SUPPLEMENT TO THE
FIDELITY MASSACHUSETTS MUNICIPAL FUNDS
PROSPECTUS
DATED MARCH 21, 1996
The following information replaces the similar information found in the
"Key Facts" section on page 4:
MA MUNICIPAL INCOME
STRATEGY: Invests normally in investment-grade municipal securities whose
interest is free from federal income tax and Massachusetts personal income
tax.
The following information replaces the similar information found in the
"Investment Principles and Risks" section on page 11:
MASSACHUSETTS MUNICIPAL INCOME seeks high current income that is free from
federal income tax and Massachusetts personal 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 January 31,
1996, the fund's dollar weighted average maturity was approximately 15
years. FMR invests so that at least 80% of the fund's income distributions
are free from federal and Massachusetts personal income taxes.
The following information replaces the similar information found in the
"Securities and Investment Practices" section on page 13:
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: Massachusetts Municipal Income 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. The fund may
not invest in securities judged by FMR to be of equivalent quality to those
rated lower than B by Moody's or S&P.
