<PAGE> PAGE 1
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002 D010000 02109
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007 C020200 TAX-FREE INSURED
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<PAGE> PAGE 2
008 D03AA01 02109
011 A00AA01 PUTNAM MUTUAL FUNDS CORP
011 B00AA01 8-5088
011 C01AA01 BOSTON
011 C02AA01 MA
011 C03AA01 02109
012 A00AA01 PUTNAM INVESTOR SERVICES
012 B00AA01 84-401299
012 C01AA01 BOSTON
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013 A00AA01 PRICE WATERHOUSE LLP
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013 B03AA01 02109
015 A00AA01 PUTNAM FIDUCIARY TRUST CO
015 B00AA01 C
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015 E01AA01 X
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<PAGE> PAGE 3
022 D000001 136815
022 A000002 MERRILL LYNCH PIERCE FENNER & SMITH INC.
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022 C000002 131675
022 D000002 145194
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049 00AA00 N
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<PAGE> PAGE 4
051 00AA00 N
052 00AA00 N
053 A00AA00 N
054 A00AA00 Y
054 B00AA00 Y
054 C00AA00 Y
054 D00AA00 N
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054 F00AA00 N
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054 I00AA00 N
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054 L00AA00 Y
054 M00AA00 Y
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055 A00AA00 N
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084 A00AA00 N
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<PAGE> PAGE 5
086 E020000 0
086 F010000 0
086 F020000 0
024 000100 N
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025 D000103 0
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<PAGE> PAGE 6
036 A000100 N
036 B000100 0
037 000100 N
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039 000100 N
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041 000100 Y
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<PAGE> PAGE 7
062 I000100 0.0
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070 D010100 Y
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070 E010100 Y
070 E020100 N
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070 F020100 N
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070 G020100 N
070 H010100 Y
070 H020100 N
070 I010100 N
070 I020100 N
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070 M010100 N
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<PAGE> PAGE 8
070 P020100 N
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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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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
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<EXPENSE-RATIO> .47
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<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 B
<S> <C>
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<OVERDISTRIBUTION-NII> (402,781)
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<OVERDISTRIBUTION-GAINS> (4,376,949)
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<REALIZED-GAINS-CURRENT> (1,593,339)
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<OVERDISTRIB-NII-PRIOR> (534,000)
<OVERDIST-NET-GAINS-PRIOR> (1,029,651)
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<PER-SHARE-NAV-BEGIN> 15.52
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<PER-SHARE-DIVIDEND> (.39)
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<PER-SHARE-NAV-END> 15.61
<EXPENSE-RATIO> .37
<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> OTHER
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JAN-31-1998
<INVESTMENTS-AT-COST> 509,366,573
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<OTHER-ITEMS-LIABILITIES> 4,056,767
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<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 520,454,178
<SHARES-COMMON-STOCK> 108,468
<SHARES-COMMON-PRIOR> 57,574
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (402,781)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (4,376,949)
<ACCUM-APPREC-OR-DEPREC> 51,859,789
<NET-ASSETS> 567,534,237
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 16,246,653
<OTHER-INCOME> 0
<EXPENSES-NET> 2,173,181
<NET-INVESTMENT-INCOME> 14,073,472
<REALIZED-GAINS-CURRENT> (1,593,339)
<APPREC-INCREASE-CURRENT> 6,534,546
<NET-CHANGE-FROM-OPS> 19,014,679
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (32,066)
<DISTRIBUTIONS-OF-GAINS> (4,695)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 80,690
<NUMBER-OF-SHARES-REDEEMED> (31,804)
<SHARES-REINVESTED> 2,008
<NET-CHANGE-IN-ASSETS> 8,023,486
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<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (534,000)
<OVERDIST-NET-GAINS-PRIOR> (1,029,651)
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<GROSS-EXPENSE> 2,257,609
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<PER-SHARE-NII> .36
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<PER-SHARE-DISTRIBUTIONS> (.05)
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<PER-SHARE-NAV-END> 15.59
<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>
Putnam Tax-Free High Yield Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS A
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JAN-31-1998
<INVESTMENTS-AT-COST> 1,863,992,166
<INVESTMENTS-AT-VALUE> 2,038,441,666
<RECEIVABLES> 47,981,429
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<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,086,423,095
<PAYABLE-FOR-SECURITIES> 23,635,194
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<OTHER-ITEMS-LIABILITIES> 13,582,475
<TOTAL-LIABILITIES> 37,217,669
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,985,998,294
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<SHARES-COMMON-PRIOR> 42,978,869
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<OVERDISTRIBUTION-NII> (1,498,711)
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<OVERDISTRIBUTION-GAINS> (105,478,813)
<ACCUM-APPREC-OR-DEPREC> 170,184,656
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<DIVIDEND-INCOME> 0
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<NET-INVESTMENT-INCOME> 51,427,031
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<PER-SHARE-NAV-END> 14.74
<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>
Putnam Tax-Free High Yield Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS B
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JAN-31-1998
<INVESTMENTS-AT-COST> 1,863,992,166
<INVESTMENTS-AT-VALUE> 2,038,441,666
<RECEIVABLES> 47,981,429
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<PAID-IN-CAPITAL-COMMON> 1,985,998,294
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<SHARES-COMMON-PRIOR> 98,020,334
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1,498,711)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (105,478,813)
<ACCUM-APPREC-OR-DEPREC> 170,184,656
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<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 64,674,737
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<NET-INVESTMENT-INCOME> 51,427,031
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<ACCUMULATED-NII-PRIOR> 0
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<OVERDISTRIB-NII-PRIOR> (195,279)
<OVERDIST-NET-GAINS-PRIOR> (48,894,170)
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 13,421,865
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<PER-SHARE-NII> .35
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<PER-SHARE-DIVIDEND> (.36)
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<PER-SHARE-NAV-END> 14.76
<EXPENSE-RATIO> .76
<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> OTHER
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JAN-31-1998
<INVESTMENTS-AT-COST> 1,863,992,166
<INVESTMENTS-AT-VALUE> 2,038,441,666
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<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (105,478,813)
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<NET-ASSETS> 2,049,205,426
<DIVIDEND-INCOME> 0
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<DISTRIBUTIONS-OF-INCOME> (472,851)
<DISTRIBUTIONS-OF-GAINS> 0
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<NUMBER-OF-SHARES-SOLD> 250,308
<NUMBER-OF-SHARES-REDEEMED> (156,626)
<SHARES-REINVESTED> 20,948
<NET-CHANGE-IN-ASSETS> (19,953,765)
<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> 13,421,865
<AVERAGE-NET-ASSETS> 17,869,621
<PER-SHARE-NAV-BEGIN> 14.55
<PER-SHARE-NII> .38
<PER-SHARE-GAIN-APPREC> .20
<PER-SHARE-DIVIDEND> (.39)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.74
<EXPENSE-RATIO> .58
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
