Equity Income Fund Annual Report - Putnam Investments

Comparative index returns For periods ended 11/30/13Lipper Equity Income FundsRussell 1000 Value Indexcategory average *Annual average (life of fund) —† 10.91 %10 years 115.09 118.06Annual average 7.96 8.025 years 113.72 108.18Annual average 16.40 15.713 years 64.51 54.42Annual average 18.05 15.551 year 31.92 26.27Index and Lipper results should be compared with fund performance before sales charge, before CDSC, or at netasset value.* Over the 1-year, 3-year, 5-year, 10-year, and life-of-fund periods ended 11/30/13, there were, 390, 294, 263, 140, and4 funds, respectively, in this Lipper category.† The fund’s benchmark, the Russell 1000 Value Index, was introduced on 12/31/78, which post-dates the inception ofthe fund’s class A shares.Change in the value of a $10,000 investment ($9,425 after sales charge)Cumulative total return from 11/30/03 to 11/30/13Putnam Equity Income Fund class A shares after sales chargeRussell 1000 Value Index$22,465$21,509$9,425’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13Past performance does not indicate future results. At the end of the same time period, a $10,000 investment in thefund’s class B and class C shares would have been valued at $22,458 and $22,116, respectively, and no contingentdeferred sales charges would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge)would have been valued at $21,878. A $10,000 investment in the fund’s class R, R5, R6, and Y shares would havebeen valued at $23,249, $24,503, $24,523, and $24,446, respectively.Equity Income Fund 11