SUPPLEMENT TO THE
SPARTAN(registered trademark) NEW YORK
MUNICIPAL FUNDS
PROSPECTUS
DATED MARCH 23, 1996
The following information replaces the similar information found in the
"Key Facts" section on page 3.
SPARTAN NY INTERMEDIATE
STRATEGY: Invests normally in investment-grade municipal
securities whose interest is free from federal income tax and New York
State and City income taxes, while maintaining an average maturity of three
to 10 years.
SPARTAN NY INCOME
STRATEGY: Invests normally in investment-grade municipal
secur ities 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 "Expenses"section beginning on page 5.
SPARTAN NY INTERMEDIATE
Management fee .55%
12b-1 fee None
Other expenses .00%
Total fund operating expenses .55%
SPARTAN NY INTERMEDIATE
Account open Account closed
After 1 year $ 6 $ 11
After 3 years $ 18 $ 23
After 5 years $ 31 $ 36
After 10 years $ 69 $ 74
The following replaces the third and fourth paragraphs of the "Investment
Principles and Risks" section beginning on page 14.
SPARTAN NEW YORK INTERMEDIATE 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,
the fund maintains a dollar-weighted average maturity of three to 10 years
under normal conditions. FMR seeks to manage the fund so that it generally
reacts to changes in interest rates similarly to municipal bonds with
maturities between seven and 10 years. As of January 31, 1996, the fund's
dollar-weighted average maturity was 9.0 years. FMR normally invests at
least 65% of the fund's total assets in state tax-free securities, and
normally invests at least 80% of the fund's assets in municipal securities
whose interest is free from federal income tax.
SPARTAN 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 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 eight and 18 years. As
of January 31, 1996, the fund's dollar-weighted average maturity was
approximately 14.9 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" beginning 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: Spartan New York Intermediate and Spartan New York Income
normally invest in investment-grade securities, but reserve the right to
invest up to 5% of their 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.
