Prospectus Supplement                                            212289  2/04
dated February 27, 2004 to:
-----------------------------------------------------------------------------

PUTNAM MONEY MARKET FUND AND
PUTNAM TAX EXEMPT MONEY MARKET FUND (THE "FUNDS")
Prospectus dated January 30, 2004

Effective February 27, 2004, the third paragraph following the deferred
sales charge chart under the heading "Which class of shares is best for
me? - Money Market Fund (class B and C shares only)" is replaced with
the following:

* Orders for class B shares of one or more Putnam funds will be treated as
  orders for class A shares or refused when the total value of the purchase,
  plus existing account balances that are eligible to be linked under a right
  of accumulation for purchases of class A shares, is $100,000 or more.