<PAGE> PAGE 1
000 A000000 01/31/98
000 C000000 0000703969
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 PUTNAM OTC EMERGING GROWTH FUND
001 B000000 811-3512
001 C000000 6172921000
002 A000000 ONE POST OFFICE SQUARE
002 B000000 BOSTON
002 C000000 MA
002 D010000 02109
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 PUTNAM INVESTMENT MANAGEMENT, INC.
008 B000001 A
008 C000001 801-7974
008 D010001 BOSTON
008 D020001 MA
008 D030001 02109
011 A000001 PUTNAM MUTUAL FUNDS CORP.
011 B000001 8-5088
011 C010001 BOSTON
011 C020001 MA
011 C030001 02109
012 A000001 PUTNAM INVESTOR SERVICES
012 B000001 84-401299
012 C010001 BOSTON
012 C020001 MA
012 C030001 02109
013 A000001 COOPERS & LYBRAND L.L.P.
013 B010001 BOSTON
013 B020001 MA
<PAGE> PAGE 2
013 B030001 02109
015 A000001 PUTNAM FIDUCIARY TRUST COMPANY
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02109
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 94
019 C000000 PUTNAMFUND
020 A000001 CREDIT SUISSE FIRST BOSTON
020 C000001 135
020 A000002 DONALDSON, LUFKIN & JENRETTE
020 B000002 13-2741729
020 C000002 133
020 A000003 GOLDMAN SACHS & CO.
020 B000003 13-5108880
020 C000003 124
020 A000004 BEAR STERNS & CO.
020 B000004 13-4946705
020 C000004 88
020 A000005 MONTGOMERY SECURITIES
020 B000005 94-1701676
020 C000005 73
020 A000006 ROYAL ALLIANCE ASSOCIATES, INC.
020 B000006 93-0987232
020 C000006 64
020 A000007 HAMBRECHT & QUIST, INC.
020 B000007 94-2856935
020 C000007 40
020 A000008 INVESTMENT TECHNOLOGY
020 C000008 37
020 A000009 CHICAGO CORP.
020 B000009 36-2549961
020 C000009 35
020 A000010 JEFFRIES & CO.
020 B000010 95-2622900
020 C000010 35
021 000000 1263
022 A000001 GOLDMAN SACHS & CO.
022 B000001 13-5108880
022 C000001 3647847
022 D000001 112274
022 A000002 LEHMAN BROTHERS
022 B000002 13-2518466
022 C000002 2009289
022 D000002 25386
022 A000003 MORGAN (J.P.) SECURITIES INC.
022 B000003 13-3224016
022 C000003 664244
<PAGE> PAGE 3
022 D000003 48715
022 A000004 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
022 B000004 13-5674085
022 C000004 389071
022 D000004 16244
022 A000005 CREDIT SUISSE FIRST BOSTON
022 C000005 309670
022 D000005 60281
022 A000006 BROWN (ALEX) & SONS, INC.
022 B000006 52-0256630
022 C000006 144350
022 D000006 133198
022 A000007 MONTGOMER SECURITIES
022 B000007 94-1701676
022 C000007 142977
022 D000007 89133
022 A000008 CITICORP INVESTMENT BANK - CITIBANK
022 B000008 13-5266470
022 C000008 204954
022 D000008 0
022 A000009 SALOMON BROTHERS INC.
022 B000009 13-3082694
022 C000009 76737
022 D000009 111953
022 A000010 DONALDSON, LUFKIN & JENRETTE SECURITIES CORP.
022 B000010 13-2741729
022 C000010 33814
022 D000010 132975
023 C000000 8528351
023 D000000 1645824
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 Y
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 Y
026 G020000 Y
026 H000000 N
027 000000 Y
028 A010000 560247
028 A020000 0
<PAGE> PAGE 4
028 A030000 0
028 A040000 603593
028 B010000 613959
028 B020000 0
028 B030000 0
028 B040000 545695
028 C010000 273030
028 C020000 0
028 C030000 0
028 C040000 264672
028 D010000 191885
028 D020000 0
028 D030000 0
028 D040000 181957
028 E010000 253344
028 E020000 0
028 E030000 0
028 E040000 248910
028 F010000 233645
028 F020000 0
028 F030000 0
028 F040000 242293
028 G010000 2126110
028 G020000 0
028 G030000 0
028 G040000 2087120
028 H000000 2126110
029 000000 Y
030 A000000 3953
030 B000000 5.75
030 C000000 3.50
031 A000000 636
031 B000000 0
032 000000 3317
033 000000 0
034 000000 Y
035 000000 1358
036 A000000 N
036 B000000 0
037 000000 Y
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
<PAGE> PAGE 5
042 H000000 0
043 000000 9415
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 500000
048 A020000 0.700
048 B010000 500000
048 B020000 0.600
048 C010000 500000
048 C020000 0.550
048 D010000 5000000
048 D020000 0.500
048 E010000 5000000
048 E020000 0.475
048 F010000 5000000
048 F020000 0.455
048 G010000 5000000
048 G020000 0.440
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 21500000
048 K020000 0.430
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 N
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
<PAGE> PAGE 6
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 500
