<PAGE> PAGE 1
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011 A00AA01 PUTNAM MUTUAL FUNDS CORP
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011 C01AA01 BOSTON
011 C02AA01 MA
011 C03AA01 02109
012 A00AA01 PUTNAM INVESTOR SERVICES
012 B00AA01 84-401299
012 C01AA01 BOSTON
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<PAGE> PAGE 2
012 C03AA01 02109
013 A00AA01 PRICE WATERHOUSE LLP
013 B01AA01 BOSTON
013 B02AA01 MA
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015 A00AA01 PUTNAM FIDUCIARY TRUST CO
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 11
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SIGNATURE GORDON H. SILVER
TITLE VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM PUTNAM TAX-FREE INSURED FUND ANNUAL REPORT (CLASS A) AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME>PUTNAM TAX-FREE INSURED FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1994
<PERIOD-END> JUL-31-1994
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM PUTNAM TAX-FREE INSURED FUND ANNUAL REPORT (CLASS B) AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> PUTNAM TAX-FREE INSURED FUND
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<PERIOD-TYPE> YEAR
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM PUTNAM TAX-FREE HIGH YIELD FUND ANNUAL REPORT (CLASS A) AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 2
<NAME> PUTNAM TAX-FREE HIGH YIELD FUND
<S> <C>
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<PERIOD-END> JUL-31-1994
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<DISTRIBUTIONS-OF-GAINS> ($1,181,683)
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<PER-SHARE-DISTRIBUTIONS> ($0.05)
<RETURNS-OF-CAPITAL> ($0.07)
<PER-SHARE-NAV-END> $14.24
<EXPENSE-RATIO> 1
<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>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM PUTNAM TAX-FREE HIGH YIELD FUND ANNUAL REPORT(CLASS B) AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 2
<NAME> PUTNAM TAX-FREE HIGH YIELD FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1994
<PERIOD-END> JUL-31-1994
<INVESTMENTS-AT-COST> $1,846,104,032
<INVESTMENTS-AT-VALUE> $1,860,972,540
<RECEIVABLES> $59,365,433
<ASSETS-OTHER> $85,106
<OTHER-ITEMS-ASSETS> $0
<TOTAL-ASSETS> $1,920,423,079
<PAYABLE-FOR-SECURITIES> $26,365,075
<SENIOR-LONG-TERM-DEBT> $0
<OTHER-ITEMS-LIABILITIES> $9,509,242
<TOTAL-LIABILITIES> $35,874,317
<SENIOR-EQUITY> $0
<PAID-IN-CAPITAL-COMMON> $1,893,315,091
<SHARES-COMMON-STOCK> 106,941,561
<SHARES-COMMON-PRIOR> 100,040,549
<ACCUMULATED-NII-CURRENT> $0
<OVERDISTRIBUTION-NII> ($3,464,463)
<ACCUMULATED-NET-GAINS> $0
<OVERDISTRIBUTION-GAINS> ($18,839,125)
<ACCUM-APPREC-OR-DEPREC> $13,537,258
<NET-ASSETS> $1,884,548,761
<DIVIDEND-INCOME> $0
<INTEREST-INCOME> $128,769,616
<OTHER-INCOME> $0
<EXPENSES-NET> $24,014,132
<NET-INVESTMENT-INCOME> $104,755,484
<REALIZED-GAINS-CURRENT> ($13,212,683)
<APPREC-INCREASE-CURRENT> ($74,498,222)
<NET-CHANGE-FROM-OPS> $17,044,579
<EQUALIZATION> $0
<DISTRIBUTIONS-OF-INCOME> ($85,899,497)
<DISTRIBUTIONS-OF-GAINS> ($5,005,098)
<DISTRIBUTIONS-OTHER> ($7,083,690)
<NUMBER-OF-SHARES-SOLD> 37,754,456
<NUMBER-OF-SHARES-REDEEMED> 34,185,478
<SHARES-REINVESTED> 3,332,034
<NET-CHANGE-IN-ASSETS> $383,014,123
<ACCUMULATED-NII-PRIOR> $0
<ACCUMULATED-GAINS-PRIOR> $6,129,364
<OVERDISTRIB-NII-PRIOR> ($317,082)
<OVERDIST-NET-GAINS-PRIOR> $0
<GROSS-ADVISORY-FEES> $8,498,843
<INTEREST-EXPENSE> $0
<GROSS-EXPENSE> $24,014,132
<AVERAGE-NET-ASSETS> $1,489,829,609
<PER-SHARE-NAV-BEGIN> $15.01
<PER-SHARE-NII> $0.86
<PER-SHARE-GAIN-APPREC> ($0.65)
<PER-SHARE-DIVIDEND> ($0.85)
<PER-SHARE-DISTRIBUTIONS> ($0..05)
<RETURNS-OF-CAPITAL> ($0.08)
<PER-SHARE-NAV-END> $14.24
<EXPENSE-RATIO> 1
<AVG-DEBT-OUTSTANDING> $0
<AVG-DEBT-PER-SHARE> $0
</TABLE>
