PUTNAM MONEY MARKET FUND
PUTNAM TAX EXEMPT MONEY MARKET FUND
Prospectus Supplement dated July 17, 1995 to
Prospectus dated December 1, 1994
The shareholders of Putnam Money Market Fund have approved
changes to their Fund's fundamental investment restriction with
respect to investments in restricted securities. As a result,
the first paragraph of the section of the Prospectus entitled
"How objectives are pursued -Limiting investment risk" is
replaced by the following:
LIMITING INVESTMENT RISK
SPECIFIC INVESTMENT RESTRICTIONS HELP THE FUNDS LIMIT INVESTMENT
RISKS FOR THEIR SHAREHOLDERS. THESE RESTRICTIONS PROHIBIT EACH
FUND FROM INVESTING MORE THAN: (a)(for both Funds) 5% of its
total assets in the securities of any one issuer (other than
obligations issued or guaranteed by the U.S. government or its
agencies or instrumentalities, and, for the Tax Exempt Money
Market Fund only, Tax Exempt Securities);* (b) (for the Money
Market Fund only) 5% of its total assets in companies that,
together with any predecessors, have been in operation less than
three years;* (c) (for the Tax Exempt Money Market Fund only) 5%
of its net assets in securities of any issuer if the party
responsible for payment, together with any predecessor, has been
in operation for less than three years (except U.S. government
and agency obligations and obligations backed by the faith,
credit and taxing power of any person authorized to issue Tax
Exempt Securities); (d) (for the Money Market Fund only) 10% of
its current net assets in securities restricted as to resale,
excluding restricted securities that have been determined by the
Fund's Trustees (or the person designated by them to make such
determinations) to be readily marketable;* (e) (for the Tax
Exempt Money Market Fund only) 15% of its net assets in
securities restricted as to resale, excluding restricted
securities that have been determined by the Fund's Trustees (or
the person designated by them to make such determinations) to be
readily marketable;* or (f)(for both Funds) 15% of its net assets
in any combination of securities that are not readily marketable,
in securities restricted as to resale (excluding securities
determined by the Fund's Trustees (or the person designated by
the Fund's Trustees to make such determinations) to be readily
marketable), and in repurchase agreements maturing in more than
seven days. The Funds have not invested more than 10% of their
net assets in the types of securities listed in item (f) and have
no current intention of doing so.
19496 7/95
