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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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SIGNATURE PAUL BUCAVALAS
TITLE VICE PRESIDENT
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
Class A AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE>YEAR
<FISCAL-YEAR-END>JULY-31-1996
<PERIOD-END>JULY-31-1996
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</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 Class B
AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE>YEAR
<FISCAL-YEAR-END>JULY-31-1996
<PERIOD-END>JULY-31-1996
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</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 Class M
AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE>YEAR
<FISCAL-YEAR-END>JULY-31-1996
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</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 Insured Fund Class A AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE>YEAR
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</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 Insured Fund Class B AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
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</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 Insured Fund Class M
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE>YEAR
<FISCAL-YEAR-END>JULY-31-1996
<PERIOD-END>JULY-31-1996
<INVESTMENTS-AT-COST>519,775,484
<INVESTMENTS-AT-VALUE>544,127,866
<RECEIVABLES>25,676,152
<ASSETS-OTHER>0
<OTHER-ITEMS-ASSETS>0
<TOTAL-ASSETS>569,804,018
<PAYABLE-FOR-SECURITIES>13,606,409
<SENIOR-LONG-TERM-DEBT>0
<OTHER-ITEMS-LIABILITIES>4,493,512
<TOTAL-LIABILITIES>18,099,921
<SENIOR-EQUITY>0
<PAID-IN-CAPITAL-COMMON>528,250,789
<SHARES-COMMON-STOCK>21,735
<SHARES-COMMON-PRIOR>1,163
<ACCUMULATED-NII-CURRENT>0
<OVERDISTRIBUTION-NII>(254,588)
<ACCUMULATED-NET-GAINS>0
<OVERDISTRIBUTION-GAINS>(556,986)
<ACCUM-APPREC-OR-DEPREC>24,264,882
<NET-ASSETS>551,704,097
<DIVIDEND-INCOME>0
<INTEREST-INCOME>35,027,354
<OTHER-INCOME>0
<EXPENSES-NET>7,178,330
<NET-INVESTMENT-INCOME>27,849,024
<REALIZED-GAINS-CURRENT>7,015,645
<APPREC-INCREASE-CURRENT>(3,721,338)
<NET-CHANGE-FROM-OPS>31,143,331
<EQUALIZATION>0
<DISTRIBUTIONS-OF-INCOME>(11,865)
<DISTRIBUTIONS-OF-GAINS>0
<DISTRIBUTIONS-OTHER>0
<NUMBER-OF-SHARES-SOLD>23,526
<NUMBER-OF-SHARES-REDEEMED>(3,700)
<SHARES-REINVESTED>746
<NET-CHANGE-IN-ASSETS>(9,996,426)
<ACCUMULATED-NII-PRIOR>0
<ACCUMULATED-GAINS-PRIOR>(7,395,395)
<OVERDISTRIB-NII-PRIOR>(524,841)
<OVERDIST-NET-GAINS-PRIOR>0
<GROSS-ADVISORY-FEES>3,321,088
<INTEREST-EXPENSE>0
<GROSS-EXPENSE>7,614,054
<AVERAGE-NET-ASSETS>237,744
<PER-SHARE-NAV-BEGIN>14.86
<PER-SHARE-NII>.76
<PER-SHARE-GAIN-APPREC>.08
<PER-SHARE-DIVIDEND>0
<PER-SHARE-DISTRIBUTIONS>(.76)
<RETURNS-OF-CAPITAL>0
<PER-SHARE-NAV-END>14.94
<EXPENSE-RATIO>1.19
<AVG-DEBT-OUTSTANDING>0
<AVG-DEBT-PER-SHARE>0
</TABLE>
