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Fidelity Magellan Fund – ‘N-30D’ for 3/31/02

On:  Tuesday, 5/21/02, at 12:01pm ET   ·   For:  3/31/02   ·   Accession #:  61397-2-1   ·   File #:  811-01193

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  As Of                Filer                Filing    For·On·As Docs:Size

 5/21/02  Fidelity Magellan Fund            N-30D       3/31/02    1:296K

Document/Exhibit                   Description                      Pages   Size 

 1: N-30D       Annual or Semi-Annual Report Mailed to              HTML    273K 
                          Shareholders                                           

Fidelity®

Magellan®

Fund

Annual Report

for the year ending
March 31, 2002

and

Prospectus

dated May 22, 2002

(2_fidelity_logos) (Registered_Trademark)

Contents

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

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 Corp. or an affiliated company.

(Recycle graphic)   This report is printed on recycled paper using soy-based inks.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, the Federal Reserve Board or any other agency, and are subject to investment risks, including the possible loss of principal amount invested.

Neither the fund nor Fidelity Distributors Corporation is a bank.

For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.

Annual Report

President's Message

(Photograph of Edward C. Johnson 3d.)

Dear Shareholder:

Through the first quarter of 2002, prevailing market conditions generally paralleled the equity environment of 2001: Small-cap stocks continued to outperform large caps; value stocks performed better than growth stocks; and technology and telecommunications continued to be the weakest performing sectors of the market. That said, a number of equity indexes achieved positive gains for the quarter, while bond indexes were generally flat to down given concerns about possible interest rate hikes.

While it's impossible to predict the future direction of the markets with any degree of certainty, there are certain basic principles that can help investors plan for their future needs.

First, investors are encouraged to take a long-term view of their portfolios. If you can afford to leave your money invested through the inevitable up and down cycles of the financial markets, you will greatly reduce your vulnerability to any single decline. We know from experience, for example, that stock prices have gone up over longer periods of time, have significantly outperformed other types of investments and have stayed ahead of inflation.

Second, you can further manage your investing risk through diversification. A stock mutual fund, for instance, is already diversified, because it invests in many different companies. You can increase your diversification further by investing in a number of different stock funds, or in such other investment categories as bonds. If you have a short investment time horizon, you might want to consider moving some of your investment into a money market fund, which seeks income and a stable share price by investing in high-quality, short-term investments. Of course, it's important to remember that an investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these types of funds.

Finally, no matter what your time horizon or portfolio diversity, it makes good sense to follow a regular investment plan, investing a certain amount of money in a fund at the same time each month or quarter and periodically reviewing your overall portfolio. By doing so, you won't get caught up in the excitement of a rapidly rising market, nor will you buy all your shares at market highs. While this strategy - known as dollar cost averaging - won't assure a profit or protect you from a loss in a declining market, it should help you lower the average cost of your purchases. Of course, you should consider your financial ability to continue your purchases through periods of low price levels before undertaking such a strategy.

If you have questions, please call us at 1-800-544-6666, or visit our web site at www.fidelity.com. We are available 24 hours a day, seven days a week to provide you the information you need to make the investments that are right for you.

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Annual Report

Performance: The Bottom Line

There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change or the growth of a hypothetical $10,000 investment. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value).

Cumulative Total Returns

Cumulative total returns show the fund's performance in percentage terms over a set period - in this case, one year, five years or 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Standard & Poor's 500^SM Index (S&P 500®) - a market capitalization-weighted index of common stocks. To measure how the fund's performance stacked up against its peers, you can compare it to the growth funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past one year average represents a peer group of 1,956 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges. Lipper has created additional comparison categories that group funds according to portfolio characteristics and capitalization, as well as by capitalization only. These averages are listed on page <Click Here> of this report.^(dagger)

Average Annual Total Returns

Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year. (Note: Lipper calculates average annual total returns by annualizing each fund's total return, then taking an arithmetic average. This may produce a different figure than that obtained by averaging the cumulative total returns and annualizing the result.)

Annual Report

$10,000 Over 10 Years

$10,000 Over 10 Years: Let's say hypothetically that $10,000 was invested in Fidelity ® Magellan® Fund on March 31, 1992, and the current 3.00% sales charge was paid. As the chart shows, by March 31, 2002, the value of the investment would have grown to $32,352 - a 223.52% increase on the initial investment. For comparison, look at how the Standard & Poor's 500 Index did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have grown to $34,731 - a 247.31% increase.

