THE GEORGE PUTNAM FUND OF BOSTON
Prospectus Supplement dated January 8, 1996 to the
Class A, B and M Prospectus dated December 1, 1995
On January 5, 1996, the Trustees approved a proposal to increase
the fees payable to Putnam Investment Management, Inc. ("Putnam
Management"), under the fund's Management Contract. The proposed
increase is subject to shareholder approval and will be submitted
to shareholders at a meeting scheduled to be held on July 11,
1996. If approved at that meeting, management fees would
thereafter be paid at the annual rate of 0.65% of the first $500
million of average net assets, 0.55% of the next $500 million,
0.50% of the next $500 million, 0.45% of the next $5 billion,
0.425% of the next $5 billion, 0.405% of the next $5 billion,
0.39% of the next $5 billion, and 0.38% of any amount thereafter.
As a result of the proposed change, the section "Expenses
summary" on pages 4 and 5 of the prospectus is replaced with the
following:
EXPENSES SUMMARY
Expenses are one of several factors to consider when investing.
The following table summarizes your maximum transaction costs
from investing in the fund and expenses incurred based on the
most recent fiscal year. The examples show the cumulative
expenses attributable to a hypothetical $1,000 investment over
specified periods.
CLASS A CLASS B CLASS M
SHARES SHARES SHARES
SHAREHOLDER TRANSACTION
EXPENSES
Maximum sales charge
imposed on purchases
(as a percentage of
offering price) 5.75% NONE* 3.50%*
Deferred sales charge 5.0% in the first
(as a percentage year, declining
of the lower of to 1.0% in the
original purchase sixth year, and
price or redemption eliminated
proceeds) NONE** thereafter NONE
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ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)
Total fund
Management 12b-1 Other operating
fees fees expenses expenses
---------- ----- -------- ---------
Class A 0.58% 0.25% 0.28% 1.11%
Class B 0.58% 1.00% 0.28% 1.86%
Class M 0.58% 0.75% 0.28% 1.61%
(over, please)
The table is provided to help you understand the expenses of
investing in the fund and your share of the operating expenses
that the fund incurs. The annual management fees and total fund
operating expenses shown in the table have been restated to
reflect the proposed increase in the management fees payable to
Putnam Management. Actual management fees and total fund
operating expenses were 0.38% and 0.91%, respectively, for class
A shares, and 0.38% and 1.66%, respectively, for class B shares.
The 12b-1 fees for class M shares reflect the amount currently
payable under the class M distribution plan. For class M shares,
management fees and "Other expenses" are based on the
corresponding expenses for class A shares.
EXAMPLES
Your investment of $1,000 would incur the following expenses,
assuming 5% annual return and, except as indicated, redemption at
the end of each period:
1 3 5 10
year years years years
CLASS A $68 $91 $115 $185
CLASS B $69 $88 $121 $198***
CLASS B (NO REDEMPTION) $19 $58 $101 $198***
CLASS M $51 $84 $120 $220
The examples do not represent past or future expense levels.
Actual expenses may be greater or less than those shown. Federal
regulations require the examples to assume a 5% annual return,
but actual annual return varies.
* The higher 12b-1 fees borne by class B and class M shares
may cause long-term shareholders to pay more than the
economic equivalent of the maximum permitted front-end sales
charge on class A shares.
<PAGE>
** A deferred sales charge of up to 1.00% is assessed on
certain redemptions of class A shares that were purchased
without an initial sales charge. See "How to buy shares -
Class A shares."
*** Reflects conversion of class B shares to class A shares
(which pay lower ongoing expenses) approximately eight years
after purchase. See "Alternative sales arrangements."
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