485BPOS 2012-06-30 0000352667 2012-10-29 TOUCHSTONE TAX FREE TRUST false 2012-10-29 2012-10-30 The Fund is non-diversified, which means that it may invest a greater percentage of its assets than diversified mutual funds in the securities of a limited number of issuers. The use of a non-diversified investment strategy may increase the volatility of the Fund's investment performance, as the Fund may be more susceptible to risks associated with a single economic, political or regulatory event than a diversified fund. <tt>The Fund pays transaction costs, such as commissions, when it buys and sells <br />securities (or "turns over" its portfolio). A higher portfolio turnover may <br />indicate higher transaction costs and may result in higher taxes when Fund <br />shares are held in a taxable account. These costs, which are not reflected<br />in annual fund operating expenses or in the example, affect the Fund's<br />performance. During the most recent fiscal year, the Fund's portfolio <br />turnover rate was 33% of the average value of its portfolio.</tt> <div style="display:none">~ http://www.TouchstoneInvestments.com/role/ExpenseExample_S000003122Member column primary compact * row dei_LegalEntityAxis compact * row rr_ProspectusShareClassAxis compact * ~</div> <div style="display:none">~ http://www.TouchstoneInvestments.com/role/BarChartData_S000003122Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <tt>The Touchstone Ohio Tax-Free Bond Fund seeks the highest level of interest<br />income exempt from federal income tax and Ohio personal income tax, consistent<br />with the protection of capital.</tt> <tt>This example is intended to help you compare the cost of investing in the Fund <br />with the cost of investing in other mutual funds. The example assumes that you <br />invest $10,000 in the Fund for the time periods indicated and then, except as <br />indicated, redeem all of your shares at the end of those periods. The example <br />also assumes that your investment has a 5% return each year and that the<br />Fund's operating expenses remain the same (reflecting any contractual fee<br />waivers). Although your actual costs may be higher or lower, based on these<br />assumptions your costs would be:</tt> reflects no deductions for fees, expenses or taxes <tt>The Fund invests at least 80% of its assets in high-quality, long-term Ohio<br />municipal obligations, including general obligation bonds, revenue bonds <br />and industrial development bonds. High-quality, long-term Ohio municipal<br />obligations are, for purposes of this Fund, considered to be obligations rated<br />within the three highest rating categories, with remaining maturities of 3 years<br />or more. This is a non-fundamental investment policy and the Fund will provide<br />shareholders with at least 60 days' prior notice of any change in this policy.<br />&#xA0;&#xA0;<br />The Fund invests primarily in Ohio municipal obligations rated within the three<br />highest rating categories. The Fund may also purchase Ohio municipal obligations <br />and other securities rated within the four highest rating categories. If a <br />security's rating is reduced below the four highest rating categories, the security <br />will be sold. A security may also be sold due to changes in market conditions or <br />Fort Washington Investment Advisors, Inc.'s ("Fort Washington" or the "Sub-Advisor") <br />outlook. The Fund may purchase unrated obligations that the Sub-Advisor determines <br />to be of comparable quality. The Fund has a fundamental investment policy that under <br />normal circumstances at least 80% of the income it distributes will be exempt from <br />federal income tax, including the alternative minimum tax, and Ohio personal income <br />tax. This fundamental policy may not be changed without the approval of the Fund's<br />shareholders. The Fund will seek to maintain an average weighted maturity of<br />more than 10 years, but may reduce its average weighted maturity to 10 years or<br />below if warranted by market conditions.<br /> <br />The Fund concentrates its investments in securities of issuers located in the<br />State of Ohio and is non-diversified under the Investment Company Act of 1940,<br />as amended (the "1940 Act").<br /> <br />The Fund may invest more than 25% of its assets in municipal obligations within<br />a particular segment of the bond market (such as housing agency bonds or airport<br />bonds). The Fund may also invest more than 25% of its assets in private<br />activity bonds and industrial development bonds which may be backed only by<br />nongovernmental entities. Under normal circumstances, the Fund will limit its<br />investment in securities whose income is subject to the alternative minimum tax<br />to less than 20% of its assets. The Fund will not invest more than 25% of its<br />assets in securities backed by nongovernmental entities that are in the same<br />industry.