Prospectus Supplement dated December 1, 1995 for Defined
Contribution Plan Prospectus for Class A shares:
PUTNAM ASSET ALLOCATION FUNDS
Prospectuses dated February 1, 1995
PUTNAM BALANCED RETIREMENT FUND
Prospectus dated March 1, 1995, as revised April 1, 1995
PUTNAM CONVERTIBLE INCOME-GROWTH TRUST
Prospectus dated March 1, 1995
PUTNAM DIVERSIFIED INCOME TRUST
Prospectus dated December 1, 1994
PUTNAM FEDERAL INCOME TRUST
Prospectus dated March 1, 1995
PUTNAM GLOBAL GOVERNMENTAL INCOME TRUST
Prospectus dated March 1, 1995
PUTNAM GLOBAL GROWTH FUND
Prospectus dated March 1, 1995
THE PUTNAM FUND FOR GROWTH AND INCOME
Prospectus dated March 1, 1995
PUTNAM HIGH YIELD ADVANTAGE FUND
Prospectus dated April 1, 1995
PUTNAM INCOME FUND
Prospectus dated March 1, 1995
PUTNAM INVESTMENT-GRADE BOND FUND
Prospectus dated February 2, 1995, as revised May 19, 1995
PUTNAM U.S. GOVERNMENT INCOME TRUST
Prospectus dated February 1, 1995
Effective as of the date of this Supplement, certain
employee benefit plans may purchase shares of the Fund
without a sales charge. Accordingly, the Prospectuses of
Funds are revised follows:
The section entitled "How to buy shares" is replaced with
the following:
HOW TO BUY SHARES
All orders to purchase shares must be made through your
employer's defined contribution plan. For more
information about how to purchase shares of the Fund
through your employer's plan or limitations on the
amount that may be purchased, please consult your
employer. Shares are sold to eligible defined
contribution plans at the net asset value per share
next determined after receipt of an order by Putnam
Mutual Funds. Orders must be received by Putnam Mutual
Funds before the close of regular trading on the New
York Stock Exchange in order to receive that day's net
asset value. In order to be eligible to purchase
shares at net asset value, defined contribution plans
must initially invest at least $1 million or have at
least 200 eligible employees. Defined contribution
plans participating in a "multi-fund" program approved
by Putnam Mutual Funds may include amounts invested in
other mutual funds particpating in such program for
purposes of determining whether the plan may purchase
Class A shares at net asset value. Eligible plans may
make additional investments of any amount at any time.
To eliminate the need for safekeeping, the Fund will
not issue certificates for your shares.
On sales at net asset value to a participant-directed
qualified retirement plan initially investing less than
$20 million in Putnam funds and other investments
managed by Putnam Management or its affiliates
(including a plan with at least 200 eligible
employees), Putnam Mutual Funds pays commissions based
on a plan's cumulative purchases during the one-year
period beginning with the date of the initial purchase
at net asset value. Each subsequent one-year measuring
period for these purposes will begin with the first net
asset value purchase following the end of the prior
period. Such commissions are paid at the rate of 1.00%
of the first $2 million, 0.80% of the next $1 million
and 0.50% thereafter. On sales at net asset value to
all other participant-directed qualified retirement
plans, Putnam Mutual Funds pays commissions on the
initial investment and on subsequent net quarterly
sales at the rate of 0.15%. Putnam Mutual Funds will
from time to time, at its expense, provide additional
promotional incentives or payments to dealers that sell
shares of the Putnam funds. These incentives or
payments may include payments for travel expenses,
including lodging, incurred in connection with trips
taken by invited registered representatives and their
guests to locations within and outside the United
States for meetings or seminars of a business nature.
In some instances, these incentives or payments may be
offered only to certain dealers who have sold or may
sell significant amounts of shares. Certain dealers
may not sell all classes of shares.
<PAGE>
(2) The second sentence in the second paragraph under the
heading "Distribution Plan" is replaced with the following:
This calculation excludes until one year after
purchase shares purchased at net asset value,
known as "NAV shares," by shareholders investing
$1 million or more. Also excluded until one year
after purchase are NAV shares purchased by
participant-directed qualified retirement plans
with at least 200 eligible employees. NAV shares
are not subject to the one-year exclusion
provision in cases where certain shareholders who
invested $1 million or more have made arrangements
with Putnam Mutual Funds and the dealer of record
waived the sales commission.
40lk
