PRICE T ROWE SPECTRUM FUND INC
497K3B, 2000-01-24
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                                                             January 1, 2000
 FUND PROFILE
T. ROWE PRICE
Spectrum Income Fund

 A broadly diversified fund composed of other T. Rowe Price funds investing
 primarily in fixed income securities.
This profile summarizes key information about the fund that is included in the
fund's prospectus. The fund's prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund that you may want to consider before you invest. You may
obtain the prospectus and other information about the fund at no cost by calling
1-800-638-5660, or by visiting our Web site at www.troweprice.com.

T ROWE PRICE LOGO
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                                                                           1

FUND PROFILE
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 What is the fund's objective?

   The fund seeks a high level of current income with moderate share price
   fluctuation.


 What is the fund's principal investment strategy?

   The fund can diversify its assets widely among nine T. Rowe Price funds: five
   domestic bond funds, two international bond funds, one money market fund, and
   one income-oriented stock fund. Within the ranges shown in the next table,
   managers decide how much of the fund's assets to allocate to each underlying
   fund based on their outlook for, and on the relative valuations of, the
   underlying funds and of the various markets in which they invest.

   The fund may sell securities for a variety of reasons, such as to secure
   gains, limit losses, or redeploy assets into more promising opportunities.

<TABLE>
<CAPTION>
                                   Asset Allocation Ranges
  Fund                     Percent of assets     Fund                     Percent of assets
 <S>                     <C>                    <S>                    <C>
  Emerging Markets Bond                  0-10%   Summit Cash Reserves                   0-25%
  Short-Term Bond                        0-15    Equity Income                         10-25
  U.S. Treasury
  Long-Term                              0-15    High Yield                            10-25
  GNMA                                   5-20    New Income                            15-30
  International Bond                     5-20
 ---------------------------------------------------------------------------------------------
</TABLE>


   Further information about the fund's investments, including a review of
   market conditions and fund strategies and their impact on performance, is
   available in the annual and semiannual shareholder reports. To obtain free
   copies of any of these documents, call 1-800-638-5660.


 What are the main risks of investing in the fund?

   The fund's share price will typically move in the opposite direction of U.S.
   interest rates, so a rise in rates, or interest rate risk, represents the
   most important source of risk. There is also exposure to credit risk:
   corporate bond holdings in the underlying funds may have their credit ratings
   downgraded or they may default. Such events could reduce the fund's share
   price and income level. Credit risk for the fund increases to the extent it
   invests in high-yield ("junk'") bonds, primarily through the High Yield Fund.
   The fund is exposed to the risks of international investing to the extent it
   invests overseas, primarily through the International Bond Fund. For example,
   weakening foreign currencies versus the U.S. dollar would typically reduce
   returns from bonds denominated in other currencies. In addition, emerging
   market bonds are subject to the special political and economic risks of these
   newly industrialized countries. To the extent that the fund invests in stocks
   through the Equity Income Fund, its share price would be hurt by stock market
   declines.
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FUND PROFILE
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   As with any mutual fund, there can be no guarantee the fund will achieve its
   objective.

  . The fund's share price may decline, so when you sell your shares, you may
   lose money. An investment in the fund is not a deposit of a bank and is not
   insured or guaranteed by the Federal Deposit Insurance Corporation or any
   other government agency.


 How can I tell if the fund is appropriate for me?

   Consider your investment goals, your time horizon for achieving them, and
   your tolerance for risk. If you would like a one-stop approach to broad
   diversification and can accept the possibility of moderate share price
   declines in an effort to achieve relatively high income, the fund could be an
   appropriate part of your overall investment strategy. The fund should not
   represent your complete investment program or be used for short-term trading
   purposes.

   The fund can be used in both regular and tax-deferred accounts, such as IRAs.


 How has the fund performed in the past?

   The bar chart and the average annual total return table indicate risk by
   illustrating how much returns can differ from one year to the next. The
   fund's past performance is no guarantee of its future returns.

