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VANGUARD BALANCED INDEX FUND PROSPECTUS SUPPLEMENT MARCH 7, 1995 The Fund reserves the right to deduct a transaction fee, ranging from 0.15% to 0.25%, from purchases of the shares of the Fund, if such purchase or cumulative purchases are of a size that is reasonably deemed to be disruptive to efficient portfolio management. The fee will be paid to the Fund to offset transaction costs of buying securities. The fee is not paid to Vanguard and is not a sales charge. PS02
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