65134 9/00
Prospectus Supplement
dated September 11, 2000 to:
------------------------------------------------------------------------------
PUTNAM SMALL CAP VALUE FUND
to Prospectus dated June 30, 2000
The second paragraph under the heading "Who manages the fund?" is replaced
with the following:
The following officers of 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 are also shown.
------------------------------------------------------------------------------
Manager Since Experience
------------------------------------------------------------------------------
Edward T. Shadek, Jr. 1999 1997 - Present Putnam Management
Managing Director Prior to March 1997 Newbold's Asset
Management
------------------------------------------------------------------------------
Sheldon N. Simon 2000 1984 - Present Putnam Management
Senior Vice President
------------------------------------------------------------------------------
