Prospectus Supplement                                              217949 9/04
dated September 10, 2004 to:
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PUTNAM MONEY MARKET FUND AND
PUTNAM TAX EXEMPT MONEY MARKET FUND
Prospectus dated January 30, 2004

Effective September 10, 2004 the following language is inserted
following the third paragraph under 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)":

Orders for class C 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
$1,000,000 or more.

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.