Prospectus Supplement
dated May 11, 1998 to:
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PUTNAM TAX-FREE HIGH YIELD FUND
Prospectus dated November 30, 1997
The third paragraph under the heading "How the fund is managed"
is replaced with the following:
The following officer of Putnam Investment Management, Inc.
("Putnam Management") has had primary responsibility for the day-
to-day management of the fund's portfolio since the year stated
below:
Business experience
Year (at least 5 years)
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Blake Anderson 1998 Employed as an investment
Senior Managing Director professional by Putnam
Management since 1987.
43054 5/97
