VANGUARD FIXED INCOME SECURITIES FUND INC, 497, 1998-09-30

VANGUARD FIXED INCOME SECURITIES FUND INC
497, 1998-09-30

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                    VANGUARD FIXED INCOME SECURITIES FUNDS--
                             SHORT-TERM FEDERAL FUND

                       Supplement to the Prospectus Dated
                                  May 29, 1998

At a special meeting of shareholders held May 29, 1998,  shareholders approved a
proposal to permit the  Short-Term  Federal  Fund to invest in bond  futures and
options.  As a result,  the Short-Term  Federal Fund will adopt the same futures
and options policy that applies to all other funds that comprise  Vanguard Fixed
Income   Securities   Funds.   For  details  of  the  policy,   please  see  the
"Implementation of Policies" section of the prospectus.

                                                                 PS49-09/30/1998