SUPPLEMENT TO
FIDELITY MUNICIPAL FUNDS' PROSPECTUS
DATED FEBRUARY 20, 1996
ON JUNE 24, 1996, FIDELITY HIGH YIELD TAX-FREE FUND CHANGED ITS NAME TO
FIDELITY MUNICIPAL INCOME FUND.
The following information replaces the similar information found on the
cover of the prospectus:
Each of these funds seeks a high level of current income free from
federal income tax. The funds have different strategies, however, and carry
varying degrees of risk and yield potential.
FIDELITY LIMITED TERM
MUNICIPAL INCOME FUND
FIDELITY MUNICIPAL
INCOME FUND
FIDELITY AGGRESSIVE
MUNICIPAL FUND
The following information replaces the similar information found in the
"Key Facts" section on page 4.
LIMITED TERM MUNICIPAL
STRATEGY: Invests normally in investment grade municipal securities
while maintaining an average maturity of 12 years or less.
MUNICIPAL INCOME
STRATEGY: Invests normally in investment grade municipal securities.
AGGRESSIVE MUNICIPAL
STRATEGY: Invests mainly in medium- and lower-quality municipal
securities.
The following information replaces the similar information found in the
"Investment Principles and Risks" found on pages 13-14.
LIMITED TERM MUNICIPAL seeks high current income that is free
from federal income tax, and preservation of capital, by investing in
investment-grade municipal securities under normal conditions. Although the
fund can invest in securities of any maturity, the fund maintains a
dollar-weighted average maturity of 12 years or less under normal
conditions. FMR seeks to manage the fund so that it generally reacts to
changes in interest rates similarly to municipal bonds with maturities
between 7 and 10 years. As of December 31, 1995, the fund's dollar weighted
average maturity was approximately 7.8 years. FMR normally invests at least
80% of the fund's assets in federally tax-free municipal securities.
MUNICIPAL INCOME seeks high current income that is free from federal income
tax by investing in investment grade municipal securities under normal
conditions. Although the fund can invest in securities of any maturity, FMR
seeks to manage the fund so that it generally reacts to changes in interest
rates similarly to municipal bonds with maturities between 8 and 18 years.
As of November 30, 1995, the fund's dollar weighted average maturity was
14.6 years. FMR normally invests so that at least 80% of the fund's income
is free from federal income tax.
If you are subject to the federal alternative minimum tax, you should note
that the 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 similar information found in the
"Securities and Investment Practices" section found on pages 15 and 16.
RESTRICTIONS: Limited Term Municipal invests only in
investment-grade 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 (sometimes called municipal
"junk bonds"). A security is considered to be investment-grade if it is
rated investment-grade by Moody's Investors Service, Standard & Poor's,
Duff & Phelps Credit 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.
