PUTNAM CAPITAL APPRECIATION FUND
Prospectus Supplement dated December 8, 1997
to Prospectuses dated September 30, 1997
The third paragraph under the heading "How the fund is managed is
replaced with the following:
The following officers of Putnam Investment Management, Inc.
("Putnam Management") have had primary responsibility for the
day-to-day management of the fund's portfolio since the years
stated below:
Business experience
Year (at least 5 years)
---- -------------------
William H. Miller 1997 Employed as an investment
Senior Vice President professional by Putnam
Management since November,
1997. Prior to November,
1997, Mr. Miller was
employed as a Vice President
Portfolio Manager with
Delaware Management since
1995. From 1994 to 1995, Mr.
Miller was employed as a
Vice President and research
analyst with Janney
Montgomery Scott. Prior
to 1994, Mr. Miller was
employed by Rutherford,
Brown, & Catherwood Inc.
as a Vice President and
research analyst.
Gerald S. Zukowski 1993 Employed as an investment
Senior Vice President professional by Putnam
Management since 1989.
Anthony C. Santosus 1996 Employed as an investment
Vice President professional by Putnam
Management since 1985.
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