SUPPLEMENT TO THE FIDELITY MUNICIPAL INCOME FUND
FEBRUARY 28, 1997 PROSPECTUS
Effective the close of business on October 23, 1997, the fund's
name changed to Spartan Municipal Income Fund.
Effective October 24, 1997, the following information replaces similar
information found in "Expenses" on page 5:
EXPENSES
SHAREHOLDER TRANSACTION EXPENSES are charges you may pay when you buy
or sell shares of the fund. In addition, you may be charged an
annual account maintenance fee if your account balance falls below
$2,500. See "Transaction Details," page 25, for an explanation of how
and when these charges apply.
Sales charge on purchases None
and reinvested distributions
Deferred sales charge on redemptions None
Annual account maintenance fee $12.00
(for accounts under $2,500)
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 "Breakdown of Expenses" page
15).
The following figures are based on historical expenses, adjusted to
reflect current fees, of the fund and are calculated as a
percentage of average net assets of the fund.CONVERTIBLE SECURITIES
Management fee (after reimbursement) 0.37%
12b-1 fee None
Other expenses 0.16%
Total fund operating expenses 0.53%
(after reimbursement)
EXAMPLES: Let's say, hypothetically, that the fund's annual return is
5% and that your shareholder transaction expenses and the fund's
annual operating expenses are exactly as just described. For every
$1,000 you invested, here's how much you would pay in total expenses
if you close your account after the number of years indicated:
After 1 year $5
After 3 years $17
After 5 years $30
After 10 years $66
These examples illustrate the effect of expenses, but are not meant to
suggest actual or expected expenses or returns, all of which may vary.
Effective April 1, 1997, FMR voluntarily agreed to reimburse the fund
to the extent that total operating expenses exceed 0.55%. Effective
October 24, 1997, FMR has agreed to reimburse the fund to the extent
that total operating expenses exceed 0.53% of average net assets per
year through December 31, 1999 (excluding interest, taxes, brokerage
commissions and extraordinary expenses.) After December 31, 1999, the
fund's total operating expenses could increase. If these agreements
were not in effect, the management fee and total fund operating
expenses would be 0.39% and 0.55%, respectively.
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.
