PUTNAM TAX-FREE INSURED FUND
Prospectus Supplement dated July 18, 1996
to Prospectus dated December 1, 1995
The fourth paragraph under the heading "How the fund pursues its
objective - Basic investment strategy" on page 7 of the
prospectus is replaced with the following:
Investments by the fund in tax-exempt securities will be limited
to securities rated at the time of purchase at least Baa by
Moody's Investors Service, Inc. ("Moody's") or at least BBB by
Standard & Poor's ("S&P"), or in unrated securities that Putnam
Management determines are of comparable quality at the time of
purchase. The rating services' descriptions of these grades of
debt securities are included in the SAI.
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