PUTNAM BALANCED RETIREMENT FUND
Prospectus Supplement dated August 1, 1996 to the
Class A shares Prospectus dated March 1, 1996
The third sentence in the second paragraph under the heading "How
the fund pursues its objective" is replaced with the following:
The fund will invest in securities rated at the time of purchase
at least B by Moody's Investors Service, Inc. ("Moody's") or by
Standard & Poor's ("S&P"), or in unrated securities which Putnam
Investment Management, Inc. ("Putnam Management") determines are
of comparable quality at the time of purchase.
The following text replaces the fifth sentence of the first
paragraph under the heading "How to buy shares":
In order to be eligible to purchase shares at net asset
value, a defined contribution plan must either initially
invest at least $20 million in Putnam funds and other
investments managed by Putnam Management or its affiliates
or, if the dealer of record waives its commission with
respect to such investment, initially invest at least $1
million in the fund.
The following text replaces the first four sentences of the
second paragraph under the heading "How to buy shares":
On sales
of shares at
net asset value to defined
contribution plans initially investing at least $20 million
in Putnam funds and other investments managed by Putnam
Management or its affiliates, Putnam Mutual Funds pays
commissions on
the shares
initially purchased
and on
subsequent net quarterly sales at the rate of 0.15%.
27172 8/96
