Fund Profile
T. Rowe Price Spectrum Income Fund
 
Important Information About This Fund as of xx/xx/xx
 
 
 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 visiting our web site at www.troweprice.com.
 
 1. What is the fund's objective?
 
   The fund seeks a high level of current income consistent with moderate share
   price fluctuation.
 
 
 2. What are the fund's principal investment strategies?
 
   The fund can diversify its assets widely among nine T. Rowe Price funds: five
   domestic bond funds, two international bond funds, a money market fund, and
   one income-oriented stock fund. Within the ranges shown below, managers
   decide how much of the fund's assets to allocate to each fund based on their
   view of the relative valuations of the underlying funds and of the various
   markets in which they invest.
 


                                   Asset Allocation Ranges
  Fund                Percent of Assets  Fund               Percent of Assets
                                                        
  Short-Term Bond     0-15%              Summit Cash Reserves    0-25%
  GNMA                5-20               New Income              15-30
  International Bond  5-20               U.S. Treasury Long-Term 0-15
  Equity Income       10-25              Emerging Markets Bond   0-10
  High Yield          10-25
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   Additional information about the fund's investments and strategy is available
   in the annual and semiannual reports, which are available free by calling
   1-800-638-5660 or visiting our web site.
 
 
 3. What are the main risks of investing in the fund?
 
   Because the fund invests in a broad array of investments, its overall
   performance could be affected by downturns in many different markets. In
   general, the share price will move in the opposite direction of U.S. interest
   rates, so rising rates represent 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. The risk of default is
   more pronounced in the fund's high-yield ("junk") corporate bond holdings.
   Foreign bond holdings expose the fund to risks of international investing:
   for example, weakening foreign currencies versus the U.S. dollar could reduce
   returns from bonds denominated in other currencies, and emerging market bonds
   are subject to the special political and economic risks of these newly
   industrialized countries. To the extent that Spectrum Income invests in
   stocks, its share price could be lowered by stock market declines.
 
 
   o Although the fund's broad diversification should moderate its price swings,
     you could lose money by investing in fund shares.
 
 
 4. 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 seek high current income through very broad
   diversification, the fund may be an appropriate investment. The fund can be
   used for both regular and tax-deferred accounts, such as IRAs.
 
 
 5. How has the fund performed in the past?
 
   The bar chart, which shows the fund's actual performance for each of the last
   eight calendar years, indicates risk by illustrating how much returns can
   differ from one year to the next.
 
   The fund can also experience short-term performance swings, as shown in the
   following chart by the best and worst calendar quarter returns during the
   years depicted. Of course, the fund's past performance is no guarantee of its
   future returns.
 

 

  Calendar Year Total Returns
 --------------------------------
               
  1991               19.64%
  1992                7.84
  1993                12.36
  1994                -1.94
  1995                19.41
  1996                7.64
  1997                12.18
 --------------------------------

          Quarter Ended              Total Return
 
          Best Quarter               xx/xx/xx xx.xx%
          Worst Quarter              xx/xx/xx xx.xx%
 
 The fund's total return for the xx months ended xx/xx/xx was x.xx%.
 
 
 
   In the table, the fund's average annual total returns for the 1-, 5-, and
   since inception periods ending June 30, 1998, are compared with those of its
   appropriate benchmarks. By comparing the bar chart with this table, you can
   see that average returns smooth out year-to-year variations.
 


                        Average Annual Total Returns
                        Periods ended June 30, 1998
 
                                                             Since inception
                                       1 year     5 years        (6/29/90)
                                                     
 Spectrum Income Fund
  Salomon Smith Barney Broad
   Investment Grade Index
  Lipper General Bond Funds Average
 
 -------------------------------------------------------------------------------

 
 
 These figures include changes in principal value, reinvested dividends, and
 capital gain distributions, if any.
 
 
 6. 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 marketing 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 of average weighted expense ratios for the fund. 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.
 
   The numbers in this table provide an estimate of how much it will cost to
   operate the fund for a year, based on 1998 fiscal year expenses.
 


                                          Fees and expenses of the fund
                                          Annual fund operating expenses
                                 (expenses that are deducted from fund assets)
                                   --------------------------------------------
                                
  Range of Average Weighted        0.74% to 0.81%
  Expense Ratios
 ------------------------------------------------------------------------------

 
   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 the cost of investing in other funds. Although your actual costs
   may be higher or lower, this table uses the midpoint of the above range to
   show 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:
 


                                      
        1 year         3 years      5 years      10 years
          $80           $250         $430          $970
    --------------------------------------------------------

 
 
 7. Who manages the fund?
 
   The fund is managed by T. Rowe Price Associates. 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.
 
   Peter Van Dyke manages the fund day-to-day and has been chairman of its
   Investment Advisory Committee since 1990. He has been managing investments
   for T. Rowe Price since 1985.
 

 8. How can I purchase shares?
 
   Fill out and return the New Account Form in the postpaid envelope, along with
   your check for a minimum of $2,500 or more ($1,000 or more for retirement
   plans and gifts or transfers to minors) or $50 if investing through Automatic
   Asset Builder. You can also open an account by bank wire or by exchanging
   from another T. Rowe Price fund.
 
 
 9. How can I sell shares or close my account?
 
   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 also offer free exchange among our entire
   family of domestic and international funds. Restrictions may apply in special
   circumstances, and some redemption requests need a signature guarantee.
 
 
 10. When will I receive distributions?
 
   The fund distributes income monthly and net capital gains, if any, at year
   end. Income and short-term gains are taxable at ordinary income rates, and
   long-term gains are taxable at the current capital gains rate. Distributions
   are reinvested automatically in additional shares unless you choose another
   option, such as receiving a check.
 
 
 11. 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;
 
  . discount brokerage.
 
To Open an Account
 Investor Services
 1-800-638-5660
 
For Existing Fund or Discount Brokerage Accounts
 Shareholder Services
 1-800-225-5132
 
For Fund Information and Account Transactions on the Internet
 www.troweprice.com
 
For Yields, Prices and Account Transactions
 Tele*Access (R)
 1-800-638-2587
 24 hours, 7 days
 
 T. Rowe Price
 100 East Pratt Street
 Baltimore, MD 21202