PAGE 1
T. ROWE PRICE
_________________________________________________________________
T. Rowe Price Spectrum Fund, Inc.
Spectrum Income Fund
Spectrum Growth Fund
Supplement to prospectus dated May 1, 1995
_________________________________________________________________
The Spectrum Funds received an exemptive order from the
Securities and Exchange Commission dated October 18, 1995, that
removed certain restrictions to which the Funds had been subject
since their inception in 1990. The removal of these restrictions
should give the funds greater flexibility in managing their
investment programs. The new order provides as follows:
o There is no limit on the amount of shares of an underlying
Price fund that the Spectrum Funds may own. Under the old
order, the Spectrum Funds were not permitted to purchase
shares of any underlying Price fund if, as a result of the
purchase, they would own in total more than 15% of an
underlying Price fund's outstanding voting shares. As an
operating policy, the Board of Directors of the Spectrum
Funds has determined to limit the Spectrum Funds to
purchasing no more than 30% of an underlying Price fund's
shares. This operating policy may be changed at any time by
the Board of Directors.
o There is no limit on the rate at which the Spectrum Funds
may redeem their shares from the underlying Price funds.
Under the old order, each Spectrum Fund was not permitted to
redeem more than 1% of any underlying Price fund's assets
during any period of less than 30 days, except when
necessary to meet the Spectrum Fund's shareholder redemption
requests. However, as an operating policy, the Board of
Directors of the Spectrum Funds has determined to limit each
Spectrum Fund to redeeming no more than 1% of the assets of
any underlying Price fund during any period of less than 15
days. This operating policy may be changed at any time by
the Board of Directors.
o There is no restriction on the selection of underlying Price
funds in which the Spectrum Funds may invest and there is no
restriction on the percentage ranges of each Spectrum Fund
that may be allocated to the underlying Price funds.
However, the underlying Price funds in which the Spectrum
Funds may invest and the percentage ranges of each Spectrum
Fund that may be allocated to the underlying Price funds are
fundamental policies and may not be changed without a
shareholder vote. Shareholders would be informed of any
such vote via a proxy mailing and would have the opportunity
to vote at that time.
Page 2, 11, 13, 14, and 21 of the May 1, 1995 prospectus are
modified as appropriate by the changes described above.
_________________________________________________________________
The date of this supplement is October 18, 1995.
_________________________________________________________________
