65933 10/00
Prospectus Supplement
dated October 9, 2000 to:
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PUTNAM BALANCED FUND
Prospectuses dated January 30, 2000 as revised March 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 is also shown.
<TABLE>
<CAPTION>
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Manager Since Experience
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<S> <C> <C> <C>
Kevin Cronin 2000 1997 - Present Putnam Management
Managing Director Prior to 1997 MFS Investment Management
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David Santos 1999 1986 - Present Putnam Management
Senior Vice President
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Anthony R. Sellitto, III 2000 Sept. 2000 - Present Putnam Management
Senior Vice President Prior to Sept. 2000 Berger Associates
Prior to January 1998 Crestone Capital Management
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Manuel Weiss 1998 1987 - Present Putnam Management
Senior Vice President
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</TABLE>
