Estate Income Fund

Fidelity Real Estate Income Fund Key Takeaways For the semiannual reporting period ending January 31, 2018, the fund's Retail Class shares returned -1.40% in a volatile market environment for real estate securities. This result lagged the -0.77% return of the Fidelity Real Estate Income Composite Index SM the past six months, as well as the 15.43% increase in the broad equity market, as measured by the S&P 500 index. The fund's biggest performance challenge came from its portfolio of real estate common stocks, which, due to a variety of securityspecific factors, widely trailed an index of comparable securities. The fund saw better results from its holdings in real estate preferred stocks and real estate bonds. Manager Mark Snyderman's focus on limiting interest rate risk proved beneficial in both categories because rates rose this period. The portfolio's positioning shifted only modestly the past six months consistent with Mark's strategy of making gradual strategic moves with an increase in commercial mortgagebacked securities (CMBS) and a decrease in real estate common stocks the biggest changes. Throughout the period and continuing as of January 31, Mark saw ample opportunity to take advantage of market volatility by adding to securities he liked at newly more-attractive prices. MARKET RECAP The fundamental backdrop for commercial real estate remained solid for the six months ending January 31, 2018. Rental income continued to grow, even if the pace of that growth slowed. However, investors in real estate securities, especially real estate common stocks, appeared to be focusing more on the deceleration than the growth as well as on generally rising interest rates leading to increased market volatility. Meanwhile, the strong gains turned in by a handful of growth-oriented stocks in the broader equity market appear to have made real estate investment trust (REIT) common stocks a less attractive proposition for return-seeking investors. For the six months, REIT common stocks, as measured by the FTSE NAREIT All REITs Index, returned -0.90%. Meanwhile, real estate preferred stocks returned -2.08%, according to the MSCI REIT Preferred Index. Lastly, the ICE BofAML SM US Real Estate Index a market-capitalization-weighted measure of investment-grade corporate debt in the domestic real estate sector gained 0.57%. Tightening credit spreads helped boost the performance of real estate preferred stocks and bonds, even as both categories were hindered by generally rising interest rates this period. In comparison, the S&P 500 index, a measure of the broad U.S. stock market, gained a robust 15.43%. Not FDIC Insured May Lose Value No Bank Guarantee

Q&A An interview with Manager Mark Snyderman Fund Facts Trading Symbol: Mark Snyderman Manager FRIFX Start Date: February 04, 2003 Size (in millions): $5,271.74 Investment Approach Fidelity Real Estate Income Fund seeks above-average income and capital growth by investing in a mix of commercial real estate security types, including common stock, preferred stock, corporate bonds and commercial mortgage-backed securities (CMBS). Leveraging our significant experience in commercial real estate investing, we own a diversified mix of security types in an effort to generate higher yield and less volatility than can be achieved by holding real estate investment trust (REIT) common stocks alone. Bonds and preferred stocks help to generate attractive yield and dampen volatility, as they are higher in a company's capital structure and tend to move out of sync with common stocks. We seek to limit the fund's overall sensitivity to interest rates by investing in high-dividend-paying common stocks, taking intelligent credit risk backed by bottom-up research, and avoiding long-dated bonds that trade at tight credit spreads. Q: Mark, how did the fund perform for the six months ending January 31, 2018 The fund's Retail Class shares returned -1.40%. I'm disappointed with this result, which fell short of the mid- to upper-single-digit annualized return I strive for. Along with the fund's negative return, however, many portfolio holdings that I continued to believe in throughout the past six months became even cheaper, giving me an opportunity to add to our exposure and potentially enhance the fund's future return. To provide some context, the Fidelity Real Estate Income Composite Index SM returned -0.77% this period. This Composite index is a 40/40/20 blend of the MSCI REIT Preferred Index (real estate preferred stocks), The ICE BofAML SM US Real Estate Index (real estate bonds) and the FTSE NAREIT All REITs Index (real estate common stocks). Real estate securities of all types significantly lagged the broad U.S. equity market, as measured by the 15.43% gain of the S&P 500 index. Looking slightly longer term, the fund gained 4.26% for the trailing 12 months a bit closer to my performance target but still short of my expectation. The Composite index rose 4.64%, while the S&P 500 advanced 26.41%. Q: How did each of the asset classes you regularly invest in perform the past six months To remind shareholders, I seek to achieve a reasonable total return by investing in a combination of real estate stocks and bonds, aiming for a higher yield and less volatility than what typically is available by investing in REIT common stocks alone. The main challenge for the fund this period came from the fund's real estate investment trust (REIT) common stocks, which, at about 30% of the portfolio, on average, was our largest allocation. The fund's REIT common stocks returned roughly -7%, significantly trailing the -1% return of the FTSE NAREIT index. Here, I tend to favor an eclectic mix of higher-dividend payers and blue-chip growth companies. For various reasons, these types of names fell out of favor the past six months, even though I believed their fundamentals and value propositions remained intact. 2 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

