Prospectus Supplement dated March 20, 1997 to:

                     PUTNAM AMERICAN RENAISSANCE FUND
                    Prospectus dated December 31, 1996

                           PUTNAM BALANCED FUND
                    Prospectus dated December 31, 1996

                      PUTNAM BALANCED RETIREMENT FUND
                   Prospectuses dated February 28, 1997

                     PUTNAM CAPITAL APPRECIATION FUND
               Prospectuses dated September 30, 1996

                  PUTNAM CONVERTIBLE INCOME-GROWTH TRUST
                   Prospectuses dated February 28, 1997

                        PUTNAM FEDERAL INCOME TRUST
                   Prospectuses dated February 28, 1997

                     THE GEORGE PUTNAM FUND OF BOSTON
                   Prospectuses dated November 30, 1996

                   THE PUTNAM FUND FOR GROWTH AND INCOME
                   Prospectuses dated February 28, 1997

                          PUTNAM HIGH YIELD TRUST
                   Prospectuses dated December 30, 1996

                            PUTNAM INCOME FUND
                   Prospectuses dated February 28, 1997

                           PUTNAM INVESTORS FUND
                   Prospectuses dated November 30, 1996

                       PUTNAM NEW OPPORTUNITIES FUND
                    Prospectuses dated October 30, 1996

                           PUTNAM NEW VALUE FUND
                    Prospectus dated December 31, 1996

                    PUTNAM OTC & EMERGING GROWTH FUND
                   Prospectuses dated December 16, 1996

                           PUTNAM RESEARCH FUND
                    Prospectus dated December 31, 1996

                             PUTNAM VISTA FUND
                   Prospectuses dated November 30, 1996

                            PUTNAM VOYAGER FUND
                   Prospectuses dated November 30, 1996

                          PUTNAM VOYAGER FUND II
                       Prospectus dated May 1, 1996




     The section of each Prospectus entitled "Foreign
investments" is replaced with the following:

Foreign investments

The fund may invest in securities of foreign issuers that are not
actively traded in U.S. markets.  These foreign investments
involve certain special risks described below.

Foreign securities are normally denominated and traded in foreign
currencies.  As a result, the value of the fund's foreign
investments and the value of its shares may be affected favorably
or unfavorably by changes in currency exchange rates relative to
the U.S. dollar.  The fund may engage in a variety of foreign
currency exchange transactions in connection with its foreign
investments, including transactions involving futures contracts,
forward contracts and options.

Investments in foreign securities may subject the fund to other
risks as well.  For example, there may be less information
publicly available about a foreign issuer than about a U.S.
issuer, and foreign issuers are not generally subject to
accounting, auditing and financial reporting standards and
practices comparable to those in the United States.  The
securities of some foreign issuers are less liquid and at times
more volatile than securities of comparable U.S. issuers.
Foreign brokerage commissions and other fees are also generally
higher than in the United States.  Foreign settlement procedures
and trade regulations may involve certain risks (such as delay in
payment or delivery of securities or in the recovery of the
fund's assets held abroad) and expenses not present in the
settlement of investments in U.S. markets.

In addition, the fund's investments in foreign securities may be
subject to the risk of nationalization or expropriation of
assets, imposition of currency exchange controls or restrictions
on the repatriation of foreign currency, confiscatory taxation,
political or financial instability and diplomatic developments
which could affect the value of the fund's investments in certain
foreign countries.  Dividends or interest on, or proceeds from
the sale of, foreign securities may be subject to foreign
withholding taxes, and special U.S. tax considerations may apply.

Legal remedies available to investors in certain foreign
countries may be more limited than those available with respect
to investments in the United States or in other foreign
countries.  The laws of some foreign countries may limit the
fund's ability to invest in securities of certain issuers
organized under the laws of those foreign countries.

The risks described above are typically increased in connection
with investments in less developed and developing nations, which
are sometimes referred to as "emerging markets."  For example,
political and economic structures in these countries may be in
their infancy and developing rapidly, causing instability.  High
rates of inflation or currency devaluations may adversely affect
the economies and securities markets of such countries.
Investments in emerging markets may be considered speculative.

The fund expects that its investments in foreign securities
generally will not exceed 20% of its total assets, although the
fund's investments in foreign securities may exceed this amount
from time to time.  Certain of the foregoing risks may also apply
to some extent to securities of U.S. issuers that are denominated
in foreign currencies or that are traded in foreign markets, or
securities of U.S. issuers having significant foreign operations.

For more information about foreign securities and the risks
associated with investment in such securities, see the SAI.

                                                  32645 3/97


March 20, 1997


Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC  20549

Re:

Putnam American Renaissance Fund (Reg. No. 33-56339)(811-7237)
Putnam Balanced Fund (Reg. No. 33-56339)(811-7237)
Putnam Balanced Retirement Fund (Reg. No. 2-96309)(811-4242)
Putnam Capital Appreciation Fund (Reg. No. 33-49583)(811-7061)
Putnam Federal Income Trust (Reg. No. 33-3903)(811-4617)
The George Putnam Fund of Boston (Reg. No. 2-10816)(811-58)
The Putnam Fund for Growth and Income (Reg. No. 2-13644)(811-781)
Putnam High Yield Trust (Reg. No. 2-60492)(811-2796)
Putnam Income Fund (Reg. No. 2-11147)(811-653)
Putnam Investors Fund (Reg. No. 2-10783)(811-59)
Putnam New Opportunities Fund (Reg. No. 33-35576)(811-6128)
Putnam New Value Fund (Reg. No. 33-56339)(811-7237)
Putnam OTC & Emerging Growth Fund (Reg. No. 2-78369)(811-3512)
Putnam Research Fund (Reg. No. 33-56339)(811-7237)
Putnam Vista Fund (Reg. No. 2-27664)(811-1561)
Putnam Voyager Fund (Reg. No. 2-29546)(811-1682)
Putnam Voyager II Fund (Reg. No. 33-37527)(811-6203)

Ladies and Gentlemen:

We are filing today through the EDGAR system, on behalf of the
funds, a supplement dated March 20, 1997 to the current
Prospectuses of each fund.

Any questions concerning the supplement should be directed to me
at 1-800-225-2465, ext. 11471.

Very truly yours,


Beth F. Marino
Legal Product Specialist
Putnam Investments, Inc.


cc:  Brian McCabe, Esq.