54678
8/99
PROSPECTUS SUPPLEMENT
dated August 16, 1999 to:
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PUTNAM DIVERSIFIED INCOME TRUST
Prospectuses dated January 30, 1999
In the section entitled "What are the fund's main investment
strategies and related risks?" the second sentence under the
heading "High Yield Sector" has been replaced by the
following language, which has been added to the end of the
second paragraph under the heading "Credit risk":
The fund may also invest up to 5% of its assets in
securities rated below CCC (or its equivalent) at the
time of purchase and unrated securities of comparable
quality. To the extent that a security is assigned a
different rating by one or more of the various rating
agencies, Putnam Management will use the highest rating
assigned by any agency.
