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<PAGE> PAGE 2
008 D03AA01 02109
011 A00AA01 ALLNAM MUTUAL FUNDS CORP
011 B00AA01 8-5088
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011 C02AA01 MA
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012 A00AA01 PUTNAM INVESTOR SERVICES
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020 C000005 1
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<PAGE> PAGE 3
022 C000002 40901
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<PAGE> PAGE 4
054 B00AA00 Y
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<PAGE> PAGE 5
025 D000102 0
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<PAGE> PAGE 6
040 000100 Y
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<PAGE> PAGE 7
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<PAGE> PAGE 8
071 A000100 128666
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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 MANGING DIRECTOR
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
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<LEGEND>
Putnam Tax-Free Insured Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS A
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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>
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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 M
<S> <C>
<PERIOD-TYPE> semi
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<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (316,312)
<OVERDIST-NET-GAINS-PRIOR> (1,674,558)
<GROSS-ADVISORY-FEES> 1,736,617
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,445,104
<AVERAGE-NET-ASSETS> 2,232,293
<PER-SHARE-NAV-BEGIN> 15.39
<PER-SHARE-NII> .32
<PER-SHARE-GAIN-APPREC> .29
<PER-SHARE-DIVIDEND> (.34)
<PER-SHARE-DISTRIBUTIONS> (.12)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.54
<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> SEMI
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JAN-31-1999
<INVESTMENTS-AT-COST> 1,851,717,411
<INVESTMENTS-AT-VALUE> 2,011,668,239
<RECEIVABLES> 42,161,857
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,053,830,096
<PAYABLE-FOR-SECURITIES> 9,502,611
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 11,963,962
<TOTAL-LIABILITIES> 21,466,573
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,970,857,661
<SHARES-COMMON-STOCK> 72,800,206
<SHARES-COMMON-PRIOR> 63,986,537
<ACCUMULATED-NII-CURRENT> 515,470
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (98,771,204)
<ACCUM-APPREC-OR-DEPREC> 159,761,596
<NET-ASSETS> 2,032,363,523
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 64,359,945
<OTHER-INCOME> 0
<EXPENSES-NET> 11,596,271
<NET-INVESTMENT-INCOME> 52,763,674
<REALIZED-GAINS-CURRENT> (268,362)
<APPREC-INCREASE-CURRENT> 17,394,674
<NET-CHANGE-FROM-OPS> 69,889,986
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (27,561,009)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 12,678,731
<NUMBER-OF-SHARES-REDEEMED> (4,836,996)
<SHARES-REINVESTED> 971,934
<NET-CHANGE-IN-ASSETS> 26,707,074
<ACCUMULATED-NII-PRIOR> 451,768
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (98,502,842)
<GROSS-ADVISORY-FEES> 5,448,323
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11,668,919
<AVERAGE-NET-ASSETS> 1,000,239,550
<PER-SHARE-NAV-BEGIN> 14.61
<PER-SHARE-NII> .40
<PER-SHARE-GAIN-APPREC> .13
<PER-SHARE-DIVIDEND> (.40)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.74
<EXPENSE-RATIO> .45
<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> SEMI
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JAN-31-1999
<INVESTMENTS-AT-COST> 1,851,717,411
<INVESTMENTS-AT-VALUE> 2,011,668,239
<RECEIVABLES> 42,161,857
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,053,830,096
<PAYABLE-FOR-SECURITIES> 9,502,611
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 11,963,962
<TOTAL-LIABILITIES> 21,466,573
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,970,857,661
<SHARES-COMMON-STOCK> 63,572,209
<SHARES-COMMON-PRIOR> 72,008,837
<ACCUMULATED-NII-CURRENT> 515,470
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (98,771,204)
<ACCUM-APPREC-OR-DEPREC> 159,761,596
<NET-ASSETS> 2,032,363,523
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 64,359,945
<OTHER-INCOME> 0
<EXPENSES-NET> 11,596,271
<NET-INVESTMENT-INCOME> 52,763,674
<REALIZED-GAINS-CURRENT> (268,362)
<APPREC-INCREASE-CURRENT> 17,394,674
<NET-CHANGE-FROM-OPS> 69,889,986
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (24,626,676)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,544,890
<NUMBER-OF-SHARES-REDEEMED> (13,762,142)
<SHARES-REINVESTED> 780,624
<NET-CHANGE-IN-ASSETS> 26,707,074
<ACCUMULATED-NII-PRIOR> 451,768
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (98,502,842)
<GROSS-ADVISORY-FEES> 5,448,323
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11,668,919
<AVERAGE-NET-ASSETS> 1,002,445,613
<PER-SHARE-NAV-BEGIN> 14.62
<PER-SHARE-NII> .36
<PER-SHARE-GAIN-APPREC> .13
<PER-SHARE-DIVIDEND> (.37)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.74
<EXPENSE-RATIO> .70
<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 M
<S> <C>
<PERIOD-TYPE> SEMI
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JAN-31-1999
<INVESTMENTS-AT-COST> 1,851,717,411
<INVESTMENTS-AT-VALUE> 2,011,668,239
<RECEIVABLES> 42,161,857
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,053,830,096
<PAYABLE-FOR-SECURITIES> 9,502,611
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 11,963,962
<TOTAL-LIABILITIES> 21,466,573
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,970,857,661
<SHARES-COMMON-STOCK> 1,518,919
<SHARES-COMMON-PRIOR> 1,237,641
<ACCUMULATED-NII-CURRENT> 515,470
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (98,771,204)
<ACCUM-APPREC-OR-DEPREC> 159,761,596
<NET-ASSETS> 2,032,363,523
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 64,359,945
<OTHER-INCOME> 0
<EXPENSES-NET> 11,596,271
<NET-INVESTMENT-INCOME> 52,763,674
<REALIZED-GAINS-CURRENT> (268,362)
<APPREC-INCREASE-CURRENT> 17,394,674
<NET-CHANGE-FROM-OPS> 69,889,986
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (512,287)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 388,137
<NUMBER-OF-SHARES-REDEEMED> (126,987)
<SHARES-REINVESTED> 20,128
<NET-CHANGE-IN-ASSETS> 26,707,074
<ACCUMULATED-NII-PRIOR> 451,768
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (98,502,842)
<GROSS-ADVISORY-FEES> 5,448,323
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11,668,919
<AVERAGE-NET-ASSETS> 19,801,938
<PER-SHARE-NAV-BEGIN> 14.61
<PER-SHARE-NII> .38
<PER-SHARE-GAIN-APPREC> .12
<PER-SHARE-DIVIDEND> (.38)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.73
<EXPENSE-RATIO> .60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
