SUPPLEMENT TO
FIDELITY'S TAX-FREE
BOND FUNDS
PROSPECTUS
DATED FEBRUARY 17, 1994
SHAREHOLDER MEETING On
December 14, 1994, a meeting
of the shareholders of Fidelity
Limited Term Municipals will be
held to approve a revision to
the fund's management
contract, changes to the fund's
objective, maturity policy, and
diversification limit, and other
matters related to the fund's
management.
If shareholders approve the
proposed management
contract for Limited Term
Municipals, the individual fund
fee rate, a component of the
management fee, will be
reduced from .15% to .10% of
the fund's average net assets,
resulting in a net decrease of
.05%. The decrease was
voluntarily adopted by FMR on
July 1, 1993.
If shareholders approve the
proposal to amend Limited
Term Municipals' investment
objective, the fund's current
objective as stated in the
sections entitled "Investment
Principles" and "Fundamental
Investment Policies and
Restrictions" on pages 26 and
31, respectively, will be
replaced with the following:
"The fund seeks the highest
level of income exempt from
federal income tax that can be
obtained, consistent with the
preservation of capital, from a
diversified portfolio of
investment-grade obligations."
In addition, Limited Term
Municipals' fundamental
maturity policy will be replaced
with the following
non-fundamental maturity
policy:
"The fund will maintain a
dollar-weighted average
maturity of 12 years or less."
If shareholders approve the
proposal to amend Limited
Term Municipals' fundamental
diversification limit, the fund's
current diversification limit as
stated in the paragraph
regarding diversification
restrictions on page 30 and in
the section entitled
"Fundamental Investment
Policies and Restrictions" on
page 31 will be replaced with
the following:
"The fund may not with respect
to 75% of the fund's total
assets, purchase the securities
of any issuer (other than
securities issued or guaranteed
by the U.S. government or any
of its agencies or
instrumentalities) if, as a result,
(a) more than 5% of the fund's
total assets would be invested
in the securities of that issuer,
or (b) the fund would hold more
than 10% of the outstanding
voting securities of that issuer."
Please contact Fidelity at
1-800-544-6666 if you wish to
receive a proxy statement.
SUPPLEMENT TO
FIDELITY'S TAX-FREE
BOND FUNDS
PROSPECTUS
DATED FEBRUARY 17, 1994
SHAREHOLDER MEETING On
December 14, 1994, a meeting
of the shareholders of Fidelity
Limited Term Municipals will be
held to approve a revision to
the fund's management
contract, changes to the fund's
objective, maturity policy, and
diversification limit, and other
matters related to the fund's
management.
If shareholders approve the
proposed management
contract for Limited Term
Municipals, the individual fund
fee rate, a component of the
management fee, will be
reduced from .15% to .10% of
the fund's average net assets,
resulting in a net decrease of
.05%. The decrease was
voluntarily adopted by FMR on
July 1, 1993.
If shareholders approve the
proposal to amend Limited
Term Municipals' investment
objective, the fund's current
objective as stated in the
sections entitled "Investment
Principles" and "Fundamental
Investment Policies and
Restrictions" on pages 26 and
31, respectively, will be
replaced with the following:
"The fund seeks the highest
level of income exempt from
federal income tax that can be
obtained, consistent with the
preservation of capital, from a
diversified portfolio of
investment-grade obligations."
In addition, Limited Term
Municipals' fundamental
maturity policy will be replaced
with the following
non-fundamental maturity
policy:
"The fund will maintain a
dollar-weighted average
maturity of 12 years or less."
If shareholders approve the
proposal to amend Limited
Term Municipals' fundamental
diversification limit, the fund's
current diversification limit as
stated in the paragraph
regarding diversification
restrictions on page 30 and in
the section entitled
"Fundamental Investment
Policies and Restrictions" on
page 31 will be replaced with
the following:
"The fund may not with respect
to 75% of the fund's total
assets, purchase the securities
of any issuer (other than
securities issued or guaranteed
by the U.S. government or any
of its agencies or
instrumentalities) if, as a result,
(a) more than 5% of the fund's
total assets would be invested
in the securities of that issuer,
or (b) the fund would hold more
than 10% of the outstanding
voting securities of that issuer."
Please contact Fidelity at
1-800-544-6666 if you wish to
receive a proxy statement.
MUB - 94 - 3 (Page 1 of 2) October 17, 1994
MUB - 94 - 3 (Page 1 of 2) October 17, 1994
The following information
replaces the second paragraph
on page 19:
The interest from some
municipal securities is subject
to the federal alternative
minimum tax. Limited Term
Municipals does not currently
intend to purchase these
securities. Aggressive Tax-Free
may invest up to 20% of its
assets in these securities. High
Yield Tax-Free may invest so
that 20% of its income comes
from these securities.
Individuals who are subject to
the tax must report this interest
on their tax returns.
The following information
supplements the second
paragraph under the heading
"INVESTMENT PRINCIPLES" on
page 26:
If you are subject to the federal
alternative minimum tax, you
should note that up to 20% of
High Yield Tax-Free's income
may come from investments in
municipal securities issued to
finance private activities. The
interest from these investments
is a tax-preference item for
purposes of the tax.
The following information
supplements the "Minimum
Investments" table on page 12.
These minimums for Limited
Term Municipals may vary for a
Fidelity Payroll Deduction
Program account in the fund.
Refer to the program's
materials for details.
The following information
replaces the second paragraph
on page 19:
The interest from some
municipal securities is subject
to the federal alternative
minimum tax. Limited Term
Municipals does not currently
intend to purchase these
securities. Aggressive Tax-Free
may invest up to 20% of its
assets in these securities. High
Yield Tax-Free may invest so
that 20% of its income comes
from these securities.
Individuals who are subject to
the tax must report this interest
on their tax returns.
The following information
supplements the second
paragraph under the heading
"INVESTMENT PRINCIPLES" on
page 26:
If you are subject to the federal
alternative minimum tax, you
should note that up to 20% of
High Yield Tax-Free's income
may come from investments in
municipal securities issued to
finance private activities. The
interest from these investments
is a tax-preference item for
purposes of the tax.
The following information
supplements the "Minimum
Investments" table on page 12.
These minimums for Limited
Term Municipals may vary for a
Fidelity Payroll Deduction
Program account in the fund.
Refer to the program's
materials for details.
(Page 2 of 2)
(Page 2 of 2)
