PUTNAM CALIFORNIA TAX EXEMPT INCOME FUND
PUTNAM CALIFORNIA TAX EXEMPT MONEY MARKET FUND
Prospectus Supplement dated May 6, 1996
to Prospectus dated February 1, 1996
The following disclosure is added to the cover page of the
prospectus:
The Money Market Fund may invest a significant percentage of its
assets in the securities of a single issuer, and an investment in
the fund may therefore be riskier than an investment in other
types of money market funds.
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The following sentence is added at the end of the second
paragraph under the heading "How the funds pursue their
objectives - Basic investment strategy - The Money Market Fund"
on page 11 of the prospectus:
The Money Market Fund's investments are concentrated in
California tax-exempt securities, and an investment in the fund
may therefore be riskier than an investment in money market funds
that do not concentrate their investments in tax-exempt
securities of a single state.
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The following paragraph is inserted after the fourth paragraph
under the section "Organization and history" on page 25.
Although each fund is offering only its own shares in this
prospectus, it is possible that a fund might become liable for
any misstatement in the prospectus about another fund. The
Trustees of each fund have considered this factor in approving
the use of a single prospectus.
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