PROSPECTUS SUPPLEMENT DATED
JANUARY 30, 1995
TO THE FOLLOWING PROSPECTUSES:
PUTNAM DIVERSIFIED INCOME TRUST
Prospectus dated December 1, 1994
PUTNAM HIGH YIELD ADVANTAGE FUND
Prospectus dated April 1, 1994, as revised
December 1, 1994
The second paragraph of the section entitled "Distribution Plans
- - Class B and Class M Distribution Plans" is replaced by the
following:
Although Class B shares are sold without an initial sales charge,
Putnam Mutual Funds pays a sales commission equal to 4.00% of the
amount invested to dealers who sell Class B shares. These
commissions are not paid on exchanges from other Putnam funds and
sales to investors exempt from the CDSC. The amount paid to
dealers at the time of the sale of Class M shares is set forth
above under "How to buy shares - Class M shares." In addition,
in order to further compensate dealers (including, for this
purpose, certain financial institutions) for services provided in
connection with sales of Class B shares and Class M shares and
the maintenance of shareholder accounts, Putnam Mutual Funds
makes quarterly payments to qualifying dealers based on the
average net asset value of Class B shares and Class M shares
which are attributable to shareholders for whom the dealers are
designated as the dealer of record. Putnam Mutual Funds makes
such payments at an annual rate of 0.25% of such average net
asset value of Class B shares and Class M shares, as the case may
be. Putnam Mutual Funds also pays to dealers, as additional
compensation with respect to the sale of Class M shares, 0.15% of
such average net asset value of Class M shares. For Class M
shares, the total annual payment to dealers equals 0.40% of such
average net asset value.