</tt> TOUCHSTONE OHIO TAX-FREE BOND FUND SUMMARY You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 or more in the Touchstone Funds. Example. After-tax returns are calculated using the highest individual federal income tax rate and do not reflect the impact of state and local taxes. The Fund's Investment Goal The Fund's past performance (before and after taxes) does not necessarily indicate how it will perform in the future. You could lose money on your investment in the Fund and the Fund could return less than other investments. The Principal Risks Shareholder Fees (fees paid directly from your investment) 0.33 Your after-tax returns may differ from those shown and depend on your tax situation. The after-tax returns do not apply to shares held in an IRA, 401(k) or other tax-deferred account. Ohio Tax-Free Bond Fund -- Class A Total Returns as of December 31 The Fund's Performance 50000 The bar chart and performance table below illustrate some indication of the risks of investing in the Fund. The bar chart shows changes in performance (before taxes) of the Fund's Class A shares for each of the last 10 calendar years. <tt>Best Quarter: 3rd Quarter 2009&#xA0;&#xA0;5.43%&#xA0;&#xA0;&#xA0;&#xA0;Worst Quarter: 4th Quarter 2010 (3.88%)<br /> <br />The year-to-date return of the Fund's Class A shares as of September 30, 2012 is<br />6.32%.</tt> 1.800.543.0407 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Average Annual Total Returns For the period ended December 31, 2011 Portfolio Turnover. <tt>The Fund's share price will fluctuate. You could lose money on your investment<br />in the Fund and the Fund could return less than other investments. The Fund is<br />subject to the principal risks summarized below.<br /> <br />Credit Risk: The securities in the Fund's portfolio are subject to the<br />possibility that a deterioration, whether sudden or gradual, in the financial<br />condition of an issuer, or a deterioration in general economic conditions, could<br />cause an issuer to fail to make timely payments of principal or interest, when<br />due. This may cause the issuer's securities to decline in value.<br /> <br />Interest Rate Risk: As interest rates rise, the value of fixed income securities<br />the Fund owns will likely decrease. Longer-term securities are generally more<br />volatile, so the longer the average maturity or duration of these securities,<br />the greater their price risk. Duration is a measure of the expected life, taking<br />into account any prepayment or call features of the security, of a fixed income<br />security that is used to determine the price sensitivity of the security for a<br />given change in interest rates. Specifically, duration is the change in the<br />value of a fixed income security that will result from a 1% change in interest<br />rates, and generally is stated in years. Maturity, on the other hand, is the<br />date on which a fixed income security becomes due for payment of principal.<br /> <br />Investment-Grade Securities Risk: Investment grade debt securities may be<br />downgraded by a Nationally Recognized Statistical Rating Organization ("NRSRO")<br />to below investment-grade status, which would increase the risk of holding these<br />securities, or a rating may become stale in that it fails to reflect changes to<br />an issuer's financial condition. Investment-grade debt securities rated in the<br />lowest rating category by an NRSRO involve a higher degree of risk than<br />fixed-income securities in the higher-rating categories. While such securities<br />are considered investment-grade quality and are deemed to have adequate capacity <br />for payment of principal and interest, such securities lack outstanding investment <br />characteristics and have speculative characteristics as well.&#xA0;&#xA0;For example, changes <br />in economic conditions or other circumstances are more likely to lead to a weakened <br />capacity to make principal and interest payments than is the case with higher-grade <br />securities.<br /> <br />Management Risk: The value of your investment may decrease if the sub-advisor's<br />judgment about the attractiveness, value, credit quality or income potential of<br />a particular security is incorrect.