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<PAGE> PAGE 2
008 D03AA01 02109
011 A00AA01 PUTNAM MUTUAL FUNDS CORP
011 B00AA01 8-5088
011 C01AA01 BOSTON
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<PAGE> PAGE 3
021 000000 127
022 A000001 PAINE WEBBER INC.ONS, INC
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<PAGE> PAGE 4
050 00AA00 N
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<PAGE> PAGE 5
086 E010000 0
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<PAGE> PAGE 6
035 000100 2204
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<PAGE> PAGE 7
062 H000100 0.0
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070 P010100 Y
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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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<PAGE> PAGE 13
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<PAGE> PAGE 14
SIGNATURE PAUL BUCAVALAS
TITLE MANGING DIRECTOR
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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Putnam Tax-Free Insured Fund
</LEGEND>
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
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Putnam Tax-Free Insured Fund
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<SERIES>
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Putnam Tax-Free Insured Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS M
<S> <C>
<PERIOD-TYPE> OTHER
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<NUMBER-OF-SHARES-REDEEMED> (44,505)
<SHARES-REINVESTED> 4,074
<NET-CHANGE-IN-ASSETS> 8,893,167
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (534,000)
<OVERDIST-NET-GAINS-PRIOR> (1,029,651)
<GROSS-ADVISORY-FEES> 3,301,507
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4,604,003
<AVERAGE-NET-ASSETS> 1,567,730
<PER-SHARE-NAV-BEGIN> 15.50
<PER-SHARE-NII> .69
<PER-SHARE-GAIN-APPREC> (.04)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.76)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.39
<EXPENSE-RATIO> 1.24
<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-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> $1,834,605,994
<INVESTMENTS-AT-VALUE> 1,977,678,033
<RECEIVABLES> 31,399,588
<ASSETS-OTHER> 12,411,514
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,021,489,135
<PAYABLE-FOR-SECURITIES> 6,000,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9,832,686
<TOTAL-LIABILITIES> 15,832,686
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,961,340,601
<SHARES-COMMON-STOCK> 63,986,537
<SHARES-COMMON-PRIOR> 42,978,869
<ACCUMULATED-NII-CURRENT> 451,768
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (98,502,842)
<ACCUM-APPREC-OR-DEPREC> 142,366,922
<NET-ASSETS> 2,005,656,449
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 131,188,653
<OTHER-INCOME> 0
<EXPENSES-NET> 26,380,589
<NET-INVESTMENT-INCOME> 104,808,064
<REALIZED-GAINS-CURRENT> (49,096,836)
<APPREC-INCREASE-CURRENT> 56,405,435
<NET-CHANGE-FROM-OPS> 112,116,663
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (36,129,110)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 28,069,998
<NUMBER-OF-SHARES-REDEEMED> (8,309,305)
<SHARES-REINVESTED> 1,246,975
<NET-CHANGE-IN-ASSETS> (63,502,742)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (195,279)
<OVERDIST-NET-GAINS-PRIOR> (48,894,170)
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 26,716,405
<AVERAGE-NET-ASSETS> 645,400,906
<PER-SHARE-NAV-BEGIN> $14.56
<PER-SHARE-NII> .80
<PER-SHARE-GAIN-APPREC> .06
<PER-SHARE-DIVIDEND> (.81)
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<PER-SHARE-NAV-END> $14.61
<EXPENSE-RATIO> .88
<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-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> $1,834,605,994
<INVESTMENTS-AT-VALUE> 1,977,678,033
<RECEIVABLES> 31,399,588
<ASSETS-OTHER> 12,411,514
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,021,489,135
<PAYABLE-FOR-SECURITIES> 6,000,000
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<OTHER-ITEMS-LIABILITIES> 9,832,686
<TOTAL-LIABILITIES> 15,832,686
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,961,340,601
<SHARES-COMMON-STOCK> 72,008,837
<SHARES-COMMON-PRIOR> 98,020,334
<ACCUMULATED-NII-CURRENT> 451,768
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (98,502,842)
<ACCUM-APPREC-OR-DEPREC> 142,366,922
<NET-ASSETS> 2,005,656,449
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 131,188,653
<OTHER-INCOME> 0
<EXPENSES-NET> 26,380,589
<NET-INVESTMENT-INCOME> 104,808,064
<REALIZED-GAINS-CURRENT> (49,096,836)
<APPREC-INCREASE-CURRENT> 56,405,435
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<DISTRIBUTIONS-OF-INCOME> (67,180,332)
<DISTRIBUTIONS-OF-GAINS> 0
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<NUMBER-OF-SHARES-SOLD> 10,108,105
<NUMBER-OF-SHARES-REDEEMED> (38,248,975)
<SHARES-REINVESTED> 2,129,873
<NET-CHANGE-IN-ASSETS> (63,502,742)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (195,279)
<OVERDIST-NET-GAINS-PRIOR> (48,894,170)
<GROSS-ADVISORY-FEES> 10,911,248
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 26,716,405
<AVERAGE-NET-ASSETS> 1,367,367,815
<PER-SHARE-NAV-BEGIN> $14.56
<PER-SHARE-NII> .73
<PER-SHARE-GAIN-APPREC> .05
<PER-SHARE-DIVIDEND> (.72)
<PER-SHARE-DISTRIBUTIONS> 0
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<PER-SHARE-NAV-END> $14.62
<EXPENSE-RATIO> 1.53
<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-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> $1,834,605,994
<INVESTMENTS-AT-VALUE> 1,977,678,033
<RECEIVABLES> 31,399,588
<ASSETS-OTHER> 12,411,514
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,021,489,135
<PAYABLE-FOR-SECURITIES> 6,000,000
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<OTHER-ITEMS-LIABILITIES> 9,832,686
<TOTAL-LIABILITIES> 15,832,686
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,961,340,601
<SHARES-COMMON-STOCK> 1,237,641
<SHARES-COMMON-PRIOR> 1,112,943
<ACCUMULATED-NII-CURRENT> 451,768
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (98,502,842)
<ACCUM-APPREC-OR-DEPREC> 142,366,922
<NET-ASSETS> 2,005,656,449
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 131,188,653
<OTHER-INCOME> 0
<EXPENSES-NET> 26,380,589
<NET-INVESTMENT-INCOME> 104,808,064
<REALIZED-GAINS-CURRENT> (49,096,836)
<APPREC-INCREASE-CURRENT> 56,405,435
<NET-CHANGE-FROM-OPS> 112,116,663
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (949,710)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 414,110
<NUMBER-OF-SHARES-REDEEMED> (331,509)
<SHARES-REINVESTED> 42,097
<NET-CHANGE-IN-ASSETS> (63,502,742)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (195,279)
<OVERDIST-NET-GAINS-PRIOR> (48,894,170)
<GROSS-ADVISORY-FEES> 10,911,248
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 26,716,405
<AVERAGE-NET-ASSETS> 18,094,043
<PER-SHARE-NAV-BEGIN> $14.55
<PER-SHARE-NII> .78
<PER-SHARE-GAIN-APPREC> .05
<PER-SHARE-DIVIDEND> (.77)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> $14.61
<EXPENSE-RATIO> 1.18
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
