<PAGE> PAGE 1
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011 C03AA01 02109
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<PAGE> PAGE 2
012 C03AA01 02109
013 A00AA01 PRICE WATERHOUSE LLP
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013 B02AA01 MA
013 B03AA01 02109
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<PAGE> PAGE 3
022 B000003 22-3017217
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022 C000004 89410
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<PAGE> PAGE 4
054 D00AA00 N
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<PAGE> PAGE 5
070 P01AA00 Y
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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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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SIGNATURE PAUL BUCAVALAS
TITLE VICE PRESIDENT
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Financial Data Schedule for 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>
Financial Data Schedule for Putnam Tax-Free Insured Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS B
<S> <C>
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<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>
Financial Data Schedule for Putnam Tax-Free Insured Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS M
<S> <C>
<PERIOD-TYPE> OTHER
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<PERIOD-END> JAN-31-1997
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<OVERDISTRIBUTION-NII> (236,987)
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<OVERDISTRIBUTION-GAINS> (2,512,082)
<ACCUM-APPREC-OR-DEPREC> 30,945,453
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<DIVIDEND-INCOME> 0
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<OTHER-INCOME> 0
<EXPENSES-NET> 3,314,734
<NET-INVESTMENT-INCOME> 14,244,072
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<DISTRIBUTIONS-OF-INCOME> (16,558)
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<DISTRIBUTIONS-OTHER> 0
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<NUMBER-OF-SHARES-REDEEMED> (17,363)
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<NET-CHANGE-IN-ASSETS> 3,043,816
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (254,588)
<OVERDIST-NET-GAINS-PRIOR> (556,986)
<GROSS-ADVISORY-FEES> 1,648,683
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,405,840
<AVERAGE-NET-ASSETS> 646,761
<PER-SHARE-NAV-BEGIN> 14.94
<PER-SHARE-NII> .38
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<PER-SHARE-DIVIDEND> (.49)
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<PER-SHARE-NAV-END> 15.07
<EXPENSE-RATIO> .62
<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>
Financial Data Schedule for Putnam Tax-Free High Yield Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS A
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> JUL-31-1996
<PERIOD-END> JAN-31-1997
<INVESTMENTS-AT-COST> 1,947,941,677
<INVESTMENTS-AT-VALUE> 1,992,831,342
<RECEIVABLES> 49,367,603
<ASSETS-OTHER> 17,467,859
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,059,666,804
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 32,323,463
<TOTAL-LIABILITIES> 32,323,463
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,037,813,517
<SHARES-COMMON-STOCK> 41,017,136
<SHARES-COMMON-PRIOR> 38,481,129
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1,194,738)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (54,053,697)
<ACCUM-APPREC-OR-DEPREC> 44,778,259
<NET-ASSETS> 2,027,343,341
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 69,765,892
<OTHER-INCOME> 0
<EXPENSES-NET> 13,079,751
<NET-INVESTMENT-INCOME> 56,686,141
<REALIZED-GAINS-CURRENT> (8,418,730)
<APPREC-INCREASE-CURRENT> 34,276,543
<NET-CHANGE-FROM-OPS> 82,543,954
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (17,327,960)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9,696,954
<NUMBER-OF-SHARES-REDEEMED> (7,782,310)
<SHARES-REINVESTED> 622,363
<NET-CHANGE-IN-ASSETS> 55,305,355
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (428,650)
<OVERDIST-NET-GAINS-PRIOR> (45,634,967)
<GROSS-ADVISORY-FEES> 5,430,190
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 13,352,685
<AVERAGE-NET-ASSETS> 12,505,277,367
<PER-SHARE-NAV-BEGIN> 14.05
<PER-SHARE-NII> .45
<PER-SHARE-GAIN-APPREC> .16
<PER-SHARE-DIVIDEND> (.44)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.22
<EXPENSE-RATIO> .43
<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>
Financial Data Schedule for Putnam Tax-Free High Yield Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS B
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> JUL-31-1996
<PERIOD-END> JAN-31-1997
<INVESTMENTS-AT-COST> 1,947,941,677
<INVESTMENTS-AT-VALUE> 1,992,831,342
<RECEIVABLES> 49,367,603
<ASSETS-OTHER> 17,467,859
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,059,666,804
<PAYABLE-FOR-SECURITIES> 17,653,392
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 14,670,071
<TOTAL-LIABILITIES> 32,323,463
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,037,813,517
<SHARES-COMMON-STOCK> 100,397,301
<SHARES-COMMON-PRIOR> 101,150,560
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1,194,738)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (54,053,697)
<ACCUM-APPREC-OR-DEPREC> 44,778,259
<NET-ASSETS> 2,027,343,341
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 69,765,892
<OTHER-INCOME> 0
<EXPENSES-NET> 13,079,751
<NET-INVESTMENT-INCOME> 56,686,141
<REALIZED-GAINS-CURRENT> (8,418,730)
<APPREC-INCREASE-CURRENT> 34,276,543
<NET-CHANGE-FROM-OPS> 82,543,954
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (39,750,563)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11,354,229
<NUMBER-OF-SHARES-REDEEMED> (13,401,986)
<SHARES-REINVESTED> 1,294,498
<NET-CHANGE-IN-ASSETS> 55,305,355
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (428,650)
<OVERDIST-NET-GAINS-PRIOR> (45,634,967)
<GROSS-ADVISORY-FEES> 5,430,190
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 13,352,685
<AVERAGE-NET-ASSETS> 1,434,092,030
<PER-SHARE-NAV-BEGIN> 14.05
<PER-SHARE-NII> .41
<PER-SHARE-GAIN-APPREC> .16
<PER-SHARE-DIVIDEND> (.39)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.23
<EXPENSE-RATIO> .76
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Financial Data Schedule for Putnam Tax-Free High Yield Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS M
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> JUL-31-1996
<PERIOD-END> JAN-31-1997
<INVESTMENTS-AT-COST> 1,947,941,677
<INVESTMENTS-AT-VALUE> 1,992,831,342
<RECEIVABLES> 49,367,603
<ASSETS-OTHER> 17,467,859
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,059,666,804
<PAYABLE-FOR-SECURITIES> 17,653,392
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 14,670,071
<TOTAL-LIABILITIES> 32,323,463
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,037,813,517
<SHARES-COMMON-STOCK> 1,075,208
<SHARES-COMMON-PRIOR> 711,019
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1,194,738)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (54,053,697)
<ACCUM-APPREC-OR-DEPREC> 44,778,259
<NET-ASSETS> 2,027,343,341
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 69,765,892
<OTHER-INCOME> 0
<EXPENSES-NET> 13,079,751
<NET-INVESTMENT-INCOME> 56,686,141
<REALIZED-GAINS-CURRENT> (8,418,730)
<APPREC-INCREASE-CURRENT> 34,276,543
<NET-CHANGE-FROM-OPS> 82,543,954
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (373,706)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 392,849
<NUMBER-OF-SHARES-REDEEMED> (46,767)
<SHARES-REINVESTED> 18,107
<NET-CHANGE-IN-ASSETS> 55,305,355
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (428,650)
<OVERDIST-NET-GAINS-PRIOR> (45,634,967)
<GROSS-ADVISORY-FEES> 5,430,190
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 13,352,685
<AVERAGE-NET-ASSETS> 12,740,048
<PER-SHARE-NAV-BEGIN> 14.04
<PER-SHARE-NII> .42
<PER-SHARE-GAIN-APPREC> .18
<PER-SHARE-DIVIDEND> (.42)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.22
<EXPENSE-RATIO> .58
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
