PUTNAM OVERSEAS GROWTH FUND (the "fund")
Prospectus Supplement dated August 1, 1996 to
Class A shares Prospectus dated November 1, 1995
Effective August 12, 1996, the fund's name will change to "Putnam
International Growth Fund." In addition, the first two
paragraphs under the section entitled "Basic investment strategy"
are replaced by the following:
The fund seeks its objective by investing primarily in
equity securities of companies located in a country other
than the United States. The fund's investments will
normally include common stocks, preferred stocks, securities
convertible into common or preferred stocks, and warrants to
purchase common or preferred stocks. The fund may also
invest to a lesser extent in debt securities and other types
of investments if Putnam Investment Management, Inc., the
fund's investment manager ("Putnam Management"), believes
purchasing them would help achieve the fund's objective.
The fund will, under normal circumstances, invest at least
65% of its total assets in issuers located in at least three
different countries other than the United States. The fund
may hold a portion of its assets in cash or money market
instruments.
The fund will consider an issuer of securities to be
"located in a country other than the United States" if it is
organized under the laws of a country other than the United
States and has a principal office outside the United States,
or if it derives 50% or more of its total revenues from
business outside the United States.
The following text replaces the fifth sentence of the first
paragraph under the heading "How to buy shares":
In order to be eligible to purchase shares at net asset
value, a defined contribution plan must either initially
invest at least $20 million in Putnam funds and other
investments managed by Putnam Management or its
affiliates or, if the dealer of record waives its
commission with respect to such investment, initially
invest at least $1 million in the fund.
The following text replaces the first four sentences of the second
paragraph under the heading "How to buy shares":
On sales
of shares at
net asset value to defined
contribution plans initially investing at least $20
million in Putnam funds and other investments managed by
Putnam Management or its affiliates, Putnam Mutual Funds
pays commissions on
the shares
initially purchased
and
on subsequent net quarterly sales at the rate of 0.15%.
8/96
