Prospectus Supplement dated December 1, 1995 to:

                PUTNAM AMERICAN GOVERNMENT INCOME FUND
                  Prospectus dated February 1, 1995
               
                   PUTNAM ASIA PACIFIC GROWTH FUND
                  Prospectus dated February 1, 1995

                    PUTNAM ASSET ALLOCATION FUNDS
                  Prospectus dated February 1, 1995
                 Prospectus dated February 1, 1995, 
                     as revised September 1, 1995
      
                   PUTNAM BALANCED RETIREMENT FUND
       Prospectus dated March 1, 1995, as revised June 1, 1995

                PUTNAM CONVERTIBLE INCOME-GROWTH TRUST
                    Prospectus dated March 1, 1995

                   PUTNAM DIVERSIFIED EQUITY TRUST
                    Prospectus dated July 1, 1995

                   PUTNAM DIVERSIFIED INCOME TRUST
                  Prospectus dated December 1, 1994

                      PUTNAM EQUITY INCOME FUND
                    Prospectus dated April 1, 1995

                     PUTNAM FEDERAL INCOME TRUST
                    Prospectus dated March 1, 1995

                THE PUTNAM FUND FOR GROWTH AND INCOME
                    Prospectus dated March 1, 1995

               PUTNAM GLOBAL GOVERNMENTAL INCOME TRUST
                    Prospectus dated March 1, 1995

                      PUTNAM GLOBAL GROWTH FUND
                    Prospectus dated March 1, 1995

                   PUTNAM GROWTH AND INCOME FUND II
                    Prospectus dated July 14, 1995

                     PUTNAM HEALTH SCIENCES TRUST
      Prospectus dated January 1, 1995, as revised July 1, 1995

                       PUTNAM HIGH YIELD TRUST
      Prospectus dated January 1, 1995, as revised July 1, 1995

                   PUTNAM HIGH YIELD ADVANTAGE FUND
                    Prospectus dated April 1, 1995

                          PUTNAM INCOME FUND
                    Prospectus dated March 1, 1995

               PUTNAM INTERMEDIATE U.S. GOVERNMENT FUND
        Prospectus dated April 1, 1995, as revised May 1, 1995

             PUTNAM INTERNATIONAL NEW OPPORTUNITIES FUND
                    Prospectus dated July 14, 1995

                     PUTNAM MUNICIPAL INCOME FUND
                   Prospectus dated August 1, 1995

                    PUTNAM NATURAL RESOURCES FUND
      Prospectus dated January 1, 1995, as revised July 1, 1995

                 PUTNAM U.S. GOVERNMENT INCOME TRUST
                  Prospectus dated February 1, 1995 

               PUTNAM UTILITIES GROWTH AND INCOME FUND
                    Prospectus dated March 1, 1995

Effective as of the date of this Supplement, certain
employee benefit plans may purchase shares of the Funds
without a sales charge. Also, contingent deferred sales
charges may be waived under certain circumstances.  
Accordingly, the Prospectuses for the Funds have been
revised as follows:

(1)  The second footnote following "Examples" under the
heading "Expenses summary" is replaced with the following:

     
     **    A deferred sales charge of up to 1.00% is
           assessed on certain redemptions of Class A shares
           that were purchased without an initial sales
           charge.  See "How to buy shares -- Class A
           shares."

(2)  The section "Class A shares" under the heading
"Alternative Sales Arrangements" is replaced with the
following:

           Class A shares.  An investor who purchases Class
           A shares pays a sales charge at the time of
           purchase.  As a result, Class A shares are not
           subject to any charges when they are redeemed,
           except for certain sales at net asset value that
           are subject to a contingent deferred sales charge
           ("CDSC").  Certain purchases of Class A shares
           qualify for reduced sales charges.  Class A
           shares bear a lower 12b-1 fee than Class B and
           Class M shares.  See "How to buy shares -- Class
           A shares" and "Distribution Plans."

