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<PAGE> PAGE 2
013 B030001 02110
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022 A000001 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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SIGNATURE PAUL BUCUVALAS
TITLE MANAGING DIRECTOR
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Putnam Municipal Income Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS A
<S> <C>
<PERIOD-TYPE> SEMI
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> SEPT-30-1999
<INVESTMENTS-AT-COST> 1,219,973,722
<INVESTMENTS-AT-VALUE> 1,240,261,504
<RECEIVABLES> 30,498,947
<ASSETS-OTHER> 924,823
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,271,685,274
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,090,645
<TOTAL-LIABILITIES> 5,090,645
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,295,627,138
<SHARES-COMMON-STOCK> 87,451,138
<SHARES-COMMON-PRIOR> 89,744,050
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (746,245)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (48,419,284)
<ACCUM-APPREC-OR-DEPREC> 20,133,020
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<DIVIDEND-INCOME> 0
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<OTHER-INCOME> 0
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<NET-INVESTMENT-INCOME> 34,844,268
<REALIZED-GAINS-CURRENT> (2,828,840)
<APPREC-INCREASE-CURRENT> (64,302,402)
<NET-CHANGE-FROM-OPS> (32,286,974)
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<DISTRIBUTIONS-OF-INCOME> (22,018,424)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 22,554,426
<NUMBER-OF-SHARES-REDEEMED> (26,150,078)
<SHARES-REINVESTED> 1,302,740
<NET-CHANGE-IN-ASSETS> (91,544,513)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (1,025,771)
<OVERDIST-NET-GAINS-PRIOR> (45,590,444)
<GROSS-ADVISORY-FEES> 3,795,493
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<PER-SHARE-NAV-BEGIN> 9.25
<PER-SHARE-NII> .25
<PER-SHARE-GAIN-APPREC> (.46)
<PER-SHARE-DIVIDEND> (.25)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.79
<EXPENSE-RATIO> .47
[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 Municipal Income Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS B
<S> <C>
<PERIOD-TYPE> SEMI
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> SEPT-30-1999
<INVESTMENTS-AT-COST> 1,219,973,722
<INVESTMENTS-AT-VALUE> 1,240,261,504
<RECEIVABLES> 30,498,947
<ASSETS-OTHER> 924,823
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,271,685,274
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,090,645
<TOTAL-LIABILITIES> 5,090,645
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,295,627,138
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<SHARES-COMMON-PRIOR> 54,871,072
<ACCUMULATED-NII-CURRENT> 0
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<ACCUM-APPREC-OR-DEPREC> 20,133,020
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<NET-CHANGE-IN-ASSETS> (91,544,513)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (1,025,771)
<OVERDIST-NET-GAINS-PRIOR> (45,590,444)
<GROSS-ADVISORY-FEES> 3,795,493
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<GROSS-EXPENSE> 7,731,587
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<PER-SHARE-GAIN-APPREC> (.46)
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<PER-SHARE-NAV-END> 8.78
<EXPENSE-RATIO> .77
[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 Municipal Income Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS C
<S> <C>
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<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> SEPT-30-1999
<INVESTMENTS-AT-COST> 1,219,973,722
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<RECEIVABLES> 30,498,947
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<PAYABLE-FOR-SECURITIES> 0
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<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,295,627,138
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<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (746,245)
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<ACCUM-APPREC-OR-DEPREC> 20,133,020
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<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 42,416,541
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<NET-INVESTMENT-INCOME> 34,844,268
<REALIZED-GAINS-CURRENT> (2,828,840)
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<NET-CHANGE-FROM-OPS> (32,286,974)
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<DISTRIBUTIONS-OF-INCOME> (137,502)
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<NET-CHANGE-IN-ASSETS> (91,544,513)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (1,025,771)
<OVERDIST-NET-GAINS-PRIOR> (45,590,444)
<GROSS-ADVISORY-FEES> 3,795,493
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7,731,587
<AVERAGE-NET-ASSETS> 5,881,085
<PER-SHARE-NAV-BEGIN> 9.25
<PER-SHARE-NII> .21
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<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.79
<EXPENSE-RATIO> .85
[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 Municipal Income Fund
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> CLASS M
<S> <C>
<PERIOD-TYPE> SEMI
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> SEPT-30-1999
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<RECEIVABLES> 30,498,947
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<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,271,685,274
<PAYABLE-FOR-SECURITIES> 0
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<TOTAL-LIABILITIES> 5,090,645
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,295,627,138
<SHARES-COMMON-STOCK> 1,807,817
<SHARES-COMMON-PRIOR> 1,803,194
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (746,245)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (48,419,284)
<ACCUM-APPREC-OR-DEPREC> 20,133,020
<NET-ASSETS> 1,266,594,629
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 42,416,541
<OTHER-INCOME> 0
<EXPENSES-NET> 7,572,273
<NET-INVESTMENT-INCOME> 34,844,268
<REALIZED-GAINS-CURRENT> (2,828,840)
<APPREC-INCREASE-CURRENT> (64,302,402)
<NET-CHANGE-FROM-OPS> (32,286,974)
<EQUALIZATION> 0
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<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 194,175
<NUMBER-OF-SHARES-REDEEMED> (222,493)
<SHARES-REINVESTED> 32,941
<NET-CHANGE-IN-ASSETS> (91,544,513)
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<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (1,025,771)
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<GROSS-ADVISORY-FEES> 3,795,493
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7,731,587
<AVERAGE-NET-ASSETS> 15,913,463
<PER-SHARE-NAV-BEGIN> 9.25
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<PER-SHARE-NAV-END> 8.79
<EXPENSE-RATIO> .60
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
