37437 10/97
Prospectus Supplement dated October 10, 1997 to:
Putnam California Tax Exempt Income Fund
Prospectus dated January 30, 1997
Putnam Municipal Income Fund
Prospectus dated July 30, 1997
Putnam New York Tax Exempt Income Fund
Prospectus dated January 30, 1997
Putnam New York Tax Exempt Opportunities Fund
Prospectus dated January 30, 1997
Putnam Preferred Income Fund
Prospectus dated March 30, 1997
Putnam Tax Exempt Income Fund
Prospectus dated January 30, 1997
Putnam Tax-Free High Yield Fund
Prospectus dated November 30, 1996, as revised May 30, 1997
Putnam Tax-Free Insured Fund
Prospectus dated November 30, 1996, as revised May 30, 1997
Effective October 31, 1997, the paragraph under the table in the
section "How to buy shares - Class M shares" is replaced with the
following:
Members of qualified groups may purchase Class M shares
without a sales charge.
s:\funds\suppleme\mnav.tef
