54268 7/99
Prospectus Supplement
dated July 19, 1999 to:
Putnam Capital Appreciation Fund (the "fund")
Prospectuses dated September 30, 1998
In the section entitled "Who manages the fund?" the second
paragraph 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 shown
below. Their experience as portfolio managers or investment
analysts over at least the last five years is also shown.
Manager Since Experience
Thomas R. Haslett
Managing Director 1999 Employed by Putnam Management since 1996.
Prior to December, 1996,
Mr. Haslett was employed at
Montgomery Asset Management Ltd.
Joseph P. Joseph
Managing Director 1999 Employed by Putnam Management since 1994.
Prior to October, 1994,
Mr. Joseph was employed at Vert
Independent Capital Research, Inc.
Michael K. Arends
Senior Vice President 1999 Employed by Putnam Management since 1997.
Prior to November, 1997,
Mr. Arends was employed at Phoenix Duff & Phelps.
Prior to August, 1994, Mr. Arends was employed at
Kemper Financial Services.
Gerald S. Zukowski
Senior Vice President 1993 Employed by Putnam Management since 1989.
