Putnam Small Cap Value Fund
Prospectus dated June 30, 2013

The fund offers class R5 and class R6 shares to employer-sponsored retirement plans effective November 1, 2013. The prospectus is supplemented as described below to add information about class R5 and class R6 shares and to update the Annual fund operating expenses and Example tables for all share classes.

The front cover page is supplemented to add class R5 and class R6 shares to the list of shares to which the prospectus relates, and to indicate that fund symbols for class R5 and class R6 shares are pending.

The following information is added to Fees and expenses :

Shareholder fees (fees paid directly from your investment)

		Maximum deferred sales charge
	Maximum sales charge (load)	(load) (as a percentage of original
	imposed on purchases (as a	purchase price or redemption
Share class	percentage of offering price)	proceeds, whichever is lower)
Class R5	NONE	NONE
Class R6	NONE	NONE

 

In the section Fees and expenses the Annual fund operating expenses table is deleted in its entirety and replaced with the following:

Annual fund operating expenses
(expenses you pay each year as a percentage of the value of your investment)

					Total
		Distribution		Acquired	annual fund
	Management	and service	Other	fund fees and	operating
Share class	fees	(12b-1) fees	expenses	expenses	expenses
Class A	0.64%	0.25%	0.39%	0.19%	1.47%
Class B	0.64%	1.00%	0.39%	0.19%	2.22%
Class C	0.64%	1.00%	0.39%	0.19%	2.22%
Class M	0.64%	0.75%	0.39%	0.19%	1.97%
Class R	0.64%	0.50%	0.39%	0.19%	1.72%
Class R5	0.64%	N/A	0.24%<	0.19%	1.07%
Class R6	0.64%	N/A	0.14%<	0.19%	0.97%
Class Y	0.64%	N/A	0.39%	0.19%	1.22%

< Other expenses are based on expenses of class A shares for the fund’s last fiscal year, adjusted to reflect the lower investor servicing fees applicable to class R5 and class R6 shares.

 

 

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In the section Fees and expenses the Example table is deleted in its entirety and replaced with the following:

Example

Share class	1 year	3 years	5 years	10 years
Class A	$716	$1,013	$1,332	$2,231
Class B	$725	$994	$1,390	$2,192
Class B (no redemption)	$225	$694	$1,190	$2,192
Class C	$325	$694	$1,190	$2,554
Class C (no redemption)	$225	$694	$1,190	$2,554
Class M	$543	$947	$1,375	$2,565
Class R	$175	$542	$933	$2,030
Class R5	$109	$340	$590	$1,306
Class R6	$99	$309	$536	$1,190
Class Y	$124	$387	$670	$1,477

The second sentence in How do I buy fund shares? — Which class of shares is best for me? is amended to read: “Employer-sponsored retirement plans may also choose class R, R5 or R6 shares, and certain investors described below may also choose class Y shares.”

The following information is added to How do I buy fund shares? — Here is a summary of the differences among the classes of shares:

Class R5 shares (available only to employer-sponsored retirement plans)

• No initial sales charge; your entire investment goes to work immediately

• No deferred sales charge

• Lower annual expenses, and higher dividends, than class A, B, C, M or R shares because of no 12b-1 fees and lower investor servicing fees

• Lower annual expenses, and higher dividends, than class Y shares because of lower investor servicing fees

• Higher annual expenses, and lower dividends, than class R6 shares because of higher investor servicing fees

Class R6 shares (available only to employer-sponsored retirement plans)

• No initial sales charge; your entire investment goes to work immediately

• No deferred sales charge

• Lower annual expenses, and higher dividends, than class A, B, C, M or R shares because of no 12b-1 fees and lower investor servicing fees

• Lower annual expenses, and higher dividends, than class R5 or Y shares because of lower investor servicing fees

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The following information is added to class Y shares (available only to investors listed below) in the section How do I buy fund shares? – Here is a summary of the differences among the classes of shares:

• Higher annual expenses, and lower dividends, than class R5 or R6 shares because of higher investor servicing fees.

                                _______________________________________

 

The last sentence in the subsection Distribution and service (12b-1) plans in the section Distribution plans and payments to dealers is amended to read:

Class R5, R6 and Y shares, for shareholders who are eligible to purchase them, will be less expensive than the other classes of shares because they do not bear sales charges or 12b-1 fees.

                                 _______________________________________

 

The table in the Financial Highlights section for the fund is revised, as set forth below, to include certain financial information derived from financial statements provided in the fund’s semiannual report dated 8/31/13.

 

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