Other areas of the portfolio fared better. Our REIT preferred stocks, for example, gained about 1%, ahead of the -2% return of the MSCI preferred stock index. Meanwhile, on the portfolio's bond side, our commercial mortgage-backed securities (CMBS) and high-yield real estate bonds each rose about 2%. Our investment-grade bond holdings returned roughly 1%, essentially matching the ICE BofAML real estate bond index. Q: What factors influenced the fund's REIT preferred stock and bond investments I'm very careful to avoid taking on more interest rate risk than necessary. This period, the fund's lower sensitivity to rates was generally positive for the preferred stocks and bonds we held. I regularly invest in both preferreds and real estate bonds for their yield and ability to dampen volatility. Both security types rank higher in a company's capital structure, meaning they will be paid back ahead of common stock in the event of stress or bankruptcy. Bonds and preferred stocks also do better when companies underperform growth expectations, which tend to be embedded in common stock valuations. In both cases, I try to keep the fund's sensitivity to interest rates low while simultaneously trying to earn additional return through intelligent credit risk backed by our team's proprietary real estate research. Q: Where were you focusing your investments Making gradual portfolio shifts is an essential part of my management approach. This reflects my belief that I am better at identifying longer-term market trends than shortterm ones. Another benefit is that gradual portfolio shifts mean lower transaction costs. Some of my portfolio allocations changed a bit this period. For example, I saw some opportunity in CMBS, which represented about 19% of the portfolio on January 31, up modestly from six months earlier. Meanwhile, exposure to real estate common stocks declined a bit, finishing at 29%. This decline stemmed more from market volatility than from an intentional effort to reduce exposure to REIT common stocks. In fact, throughout the period I continued to find good opportunity in this part of the market. Meanwhile, exposure to real estate high-yield bonds, investment-grade bonds and real estate preferred stocks remained essentially unchanged, while our cash allocation rose a bit, finishing the period at 7% of assets. I normally like to hold a cash allocation of between 5% and 10%, which allows me to pursue attractive buying opportunities. The fund's cash proved somewhat beneficial for the fund the past six months, given that real estate securities fell modestly in value. In every period, I select investments based on fundamental research. For bonds and preferred stocks, I emphasize credit analysis, which I believe is a more reliable way for me to add value than in trying to predict movement in interest rates. For common stocks, my evaluation involves a broader review of future cash flow after capital expenditures and company strategy. I rely on my years of experience in commercial real estate investing, as well as the capabilities of our research team. One benefit of being at Fidelity is I can devote significant resources to finding what I think are good securities to own under varying market conditions, whether they are REIT common stocks, preferred stocks, investment-grade or high-yield bonds, or CMBS, a lesser-followed corner of the fund's investment universe. In other words, I can use Fidelity's resources to help me choose investment types I believe provide the best potential for risk-adjusted return. Q: Which portfolio holdings most influenced the fund's result Diversified REIT Colony NorthStar was by far our biggest detractor. We owned several security types of this issuer, but its common stock hurt most. In hindsight, I probably established the position too soon. My longer-term view is that the convertible securities and preferred stock should be worth par, and the common stock, though volatile, should provide a nice return going forward. Another notable detractor was Acadia Realty Trust, an owner of "high street" and strip-center retail properties. Continued concern about brick-and-mortar retail weighed on Acadia's common stock. Although the retail industry is definitely evolving, I think Acadia is a high-quality operator that is likely to emerge in fine shape. The fund's top contributor was a common stock position in Wyndham Worldwide, an owner of hotel and timeshare properties. Coming into this period, I thought the stock was not getting enough credit, given the company's quality and cash flow. As the period progressed, the market appeared to agree, causing Wyndham shares to rise. Another contributor this period was a common stock position in Extra Space Storage, an owner and operator of self-storage facilities. Q: Any closing thoughts for shareholders, Mark I don't mind the recent market volatility. Although it can be stressful, it provides me with opportunities to add to fund positions I like at much better prices. I'll have more to say about this later on. Looking ahead, this makes me optimistic about the fund's potential to perform well, especially over the long term. 3 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

