<PAGE> PAGE 1
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<PAGE> PAGE 2
008 D03AA01 02109
011 A00AA01 PUTNAM MUTUAL FUNDS CORP
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011 C01AA01 BOSTON
011 C02AA01 MA
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012 A00AA01 PUTNAM INVESTOR SERVICES
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<PAGE> PAGE 3
020 C000009 1
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<PAGE> PAGE 4
026 G010000 Y
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<PAGE> PAGE 5
086 B020000 0
086 C010000 0
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<PAGE> PAGE 6
031 A000100 128
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<PAGE> PAGE 7
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070 F010100 Y
070 F020100 Y
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<PAGE> PAGE 8
070 M020100 N
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 14
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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>
Putnam Tax-Free Insured Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS A
<S> <C>
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Putnam Tax-Free Insured Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS B
<S> <C>
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<PERIOD-END> JUL-31-1997
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<OVERDISTRIBUTION-NII> (534,000)
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<OVERDISTRIBUTION-GAINS> (1,029,651)
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<NET-ASSETS> 559,510,751
<DIVIDEND-INCOME> 0
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<EXPENSES-NET> 5,894,392
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<OVERDISTRIB-NII-PRIOR> (254,588)
<OVERDIST-NET-GAINS-PRIOR> (556,986)
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<GROSS-EXPENSE> 6,128,191
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<PER-SHARE-NAV-BEGIN> 14.96
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<PER-SHARE-DIVIDEND> (.76)
<PER-SHARE-DISTRIBUTIONS> (.10)
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<PER-SHARE-NAV-END> 15.52
<EXPENSE-RATIO> 1.22
<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>
Putnam Tax-Free Insured Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS M
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 506,440,891
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<SENIOR-EQUITY> 0
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<SHARES-COMMON-STOCK> 57,574
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<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (534,000)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (1,029,651)
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<NET-ASSETS> 559,510,751
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 33,596,623
<OTHER-INCOME> 0
<EXPENSES-NET> 5,894,392
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<REALIZED-GAINS-CURRENT> 3,202,120
<APPREC-INCREASE-CURRENT> 21,060,361
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<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (36,135)
<DISTRIBUTIONS-OF-GAINS> (5,460)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 58,619
<NUMBER-OF-SHARES-REDEEMED> (25 085)
<SHARES-REINVESTED> 2,305
<NET-CHANGE-IN-ASSETS> 7,806,654
<ACCUMULATED-NII-PRIOR> 0
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<OVERDISTRIB-NII-PRIOR> (254,588)
<OVERDIST-NET-GAINS-PRIOR> (556,986)
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<GROSS-EXPENSE> 6,128,191
<AVERAGE-NET-ASSETS> 727,022
<PER-SHARE-NAV-BEGIN> 14.94
<PER-SHARE-NII> .74
<PER-SHARE-GAIN-APPREC> .67
<PER-SHARE-DIVIDEND> (.75)
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<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.50
<EXPENSE-RATIO> 1.22
<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>
PUTNAM TAX-FREE HIGH YIELD FUND
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS A
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> $1,984,572,597
<INVESTMENTS-AT-VALUE> 2,074,258,147
<RECEIVABLES> 33,754,068
<ASSETS-OTHER> 14,730,962
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,122,743,177
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<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 22,221,185
<TOTAL-LIABILITIES> 53,583,986
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,032,287,153
<SHARES-COMMON-STOCK> 42,978,869
<SHARES-COMMON-PRIOR> 38,481,129
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (195,279)
<ACCUMULATED-NET-GAINS> 0
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<ACCUM-APPREC-OR-DEPREC> 85,961,487
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<DIVIDEND-INCOME> 0
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<NET-INVESTMENT-INCOME> 110,373,832
<REALIZED-GAINS-CURRENT> (2,973,761)
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<NET-CHANGE-FROM-OPS> 182,859,842
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (34,200,705)
<DISTRIBUTIONS-OF-GAINS> 0
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<NUMBER-OF-SHARES-SOLD> 17,469,517
<NUMBER-OF-SHARES-REDEEMED> (14,205,309)
<SHARES-REINVESTED> 1,233,532
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<PER-SHARE-GAIN-APPREC> .52
<PER-SHARE-DIVIDEND> (.85)
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<PER-SHARE-NAV-END> $14.56
<EXPENSE-RATIO> .85
<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>
PUTNAM TAX-FREE HIGH YIELD FUND
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS B
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> $1,984,572,597
<INVESTMENTS-AT-VALUE> 2,074,258,147
<RECEIVABLES> 33,754,068
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<PAID-IN-CAPITAL-COMMON> 2,032,287,153
<SHARES-COMMON-STOCK> 98,020,334
<SHARES-COMMON-PRIOR> 101,150,560
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<OVERDISTRIBUTION-NII> (195,279)
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<OVERDISTRIBUTION-GAINS> (48,894,170)
<ACCUM-APPREC-OR-DEPREC> 85,961,487
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<NUMBER-OF-SHARES-SOLD> 19,278,563
<NUMBER-OF-SHARES-REDEEMED> (24,895,016)
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<NET-CHANGE-IN-ASSETS> 97,121,205
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<GROSS-EXPENSE> 26,315,997
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<PER-SHARE-DIVIDEND> (.75)
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<PER-SHARE-NAV-END> $14.56
<EXPENSE-RATIO> 1.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
PUTNAM TAX-FREE HIGH YIELD FUND
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS M
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> $1,984,572,597
<INVESTMENTS-AT-VALUE> 2,074,258,147
<RECEIVABLES> 33,754,068
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<PAID-IN-CAPITAL-COMMON> 2,032,287,153
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<ACCUMULATED-NII-CURRENT> 0
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<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (48,894,170)
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<NET-ASSETS> 2,069,159,191
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 136,080,088
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<EXPENSES-NET> 25,706,256
<NET-INVESTMENT-INCOME> 110,373,832
<REALIZED-GAINS-CURRENT> (2,973,761)
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<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (797,574)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 633,553
<NUMBER-OF-SHARES-REDEEMED> (266,903)
<SHARES-REINVESTED> 35,274
<NET-CHANGE-IN-ASSETS> 97,121,205
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (428,650)
<OVERDIST-NET-GAINS-PRIOR> (45,634,967)
<GROSS-ADVISORY-FEES> 10,809,869
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 26,315,997
<AVERAGE-NET-ASSETS> 14,288,800
<PER-SHARE-NAV-BEGIN> $14.04
<PER-SHARE-NII> .80
<PER-SHARE-GAIN-APPREC> .51
<PER-SHARE-DIVIDEND> (.80)
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<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> $14.55
<EXPENSE-RATIO> 1.15
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