The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

Understanding
Performance

How a fund did yesterday is no guarantee of how it will do tomorrow. The stock market, for example, has a history of long-term growth and short-term volatility. In turn, the share price and return of a fund that invests in stocks will vary. That means if you sell your shares during a market downturn, you might lose money. But if you can ride out the market's ups and downs, you may have a gain.

^(dagger) The Lipper large cap core funds average reflects the performance (excluding sales charges) of mutual funds with similar portfolio characteristics and capitalization. The Lipper large cap supergroup average reflects the performance (excluding sales charges) of mutual funds with similar capitalization. As of March 31, 2002, the one year, five year, and 10 year cumulative total returns for the large cap core funds average were -1.87%, 47.97%, and 189.44%, respectively. The one year, five year, and 10 year average annual total returns were -1.87%, 7.99%, and 10.97%, respectively. The one year, five year, and 10 year cumulative returns for the large cap supergroup average were -2.99%, 49.25%, and 188.41%, respectively. The one year, five year, and 10 year average annual total returns were -2.99%, 8.09%, and 10.91%, respectively.

Annual Report

Fund Talk: The Manager's Overview

Market Recap

Corporate profitability - or lack thereof - was the primary driver of stock performance during the 12-month period ending March 31, 2002. Larger companies most reliant on the U.S. economy suffered from continued economic weakness, driven by a slowdown in consumer and corporate spending, overcapacity issues and declining demand. Facing lower revenues, many larger firms implemented major cost-cutting measures in an attempt to increase profitability. In addition to the unfavorable economic backdrop, large-cap stocks were pressured by a growing number of corporate accounting scandals, rising energy prices and increased litigation over corporate asbestos liability. Not surprisingly, the Standard & Poor's 500 ^SM Index, a benchmark of 500 larger companies, eked out a 0.24% return, while the tech-heavy NASDAQ Composite^® Index rose 0.59%. Faring slightly better due to its implicit cyclical nature, the blue-chips' benchmark, the Dow Jones Industrial Average ^SM, rose 7.23%. Meanwhile, smaller companies with more attractive stock valuations, steady cash flows and compelling product cycles performed better. The Russell 2000® Index, a benchmark of smaller companies, returned 13.98%. In an effort to spark the economy, the Federal Reserve Board reduced rates eight times during the period. In early 2002, monthly government data suggested the economy had begun to stabilize and perhaps improve. It appeared the Fed agreed with this sentiment, as it left rates unchanged after its policy meetings in January and March.

(Portfolio Manager photograph)
An interview with Robert Stansky, Portfolio Manager of Fidelity Magellan Fund

Q. Bob, how did the fund perform?

A. The stock market certainly has had its share of peaks and valleys in recent months. However, after all of the volatility, the fund's returns were roughly flat for the year. During the 12 months ending March 31, 2002, the fund had a total return of -0.76%. That slightly trailed the performance of the fund's benchmark - the Standard & Poor's 500 Index - which returned 0.24% during the period. However, the fund finished ahead of the average return of its peers - the growth funds average tracked by Lipper Inc. - which was -2.38%.

Q. Speaking of the volatility, the market bounced back strongly in the fourth quarter of 2001 only to stall again in the first quarter of this year. What happened?

A. The aggressive selling that took place in the market just after the September 11 tragedies proved to be short lived, and stocks subsequently made a remarkable recovery. Interestingly, some stocks reached previous highs despite turning in lower earnings than in previous reporting periods. However, as we moved into the first quarter, the upward momentum was not sustainable for a few reasons. Companies were struggling to exceed greatly diminished earnings estimates and, in many cases, were failing to do so. Also, stock valuations - prices relative to earnings - rose in the fourth quarter to very high levels across the broad market and particularly within certain sectors such as technology. As we ended the period, there remained many question marks regarding the health and speed of the economic recovery. Through it all, however, the one element that remained surprisingly strong was consumer spending. People continued to spend money at a healthy clip on new homes, home improvements and all sorts of durable and non-durable goods.

Annual Report

Fund Talk: The Manager's Overview - continued

Q. Did the fund benefit from consumer spending?

A. It did. For example, I invested more aggressively relative to the S&P 500 in certain retailing stocks that turned in strong results over the past several months. These included Best Buy, Staples, Office Depot, Home Depot and Target. In addition to benefiting from continued strong consumer spending, these companies also dominated their respective segments of the market. Successful stock picks in other parts of the consumer discretionary sector helped performance as well. The fund remained overweighted relative to the index in a number of media stocks such as Viacom, Omnicom Group and Clear Channel Communications. These stocks rose 40%, 46% and 29%, respectively, over the past six months largely due to improving prospects for media advertising.

