54182 7/99
Prospectus Supplement
dated July 28, 1999 to:
PUTNAM GROWTH AND INCOME FUND II
Prospectus dated March 30, 1999
The "Average Annual Total Returns" table and the paragraph below
on page 3 of the prospectus is replaced with the following:
AVERAGE ANNUAL TOTAL RETURNS (for periods ending 12/31/98)
PAST 1 YEAR SINCE INCEPTION (1/5/95)
CLASS A 5.96% 21.02%
CLASS B 6.57% 21.46%
CLASS C 10.61% 21.91%
CLASS M 7.99% 21.12%
LEHMAN BROTHERS
AGGREGATE BOND INDEX 8.69% 10.03%
S&P 500 INDEX 28.58% 30.51%
Unlike the bar chart, this performance information reflects the
impact of sales charges. Class A and class M share performance
reflect the current maximum initial sales charges; class B and
class C share performance reflects the maximum applicable deferred
sales charge if shares had been redeemed on 12/31/98. For periods
prior to the inception of class C shares (2/1/99), performance
information shown in the table for this class is based on the
performance of the fund's class A shares, adjusted to reflect the
appropriate sales charge and the higher 12b-1 fees paid by class C
shares. The fund's performance is compared to the Lehman Brothers
Aggregate Bond Index, an unmanaged index of investment-grade bonds
and the S&P 500 Index, an unmanaged index of common stocks
frequently used as a general measure of U.S. stock market
performance.
54183 7/99
Prospectus Supplement
dated July 28, 1999 to:
PUTNAM GROWTH AND INCOME FUND II
Class A Prospectus dated March 30, 1999
The "Average Annual Total Returns" table and the paragraph below
on page 3 of the prospectus is replaced with the following:
AVERAGE ANNUAL TOTAL RETURNS (for periods ending 12/31/98)
PAST 1 YEAR SINCE INCEPTION (1/5/95)
CLASS A 12.46% 22.85%
LEHMAN BROTHERS
AGGREGATE BOND INDEX 8.69% 10.03%
S&P 500 INDEX 28.58% 30.51%
Class A performance reflects the waiver of sales charges for
purchases through eligible retirement plans. The fund's
performance is compared to the Lehman Brothers Aggregate Bond
Index, an unmanaged index of investment-grade bonds and the S&P
500 Index, an unmanaged index of common stocks frequently used as
a general measure of U.S. stock market performance.
54184 7/99
Prospectus Supplement
dated July 28, 1999 to:
PUTNAM GROWTH AND INCOME FUND II
Class Y Prospectus dated March 30, 1999
The "Average Annual Total Returns" table and the paragraph below
on page 3 of the prospectus is replaced with the following:
AVERAGE ANNUAL TOTAL RETURNS (for periods ending 12/31/98)
PAST 1 YEAR SINCE FUND INCEPTION (1/5/95)
CLASS Y 13.19% 23.09%
LEHMAN BROTHERS
AGGREGATE BOND INDEX 8.69% 10.03%
S&P 500 INDEX 28.58% 30.51%
The fund's performance is compared to the Lehman Brothers
Aggregate Bond Index, an unmanaged index of investment-grade bonds
and the S&P 500 Index, an unmanaged index of common stocks
frequently used as a general measure of U.S. stock market
performance.
