Total

Putnam Ultra Short Duration Income Fund*

*Prior to June 1, 2019, the fund was known as Putnam Short Duration Income Fund.

Fund summary

Goal

Putnam Ultra Short Duration Income Fund seeks as high a rate of current income as Putnam Investment Management, LLC believes is consistent with preservation of capital and maintenance of liquidity.

Fees and expenses

The following tables describe the fees and expenses you may pay if you buy and hold shares of the fund. Information about sales charge discounts is available from your financial advisor and in the Appendix to the fund’s prospectus.

Shareholder fees (fees paid directly from your investment)

Shareholder Fees - Putnam Ultra Short Duration Income Fund*	Class A		Class B		Class C		Class N		Class R	Class R6	Class Y
Maximum sales charge (load) imposed on purchases (as a percentage of offering price)	none		none		none		1.50%		none	none	none
Maximum deferred sales charge (load) (as a percentage of original purchase price or redemption proceeds, whichever is lower)	none	[1]	none	[2]	none	[3]	0.25%	[4]	none	none	none

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

Annual Fund Operating Expenses - Putnam Ultra Short Duration Income Fund*		Class A	Class B	Class C	Class N		Class R	Class R6	Class Y
Management fees	[1]	0.28%	0.28%	0.28%	0.28%		0.28%	0.28%	0.28%
Distribution and service (12b-1) fees		0.10%	0.50%	0.50%	0.25%		0.50%
Other expenses		0.10%	0.10%	0.10%	0.10%	[2]	0.10%	0.09%	0.10%
Total annual fund operating expenses		0.48%	0.88%	0.88%	0.63%		0.88%	0.37%	0.38%
Expense reimbursement	[3]	(0.08%)	(0.08%)	(0.08%)	(0.08%)		(0.08%)	(0.08%)	(0.08%)
Total annual fund operating expenses after expense reimbursement		0.40%	0.80%	0.80%	0.55%		0.80%	0.29%	0.30%

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 or hold 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. Only the first year of each period in the example takes into account the expense reimbursement described above. Your actual costs may be higher or lower.

Expense Example - Putnam Ultra Short Duration Income Fund* - USD ($)		Expense Example, with Redemption, 1 Year	Expense Example, with Redemption, 3 Years	Expense Example, with Redemption, 5 Years	Expense Example, with Redemption, 10 Years
Class A		41	146	261	596
Class B	[1]	582	573	680	962
Class C		182	273	480	1,077
Class N		205	341	488	917
Class R		82	273	480	1,077
Class R6		30	111	200	460
Class Y		31	114	205	473

Expense Example, No Redemption	Expense Example, No Redemption, 1 Year	Expense Example, No Redemption, 3 Years	Expense Example, No Redemption, 5 Years	Expense Example, No Redemption, 10 Years
Putnam Ultra Short Duration Income Fund* | Class B | USD ($)	82	273	480	962

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 27%.

Investments, risks, and performance

Investments
We invest in a diversified portfolio of fixed income securities comprised of short duration, investment-grade money market and other fixed income securities. The fund’s investments may include obligations of the U.S. government, its agencies and instrumentalities, which are backed by the full faith and credit of the United States (e.g., U.S. Treasury bonds and Ginnie Mae mortgage-backed bonds) or by only the credit of a federal agency or government-sponsored entity (e.g., Fannie Mae or Freddie Mac mortgage-backed bonds), domestic corporate debt obligations, taxable municipal debt securities, securitized debt instruments (such as mortgage- and asset-backed securities), repurchase agreements, certificates of deposit, bankers acceptances, commercial paper (including asset-backed commercial paper), time deposits, Yankee Eurodollar securities and other money market instruments. We may also invest in U.S. dollar-denominated foreign securities of these types. Under normal circumstances, the effective duration of the fund’s portfolio will generally not be greater than one year. Effective duration provides a measure of a fund’s interest-rate sensitivity. The longer a fund’s duration, the more sensitive the fund is to shifts in interest rates. Under normal circumstances, the dollar-weighted average portfolio maturity of the fund is not expected to exceed three and one-half years.

We may consider, among other factors, credit, interest rate and prepayment risks, as well as general market conditions, when deciding whether to buy or sell investments. We may also use derivatives, such as futures, options and swap contracts, for both hedging and non-hedging purposes.

Risks

It is important to understand that you can lose money by investing in the fund.

The effects of inflation may erode the value of your investment over time. 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, and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings.