Q. How did the overall strengthening market conditions of the past six months impact the fund's investments in the financial sector?

A. Maintaining a larger position in financial stocks than the S&P 500 helped the fund's performance relative to the index. Within the sector, I continued to favor those companies with considerable exposure to the capital markets. Thus, when the market rebounded in the fourth quarter, stocks such as Citigroup, Goldman Sachs and Morgan Stanley Dean Witter boosted the fund's performance. These are companies with very well defined market share and solid execution. To the extent that the financial markets regain stability and companies return to the capital markets for financing needs, they stand to do well. That said, overweighted positions in other financial companies such as Fannie Mae and Freddie Mac detracted from the fund's performance. These publicly owned, government-sponsored corporations purchase mortgages from lenders and resell them to investors. Their stock prices usually move in an inverse direction to interest rates since the mortgage business is so dependent on the direction of rates. As the prospects for an economic recovery and potentially higher interest rates strengthened during the past six months, shares of Fannie and Freddie suffered.

Q. Six months ago, you mentioned that maintaining a relatively small position in the utilities sector helped the fund's performance. Was that still the case more recently?

A. Yes. The fund remained underweighted in the utilities and telecommunication services sectors, which boosted its performance relative to the S&P 500. Given the overcapacity issues within the telecomm industry, I found it very difficult to find companies with compelling earnings prospects. I also had profitability concerns about electric and gas utilities, which led me to hold very few of those companies in the fund.

Annual Report

Q. Which investments negatively impacted performance?

A. Tyco International had the largest negative impact on performance - relative to the S&P 500 - of any of the fund's holdings during the period. The company is a broadly diversified industrial conglomerate with a number of businesses, including electrical components, security services and health care. It suffered greatly during the period from concerns about its accounting practices in the wake of the Enron collapse, its high debt load and a restructuring plan to divide the company that took investors by surprise.

Q. The fund remained underweighted in technology in recent months. How did that affect its performance?

A. While the underweighting in technology helped performance slightly during the 12-month period, it hurt over the most recent six months as tech stocks surged during the fourth quarter of 2001. Immediately after September 11 these stocks were punished and - as so often happens in this sector - they bounced back very quickly. While I regret missing that fourth-quarter run-up, I still didn't see enough signs to say there was a fundamental recovery taking place in the sector. Business was still sluggish, and demand remained soft both on the consumer and the business sides of the equation. By the end of June, companies should have a handle on what they'll be spending on technology through the remainder of 2002 and into 2003. At that time, I should have a better idea of when a recovery in business prospects might occur and how to position the fund accordingly.

Q. The fund also had a smaller weighting in health care than the S&P 500 during the period . . .

A. It did. But the benefits of being underweighted in health care were outweighed by the weak performance of some of the fund's investments in pharmaceutical stocks. While some of the fund's health-care services stocks such as United Health Group were strong performers, several of the big drug companies such as Bristol-Myers Squibb, Merck and Schering-Plough suffered from disappointing earnings.

Q. More broadly, what's your outlook for the next six months?

A. It's difficult to get too excited about the market in the near term. I'm looking for modest returns from stocks for a couple of reasons. First, valuations are still historically high. Second, it continues to appear to me as if earnings growth will be somewhat subdued as we continue the economic recovery. More optimistically, however, some of the best periods of stock market performance actually have occurred during periods of declining or sluggish earnings growth. That's because if earnings grow too robustly, the Federal Reserve Board might be more tempted to raise interest rates to stem inflation, which historically has not been good news for the market. However, no matter how stocks behave in the short run, they follow earnings over longer periods, and my longer-term outlook for earnings on a company-by-company basis remains my key guidepost for positioning the fund.

Annual Report

Fund Talk: The Manager's Overview - continued

The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such 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.

Fund Facts

Goal: to increase the value of the fund's shares by investing primarily in common stocks

Fund number: 021

Trading symbol: FMAGX

Start date: May 2, 1963

Size: as of March 31, 2002, more than $77.8 billion

Manager: Robert Stansky, since 1996; manager, Fidelity Growth Company Fund and Fidelity Advisor Equity Growth Fund, 1987-1996; Fidelity Emerging Growth Fund, 1990-1991; Fidelity Select Defense & Aerospace Portfolio, 1984-1985; joined Fidelity in 1983

Bob Stansky on the economy and corporate profits:

"Corporate earnings are still in a difficult spot. There are no two ways about it: Business demand is soft. Companies that have met Wall Street's already reduced earnings expectations have done so because they've been better able to control costs, not because of any meaningful increase in revenues. A mild winter has helped pull some business forward, and many companies have done a solid job of reducing inventories. But until the demand for their products and services returns, the outlook for better earnings is unclear.

