41289 2/98
Prospectus Supplement
dated February 26, 1998 to:
- -----------------------------------------------------------------
Putnam Asset Allocation Funds
Putnam Asset Allocation: Growth Portfolio
Putnam Asset Allocation: Balanced Portfolio
Putnam Asset Allocation: Conservative Portfolio
Class A, B, C and M shares
Prospectus dated January 30, 1998
The second paragraph under the subsection "Class C shares" of the
section "How to Buy Shares" is replaced in its entirety with the
following:
Putnam Mutual Funds pays a sales commission equal to 1.00% of the
amount invested to dealers who sell class C shares (which
includes a prepaid service fee of 0.25%). These commissions are
not paid on sales to investors exempt from the CDSC.
