SUPPLEMENT TO THE
DAILY TAX-EXEMPT MONEY FUND
PROSPECTUS
DATED DECEMBER 20, 1995
The following information replaces the fourth paragraph under the heading
"Other Expenses" in the "Breakdown of Expenses" section, on page P-9:
The fund has adopted a DISTRIBUTION AND SERVICE PLAN. The Plan recognizes
that FMR may use its resources, including management fees, to pay expenses
associated with the sale of shares of the fund. The Board of Trustees has
authorized FMR to pay FDC a distribution fee from its management fee
revenue, past profits or other resources, at an annual rate of up to 0.38%
of the fund's average net assets for payments made to investment
professionals based on average aggregate balances maintained, and, in
special circumstances, up to 0.40% of the fund's average net assets. This
additional 0.02% will be paid to investment professionals who maintain
assets in excess of $600 million in a single omnibus account.
For the fiscal year ended October 31, 1995, FMR paid FDC monthly at an
annual rate of 0.26% of the fund's average net assets throughout the month.
E ffective September 30, 1996, the following in f ormation
replaces the similar information in the " How to Buy Shares" section
on page P-10:
IF YOU ARE NEW TO FIDELITY, a n initial investment must be
preced e d or accompanied by a completed , signed application,
which shoul d be forwarded to :
Fidelity Inve s tments
P.O. Box 77000 2
Cincinnati, O H 45277-0081
