PUTNAM MONEY MARKET FUND
Prospectus Supplement dated August 5, 1996
to Class A Prospectus dated February 1, 1996
At a shareholder meeting to be held on September 5, 1996, the
shareholders of the fund will be asked to approve amendments to
the fund's fundamental investment restrictions, including the
elimination of certain restrictions.
If these amendments are approved, the fund would be able to
invest more than 5% of its total assets in securities of any
issuer with respect to 25% of its assets, although this ability
is currently limited by the rules governing money market funds.
(Investments in obligations issued or guaranteed as to interest
or principal by the U.S. government or its agencies or
instrumentalities are not subject to any limitation.)
The policy set forth above is fundamental and may not be changed
without shareholder approval. See the fund's Statement of
Additional Information for the full text of this policy as well
as the fund's other fundamental policies, some of which were also
changed by vote of shareholders.
In addition, the fund's restriction with respect to issuers which
have been in operation for less than three years would be made
non-fundamental, meaning that it could be changed without
shareholder approval.
If shareholders do not ultimately approve some or all of the
proposed changes, the prospectus will be revised accordingly.
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