SUPPLEMENT TO THE SPARTAN(registered trademark) MARYLAND
MUNICIPAL INCOME
FUND
PROSPECTUS
DATED OCTOBER 25, 1995
The following information replaces the similar information found in the
"Key Facts" section on page 3.
STRATEGY: Invests normally in investment-grade municipal securities
whose interest is free from federal income tax and Maryland state and
county income taxes.
Effective April 1, 1996, the following information replaces the similar
information found in the "Expenses" section on page 4.
The following are projections based on historical expenses, and are
calculated as a percentage of average net assets.
Management fee .55%
12b-1 fee None
Other expenses .00%
Total fund operating expenses .55%
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, first assuming that you leave your account
open, and then assuming that you close your account at the end of the
period:
Account open Account closed
After 1 year $ 6 $ 11
After 3 years $ 18 $ 23
After 5 years $ 31 $ 36
After 10 years $ 69 $ 74
These examples illustrate the effect of expenses, but are not meant to
suggest actual or expected costs or returns, all of which may vary.
The following information replaces the similar information found in the
first paragraph of the "Investment Principles and Risks" section beginning
on page 9.
THE FUND SEEKS HIGH CURRENT INCOME that is free from federal income tax and
the Maryland state and county income taxes 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. FMR normally invests at
least 65% of the fund's total assets in Maryland municipal securities, and
normally invests so that at least 80% of the fund's income is free from
federal income tax.
The following information replaces the similar information found in the
"Securities and Investment Practices" section found 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.