<br />&#xA0;&#xA0;<br />Municipal Securities Risk: The value of municipal securities may be affected by<br />uncertainties in the municipal market related to legislation or litigation<br />involving the taxation of municipal securities or the rights of municipal<br />securities holders in the event of bankruptcy. In addition, the ongoing issues<br />facing the national economy may negatively impact the economic performance of<br />issuers of municipal securities, and may increase the likelihood that issuers of<br />securities in which the Fund may invest may be unable to meet their obligations. <br />Also, some municipal obligations may be backed by a letter of credit issued by a <br />bank or other financial institution. Adverse developments affecting banks or other <br />financial institutions could have a negative effect on the value of the Fund's <br />portfolio securities.<br />&#xA0;&#xA0;<br />Non-Diversification Risk: The Fund is non-diversified, which means that it may<br />invest a greater percentage of its assets than diversified mutual funds in the<br />securities of a limited number of issuers. The use of a non-diversified investment <br />strategy may increase the volatility of the Fund's investment performance, as the <br />Fund may be more susceptible to risks associated with a single economic, political <br />or regulatory event than a diversified fund.<br />&#xA0;&#xA0;<br />Prepayment Risk: Prepayment risk is the risk that a debt security may be paid<br />off and proceeds invested earlier than anticipated. Prepayment risk is more<br />prevalent during periods of falling interest rates.<br />&#xA0;&#xA0;<br />Rating Agency Risk: Ratings represent the opinion of a Nationally Recognized<br />Statistical Rating Organization ("NRSRO") regarding the quality of the security<br />and are not a guarantee of quality. NRSROs may fail to make timely credit<br />ratings in response to subsequent events. In addition, NRSROs are subject to an<br />inherent conflict of interest because they are often compensated by the same<br />issuers whose securities they grade.<br /> <br />Sector Focus Risk: A fund that focuses its investments in the securities of a<br />particular bond market sector (e.g., housing agency bonds or airport bonds) is<br />subject to the risk that adverse circumstances will have a greater impact on the<br />fund than a fund that does not focus its investments in a particular sector. It<br />is possible that economic, business or political developments or other changes<br />affecting one security in the area of focus will affect other securities in that<br />area of focus in the same manner, thereby increasing the risk of such<br />investments.<br />&#xA0;&#xA0;<br />State Risk: Political and economic conditions in the state of Ohio may impact<br />the value of Ohio municipal obligations. The Fund may lose value due to<br />decreased economic growth, increased unemployment and decreased tax revenue in<br />the state of Ohio.<br />&#xA0;&#xA0;<br />An investment in the Fund is not a bank deposit and is not insured or guaranteed<br />by the FDIC or any other government agency. As with any mutual fund, there is<br />no guarantee that the Fund will achieve its goal.</tt> The Fund's Fees and Expenses The after-tax returns shown in the table are for Class A shares only. The after-tax returns for other classes of shares offered by the Fund will differ from the Class A after-tax returns. The Fund's Principal Investment Strategies www.TouchstoneInvestments.com The Fund invests at least 80% of its assets in high-quality, long-term Ohio municipal obligations, including general obligation bonds, revenue bonds and industrial development bonds. <tt>The bar chart and performance table below illustrate some indication of the<br />risks of investing in the Fund. The bar chart shows changes in performance<br />(before taxes) of the Fund's Class A shares for each of the last 10 calendar<br />years. The bar chart does not reflect any sales charges, which would reduce<br />your return. The Fund's past performance (before and after taxes) does not<br />necessarily indicate how it will perform in the future. Updated performance is<br />available at no cost by visiting www.TouchstoneInvestments.com or by calling<br />1.800.543.0407.</tt> <tt>This table describes the fees and expenses that you may pay if you buy and hold<br />shares of the Fund. You may qualify for sales charge discounts if you and your<br />family invest, or agree to invest in the future, at least $50,000 or more in the<br />Touchstone Funds. More information about these and other discounts is available<br />from your financial professional and in the section entitled "Choosing a Class<br />of Shares" in the Fund's Prospectus on page 23 and in the section entitled<br />"Other Purchase and Redemption Information" in the Fund's Statement of<br />Additional Information on page 32.