PUTNAM CALIFORNIA TAX EXEMPT MONEY MARKET FUND
PROSPECTUS SUPPLEMENT DATED MARCH 31, 1994 TO PROSPECTUS DATED
FEBRUARY 1, 1994
NOTE: THE FOLLOWING APPLIES ONLY TO THE PUTNAM CALIFORNIA TAX
EXEMPT MONEY MARKET FUND AND DOES NOT APPLY TO PUTNAM CALIFORNIA
TAX EXEMPT INCOME FUND
On December 3, 1993, the Trustees of Putnam California Tax
Exempt Money Market Fund (the "California Money Market Fund") and
Putnam Tax Exempt Money Market Fund (the "Money Market Fund")
approved a proposed plan of reorganization pursuant to which the
Money Market Fund will acquire all of the assets and assume all
of the liability of the California Money Market Fund. The
proposed reorganization is subject to the approval of the
shareholders of the California Money Market Fund. Under the plan
of reorganization, shareholders would receive one share of the
Money Market Fund for each share of the California Money Market
Fund held by them.
The Money Market Fund normally invests at least 80% of its
net assets in short-term Tax-Exempt Securities (as defined in its
Prospectus). However, dividends paid by the Money Market Fund to
residents of California may be subject to state and local income
tax.
