SUPPLEMENT TO
FIDELITY MUNICIPAL FUNDS' PROSPECTUS
DATED AUGUST 26, 1996
The following information replaces the similar information found in the
"Investment Principles and Risks" section located on page 14.
If you are subject to the federal alternative minimum tax, you should
note that each fund may invest all of its assets in municipal securities
issued to finance private activities. The interest from these investments
is a tax-preference item for the purpose of the tax.
The following information replaces the similar information found in the
"Securities and Investment Practices" section found on page 15.
RESTRICTIONS : Limited Term Municipal invests only in
investment-grade municipal securities. Municipal Income normally invests in
investment-grade securities, but reserves the right to invest up to 5% of
its assets in below investment-grade securities. A security is considered
to be investment-grade if it is rated investment-grade by Moody's Investors
Service, Standard & Poor's, Duff & Phelps Rating Co., or Fitch Investors
Service, L.P., or is unrated but judged by FMR to be of equivalent quality.
Aggressive Municipal does not currently intend to invest more than 10% of
its total assets in bonds that are in default.
The following information replaces the similar information found in the
"Taxes" section located on page 29.
The interest from some municipal securities is subject to the federal
alternative minimum tax. Each fund may invest up to 100% of its assets in
these securities. Individuals who are subject to the tax must report this
interest on their tax returns.