</tt> <div style="display:none">~ http://www.TouchstoneInvestments.com/role/OperatingExpensesData_S000003122Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> Assuming No Redemption Class C <div style="display:none">~ http://www.TouchstoneInvestments.com/role/PerformanceTableData_S000003122Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * column rr_PerformanceMeasureAxis compact * row primary compact * ~</div> <tt>The performance table shows how the Fund's average annual total returns (before<br />and after taxes) for 1, 5 and 10 years compare with those of the Barclays<br />Capital Municipal Bond Index. After-tax returns are calculated using the<br />highest individual federal income tax rate and do not reflect the impact of<br />state and local taxes. Your after-tax returns may differ from those shown and<br />depend on your tax situation. The after-tax returns do not apply to shares held<br />in an IRA, 401(k) or other tax-deferred account. The after-tax returns shown in<br />the table are for Class A shares only. The after-tax returns for other classes<br />of shares offered by the Fund will differ from the Class A after-tax returns.</tt> An investment in the Fund is not a bank deposit and is not insured or guaranteed by the FDIC or any other government agency. <div style="display:none">~ http://www.TouchstoneInvestments.com/role/ExpenseExampleNoRedemption_S000003122Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display:none">~ http://www.TouchstoneInvestments.com/role/ShareholderFeesData_S000003122Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> Barclays Capital Municipal Bond Index (reflects no deductions for fees, expenses or taxes) 0.1070 0.0522 0.0538 Ohio Tax-Free Bond Fund - Class A Return After Taxes on Distributions and Sale of Fund Shares 0.0351 0.0334 0.0399 Ohio Tax-Free Bond Fund - Class A Return After Taxes on Distributions 0.0339 0.0324 0.0393 TOHCX -15 0.0000 Ohio Tax-Free Bond Fund - Class C Return Before Taxes 263 163 603 -0.0047 2363 1070 0.0680 0.0057 0.0050 2013-10-29 2363 0.0353 603 1070 0.0100 0.0377 0.0160 0.0207 0.0100 TOHAX 0.0907 -15 Worst Quarter: Best Quarter: 0.0475 2012-09-30 Ohio Tax-Free Bond Fund - Class A Return Before Taxes 558 2009-09-30 789 -0.0388 0.0385 -0.0027 0.0106 1750 1038 0.0301 0.0543 0.0341 0.0037 -0.0128 0.0050 2013-10-29 2010-12-31 0.1061 0.0330 0.0250 The year-to-date return 0.0861 0.0465 0.0025 0.0404 0.0085 0.0112 0.0407 0.0632 0.0000 Ratings represent the opinion of a Nationally Recognized Statistical Rating Organization ("NRSRO") regarding the quality of the security and are not a guarantee of quality. NRSROs may fail to make timely credit ratings in response to subsequent events. In addition, NRSROs are subject to an inherent conflict of interest because they are often compensated by the same issuers whose securities they grade. <div style="display:none">~ http://www.TouchstoneInvestments.com/role/ExpenseExample_S000003121Member column primary compact * row dei_LegalEntityAxis compact * row rr_ProspectusShareClassAxis compact * ~</div> <div style="display:none">~ http://www.TouchstoneInvestments.com/role/BarChartData_S000003121Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <tt>The Touchstone Ohio Tax-Free Money Market Fund seeks the highest level of<br />current income exempt from federal income tax and Ohio personal income tax,<br />consistent with liquidity and stability of principal. The Fund is a money <br />market fund, which seeks to maintain a constant share price of $1.00 per share.</tt> <tt>This example is intended to help you compare the cost of investing in the Fund <br />with the cost of investing in other mutual funds. The example assumes that you <br />invest $10,000 in the Fund for the time periods indicated and then redeem all <br />of your shares at the end of those periods. The example also assumes that your <br />investment has a 5% return each year and that the Fund's operating expenses <br />remain the same (reflecting any contractual fee waivers). Although your <br />actual costs may be higher or lower, based on these assumptions your costs<br />would be:</tt> <tt>The Fund invests primarily in high-quality, short-term Ohio municipal<br />obligations issued by the State of Ohio, its agencies and municipalities, <br />that pay interest that is exempt from both federal income tax and Ohio <br />personal income tax. High-quality, short-term Ohio municipal obligations <br />are obligations with maturities of 397 days or less and that are rated in <br />one of the two highest short-term rating categories or determined by the <br />investment adviser to be of comparable quality.<br />&#xA0;&#xA0;&#xA0;<br />Under normal circumstances, at least 80% of the Fund's assets will be invested<br />in Ohio municipal obligations. This is a non-fundamental investment policy and<br />the Fund will provide shareholders with at least 60 days' prior notice of any<br />change in this policy.