PUTNAM MUNICIPAL INCOME FUND
Prospectus Supplement dated November 4, 1996
to Prospectus dated July 30, 1996
The third paragraph under the heading "How the fund is managed"
is replaced with the following:
The following officer of Putnam Investment Management, Inc.
("Putnam Management") has had primary responsibility for the day-
to-day management of the fund's portfolio since the year stated
below:
Business experience
Year (at least 5 years)
---- -------------------
Blake E. Anderson 1996 Employed as an investment
Managing Director professional by Putnam
Management since 1987.
28889 11/96
