SUPPLEMENT TO THE FIDELITY DAILY INCOME TRUST
OCTOBER 20, 1998
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING FUNDAMENTAL INVESTMENT LIMITATION REPLACES LIMITATION
(2) FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION ON PAGE
2.
(2) issue senior securities, except in connection with the insurance
program established by the fund pursuant to an exemptive order issued
by the Securities and Exchange Commission or as otherwise permitted
under the Investment Company Act of 1940;
THE FOLLOWING NON-FUNDAMENTAL INVESTMENT LIMITATION REPLACES
LIMITATION (III) FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION ON PAGE 2.
(iii) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party.
THE FOLLOWING NON-FUNDAMENTAL INVESTMENT LIMITATION REPLACES
LIMITATION (V) FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION ON PAGE 3.
(v) The fund does not currently intend to lend assets other than
securities to other parties, except by lending money (up to 15% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser. (This
limitation does not apply to purchases of debt securities or to
repurchase agreements.)
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND IN THE
"INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING ON PAGE 2.
MONEY MARKET INSURANCE. The fund participates in a mutual insurance
company solely with other funds advised by FMR or its affiliates. This
company provides insurance coverage for losses on certain money market
instruments held by a participating fund (eligible instruments),
including losses from nonpayment of principal or interest or a
bankruptcy or insolvency of the issuer or credit support provider, if
any. The insurance does not cover losses resulting from changes in
interest rates or other market developments. The fund is charged an
annual premium for the insurance coverage and may be subject to a
special assessment of up to approximately two and one-half times the
fund's annual gross premium if covered losses exceed certain levels. A
participating fund may recover no more than $100 million annually,
including all other claims of insured funds, and may only recover if
the amount of the loss exceeds 0.30% of its eligible instruments. The
fund may incur losses regardless of the insurance.
