SUPPLEMENT TO THE FIDELITY SHORT-INTERMEDIATE GOVERNMENT FUND AND FIDELITY
GOVERNMENT SECURITIES FUND PROSPECTUS
DATED NOVEMBER 20, 1995
Effective July 1, 1996 the following information replaces similar
information found in the "Key Facts" section on page 3.
SHORT-INTERMEDIATE GOVERNMENT
STRATEGY: Invests mainly in securities issued or guaranteed by the U.S.
government and its agencies while normally maintaining an average maturity
of two to five years.
WHO MAY WANT TO INVEST
Either fund may be appropriate for investors who seek high current income
from a portfolio of U.S. government securities. A fund's level of
risk and potential reward depend on the quality and maturity of its
investments. Because Government Securities Fund can invest in securities
with any maturity, it has the potential for higher yields, but also carries
a higher degree of risk.
The value of the funds' investments and the income they generate will vary
from day to day, and generally reflect interest rates, market conditions,
and other economic and political news. When you sell your shares, they may
be worth more or less than what you paid for them. By themselves, these
funds do not constitute a balanced investment plan. Government Securities
Fund is currently a non-diversified fund.
Effective July 1, 1996 the following information replaces similar
information found in the "Investment Principles and Risks" section
beginning on page 10.
INVESTMENT PRINCIPLES AND RISKS
SHORT-INTERMEDIATE GOVERNMENT FUND seeks as high a level of current income
as is consistent with preservation of capital by investing mainly in U.S.
government securities. Although the fund can invest in securities of any
maturity , the fund maintains a dollar-weighted average maturity of two
to five years. In determining a security's maturity for purposes of
calculating the fund's average maturity, an estimate of the average
time for its principal to be paid may be used. This can be substantially
shorter than its stated final maturity. As of September 30, 1995, the
fund's dollar weighted average maturity was 2.6 years.
GOVERNMENT SECURITIES FUND seeks as high a level of current income as is
consistent with preservation of principal by investing mainly in U.S.
government securities. The fund invests so that the interest from its
security holdings is free from state and local taxes. 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
government bonds with maturities between five and twelve years. As of
September 30, 1995, the funds dollar weighted average maturity was 8.7
years.
EACH FUND normally invests only in U.S. government securities and
instruments related to U.S. government securities. For example, instruments
related to U.S. government securities include stripped U.S. government
securities, futures contracts, or repurchase agreements related to U.S.
government securities.
The funds differ primarily with respect to the maturity of their
investments and therefore their sensitivity to interest rate changes.
Short-Intermediate Government Fund limits its average maturity to between
two and five years. Government Securities Fund maintains a longer
average maturity.
