PROSPECTUS SUPPLEMENT                                       69894 02/01
dated February 12, 2001

Putnam New Opportunities Fund
Prospectus dated October 30, 2000

Effective immediately, the Trustees voted to restore the 12b-1 fees
payable to Putnam Management LLC, for the class B shares of Putnam New
Opportunities Fund (the "Fund") from 0.85% to 1.00% of the Fund's
average annual net assets. The fee rate had previously been reduced to
0.85% following a review of the Fund's 12b-1 fees in 1998.  As a result,
the sections entitled "Fees and Expenses - Annual fund operating
expenses", "Fees and Expenses - Example" and "How do I buy fund shares -
Distribution (12b-1) plans" are replaced with the following:

FEES AND EXPENSES

Annual fund operating expenses
(expenses that are deducted from fund assets)
- --------------------------------------------------------------------------
                                                         Total Annual Fund
              Management      Distribution      Other       Operating
                Fees          (12b-1) Fees     Expenses      Expenses
             ----------       ------------     --------      --------
Class A        0.46%             0.25%          0.15%          0.86%
Class B        0.46%             1.00%          0.15%          1.61%
Class C        0.46%             1.00%          0.15%          1.61%
Class M        0.46%             0.75%          0.15%          1.36%
- --------------------------------------------------------------------------

Example

The example translates the expenses shown in the preceding table into
dollar amounts. By doing this, you can more easily compare the cost of
investing in the fund to the cost of investing in other mutual funds.
The example makes certain assumptions. It assumes that you invest
$10,000 in the fund for the time periods shown and then, except as shown
for class B and class C shares, redeem all your shares at the end of
those periods. It also assumes a 5% return on your investment each year
and that the fund's operating expenses remain the same. The example is
hypothetical; your actual costs and returns may be higher or lower.

- ----------------------------------------------------------------------------
                                   1          3           5           10
                                  year       years       years       years
- ----------------------------------------------------------------------------
Class A                           $658       $834       $1,024      $1,575
Class B                           $664       $808       $1,076      $1,710*
Class B (no redemption)           $164       $508       $  876      $1,710*
Class C                           $264       $508       $  876      $1,911
Class C (no redemption)           $164       $508       $  876      $1,911
Class M                           $484       $766       $1,069      $1,928
- ----------------------------------------------------------------------------

*Reflects the conversion of class B shares to class A shares, which pay
 lower 12b-1 fees. Conversion occurs no more than eight years after
 purchase.

HOW DO I BUY FUND SHARES?

Distribution (12b-1) plans. The fund has adopted distribution plans to
pay for the marketing of fund shares and for services provided to
shareholders. The plans provide for payments at annual rates (based on
average net assets) of up to 0.35% on class A shares and 1.00% on class
B, class C and class M shares. The Trustees currently limit payments on
class A and class M shares to 0.25% and 0.75% of average net assets,
respectively. Because these fees are paid out of the fund's assets on an
ongoing basis, they will increase the cost of your investment. The
higher fees for class B, class C and class M shares may cost you more
than paying the initial sales charge for class A shares. Because class C
and class M shares, unlike class B shares, do not convert to class A
shares, class C and class M shares may cost you more over time than
class B shares.