SUPPLEMENT TO THE
FIDELITY CALIFORNIA
MUNICIPAL FUNDS
PROSPECTUS
DATED APRIL 19, 1996
The following information replaces the similar information found in the
seventh paragraph of the "Investment Principles and Risks" section
beginning on page 13.
CALIFORNIA MUNICIPAL INCOME seeks high current income that is free from
federal income tax and California personal income tax by investing in
investment-grade municipal securities under normal conditions. FMR normally
invests so that at least 80% of the fund's income distributions are free
from federal and California personal income tax.
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: California 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. California
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.
SUPPLEMENT TO THE SPARTAN(registered trademark) CALIFORNIA MUNICIPAL FUNDS
PROSPECTUS
DATED APRIL 19, 1996
The following information replaces the similar information found in the
"Key Facts" section on page 4.
SPARTAN CA INTERMEDIATE
STRATEGY: Invests normally in investment-grade municipal securities
whose interest is free from federal income tax and California personal
income tax, while maintaining an average maturity of between three and 10
years.
SPARTAN CA INCOME
STRATEGY: Invests normally in investment-grade municipal securities
whose interest is free from federal income tax and California personal
income tax.
The following information replaces the similar information found in the
third paragraph of the "Investment Principles and Risks" section on page
14.
SPARTAN CALIFORNIA INTERMEDIATE MUNICIPAL INCOME seeks high current income
that is free from federal income tax and California personal income tax
by investing in investment-grade municipal securities under normal
conditions. 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 CALIFORNIA MUNICIPAL INCOME seeks high current income that is free
from federal income tax and California personal income tax by investing
in investment-grade municipal securities under normal conditions. FMR
normally invests so that at least 80% of the fund's income
distributions are free from federal and California personal income tax.
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 the issuers.
RESTRICTIONS: For Spartan California Intermediate and Spartan
California Income, each fund 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.
