PUTNAM TAX-FREE INSURED FUND
Prospectus Supplement dated May 6, 1996
to Prospectus dated February 1, 1996
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:
The fund's investments in tax-exempt securities will be limited
to securities rated at the time of purchase not lower than the
four highest grades assigned by either Moody's Investors Service,
Inc. ("Moody's") (Aaa, Aa, A, or Baa) or Standard & Poor's
("S&P") (AAA, AA, A, or BBB), or unrated securities that Putnam
Management determines are of comparable quality. The rating
services' descriptions of the four highest grades of debt
securities are included in the SAI.