LARGEST HOLDINGS BY ISSUER Mark Snyderman on taking advantage of market volatility: "Although the fund's performance the past six months did not meet my expectation, I've actually become more optimistic about prospects for future returns. "As a portfolio manager, I like to come into work even when there is high market volatility. Initially, this may seem counterintuitive. But when you see lots of opportunities to invest in companies you really like at 'bargain' prices, it's more satisfying to invest than when those same securities seem expensive to you. Speaking as a shareholder in the fund, I feel confident that volatility today may be laying the groundwork for good future performance. "I do see reasons for continued near-term caution, in light of rising interest rates. Higher rates can be both a positive and a negative for the fund. Although rising rates tend to push down the prices of certain security types, they can also raise the income those securities provide. "Over the longer term, however, my view is positive. I'd encourage investors to think about market volatility the way I do: If you have a longterm perspective, volatility doesn't need to be your enemy. It can be your friend as long as you approach it intelligently. If nothing has changed in the underlying fundamentals of the companies you invest in, then it allows you the rare opportunity to buy more of those securities at unusually low prices. This is what I have been doing in recent months, and what I plan to do more of if volatility persists." Issuer EQUITY LIFESTYLE PPTYS INC COLONY NORTHSTAR INC SENIOR HOUSING PPTYS TR MFA FINANCIAL INC APARTMENT INVT & MGMT CO Five Largest Issuers as a % of Net Assets 12.40% Total Number of Holdings 576 The five largest issuers 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. 10 LARGEST HOLDINGS Holding Equity Lifestyle Properties, Inc. Apartment Investment & Management Co. Class A Acadia Realty Trust (SBI) Ventas, Inc. MFA Financial, Inc. Colony NorthStar, Inc. Mid-America Apartment Communities, Inc. Senior Housing Properties Trust (SBI) American Tower Corp. VEREIT, Inc. Series F, 6.70% 10 Largest Holdings as a % of Net Assets Instrument Type Preferred Stock 15.81% Total Number of Holdings 576 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. 4 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

