Prospectus Supplement dated December 1, 1995 for Defined
Contribution Plan Prospectus for Class A shares:

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

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

                   PUTNAM DIVERSIFIED INCOME TRUST
                  Prospectus dated December 1, 1994

                     PUTNAM FEDERAL INCOME TRUST
                    Prospectus dated March 1, 1995

               PUTNAM GLOBAL GOVERNMENTAL INCOME TRUST
                    Prospectus dated March 1, 1995

                      PUTNAM GLOBAL GROWTH FUND
                    Prospectus dated March 1, 1995

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

                   PUTNAM HIGH YIELD ADVANTAGE FUND
                    Prospectus dated April 1, 1995

                          PUTNAM INCOME FUND
                    Prospectus dated March 1, 1995

                  PUTNAM INVESTMENT-GRADE BOND FUND
      Prospectus dated February 2, 1995, as revised May 19, 1995

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

Effective as of the date of this Supplement, certain
employee benefit plans may purchase shares of the Fund
without a sales charge.  Accordingly, the Prospectuses of
Funds are revised follows:

The section entitled "How to buy shares" is replaced with
the following:

     HOW TO BUY SHARES

     All orders to purchase shares must be made through your
     employer's defined contribution plan.  For more
     information about how to purchase shares of the Fund
     through your employer's plan or limitations on the
     amount that may be purchased, please  consult your
     employer.  Shares are sold to eligible defined
     contribution plans at the net asset value per share
     next determined after receipt of an order by Putnam
     Mutual Funds.  Orders must be received by Putnam Mutual
     Funds before the close of regular trading on the New
     York Stock Exchange in order to receive that day's net
     asset value.  In order to be eligible to purchase
     shares at net asset value, defined contribution plans
     must initially invest at least $1 million or have at
     least 200 eligible employees.  Defined contribution
     plans participating in a "multi-fund" program approved
     by Putnam Mutual Funds may include amounts invested in
     other mutual funds particpating in such program for
     purposes of determining whether the plan may purchase
     Class A shares at net asset value.  Eligible plans may
     make additional investments of any amount at any time. 
     To eliminate the need for safekeeping, the Fund will
     not issue certificates for your shares. 

     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 based
     on a plan'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 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%.  Putnam Mutual Funds will
     from time to time, at its expense, provide additional
     promotional incentives or payments to dealers that sell
     shares of the Putnam funds.  These incentives or
     payments may include payments for travel expenses,
     including lodging, incurred in connection with trips
     taken by invited registered representatives and their
     guests to locations within and outside the United
     States for meetings or seminars of a business nature. 
     In some instances, these incentives or payments may be
     offered only to certain dealers who have sold or may
     sell significant amounts of shares.  Certain dealers
     may not sell all classes of shares.

(2)  The second sentence in the second paragraph under the
heading "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.


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