<br />&#xA0;&#xA0;<br />The Fund has a fundamental investment policy that under normal circumstances it<br />will invest its assets so that at least 80% of its assets will be invested in<br />short-term municipal obligations that pay interest that is exempt from federal<br />income tax, including the alternative minimum tax, and Ohio personal income<br />tax. This fundamental policy may not be changed without the approval of the<br />Fund's shareholders.<br />&#xA0;&#xA0;<br />The Fund may invest more than 25% of its assets in municipal obligations within<br />a particular segment of the bond market (such as housing agency bonds or airport<br />bonds). The Fund may also invest more than 25% of its assets in private activity <br />bonds and industrial development bonds which may be backed only by nongovernmental <br />entities. Under normal circumstances, the Fund will limit its investment in <br />securities whose income is subject to the alternative minimum tax to less than <br />20% of its assets. The Fund will not invest more than 25% of its assets in <br />securities backed by nongovernmental entities that are in the same industry. The <br />Fund may invest in the following types of Ohio municipal obligations and other <br />municipal obligations:<br />&#xA0;&#xA0;<br />o Tax-exempt bonds, including general obligation bonds, revenue bonds and<br />&#xA0;&#xA0;industrial development bonds<br /> <br />o Tax-exempt notes<br /> <br />o Tax-exempt commercial paper<br /> <br />o Floating and variable rate municipal obligations<br /> <br />o When-issued obligations<br /> <br />o Obligations with puts attached<br />&#xA0;&#xA0;<br />The Fund concentrates its investments in securities of issuers located in the<br />State of Ohio and is non-diversified under the Investment Company Act, as<br />amended (the "1940 Act").<br />&#xA0;&#xA0;<br />The Fund maintains a dollar-weighted average portfolio maturity of 60 days or<br />less, a dollar-weighted average life of 120 days or less, and purchases only<br />United States dollar-denominated securities with maturities of 397 days or<br />less.&#xA0;&#xA0;The Fund will hold at least 30% of its total assets in "Weekly Liquid<br />Assets."&#xA0;&#xA0;"Weekly Liquid Assets" include cash (including demand deposits),<br />direct obligations of the U.S. government, agency discount notes with remaining<br />maturities of 60 days or less, and securities (including repurchase agreements)<br />that will mature or are subject to a demand feature that is exercisable and<br />payable within 5 business days.&#xA0;&#xA0;The Fund is also subject to quality and<br />diversification requirements of Rule 2a-7 under the 1940 Act designed to help <br />it maintain a constant share price of $1.00 per share.</tt> TOUCHSTONE OHIO TAX-FREE MONEY MARKET FUND SUMMARY The fee waivers do not correlate to the ratio of net expenses to average net assets shown in the annual report due to an additional voluntary fee waiver. Example. The Fund's Investment Goal The Fund's past performance does not necessarily indicate how it will perform in the future. The Principal Risks Shareholder Fees (fees paid directly from your investment) Ohio Tax-Free Money Market Fund Total Returns -- Class A Shares as of December 31 The Fund's Performance The bar chart and performance table below illustrate some indication of the risks of investing in the Fund. The bar chart shows changes in performance of the Fund's Class A shares for each of the last 10 calendar years. <tt>Best Quarter: 3rd Quarter 2007&#xA0;&#xA0;0.76%&#xA0;&#xA0;&#xA0;&#xA0;Worst Quarter: 4th Quarter 2011 0.00%<br />&#xA0;&#xA0;<br />The year-to-date return of the Fund's Class A shares as of September 30, 2012 is<br />0.01%</tt> 1.800.543.0407 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Average Annual Total Returns For the periods ended December 31, 2011 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 the Fund. <tt>An investment in the Fund is not a bank deposit and is not insured or guaranteed<br />by the FDIC or any other government agency. Although the Fund seeks to preserve<br />the value of your investment at $1.00 per share, it is possible to lose money by<br />investing in the Fund. There is no guarantee that the Fund will be able to avoid<br />a negative yield. The Fund is subject to the Principal Risks summarized below.<br />&#xA0;&#xA0;<br />Credit Risk: The securities in the Fund's portfolio are subject to the<br />possibility that a deterioration, whether sudden or gradual, in the financial<br />condition of an issuer, or a deterioration in general economic conditions, could<br />cause an issuer to fail to make timely payments of principal or interest, when<br />due. This may cause the issuer's securities to decline in value.