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.
The following information replaces the wire instructions for the money
market fund found in the "How to Buy Shares" section on page 25.
For the money market fund:
Chase Manhattan Bank
Bank Routing #021000021
FFC Fidelity/SAS INST DEP
Account # 323039502
Specify the complete name of the fund and include your account number.