EQUITY MARKET-SEGMENT DIVERSIFICATION Market Segment Weight* Weight Six Months Ago* Home Financing 24.76% 21.75% Health Care 10.74% 9.89% Diversified 10.00% 11.77% Apartments 9.03% 9.46% Shopping Centers 7.04% 7.87% Manufactured Homes 6.69% 8.67% Free Standing 6.12% 5.25% Real-Estate Related 5.88% 5.44% Lodging/Resorts 4.23% 3.70% Commercial Financing 3.58% 3.86% Self Storage 3.30% 3.45% Industrial 2.69% 2.49% Specialty 2.20% 1.82% Regional Malls 1.26% 1.79% Mixed, Industrial/Office 1.21% 1.45% Office 1.03% 1.13% Other 0.00% 0.00% *% of equity assets. ASSET ALLOCATION Asset Class Weight Weight Six Months Ago Domestic Equities 47.63% 49.95% International Equities 0.80% 0.67% Developed Markets 0.73% 0.60% Emerging Markets 0.00% 0.00% Tax-Advantaged Domiciles 0.07% 0.07% Bonds 44.74% 43.54% Cash & Net Other Assets 6.83% 5.84% 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. FIXED-INCOME MARKET-SEGMENT DIVERSIFICATION Market Segment Weight* Weight Six Months Ago* U.S. Treasury 0.00% 0.00% U.S. Agency 0.00% 0.00% Mortgage Pass-Through 0.00% 0.00% Asset-Backed Securities 5.22% 3.51% CMBS 24.69% 26.34% CMOs 0.00% 0.01% Investment-Grade Credit 18.91% 20.19% Municipal Bonds 0.00% 0.00% High-Yield Credit 48.50% 47.86% Non-U.S. Developed 2.68% 2.09% Emerging Markets 0.00% 0.00% Other Debt Assets 0.00% 0.00% *% of debt assets. CREDIT-QUALITY DIVERSIFICATION Credit Quality Weight Weight Six Months Ago U.S. Government 0.14% 0.16% AAA 0.13% 0.14% AA 0.38% 0.50% A 1.37% 1.37% BBB 11.73% 12.54% BB 9.07% 8.83% B 10.63% 9.54% CCC & Below 1.27% 1.82% Short-Term Rated 0.00% 0.00% Not Rated/Not Available 58.44% 59.26% Cash & Net Other Assets 6.84% 5.84% 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. Credit ratings for a rated issuer or security are categorized using Moody's Investors Service (Moody's). If Moody's does not publish a rating for a security or issuer, then the Standard & Poor's Ratings Services (S&P) rating is used. When S&P and Moody's provide different ratings for the same issuer or security, the Moody's rating is used. Securities that are not rated by these NRSROs (e.g. equity securities) are categorized as Not Rated. All U.S. government securities are included in the U.S. Government category. The table information is based on the combined investments of the fund and its pro-rata share of any investments in other Fidelity funds. 5 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

FISCAL PERFORMANCE SUMMARY: Periods ending January 31, 2018 6 Month Cumulative YTD 1 3 Annualized 5 10 / LOF 1 Fidelity Real Estate Income Fund Gross Expense Ratio: 0.78% 2-1.40% -2.17% 4.26% 4.81% 6.13% 7.56% S&P 500 Index 15.43% 5.73% 26.41% 14.66% 15.91% 9.78% FID Real Estate Income Composite Index -0.77% -2.41% 4.64% 3.76% 5.53% 7.91% Morningstar Fund Real Estate -1.71% -3.38% 2.79% 2.07% 7.14% 6.39% % Rank in Morningstar Category (1% = Best) -- -- 25% 9% 84% 21% # of Funds in Morningstar Category -- -- 257 228 199 144 1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 02/04/2003. 2 This expense ratio is from the prospectus in effect as of the date shown above and generally is based on amounts incurred during that fiscal year. 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 fidelity.com/performance, institutional.fidelity.com, or 401k.com. 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. Please see the last page(s) of this Q&A document for most-recent calendarquarter performance. 6 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

Definitions and Important Information Unless otherwise disclosed to you, in providing this information, Fidelity is not undertaking to provide impartial investment advice, act as an impartial adviser, or to give advice in a fiduciary capacity. FUND RISKS 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. Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry. IMPORTANT FUND INFORMATION Relative positioning data presented in this commentary is based on the fund's primary benchmark (index) unless a secondary benchmark is provided to assess performance. RANKING INFORMATION 2018 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for mutual fund performance, you should check the fund's current prospectus for the most up-to-date information concerning applicable loads, fees and expenses. % Rank in Morningstar Category is the fund's total-return percentile rank relative to all funds that have the same Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1%. % Rank in Morningstar Category is based on total returns which include reinvested dividends and capital gains, if any, and exclude sales charges. Multiple share classes of a fund have a common portfolio but impose different expense structures. INDICES It is not possible to invest directly in an index. All indices represented are unmanaged. All indices include reinvestment of dividends and interest income unless otherwise noted. Fidelity Real Estate Income Composite Index is a customized blend of unmanaged indexes, weighted as follows: ICE BofAML US Real Estate Index - 40%; MSCI REIT Preferred Index - 40%; and FTSE NAREIT All REITs Index - 20%. S&P 500 is a market-capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. The ICE BofAML US Real Estate Index is a market-capitalization weighted index of US dollar denominated investment grade corporate debt publicly issued in the US domestic market by Real Estate issuers. It is a subset of The BofA Merrill Lynch US Corporate Index. Qualifying securities must have an investment grade rating (based on an average of Moody's, S&P and Fitch) and an investment grade rated country of risk. In addition, qualifying securities must have at least one year remaining to final maturity, a fixed coupon schedule and a minimum amount outstanding of $250 million. MSCI REIT Preferred Index is a preferred stock market capitalizationweighted index of certain exchanged-traded perpetual preferred securities issued by US Equity and US Hybrid REITS. FTSE NAREIT All REITs Index is a market-capitalization weighted index that is designed to measure the performance of all tax-qualified Real Estate Investment Trusts (REITs) that are listed on the New York Stock Exchange, the NYSE MKT LLC, or the NASDAQ National Market List. MARKET-SEGMENT WEIGHTS Market-segment weights illustrate examples of sectors or industries in which the fund may invest, and may not be representative of the fund's current or future investments. Should not be construed or used as a recommendation for any sector or industry. 7

