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Putnam
Small Cap Value Fund
| Summary Prospectus | June 30, 2025 | |||
| Class A | Class C | Class R | Class R6 | Class Y |
| PSLAX | PSLCX | PSCRX | PSCMX | PYSVX |
Before you invest, you may want to review the fund’s prospectus, which contains more information about the fund and its risks. You can find the fund’s prospectus, statement of additional information, reports to shareholders and other information about the fund online at www.franklintempleton.com/prospectus. You can also get this information at no cost by calling 1-800-225-1581 or by sending an e-mail request to funddocuments@putnam.com.
The fund’s prospectus and statement of additional information, both dated June 30, 2025, as may be supplemented, are all incorporated by reference into this Summary Prospectus.
Goal
The fund seeks capital appreciation.
Fees and expenses
The following tables describe the fees and expenses you may pay if you buy, hold and sell shares of the fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Putnam funds. More information about these and other discounts is available from your financial professional and in How do I buy fund shares? beginning on page 16 of the fund's prospectus, in the Appendix to the fund's prospectus, and in How to buy shares beginning on page 16 of the fund's statement of additional information (“SAI”).
| Shareholder Fees (fees paid directly from your investment) | |||||||||||||||
| Share class | Maximum
sales charge (load) imposed on purchases (as a percentage of offering price) |
Maximum
deferred sales charge (load) (as a percentage of original purchase price or redemption proceeds, whichever is lower) | |||||||||||||
| Class A | 5.75% | 1.00%1 | |||||||||||||
| Class C | None | 1.00%2 | |||||||||||||
| Class R | None | None | |||||||||||||
| Class R6 | None | None | |||||||||||||
| Class Y | None | None | |||||||||||||
| 1 | Applies only to certain redemptions of shares bought with no initial sales charge. |
| 2 | This charge is eliminated after one year. |
| Annual
Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment) | ||||||||||
| Share class |
Management fees |
Distribution and service (12b-1) fees |
Other expenses |
Total
annual fund operating expenses |
||||||
| Class A | 0.61% | 0.25% | 0.28% | 1.14% | ||||||
| Class C | 0.61% | 1.00% | 0.28% | 1.89% | ||||||
| Class R | 0.61% | 0.50% | 0.28% | 1.39% | ||||||
| Class R6 | 0.61% | None | 0.15% | 0.76% | ||||||
| Class Y | 0.61% | None | 0.28% | 0.89% | ||||||
Example
The following hypothetical example is intended to help you compare the cost of investing in the fund with the cost of investing in other funds. It assumes that you invest $10,000 in the fund for the time periods indicated and then, except as indicated, redeem all your shares at the end of those periods. It assumes a 5% return on your investment each year and that the fund’s operating expenses remain the same. Your actual costs may be higher or lower.
| Share class | 1 year | 3 years | 5 years | 10 years | |||||
| Class A | $685 | $916 | $1,167 | $1,881 | |||||
| Class C | $292 | $594 | $1,021 | $2,016 | |||||
| Class C (no redemption) | $192 | $594 | $1,021 | $2,016 | |||||
| Class R | $142 | $440 | $761 | $1,669 | |||||
| Class R6 | $78 | $243 | $422 | $942 | |||||
| Class Y | $91 | $284 | $493 | $1,096 | |||||
Portfolio turnover
The fund pays transaction-related costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher turnover rate may indicate higher transaction costs and may result in higher taxes when the fund’s shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or the above example, affect fund performance. The fund’s turnover rate in the most recent fiscal year was 86%.
Investments, risks, and performance
Investments
The fund invests mainly in common stocks of small U.S. companies, with a focus on value stocks. Value stocks are issued by companies that the fund’s portfolio managers believe are currently undervalued by the market. If correct, and other investors ultimately recognize the value of the company, the price of its stock may rise. Under normal circumstances, the fund invests at least 80% of its net assets in companies of a size similar to those in the Russell 2000 Value Index. This policy may be changed only after 60 days' notice to shareholders. As of April 30, 2025, the index was composed of companies having market capitalizations of between approximately $6.3 million and $17.8 billion. The fund’s portfolio managers may consider, among other factors, a company’s valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends when deciding whether to buy or sell investments.
Risks
It is important to understand that you can lose money by investing in the fund.
Market risk: The value of investments in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political or financial market conditions, investor sentiment and market perceptions, government actions, geopolitical events or changes, outbreaks of infectious illnesses or other widespread public health issues, and factors related to a specific issuer, asset class, geography, industry or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings, may negatively impact the fund’s performance, and may exacerbate other risks to which the fund is subject.
Common stock risk: Common stock represents an ownership interest in a company. The value of a company’s stock may fall or fail to rise as a result of factors directly relating to that company, such as decisions made by its management or lower demand for the company’s products or services. A stock’s value may also fall because of factors affecting not just the company, but also other companies in the same industry or in a number of different industries, such as increases in production costs. Companies whose stocks the fund’s portfolio managers believe are undervalued by the market may have experienced adverse business developments or may be subject to special risks that have caused their stocks to be out of favor. Value stocks may fail to rebound, and the market may not favor value-style investing. These risks are generally greater for small and midsize companies. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors.
