Why Putnam Equity Income Fund?

• Has a 4-star Morningstar rating for several time periods as of 12/31/11
• Has an experienced manager who seeks large-company stocks that are priced below their
  long-term potential
• Since 1977, it has sought to harness the power of stock dividends for investors

Morningstar ratings

Top 10 holdings as of 12/31/11

Annualized total return performance as of 12/31/11

Total expense ratio: 1.17%

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or a loss when you sell your shares. Performance of class A shares after sales charge assumes reinvestment of distributions and does not account for taxes. After–sales–charge returns reflect a maximum 5.75% load. The fund's expense ratio is taken from the most recent prospectus and is subject to change. For the most recent month-end performance, visit putnam.com/funds/equity-income-performance.htm. The Russell 1000 Value Index is an unmanaged index of those companies in the large-cap Russell 1000 Index chosen for their value orientation. You cannot invest directly in an index.

About Putnam Equity Income Fund

• Portfolio characteristics
• Performance detail
• Fact sheet (PDF)
• Prospectus (PDF)
• Annual report (PDF)
• Semiannual report (PDF)

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Morningstar rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. Data is historical. Past performance is no guarantee of future results. Morningstar Ratings shown are for class A shares only; other classes may have different performance characteristics.

Recent performance benefited from receipt of an Enron Class Action Settlement pertaining to investments made prior to 2002.

Consider these risks before investing: Value stocks may fail to rebound, and the market may not favor value-style investing. Income provided by the fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the fund invests.

Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, contact your financial representative, call Putnam at 1-888-4-PUTNAM (1-888-478-8626), or click on the prospectus section to view or download a prospectus. Please read the prospectus carefully before investing.

© Putnam Retail Management