PUTNAM ASSET ALLOCATION FUNDS
497, 1995-05-02
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                 PUTNAM ASSET ALLOCATION: GROWTH PORTFOLIO
                Prospectus Supplement dated May 1, 1995 to 
           Prospectus for Class Y shares dated February 1, 1995


The first sentence in the first paragraph of the cover page is
replaced by the following:

     This Prospectus explains concisely what you should know
     before investing in Class Y shares of Putnam Asset     
     Allocation: Growth Portfolio (the "Fund").


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