SUPPLEMENT TO THE
FIDELITY NEW YORK
MUNICIPAL FUNDS
PROSPECTUS
DATED MARCH 23, 1996
The following information replaces the similar information found in the
"Key Facts" section on page 4.
NEW YORK INSURED
STRATEGY: Invests mainly in municipal securities that are covered by
insurance guaranteeing the timely payment of principal and interest, and
whose interest is free from federal income tax and New York State and City
income taxes.
NEW YORK INCOME
STRATEGY: Invests normally in investment-grade municipal securities
whose interest is free from federal income tax and New York State and City
income taxes.
The following information replaces the similar information found in the
third paragraph of the "Investment Principles and Risks" section found on
page 15.
NEW YORK MUNICIPAL INCOME seeks high current income that is free from
federal income tax and New York State and City 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. As of
January 31, 1996, the fund's dollar-weighted average maturity was
approximately 14.2 years. FMR normally invests so that at least 80% of the
fund's income distributions are free from federal and New York State and
City income taxes.
The following information replaces the similar information found in the
"Securities and Investment Practices" section found on page 16.
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: New York Insured invests only in investment-grade
securities. A security is considered to be investment-grade if it is judged
by FMR to be of equivalent quality to securities rated Baa or BBB or higher
by Moody's Investors Service or Standard & Poor's, respectively . New
York 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.