"That said, the consumer has hung in there, which has been surprising. But how much money and/or credit do people have left? And, with mortgage rates rising, will the housing market slow down? Higher energy prices have already negatively impacted the economy, but hopefully we've already absorbed the breadth of the near-term impact. Interestingly, in the wake of this uncertainty, stocks have behaved quite well. Many are moving forward in anticipation of a second half of '02 and early '03 recovery. I just hope that the economy can fulfill the market's heady expectations."

Annual Report

Investment Changes

Asset Allocation (% of fund's net assets)
As of March 31, 2002 *				As of September 30, 2001 **
	Stocks 92.9%				Stocks 94.5%
	Short-Term Investments and Net Other Assets 7.1%				Short-Term Investments and Net Other Assets 5.5%
* Foreign investments		2.6%		** Foreign investments		3.6%

Annual Report

Investments March 31, 2002

Showing Percentage of Net Assets

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Operations

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Changes in Net Assets

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights

^A Total returns would have been lower had certain expenses not been reduced during the periods shown.

^B Total returns do not include the effect of sales charges.

^C Calculated based on average shares outstanding during the period.

^D Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of voluntary waivers reflects expenses after reimbursements by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended March 31, 2002

1. Significant Accounting Policies.

Fidelity Magellan Fund (the fund) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust and is authorized to issue an unlimited number of shares. The fund is closed to new accounts. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:

Security Valuation. Net asset value per share is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Securities for which quotations are readily available are valued at the last sale price, or if no sale price, at the closing bid price. Foreign securities are valued based on quotations from the principal market in which such securities are normally traded. If trading or events occurring in other markets after the close of the principal market in which foreign securities are traded, and before the close of business of the fund, are expected to materially affect the value of those securities, then they are valued at their fair value taking this trading or these events into account. Fair value is determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Securities (including restricted securities) for which quotations are not readily available (and in certain cases debt securities which trade on an exchange) are valued primarily using dealer-supplied valuations or at their fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost or original cost plus accrued interest, both of which approximate current value. Investments in open-end investment companies are valued at their net asset value each business day.

Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.

Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

Annual Report

Notes to Financial Statements - continued

1. Significant Accounting Policies - continued

Income Taxes. As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, the fund is not subject to income taxes to the extent that it distributes all of its taxable income for its fiscal year. The Schedule of Investments includes information regarding income taxes, if any, under the caption "Income Tax Information."

Investment Income. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income,which includes amortization of premium and accretion of discount on debt securities, as required, is accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), non-interested Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of the fund or are invested in a cross-section of other Fidelity funds. Deferred amounts remain in the fund until distributed in accordance with the Plan.

Distributions to Shareholders. Distributions are recorded on the ex-dividend date.

Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments for litigation proceeds, futures transactions, foreign currency transactions, partnerships, non-taxable dividends, capital loss carryforwards, and losses deferred due to wash sales transactions and excise tax regulations.

In addition, the fund will treat a portion of the proceeds from shares redeemed as a distribution from net investment income and realized gain for income tax purposes.

Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Temporary book and tax basis differences will reverse in a subsequent period.

As of March 31, 2002, undistributed net income and accumulated loss on a tax basis were as follows:

Annual Report

1. Significant Accounting Policies - continued

Distributions to Shareholders - continued

The tax character of distributions paid during the year was as follows:

Security Transactions. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost.

2. Operating Policies.

Joint Trading Account. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the fund, along with other affiliated entities of Fidelity Management & Research Company (FMR), may transfer uninvested cash balances into one or more joint trading accounts. These balances are invested in one or more repurchase agreements for U.S. Treasury or Federal Agency obligations.

Repurchase Agreements. The underlying U.S. Treasury, Federal Agency, or other obligations found to be satisfactory by FMR are transferred to an account of the fund, or to the Joint Trading Account, at a custodian bank. The securities are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). FMR, the fund's investment adviser, is responsible for determining that the value of the underlying securities remains in accordance with the market value requirements stated above.

