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Putnam Beat Inflation
Putnam Beat Inflation
Putnam Beat Inflation
After accounting for taxes, municipal bonds have outpaced inflation and CDs in 20 of the past 25 years.
20%
Investor Education
nInflation (2.91% on average) nCDs (after tax) (2.98% on average) nMunicipal bonds (6.46% on average)
15%
$208,330
Municipal bonds
$478,170
10%
5%
0%
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
-5%
Data is historical. Past performance is not a guarantee of future results. Chart assumes a maximum federal tax rate of 35% on 6-month CDs, as measured by the Lipper 6-Month Total Return CD Index, an index composed of six-month certificates of deposit and derived from secondary market interest rates as published by the Federal Reserve. Municipal bonds and inflation are represented by the Barclays Capital Municipal Bond Index, an unmanaged index of long-term fixed-rate investment-grade tax-exempt bonds, and the Consumer Price Index, respectively. You -10% cannot invest directly in an index. Unlike bonds, which incur more risk, certificates of deposit (CDs) offer a fixed rate of return, and the interest and principal on CDs is generally insured by the FDIC up to $250,000. While all bonds have risks, municipal bonds may have a higher level of credit risk compared to CDs.
Putnam AMT-Free Municipal Fund Putnam Tax Exempt Income Fund Putnam Tax Exempt Money Market Fund Putnam Tax-Free High Yield Fund
SINGLE-STATE FUNDS
Putnam AZ Tax Exempt Income Fund Putnam CA Tax Exempt Income Fund Putnam MA Tax Exempt Income Fund Putnam MI Tax Exempt Income Fund Putnam MN Tax Exempt Income Fund Putnam NJ Tax Exempt Income Fund Putnam NY Tax Exempt Income Fund Putnam OH Tax Exempt Income Fund Putnam PA Tax Exempt Income Fund
Consider these risks before investing: The funds invest in fewer issuers or concentrate their investments by region or sector, and involve more risk than a fund that invests more broadly. Lower-rated bonds may offer higher yields in return for more risk. Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. Tax-free funds may not be suitable for IRAs and other non-taxable accounts. The use of derivatives involves additional risks, such as the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. Mutual funds that invest in bonds are subject to certain risks including interest-rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds fall. Longterm bonds are more exposed to interest-rate risk than short-term bonds. Unlike bonds, bond funds have ongoing fees and expenses. Money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other governmental agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in this fund.
Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus , or a summary prospectus if available, containing this and other information for any Putnam fund or product, call your financial representative or contact Putnam at 1-800-225-1581. Please read the prospectus carefully before investing.
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