<br />&#xA0;&#xA0;<br />Interest Rate Risk: The yield of the Fund will vary from day to day due to<br />changes in interest rates. Generally, the Fund's yield will increase when<br />interests rate increase and will decrease when interest rates decrease.<br />&#xA0;&#xA0;<br />Management Risk: The value of your investment may decrease if the sub-advisor's<br />judgment about the attractiveness, value, credit quality or income potential of<br />a particular security is incorrect.<br />&#xA0;&#xA0;<br />Market Disruption Risk: During periods of extreme market volatility, prices of<br />securities held by the Fund may be negatively impacted due to imbalances between<br />credit market participants seeking to sell the same or similar securities and<br />market participants willing or able to buy such securities. As a result, the<br />market prices of securities held by the Fund could go down, at times without <br />regard to the financial condition of or specific events impacting the issuer <br />of the security. A significant enough market disruption or drop in market <br />prices of securities held by the Fund, especially at a time during which the <br />Fund needs to sell securities to meet shareholder redemption requests, could <br />cause the value of the Fund's shares to decrease to a price less than $1.00 <br />per share.<br /> <br />Municipal Securities Risk: The value of municipal securities may be affected <br />by uncertainties in the municipal market related to legislation or litigation<br />involving the taxation of municipal securities or the rights of municipal<br />securities holders in the event of bankruptcy. In addition, the ongoing issues<br />facing the national economy may negatively impact the economic performance of<br />issuers of municipal securities, and may increase the likelihood that issuers <br />of securities in which the Fund may invest may be unable to meet their<br />obligations. Also, some municipal obligations may be backed by a letter of<br />credit issued by a bank or other financial institution. Adverse developments<br />affecting banks or other financial institutions could have a negative effect <br />on the value of the Fund's portfolio securities. This could cause the value of <br />the Fund's shares to decrease to a price less than $1.00 per share.<br />&#xA0;&#xA0;<br />Non-Diversification Risk: The Fund is non-diversified, which means that it may<br />invest a greater percentage of its assets than diversified mutual funds in the<br />securities of a limited number of issuers. The use of a non-diversified investment <br />strategy may increase the volatility of the Fund's investment performance, as the <br />Fund may be more susceptible to risks associated with a single economic, political <br />or regulatory event than a diversified fund.<br />&#xA0;&#xA0;<br />Rating Agency Risk: Ratings represent the opinion of a Nationally Recognized<br />Statistical Rating Organization ("NRSRO") regarding the quality of the security<br />and are not a guarantee of quality. NRSROs may fail to make timely credit<br />ratings in response to subsequent events. In addition, NRSROs are subject to <br />an inherent conflict of interest because they are often compensated by the same<br />issuers whose securities they grade.<br />&#xA0;&#xA0;<br />Sector Focus Risk: A fund that focuses its investments in the securities of a<br />particular bond market sector (e.g., housing agency bonds or airport bonds) is<br />subject to the risk that adverse circumstances will have a greater impact on the<br />fund than a fund that does not focus its investments in a particular sector. It<br />is possible that economic, business or political developments or other changes<br />affecting one security in the area of focus will affect other securities in that<br />area of focus in the same manner, thereby increasing the risk of such<br />investments.<br />&#xA0;&#xA0;<br />State Risk: Political and economic conditions in the state of Ohio may impact<br />the value of Ohio municipal obligations. The Fund's yield may decrease due to<br />decreased economic growth, increased unemployment and decreased tax revenue in<br />the state of Ohio.</tt> The Fund's Fees and Expenses The Fund's Principal Investment Strategies www.TouchstoneInvestments.com <tt>The bar chart and performance table below illustrate some indication of the<br />risks of investing in the Fund. The bar chart shows changes in performance of<br />the Fund's Class A shares for each of the last 10 calendar years. The Fund's<br />past performance does not necessarily indicate how it will perform in the<br />future. Updated performance and current yield information is available at no<br />cost by visiting www.TouchstoneInvestments.com or by calling 1.800.543.0407.