Prospectus Supplement dated August 15, 1997 to:
PUTNAM HIGH YIELD TOTAL RETURN FUND (the "fund")
Prospectus dated July 30, 1997
Effective August 15, 1997, the prospectus is modified as follows:
The section entitled "How to buy shares -- Class A shares" is
revised by replacing the third paragraph following the sales
charge table on page 26 of the prospectus with the following:
A class A qualified benefit plan participating in a "multi-
fund" program approved by Putnam Mutual Funds may include amounts
invested in other mutual funds participating in such program for
purposes of determining whether the plan may purchase class A
shares at net asset value. These investments will also be
included for purposes of the discount privileges and programs
described elsewhere in this prospectus and in the SAI.
36153 8/97
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