(3)  The second and third paragraphs under the heading "How
to buy shares -- Class A shares" are replaced with the
following:

           There is no initial sales charge on purchases of
           Class A shares of $1 million or more.  However, a
           CDSC of 1.00% or 0.50%, respectively, will be
           imposed if you redeem these shares within the
           first or second year after purchase, based on the
           lower of the shares' cost and current net asset
           value.  Any shares acquired by reinvestment of
           distributions will be redeemed without a CDSC. 

           In addition, there are no sales charges on shares
           purchased by participant-directed employee
           benefit plans with at least 200 eligible
           employees. 

           Shares purchased by certain investors investing
           $1 million or more who have made arrangements
           with Putnam Mutual Funds and whose dealer of
           record waived the commission as described below
           are not subject to the CDSC.  In determining
           whether a CDSC is payable, the Fund will first
           redeem shares not subject to any charge.  Putnam
           Mutual Funds receives the entire amount of any
           CDSC you pay.  See the Statement of Additional
           Information for more information about the CDSC.
       
           Except as stated below,  Putnam Mutual Funds pays
           investment dealers of record commissions on sales
           of Class A shares of $1 million or more based on
           an investor's cumulative purchases during the
           one-year period beginning with the date of the
           initial purchase at net asset value.  Each
           subsequent one-year measuring period for these
           purposes will begin with the first net asset
           value purchase following the end of the prior
           period.  Such commissions are paid at the rate of
           1.00% of the amount under $3 million, 0.50% of
           the next $47 million and 0.25% thereafter.

           On sales at net asset value to a participant-
           directed qualified retirement plan initially
           investing less than $20 million in Putnam funds
           and other investments managed by Putnam
           Management or its affiliates (including a plan
           with at least 200 eligible employees), Putnam
           Mutual Funds pays commissions during each one-
           year measuring period, determined as described
           above, at the rate of 1.00% of the first $2
           million, 0.80% of the next $1 million and 0.50%
           thereafter.  On sales at net asset value to all
           other participant-directed qualified retirement
           plans, Putnam Mutual Funds pays commissions on
           the initial investment and on subsequent net
           quarterly sales at the rate of 0.15%.

(4)  The first paragraph under the section "How to buy
shares -- General" is replaced with the following:

           You may be eligible to buy Class A shares and
           Class M shares at reduced sales charges.

           Consult your investment dealer or Putnam Mutual
           Funds for details about Putnam's combined
           purchase privilege, cumulative quantity discount,
           statement of intention, group sales plan,
           employee benefit plans, and other plans. 
           Descriptions are also included in the order form
           and in the Statement of Additional Information.

           A participant-directed employee benefit plan
           participating in a "multi-fund" program approved
           by Putnam Mutual Funds may include amounts
           invested in other mutual funds participating in
           such program for purposes of determining whether
           the plan may purchase Class A shares at net asset
           value.  These investments will also be included
           for purposes of the discount privileges and
           programs described above.

           Sales charges will not apply to Class M shares
           purchased with redemption proceeds received
           within the prior 90 days from non-Putnam mutual
           funds on which the investor paid a front-end or a
           contingent deferred sales charge or to Class M
           shares purchased by participant-directed
           qualified retirement plans with at least 50
           eligible employees.  The Fund may also sell Class
           M shares at net asset value to members of
           qualified groups.


(5)  Effective December 1, 1995, any applicable contingent
deferred sales charge will be waived on redemptions of
shares following the death or post-purchase disability of a
settlor of a living trust account.  Up to 12% of the value
of shares subject to a systematic withdrawal plan may also
be redeemed each year without a CDSC.  

(6)  The second sentence in the second paragraph under the
heading "Distribution Plans -- Class A Distribution Plan" is
replaced with the following:

           This calculation excludes until one year after
           purchase shares purchased at net asset value,
           known as "NAV shares," by shareholders investing
           $1 million or more.  Also excluded until one year
           after purchase are NAV shares purchased by
           participant-directed qualified retirement plans
           with at least 200 eligible employees.  NAV shares
           are not subject to the one-year exclusion
           provision in cases where certain shareholders who
           invested $1 million or more have made
           arrangements with Putnam Mutual Funds and the
           dealer of record waived the sales commission.