</tt> <tt>This table describes the fees and expenses that you may pay if you buy and hold<br />shares of the Fund:</tt> <div style="display:none">~ http://www.TouchstoneInvestments.com/role/OperatingExpensesData_S000003121Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display:none">~ http://www.TouchstoneInvestments.com/role/PerformanceTableData_S000003121Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> An investment in the Fund is not a bank deposit and is not insured or guaranteed by the FDIC or any other government agency. <div style="display:none">~ http://www.TouchstoneInvestments.com/role/ShareholderFeesData_S000003121Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> TIOXX -15 Ohio Tax-Free Money Market Fund - Institutional Shares 51 204 -0.0020 852 370 0.0001 0.0023 0.0047 2013-10-29 0.0114 0.0000 0.0135 0.0050 0.0070 TOHXX 0.0102 -15 Worst Quarter: Best Quarter: 2012-09-30 Ohio Tax-Free Money Market Fund - Class A Shares 77 2007-09-30 294 0.0000 0.0057 -0.0025 0.0001 1202 528 0.0296 0.0076 0.0001 0.0028 0.0184 0.0047 2013-10-29 2011-12-31 0.0016 0.0099 0.0174 The year-to-date return 0.0001 0.0048 0.0025 0.0115 0.0075 0.0100 0.0278 0.0001 <div style="display:none">~ http://www.TouchstoneInvestments.com/role/ExpenseExample_S000003119Member column primary compact * row dei_LegalEntityAxis compact * row rr_ProspectusShareClassAxis compact * ~</div> <div style="display:none">~ http://www.TouchstoneInvestments.com/role/BarChartData_S000003119Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <tt>The Touchstone Tax-Free Money Market Fund seeks the highest level of interest<br />income exempt from federal income tax, consistent with the protection of<br />capital. The Fund is a money market fund, which seeks to maintain a constant<br />share price of $1.00 per share.</tt> <tt>This example is intended to help you compare the cost of investing in the <br />Fund with the cost of investing in other mutual funds. The example assumes<br />that you invest $10,000 in the Fund for the time periods indicated and then<br />redeem all of your shares at the end of those periods. The example also assumes<br />that your investment has a 5% return each year and that the Fund's operating<br />expenses remain the same (reflecting any contractual fee waivers). Although your<br />actual costs may be higher or lower, based on these assumptions your costs would<br />be:</tt> <tt>The Fund invests primarily in high-quality, short-term municipal obligations<br />that pay interest that is exempt from federal income tax. High-quality,<br />short-term municipal obligations are obligations rated within the two highest<br />rating categories, with maturities of 397 days or less and that are rated in one<br />of the two highest short-term rating categories or determined by the investment<br />adviser to be of comparable quality.<br />&#xA0;&#xA0;<br />The Fund has a fundamental investment policy that under normal circumstances it<br />will invest its assets so that at least 80% of the income it distributes will be<br />exempt from federal income tax, including the alternative minimum tax. This<br />fundamental policy may not be changed without the approval of the Fund's<br />shareholders.<br />&#xA0;&#xA0;<br />The Fund may invest more than 25% of its assets in municipal obligations within<br />a particular segment of the bond market (such as housing agency bonds or airport<br />bonds). The Fund may also invest more than 25% of its assets in private activity <br />bonds and industrial development bonds which may be backed only by nongovernmental <br />entities. Under normal circumstances, the Fund will limit its investment in <br />securities whose income is subject to the alternative minimum tax to less than 20% <br />of its assets. The Fund will not invest more than 25% of its assets in securities <br />backed by nongovernmental entities that are in the same industry.<br /> <br />The Fund may invest in the following types of municipal obligations:<br /><br />o Tax-exempt bonds, including general obligation bonds, revenue bonds and<br />&#xA0;&#xA0;industrial development bonds.<br /> <br />o Tax-exempt notes.<br /> <br />o Tax-exempt commercial paper.<br /> <br />o Floating and variable rate municipal obligations.<br /> <br />o When-issued obligations.<br /> <br />o Obligations with puts attached.<br />&#xA0;&#xA0;<br />The Fund maintains a dollar-weighted average portfolio maturity of 60 days or<br />less, dollar-weighted average life of 120 days or less, and purchases only<br />United States dollar-denominated securities with maturities of 397 days or<br />less. The Fund will hold at least 30% of its total assets in "Weekly Liquid<br />Assets."