SUPPLEMENT TO THE
SPARTAN(registered trademark) NEW JERSEY MUNICIPAL INCOME FUND
PROSPECTUS
DATED JANUARY 19, 1996
The following information replaces the similar information found in "The
Fund in Detail" section on page 8.
Steven Harvey is manager of Spartan New Jersey Municipal Income, which he
has managed since May 1996. He also manages several other Fidelity funds.
Mr. Harvey joined Fidelity in 1986.
The following information replaces the similar information found in the
"Key Facts" section on page 4.
STRATEGY: Invests normally in investment-grade municipal securities
whose interest is free from federal income tax and the New Jersey Gross
Income Tax.
The following information replaces the similar information found in the
first paragraph of the "Investment Principles and Risks" section on page 9.
The fund seeks high current income that is free from federal income tax and
the New Jersey 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 approximately 16 years. FMR normally
invests so that at least 80% of the fund's income is free from both federal
income tax and the New Jersey Gross Income Tax.
The following information replaces the similar information found in the
"Securities and Investment Practices" section on pages 10 and 11.
DEBT SECURITIES. Bonds and other debt instruments are used by
issuers to borrow money from investors. The issuer pays the investor a
fixed or variable rate of interest, and must repay the amount borrowed at
maturity. Some debt securities, such as zero coupon bonds, do not pay
current interest, but are purchased at a discount from their face values.
In general, bond prices rise when interest rates fall, and vice versa. Debt
securities have varying degrees of quality and varying levels of
sensitivity to changes in interest rates. Longer-term bonds are generally
more sensitive to interest rate changes than short-term bonds.
Investment-grade debt securities are medium- and high-quality securities.
Some, however, may possess speculative characteristics, and may be more
sensitive to economic changes and to changes in the financial condition of
issuers.
RESTRICTIONS: The fund 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.