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 Y
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 Y
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 Y
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 Y
<PAGE> PAGE 7
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 N
070 M010000 Y
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 1968835
071 B000000 2124562
071 C000000 3588021
071 D000000 55
072 A000000 6
072 B000000 3901
072 C000000 1240
072 D000000 0
072 E000000 0
072 F000000 10265
072 G000000 18
072 H000000 0
072 I000000 2718
072 J000000 -21
072 K000000 339
072 L000000 74
072 M000000 33
072 N000000 12
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 36
072 S000000 18
072 T000000 9415
072 U000000 0
072 V000000 0
072 W000000 261
072 X000000 23168
<PAGE> PAGE 8
072 Y000000 0
072 Z000000 -18027
072AA000000 189949
072BB000000 0
072CC010000 0
072CC020000 164617
072DD010000 0
072DD020000 0
072EE000000 0
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 728
074 B000000 36878
074 C000000 149442
074 D000000 0
074 E000000 0
074 F000000 3485465
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 87725
074 K000000 0
074 L000000 9750
074 M000000 0
074 N000000 3769988
074 O000000 36680
074 P000000 4471
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 14077
074 S000000 0
074 T000000 3714760
074 U010000 141222
074 U020000 74642
074 V010000 16.06
074 V020000 15.43
074 W000000 0.0000
074 X000000 296146
074 Y000000 0
075 A000000 0
075 B000000 3726089
076 000000 0.00
077 A000000 Y
077 C000000 Y
080 A000000 FEDERAL INSURANCE COMPANY
080 B000000 NATIONAL UNION FIRE INSURANCE COMPANY
080 C000000 50000
<PAGE> PAGE 9
081 A000000 Y
081 B000000 93
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE PAUL BUCUVALIS
TITLE VICE PRESIDENT
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Putnam OTC Emerging Growth Fund
</LEGEND>
<SERIES>
<NUMBER> 4
<NAME> CLASS A
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JAN-31-1998
<INVESTMENTS-AT-COST> 2,958,291,234
<INVESTMENTS-AT-VALUE> 3,671,785,149
<RECEIVABLES> 97,474,563
<ASSETS-OTHER> 727,982
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,769,987,694
<PAYABLE-FOR-SECURITIES> 36,680,017
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 18,547,322
<TOTAL-LIABILITIES> 55,227,339
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,133,963,487
<SHARES-COMMON-STOCK> 141,222,334
<SHARES-COMMON-PRIOR> 141,772,163
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (18,033,583)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (114,663,464)
<ACCUM-APPREC-OR-DEPREC> 713,493,915
<NET-ASSETS> 3,714,760,355
<DIVIDEND-INCOME> 1,239,888
<INTEREST-INCOME> 3,901,321
<OTHER-INCOME> 0
<EXPENSES-NET> 23,168,617
<NET-INVESTMENT-INCOME> (18,027,408)
<REALIZED-GAINS-CURRENT> 189,948,578
<APPREC-INCREASE-CURRENT> (164,617,161)
<NET-CHANGE-FROM-OPS> 7,304,009
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 97,250,119
<NUMBER-OF-SHARES-REDEEMED> (97,799,948)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 46,518,827
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (6,175)
<OVERDIST-NET-GAINS-PRIOR> (304,612,042)
<GROSS-ADVISORY-FEES> 10,264,619
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 23,789,212
<AVERAGE-NET-ASSETS> 2,277,978,310
<PER-SHARE-NAV-BEGIN> 16.02
<PER-SHARE-NII> (.06)
<PER-SHARE-GAIN-APPREC> .10
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.06
<EXPENSE-RATIO> .51
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Putnam OTC Emerging Growth Fund
</LEGEND>
<SERIES>
<NUMBER> 4
<NAME> CLASS B
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JAN-31-1998
<INVESTMENTS-AT-COST> 2,958,291,234
<INVESTMENTS-AT-VALUE> 3,671,785,149
<RECEIVABLES> 97,474,563
<ASSETS-OTHER> 727,982
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,769,987,694
<PAYABLE-FOR-SECURITIES> 36,680,017
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 18,547,322
<TOTAL-LIABILITIES> 55,227,339
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,133,963,487
<SHARES-COMMON-STOCK> 76,641,862
<SHARES-COMMON-PRIOR> 72,303,391
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (18,033,583)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (114,663,464)
