497 1 af1.txt PUTNAM MULTIFUND B Prospectus Supplement 211148 1/04 dated January 28, 2004 to the retail prospectuses of: --------------------------------------------------------------------- Putnam Growth Funds Putnam Discovery Growth Fund Putnam Growth Opportunities Fund Putnam Health Sciences Trust Putnam New Opportunities Fund Putnam OTC & Emerging Growth Fund Putnam Small Cap Growth Fund Putnam Vista Fund Putnam Voyager Fund Putnam Blend Funds Putnam Capital Appreciation Fund Putnam Capital Opportunities Fund Putnam Investors Fund Putnam Research Fund Putnam Tax Smart Equity Fund Putnam Utilities Growth and Income Fund Putnam Value Funds Putnam Classic Equity Fund Putnam Convertible Income-Growth Trust Putnam Equity Income Fund The George Putnam Fund of Boston The Putnam Fund for Growth and Income Putnam Mid Cap Value Fund Putnam New Value Fund Putnam Small Cap Value Fund Putnam Income Funds Putnam American Government Income Fund Putnam Diversified Income Trust Putnam Income Fund Putnam Intermediate U.S. Government Income Fund Putnam U.S. Government Income Trust Putnam Tax-Free Income Funds Putnam Arizona Tax Exempt Income Fund Putnam California Tax Exempt Income Fund Putnam Florida Tax Exempt Income Fund Putnam Massachusetts Tax Exempt Income Fund Putnam Michigan Tax Exempt Income Fund Putnam Minnesota Tax Exempt Income Fund Putnam Municipal Income Fund Putnam New Jersey Tax Exempt Income Fund Putnam New York Tax Exempt Income Fund Putnam Ohio Tax Exempt Income Fund Putnam Pennsylvania Tax Exempt Income Fund Putnam Tax Exempt Income Fund Putnam Tax-Free High Yield Fund Putnam Tax-Free Insured Fund Putnam Asset Allocation Funds: Growth Portfolio Balanced Portfolio Conservative Portfolio --------------------------------------------------------------------- Prospectuses of the funds listed above are supplemented as follows: Class A shares (not applicable to Putnam Intermediate U.S. Government Income Fund). Effective January 28, 2004, the maximum sales charge for class A shares is reduced to 5.25% (from 5.75%) for Growth Funds, Blend Funds, Value Funds and Asset Allocation Funds and to 4.50% (from 4.75%) for Income Funds and Tax-Free Income Funds. References to the maximum sales charge for class A shares in the sections "Fund summary - Fees and expenses" and "How do I buy fund shares?" are revised accordingly, and information for Class A shares in the table of initial sales charges in the section "How do I buy fund shares?" is replaced with the information below. The table of average annual total returns and the example in the section "Fund summary--Performance information" have not been restated to reflect the reduction in the maximum sales charge for class A shares. For Growth Funds, Blend Funds, Value Funds and Asset Allocation Funds only: Class A sales charge as a percentage of: Amount of purchase at Net amount Offering offering price ($) invested price* Under 50,000 5.54% 5.25% 50,000 but under 100,000 4.17 4.00 100,000 but under 250,000 3.09 3.00 250,000 but under 500,000 2.30 2.25 500,000 but under 1,000,000 2.04 2.00 1,000,000 and above NONE NONE For Income Funds only: Class A sales charge as a percentage of: Amount of purchase at Net amount Offering offering price ($) invested price* Under 50,000 4.71% 4.50% 50,000 but under 100,000 4.44 4.25 100,000 but under 250,000 3.36 3.25 250,000 but under 500,000 2.56 2.50 500,000 but under 1,000,000 2.04 2.00 1,000,000 and above NONE NONE For Tax-Free Income Funds only: Class A sales charge as a percentage of: Amount of purchase at Net amount Offering offering price ($) invested price* Under 25,000 4.71% 4.50% 25,000 but under 50,000 4.44 4.25 50,000 but under 100,000 4.44 4.25 100,000 but under 250,000 3.63 3.50 250,000 but under 500,000 2.83 2.75 500,000 but under 1,000,000 2.04 2.00 1,000,000 and above NONE NONE * Offering price includes sales charge. ************************************************************************ Redemption fees. Effective April 19, 2004, the "Shareholder Fees" table and related footnotes in the section entitled "FEES AND EXPENSES" are revised to disclose that a 2.00% redemption fee may apply to any shares purchased on or after April 19, 2004 that are redeemed (either by selling or exchanging into another fund) within 5 days of purchase. In addition, effective April 19, 2004, the following paragraph is inserted as the second paragraph in the section entitled "How do I sell fund shares?": For shares purchased on or after April 19, 2004, the fund will impose a redemption fee of 2.00% of the total redemption amount (calculated at market value) if you sell or exchange your shares after holding them for 5 days or less. The redemption fee is paid directly to the fund, and is designed to offset brokerage commissions, market impact, and other costs associated with short-term trading. The redemption fee will not apply in certain circumstances, such as redemptions to pay distributions or loans from defined contribution plans administered by Putnam, redemptions of shares purchased directly with contributions by a plan participant or sponsor or loan repayment. The redemption fee will not apply to redemptions from certain omnibus accounts, or in the event of shareholder death or post-purchase disability. For purposes of determining whether the redemption fee applies, the shares that were held the longest will be redeemed first. Administrators, trustees or sponsors of retirement plans may also impose redemption fees. Please see the SAI for details. Also, effective April 19, 2004, the following replaces the third paragraph in the section entitled "How do I exchange fund shares?": The exchange privilege is not intended as a vehicle for short-term trading. Excessive exchange activity may interfere with portfolio management and have an adverse effect on all shareholders. In order to limit excessive exchange activity and otherwise to promote the best interests of the fund, for shares purchased on or after April 19, 2004, the fund will impose a redemption fee of 2.00% of the total exchange amount (calculated at market value) on exchanges of shares held 5 days or less. In the case of defined contribution plans administered by Putnam, the 2.00% fee applies to exchanges of shares purchased by exchange on or after April 19, 2004 that are held in a plan participant's account for 5 days or less. Administrators, trustees or sponsors of retirement plans may also impose redemption fees. The fund also reserves the right to revise or terminate the exchange privilege, limit the amount or number of exchanges or reject any exchange. The fund into which you would like to exchange may also reject your exchange. These actions may apply to all shareholders or only to those shareholders whose exchanges Putnam Management determines are likely to have a negative effect on the fund or other Putnam funds. Consult Putnam Investor Services before requesting an exchange.