The risks associated with fixed-income investments include interest rate risk, which means the value of the fund’s investments is likely to fall if interest rates rise. Fixed income investments are also subject to credit risk, which is the risk that the issuer of a fixed income investment may default on payment of interest or principal. Credit risk is generally greater for debt not backed by the full faith and credit of the U.S. government, and interest rate risk is generally greater for longer-term debt. Mortgage-backed investments, unlike traditional debt investments, are also subject to prepayment risk, which means that they may increase in value less than other bonds when interest rates decline and decline in value more than other bonds when interest rates rise. We may have to invest the proceeds from prepaid investments, including mortgage-backed investments, in other investments with less attractive terms and yields.

Our use of derivatives may increase the risks of investing in the fund by increasing investment exposure (which may be considered leverage) or, in the case of many over-the-counter instruments, because of 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 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 performance information below gives some indication of the risks associated with an investment in the fund by showing the fund’s performance year to year and over time. The bar chart does not reflect the impact of sales charges. If it did, performance would be lower. Please remember that past performance is not necessarily an indication of future results. Monthly performance figures for the fund are available at putnam.com.

Annual total returns for class A shares before sales charges

Year-to-date performance
through 9/30/19  2.23%

Best calendar quarter
Q3 2018   0.56%

Worst calendar quarter
Q3 2015 −0.10%

Average annual total returns after sales charges (for periods ended 12/31/18)

Average Annual Total Returns - Putnam Ultra Short Duration Income Fund*		Label	1 Year	5 Years	Since Inception	Inception Date
Class A		before taxes	1.83%	0.98%	0.89%	Oct. 17, 2011
Class A | after taxes on distributions			0.96%	0.55%	0.53%	Oct. 17, 2011
Class A | after taxes on distributions and sale of fund shares			1.07%	0.55%	0.52%	Oct. 17, 2011
Class B		before taxes	1.43%	0.58%	0.49%	Oct. 17, 2011
Class C		before taxes	1.43%	0.58%	0.49%	Oct. 17, 2011
Class N	[1]	before taxes	0.25%	0.54%	0.55%	Oct. 17, 2011
Class R		before taxes	1.43%	0.58%	0.49%	Oct. 17, 2011
Class R6	[2]	before taxes	1.84%	1.06%	1.01%	Oct. 17, 2011
Class Y		before taxes	1.93%	1.06%	1.01%	Oct. 17, 2011
ICE BofAML U.S. Treasury Bill Index (no deduction for fees, expenses or taxes)			1.88%	0.64%	0.47%

ICE BofAML Indexes: ICE Data Indices, LLC (“ICE BofAML”), used with permission. ICE BofAML permits use of the ICE BofAML indices and related data on an “as is” basis; makes no warranties regarding same; does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofAML indices or any data included in, related to, or derived therefrom; assumes no liability in connection with the use of the foregoing; and does not sponsor, endorse, or recommend Putnam Investments, or any of its products or services.

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.

[1] Class A shares purchased directly from the fund are not subject to any contingent deferred sales charge (CDSC). However, class A shares of the fund that were obtained in exchange for class A shares of another Putnam Fund that were subject to a CDSC of 1.00% at the time of exchange may be subject to a CDSC unless the one-year CDSC period has expired or a CDSC waiver applies.

[2] Class B shares purchased directly from the fund are not subject to any CDSC. However, class B shares of the fund that were obtained in exchange for class B shares of another Putnam Fund that were subject to a CDSC of up to 5.00% at the time of exchange may be subject to a CDSC unless the prescribed time period has expired or a CDSC waiver applies.

[3] Class C shares purchased directly from the fund are not subject to any CDSC. However, class C shares of the fund that were obtained in exchange for class C shares of another Putnam Fund that were subject to a CDSC of 1.00% at the time of exchange may be subject to a CDSC unless the one-year CDSC period has expired or a CDSC waiver applies.

[4] Applies only to certain redemptions of shares bought with no initial sales charge.

[1] Restated to reflect current fees.

[2] Annualized.

[3] Reflects Putnam Investment Management, LLC's contractual obligation to waive its management fee for this fund through at least November 30, 2020. This obligation may be modified or discontinued only with approval of the Board of Trustees.

[1] Reflects assessment of deferred sales charge assuming class B shares were acquired by exchange from one or more other Putnam funds immediately after purchase of shares from such other fund(s)

[1] Performance for class N shares prior to their inception (11/1/18) is derived from the historical performance of class A shares, adjusted for the sales charge and higher 12b-1 fees currently applicable to class N shares.

[2] Performance for class R6 shares prior to their inception (7/2/12) is derived from the historical performance of class Y shares and has not been adjusted for the lower investor servicing fees applicable to class R6 shares; had it, returns would have been higher.