Manager Facts Mark Snyderman is a portfolio manager and High Income Real Estate group leader at Fidelity Management & Research Company (FMR Co.), the investment advisor for Fidelity's family of mutual funds. Fidelity Investments is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and other financial products and services to more than 20 million individuals, institutions and financial intermediaries. In this role, he manages Fidelity Real Estate Income Fund, Fidelity Series Real Estate Income Fund, a portion of Fidelity Strategic Real Return Fund and co-manages the Fidelity Real Estate Opportunistic Income Fund. He has also managed numerous institutional accounts focused on real estate stock and bond investing. Prior to joining Fidelity in 1994, Mr. Snyderman was a portfolio manager/director at Aldrich, Eastman & Waltch (AEW) from 1988 to 1994 and founder of a commercial mortgage conduit company sponsored by First Boston and Bain & Co., from 1986 to 1988. Previously, he was a consultant at Bain & Co. from 1983 to 1986 and from 1979 to 1981. He has been in the financial industry since 1988. Mr. Snyderman earned his bachelor of arts degree in chemistry from Dartmouth College and his master of business administration degree from Stanford University. He is also a CFA charterholder. In addition, he has published numerous articles on commercial mortgage risk and mortgage investing, including "Commercial Mortgage: Default Occurrence and Estimated Yield Impact" and "A Commercial Mortgage Performance Index," both of which are in the Journal of Management 8 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

PERFORMANCE SUMMARY: Quarter ending June 30, 2018 1 3 Annualized 5 10 / LOF 1 Fidelity Real Estate Income Fund Gross Expense Ratio: 0.78% 2 2.63% 6.74% 6.50% 8.47% 1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 02/04/2003. 2 This expense ratio is from the prospectus in effect as of the date shown above and generally is based on amounts incurred during that fiscal year. 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 fidelity.com/performance, institutional.fidelity.com, or 401k.com. 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. Before investing in any mutual fund, please carefully consider the investment objectives, risks, charges, and expenses. For this and other information, call or write Fidelity for a free prospectus or, if available, a summary prospectus. Read it carefully before you invest. Past performance is no guarantee of future results. Views expressed are through the end of the period stated and do not necessarily represent the views of Fidelity. Views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund. The securities mentioned are not necessarily holdings invested in by the portfolio manager(s) or FMR LLC. References to specific company securities should not be construed as recommendations or investment advice. Information included on this page is as of the most recent calendar quarter. S&P 500 is a registered service mark of Standard & Poor's Financial Services LLC. Other third-party marks appearing herein are the property of their respective owners. All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. Fidelity Brokerage Services LLC, Member NYSE, SIPC., 900 Salem Street, Smithfield, RI 02917. Fidelity Investments Institutional Services Company, Inc., 500 Salem Street, Smithfield, RI 02917. 2018 FMR LLC. All rights reserved. Not NCUA or NCUSIF insured. May lose value. No credit union guarantee. 715694.7.0 Diversification does not ensure a profit or guarantee against a loss.