Futures Contracts. The fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase the fund's exposure to the underlying instrument, while selling futures tends to decrease the fund's exposure to the underlying instrument or hedge other fund investments. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.

Restricted Securities. The fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included under the captions "Legend" and/or "Other Information" at the end of the fund's Schedule of Investments.

Annual Report

Notes to Financial Statements - continued

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.

The management fee is the sum of an individual fund fee rate of .30% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the fund's average net assets over a 36 month performance period). The upward, or downward adjustment to the management fee is based on the fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annual management fee rate, including the performance adjustment, was .69% of the fund's average net assets.

Sales Load. For the period, Fidelity Distributors Corporation (FDC), an affiliate of FMR, received sales charges of $4,217,000 on sales of shares of the fund all of which was retained.

Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annual rate of .18% of average net assets.

Accounting and Security Lending Fees. FSC maintains the fund's accounting records and administers the security lending program. The security lending fee is based on the number and duration of lending transactions. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.

Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $140,781,000 for the period.

Annual Report

4. Fees and Other Transactions with Affiliates - continued

Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.

5. Committed Line of Credit.

The fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.

6. Security Lending.

The fund lends portfolio securities from time to time in order to earn additional income. The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.

7. Expense Reductions.

Certain security trades were directed to brokers who paid $4,286,000 of the fund's expenses. In addition, through arrangements with the fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody and transfer agent expenses by $2,000 and $2,773,000, respectively.

Annual Report

Notes to Financial Statements - continued

8. Transactions with Affiliated Companies.

An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Transactions during the period with companies which are or were affiliates are as follows:

Annual Report

Report of Independent Accountants

To the Trustees and Shareholders of Fidelity Magellan Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Magellan Fund at March 31, 2002, and the results of its operations, the changes in its net assets and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Magellan Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at March 31, 2002 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts
May 8, 2002

Annual Report

Trustees and Officers

The Trustees and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for William O. McCoy and William S. Stavropoulos, each of the Trustees oversees 261 funds advised by FMR or an affiliate. Mr. McCoy oversees 263 funds advised by FMR or an affiliate, and Mr. Stavropoulos oversees 192 funds advised by FMR or an affiliate.

The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. The executive officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.

Interested Trustees*:

Correspondence intended for each Trustee who is an "interested person" (as defined in the 1940 Act) may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

** Edward C. Johnson 3d, Trustee and President of the funds, is Abigail P. Johnson's father.

Annual Report

Non-Interested Trustees:

Correspondence intended for each non-interested Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Executive Officers:

Correspondence intended for each executive officer may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.

Annual Report

Distributions

The fund designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

The fund will notify shareholders in January 2003 of amounts for use in preparing 2002 income tax returns.

Annual Report

Investment Adviser

Fidelity Management &
Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Far East) Inc.

Fidelity Investments Japan Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Shareholder
Servicing Agent

Fidelity Service Company, Inc.

Boston, MA

Custodian

State Street Bank and Trust Company Quincy, MA

Fidelity's Growth Funds

Aggressive Growth Fund

Blue Chip Growth Fund

Capital Appreciation Fund

Contrafund®

Contrafund ® II

Disciplined Equity Fund

Dividend Growth Fund

Export and Multinational Fund

Fidelity Fifty ®

Focused Stock Fund

Growth Company Fund

Independence Fund

Large Cap Stock Fund

Leveraged Company Stock Fund

Low-Priced Stock Fund

Magellan® Fund

Mid-Cap Stock Fund

New Millennium Fund®

OTC Portfolio

Small Cap Independence Fund

Small Cap Stock Fund

Stock Selector

Structured Large Cap Growth Fund

Structured Large Cap Value Fund

Structured Mid Cap Growth Fund

Structured Mid Cap Value Fund

Tax Managed Stock Fund

Trend Fund

Value Fund

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST^®) (automated graphic)    1-800-544-5555

(automated graphic)    Automated line for quickest service

MAG-ANNPRO-0502 156571
1.771311.100

(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com

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Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘N-30D’ Filing		Date		Other Filings
		3/31/10		24F-2NT,  N-CSR,  NSAR-B
		5/22/02		485BPOS
Filed on:		5/21/02		485BPOS
		5/8/02
For Period End:		3/31/02		24F-2NT,  NSAR-B
		9/30/01		N-30D,  NSAR-A
		3/31/01		13F-NT,  24F-2NT,  24F-2NT/A,  N-30D,  NSAR-B
		3/31/92
				List all Filings

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Filing Submission 0000061397-02-000001   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

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