Putnam 529 for America

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Putnam Absolute Return Funds

Putnam 529 for America is the only 529 account to offer absolute return funds as an investment option.

The funds are designed to help you meet your college savings goals with potentially lower volatility than more traditional mutual fund investments. Your financial advisor can help you choose the fund mix that suits your goal.

The funds seek positive results 1%, 3%, 5%, and 7% above the returns of U.S. T-bills while employing strategies that may produce lower volatility over time.

Putnam Absolute Return Funds can be an ally in helping to navigate today's market volatility.
529 plans with absolute return fund options

Chart does not represent the performance of Putnam Absolute Return Funds. Actual performance can be found here. The 3-year annualized return of the BofA Merrill Lynch 1-month T-Bill Index through 3/31/16 was 0.11%. You cannot invest directly in an index.

The funds' strategies are designed to be largely independent of market direction, and the funds are not intended to outperform stocks and bonds during strong market rallies.

Consider these risks before investing: Our allocation of assets among permitted asset categories may hurt performance. The prices of stocks and bonds in the funds’ portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including both general financial market conditions and factors related to a specific issuer or industry. Our active trading strategy may lose money or not earn a return sufficient to cover associated trading and other costs. Our use of leverage obtained through derivatives increases these risks by increasing investment exposure. Bond investments are subject to interest-rate risk, which means the prices of the funds’ bond investments are likely to fall if interest rates rise. Bond investments also are subject to credit risk, which is the risk that the issuer of the bond may default on payment of interest or principal. Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds, which may be considered speculative. Unlike bonds, funds that invest in bonds have ongoing fees and expenses. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. Additional risks may be associated with emerging-market securities, including illiquidity and volatility. The use of derivatives involves additional risks, such as the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. The funds may not achieve their goal, and they are not intended to be a complete investment program. The funds’ effort to produce lower volatility returns may not be successful and may make it more difficult at times for the funds to achieve their targeted return. In addition, under certain market conditions, the funds may accept greater volatility than would typically be the case, in order to seek their targeted return. For the 500 Fund and 700 Fund, these risks also apply: REITs involve the risks of real estate investing, including declining property values. Commodities involve the risks of changes in market, political, regulatory, and natural conditions. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Additional risks are listed in the funds’ prospectus.