Large shareholder transaction risk: The fund is subject to the risk that shareholders will purchase or redeem large quantities of shares of the fund. The fund may be an investment option for mutual funds that are managed by the Investment Manager, as defined below, and its affiliates as “funds of funds.” Additionally, other investors from time to time may make substantial investments in the fund. Such shareholders may at times be considered to control the fund. In addition, a large number of shareholders may collectively purchase or redeem fund shares in large amounts rapidly or unexpectedly. Large shareholder transactions may adversely affect the fund’s liquidity and net assets. These redemptions may also adversely affect the fund’s performance if the fund is forced to sell securities, which may also increase the fund’s brokerage costs.
Management and operational risk: There is no guarantee that the investment techniques, analyses, or judgments that the Investment Manager applies in making investment decisions for the fund will produce the intended outcome or that the investments selected for the fund will perform as well as other securities that were not selected for the fund. The Investment Manager, or the fund's other service providers, may experience disruptions or operating errors that could negatively impact the fund.
The fund may not achieve its goal, and it is not intended to be a complete investment program. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Performance
The accompanying bar chart and table provide some indication of the risks of investing in the fund. The bar chart shows changes in the fund’s performance from year to year for Class A shares. The table shows the average annual total returns of each class of the fund that has been in operation for at least one full calendar year and also compares the fund’s performance with the average annual total returns of a broad measure of market performance and an additional index with characteristics relevant to the fund. Performance for classes other than those shown may vary from the performance shown to the extent the expenses for those classes differ. The fund makes updated performance information, including its current net asset value per share, available at www.franklintempleton.com.
The fund’s past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future.
Sales charges are not reflected in the accompanying bar chart, and if those charges were included, returns would be less than those shown.
Annual total returns for class A shares before sales charges
| Best Quarter: | Q4 2020 | 34.11% |
| Worst Quarter: | Q1 2020 | -40.59% |
| As of March 31, 2025, the year-to-date return was -7.16%. | ||
Average annual total returns after sales charges
(for periods ended 12/31/24)
| Share class | 1 year | 5 years | 10 years | ||
| Class A before taxes | 0.13% | 9.14% | 7.29% | ||
| Class A after taxes on distributions | -1.36% | 8.30% | 5.15% | ||
| Class A after taxes on distributions and sale of fund shares | 0.74% | 7.09% | 5.01% | ||
| Class C before taxes | 4.45% | 9.61% | 7.27% | ||
| Class R before taxes | 5.94% | 10.18% | 7.66% | ||
| Class R6 before taxes | 6.67% | 10.90% | 8.37% | ||
| Class Y before taxes | 6.53% | 10.72% | 8.20% | ||
| Russell 3000 Index (no deduction for fees, expenses or taxes) | 23.81% | 13.86% | 12.55% | ||
| Russell 2000 Value Index (no deduction for fees, expenses or taxes) | 8.05% | 7.29% | 7.14% | ||
After-tax returns reflect the historical highest individual federal marginal income tax rates and do not reflect state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns are shown for class A shares only and will vary for other classes. These after-tax returns do not apply if you hold your fund shares through a 401(k) plan, an IRA, or another tax-advantaged arrangement.
Class C share performance reflects conversion to class A shares after eight years.
Important data provider notices and terms are available at www.franklintempletondatasources.com. All data is subject to change.
Your fund's management
Investment Manager
Putnam Investment Management, LLC (“Putnam Management” or the "Investment Manager")
Sub-advisors
Franklin Advisers, Inc. (“Franklin Advisers”)
Franklin Templeton Investment Management Limited (“FTIML”)
Portfolio manager
Michael
Petro, CFA
Portfolio Manager of Putnam Management and portfolio manager of the fund since 2019.
Purchase and sale of fund shares
You can open an account, purchase and/or sell fund shares, or exchange them for shares of another Putnam fund by contacting your financial professional or by calling Putnam Investor Services at 1-800-225-1581.
When opening an account, you must complete and mail a Putnam account application, along with a check made payable to the fund, to: Putnam Investor Services, P.O. Box 219697, Kansas City, MO 64121-9697. The minimum initial investment of $500 is currently waived, although the fund reserves the right to reject initial investments under $500 at its discretion. There is no minimum for subsequent investments.
You can sell your shares back to the fund or exchange them for shares of another Putnam fund any day the New York Stock Exchange (“NYSE”) is open. Shares may be sold or exchanged by mail, by phone, or, for exchanges only, online at www.franklintempleton.com. Some restrictions may apply.
Tax information
The fund’s distributions will be taxed as ordinary income or capital gains unless you hold the shares through a tax-advantaged arrangement, in which case you will generally be taxed only upon withdrawal of monies from the arrangement.
Financial intermediary compensation
If you purchase the fund through a broker/dealer or other financial intermediary (such as a bank or financial professional), the fund and its related companies may pay that intermediary for the sale of fund shares and related services. Please bear in mind that these payments may create a conflict of interest by influencing the broker/dealer or other intermediary to recommend the fund over another investment. Ask your advisor or visit your advisor’s website for more information.
Information about the Summary Prospectus, Prospectus, and SAI
The summary prospectus, prospectus, and SAI for a fund provide information concerning the fund. The summary prospectus, prospectus, and SAI are updated at least annually and any information provided in a summary prospectus, prospectus, or SAI can be changed without a shareholder vote unless specifically stated otherwise. The summary prospectus, prospectus, and the SAI are not contracts between the fund and its shareholders and do not give rise to any contractual rights or obligations or any shareholder rights other than any rights conferred explicitly by federal or state securities laws that may not be waived.
Additional information, including current performance, is available at www.franklintempleton.com, by calling 1-800-225-1581, or by e-mailing Putnam at funddocuments@putnam.com.
38984- PSUM 06/25 |