   The fund can also experience short-term performance swings, as shown by the
   best and worst calendar quarter returns during the years depicted in the
   chart.
LOGO

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                                                                           3

FUND PROFILE
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<TABLE>
<CAPTION>
                         Calendar Year Total Returns
          "91"   "92"  "93"   "94"   "95"   "96"  "97"   "98"  "99"
 -------------------------------------------------------------------------
 <S>      <C>    <C>   <C>    <C>    <C>    <C>   <C>    <C>   <C>   <S>
          19.64  7.84  12.36  -1.94  19.41  7.64  12.18  6.57  0.26
 -------------------------------------------------------------------------
</TABLE>




          Quarter ended              Total return

 Best quarter                            3/31/95 6.56%

 Worst quarter                           3/31/94 -2.63%


<TABLE>
 Table 1  Average Annual Total Returns
<CAPTION>
                                               Periods ended
                                             December 31, 1999
                                                         Since inception
                                     1 year   5 years     (06/29/1990)
 ------------------------------------
 <S>                                 <C>      <C>       <C>
  Spectrum Income Fund                0.26%    9.03%          8.90%

  Salomon Smith Barney Broad
  Investment-Grade Bond Index        -0.83     7.74           7.85
  Lipper General Bond Funds Average   0.66     8.50           8.22
 ------------------------------------------------------------------------
</TABLE>



 These figures include changes in principal value, reinvested dividends, and
 capital gain distributions, if any.


 What fees or expenses will I pay?

   The fund is 100% no load. There are no fees or charges to buy or sell fund
   shares, reinvest dividends, or exchange into other T. Rowe Price funds. There
   are no 12b-1 fees. While the fund itself imposes no fees or charges, it will
   indirectly bear its pro-rata share of the expenses of the underlying funds.
   The following table provides a range for the fund's average weighted expense
   ratio. A range is given instead of a single number because the pro-rata share
   of expenses fluctuates along with changes in the average assets in each of
   the underlying funds.
<TABLE>
<CAPTION>
 <S>                                                      <C>
  Range of average weighted expense ratio as of 12/31/98  0.66% to 0.84%
 -------------------------------------------------------------------------
</TABLE>



   Example.  The following table gives you a rough idea of how expense ratios
   may translate into dollars and helps you to compare the cost of investing in
   this fund with that of other funds. Although your actual costs may be higher
   or lower, the table below uses the midpoint of the range to show the expenses
   you would pay if operating expenses remain the same, you invest $10,000, you
   earn a 5% annual return, and you hold the investment for the following
   periods:
<TABLE>
<CAPTION>
   1 year      3 years      5 years       10 years
 ----------------------------------------------------
 <S>         <C>          <C>          <C>
    $77         $240         $417           $930
 ----------------------------------------------------
</TABLE>


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FUND PROFILE
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 Who manages the fund?

   The fund is managed by T. Rowe Price Associates, Inc. Founded in 1937, T.
   Rowe Price and its affiliates manage investments for individual and
   institutional accounts. The company offers a comprehensive array of stock,
   bond, and money market funds directly to the investing public.

   Edmund M. Notzon manages the fund day-to-day and has been chairman of its
   Investment Advisory Committee since 1998. He has been managing investments
   since joining T. Rowe Price in 1989.

 Note: The following questions and answers about buying and selling shares and
 services do not apply to employer-sponsored retirement plans. If you are a
 participant in one of these plans, please call your plan's toll-free number for
 additional information.


 How can I purchase shares?

   Fill out the New Account Form and return it with your check in the postpaid
   envelope. The minimum initial purchase is $2,500 ($1,000 for IRAs and gifts
   or transfers to minors). The minimum subsequent investment is $100 ($50 for
   IRAs, gifts or transfers to minors, or Automatic Asset Builder). You can also
   open an account by bank wire, by exchanging from another T. Rowe Price fund,
   or by transferring assets from another financial institution.


 How can I sell shares?

   You may redeem or sell any portion of your account on any business day.
   Simply write to us or call. You can also access your account at any time via
   Tele*Access /(R)/ or our Web site. We offer convenient exchange among our
   entire family of domestic and international funds. Restrictions may apply in
   special circumstances, and some redemption requests need a signature
   guarantee. A $5 fee is charged for wire redemptions under $5,000.


 When will I receive income and capital gain distributions?

   The fund distributes income monthly and net capital gains, if any, at
   year-end. For regular accounts, income and short-term gains are taxable at
   ordinary income rates, and long-term gains are taxable at the capital gains
   rate. Distributions are reinvested automatically in additional shares unless
   you choose another option, such as receiving a check. Distributions paid to
   IRAs and employer-sponsored retirement plans are automatically reinvested.
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 What services are available?

   A wide range, including but not limited to:

  . retirement plans for individuals and large and small businesses;

  . automated information and transaction services by telephone or computer;

  . electronic transfers between fund and bank accounts;

  . automatic investing and automatic exchange;

  . brokerage services; and

  . asset manager accounts.
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FUND PROFILE
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T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
www.troweprice.com

LOGO
                                                                     RPS F88-035
 T. Rowe Price Investment Services, Inc., Distributor
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