SUPPLEMENT TO THE FIDELITY LIMITED TERM MUNICIPAL INCOME FUND FEBRUARY 28,
1997 PROSPECTUS
Effective September 1, 1997, the following information replaces similar
information found in the "Key Facts" section on page 3:
STRATEGY: Invests normally in investment-grade municipal securities while
maintaining an average maturity of between three and 10 years.
Effective September 1, 1997, the following information replaces similar
information found in the "Investment Principles and Risks" section
beginning on page 9:
LIMITED TERM MUNICIPAL INCOME seeks high current income that is free from
federal income tax, consistent with preservation of capital, by investing
in investment-grade municipal securities under normal conditions. The fund
normally maintains a dollar-weighted average maturity of between three
and 10 years . FMR seeks to manage the fund so that it generally reacts
to changes in interest rates similarly to municipal bonds with maturities
of between seven and 10 years. As of December 31, 1996, the fund's
dollar-weighted average maturity was approximately 8.3 years.
The following changes became effective April 1, 1997:
The minimum investments have been changed to the following:
TO OPEN AN ACCOUNT $10,000
TO ADD TO AN ACCOUNT $1,000
Through regular investment plans $500
MINIMUM BALANCE $5,000
The minimum check amount has been increased to $1,000.
References to the minimums throughout the prospectus are changed to the
above minimums.
The following information replaces similar information found in "Expenses"
on page 4:
EXPENSES
SHAREHOLDER TRANSACTION EXPENSES are charges you may pay when you buy or
sell shares of a fund. In addition, you may be charged an annual account
maintenance fee if your balance falls below $2,500. See "Transaction
Details," page 23, for an explanation of how and when these charges apply.
Maximum sales charge on purchases None
and reinvested distributions
Deferred sales charge on redemptions None
Exchange Fee None
Annual account maintenance fee $12.0
(for accounts under $2,500) 0
ANNUAL FUND OPERATING EXPENSES are paid out of the fund's assets. The fund
pays a management fee to FMR. It also incurs other expenses for services
such as maintaining shareholder records and furnishing shareholder
statements and financial reports. The fund's expenses are factored into its
share price or dividends and are not charged directly to shareholder
accounts (see page 14).
The following figures are based on historical expenses, adjusted to reflect
current fees, and are calculated as a percentage of average net assets.
CONVERTIBLE SECURITIES
Management fee (after reimbursement) .37%
12b-1 fee None
Other expenses .18%
Total fund operating expenses .55%
(after reimbursement)
EXAMPLES: Let's say, hypothetically, that the fund's annual return is 5%
and that its operating expenses are exactly as just described. For every
$1,000 you invested, here's how much you would pay in total expenses after
the number of years indicated:
After 1 year $ 6
After 3 years $ 18
After 5 years $ 31
After 10 years $ 69
These examples illustrate the effect of expenses, but are not meant to
suggest actual or expected costs or returns, all of which may vary.
Effective April 1, 1997, FMR voluntarily agreed to implement an expense
cap. FMR will reimburse the fund to the extent that total operating
expenses exceeds .55%. If this agreement was not in effect, the management
fee and total operating expenses would be .38% and .56%, respectively.