<ACCUM-APPREC-OR-DEPREC> 713,493,915
<NET-ASSETS> 3,714,760,355
<DIVIDEND-INCOME> 1,239,888
<INTEREST-INCOME> 3,901,321
<OTHER-INCOME> 0
<EXPENSES-NET> 23,168,617
<NET-INVESTMENT-INCOME> (18,027,408)
<REALIZED-GAINS-CURRENT> 189,948,578
<APPREC-INCREASE-CURRENT> (164,617,161)
<NET-CHANGE-FROM-OPS> 7,304,009
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 26,459,599
NUMBER-OF-SHARES-REDEEMED> (24,121,128)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 46,518,827
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (6,175)
<OVERDIST-NET-GAINS-PRIOR> (304,612,042)
<GROSS-ADVISORY-FEES> 10,264,619
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 23,789,212
<AVERAGE-NET-ASSETS> 1,157,857,970
<PER-SHARE-NAV-BEGIN> 15.45
<PER-SHARE-NII> (.11)
<PER-SHARE-GAIN-APPREC> .09
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.43
<EXPENSE-RATIO> .89
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Putnam OTC Emerging Growth Fund
</LEGEND>
<SERIES>
<NUMBER> 4
<NAME> CLASS M
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JAN-31-1998
<INVESTMENTS-AT-COST> 2,958,291,234
<INVESTMENTS-AT-VALUE> 3,671,785,149
<RECEIVABLES> 97,474,563
<ASSETS-OTHER> 727,982
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,769,987,694
<PAYABLE-FOR-SECURITIES> 36,680,017
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 18,547,322
<TOTAL-LIABILITIES> 55,227,339
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,133,963,487
<SHARES-COMMON-STOCK> 12,649,243
<SHARES-COMMON-PRIOR> 11,240,228
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (18,033,583)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (114,663,464)
<ACCUM-APPREC-OR-DEPREC> 713,493,915
<NET-ASSETS> 3,714,760,355
<DIVIDEND-INCOME> 1,239,888
<INTEREST-INCOME> 3,901,321
<OTHER-INCOME> 0
<EXPENSES-NET> 23,168,617
<NET-INVESTMENT-INCOME> (18,027,408)
<REALIZED-GAINS-CURRENT> 189,948,578
<APPREC-INCREASE-CURRENT> (164,617,161)
<NET-CHANGE-FROM-OPS> 7,304,009
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,305,290
<NUMBER-OF-SHARES-REDEEMED> (6,896,275)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 46,518,827
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (6,175)
<OVERDIST-NET-GAINS-PRIOR> (304,612,042)
<GROSS-ADVISORY-FEES> 10,264,619
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 23,789,212
<AVERAGE-NET-ASSETS> 188,982,748
<PER-SHARE-NAV-BEGIN> 15.78
<PER-SHARE-NII> (.10)
<PER-SHARE-GAIN-APPREC> .09
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.77
<EXPENSE-RATIO> .76
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Putnam OTC Emerging Growth Fund
</LEGEND>
<SERIES>
<NUMBER> 4
<NAME> CLASS Y
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JAN-31-1998
<INVESTMENTS-AT-COST> 2,958,291,234
<INVESTMENTS-AT-VALUE> 3,671,785,149
<RECEIVABLES> 97,474,563
<ASSETS-OTHER> 727,982
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,769,987,694
<PAYABLE-FOR-SECURITIES> 36,680,017
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 18,547,322
<TOTAL-LIABILITIES> 55,227,339
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,133,963,487
<SHARES-COMMON-STOCK> 5,935,597
<SHARES-COMMON-PRIOR> 6,396,138
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (18,033,583)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (114,663,464)
<ACCUM-APPREC-OR-DEPREC> 713,493,915
<NET-ASSETS> 3,714,760,355
<DIVIDEND-INCOME> 1,239,888
<INTEREST-INCOME> 3,901,321
<OTHER-INCOME> 0
<EXPENSES-NET> 23,168,617
<NET-INVESTMENT-INCOME> (18,027,408)
<REALIZED-GAINS-CURRENT> 189,948,578
<APPREC-INCREASE-CURRENT> (164,617,161)
<NET-CHANGE-FROM-OPS> 7,304,009
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 844,861
<NUMBER-OF-SHARES-REDEEMED> (1,305,402)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 46,518,827
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (6,175)
<OVERDIST-NET-GAINS-PRIOR> (304,612,042)
<GROSS-ADVISORY-FEES> 10,264,619
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 23,789,212
<AVERAGE-NET-ASSETS> 101,272,869
<PER-SHARE-NAV-BEGIN> 16.08
<PER-SHARE-NII> (.04)
<PER-SHARE-GAIN-APPREC> .10
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.14
<EXPENSE-RATIO> .39
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