&#xA0;&#xA0;"Weekly Liquid Assets" include cash (including demand deposits),<br />direct obligations of the U.S. government, agency discount notes with remaining<br />maturities of 60 days or less, and securities (including repurchase agreements)<br />that will mature or are subject to a demand feature that is exercisable and<br />payable within 5 business days. The Fund is also subject to quality and<br />diversification requirements of Rule 2a-7 under the Investment Company Act of<br />1940 designed to help it maintain a constant share price of $1.00 per share.</tt> TOUCHSTONE TAX-FREE MONEY MARKET FUND SUMMARY The fee waivers do not correlate to the ratio of net expenses to average net assets shown in the annual report due to an additional voluntary fee waiver. Example. The Fund's Investment Goal The Fund's past performance does not necessarily indicate how it will perform in the future. The Principal Risks Shareholder Fees (fees paid directly from your investment) Tax-Free Money Market Fund -- Class A Total Returns as of December 31 The Fund's Performance The bar chart and performance table below illustrate some indication of the risks of investing in the Fund. The bar chart shows changes in performance of the Fund's Class A shares for each of the last 10 calendar years. <tt>Best Quarter: 2nd Quarter 2007 0.74%&#xA0;&#xA0;&#xA0;&#xA0;Worst Quarter: 4th Quarter 2011 0.00%<br /> <br />The year-to-date return of the Fund's Class A shares as of September 30, 2012 is<br />0.01%</tt> 1.800.543.0407 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Average Annual Total Returns For the periods ended December 31, 2011 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 the Fund. <tt>An investment in the Fund is not a bank deposit and is not insured or guaranteed<br />by the FDIC or any other government agency. Although the Fund seeks to preserve<br />the value of your investment at $1.00 per share, it is possible to lose money by<br />investing in the Fund. There is no guarantee that the Fund will be able to<br />avoid a negative yield. The Fund is subject to the Principal Risks summarized<br />below.<br />&#xA0;&#xA0;<br />Credit Risk: The securities in the Fund's portfolio are subject to the<br />possibility that a deterioration, whether sudden or gradual, in the financial<br />condition of an issuer, or a deterioration in general economic conditions, could<br />cause an issuer to fail to make timely payments of principal or interest, when<br />due. This may cause the issuer's securities to decline in value.<br />&#xA0;&#xA0;<br />Interest Rate Risk: The yield of the Fund will vary from day to day due to<br />changes in interest rates. Generally, the Fund's yield will increase when<br />interests rate increase and will decrease when interest rates decrease.<br /> <br />Management Risk: The value of your investment may decrease if the sub-advisor's<br />judgment about the attractiveness, value, credit quality or income potential of<br />a particular security is incorrect.<br />&#xA0;&#xA0;<br />Market Disruption Risk: During periods of extreme market volatility, prices of<br />securities held by the Fund may be negatively impacted due to imbalances between<br />credit market participants seeking to sell the same or similar securities and market <br />participants willing or able to buy such securities. As a result, the market prices <br />of securities held by the Fund could go down, at times without regard to the financial <br />condition of or specific events impacting the issuer of the security. A significant <br />enough market disruption or drop in market prices of securities held by the Fund, <br />especially at a time during which the Fund needs to sell securities to meet shareholder <br />redemption requests, could cause the value of the Fund's shares to decrease to a <br />price less than $1.00 per share.<br />&#xA0;&#xA0;<br />Municipal Securities Risk: The value of municipal securities may be affected <br />by uncertainties in the municipal market related to legislation or litigation<br />involving the taxation of municipal securities or the rights of municipal<br />securities holders in the event of bankruptcy. In addition, the ongoing issues<br />facing the national economy may negatively impact the economic performance <br />of issuers of municipal securities, and may increase the likelihood that <br />issuers of securities in which the Fund may invest may be unable to meet <br />their obligations. Also, some municipal obligations may be backed by a letter <br />of credit issued by a bank or other financial institution. Adverse developments<br />affecting banks or other financial institutions could have a negative effect on<br />the value of the Fund's portfolio securities. This could cause the value of the<br />Fund's shares to decrease to a price less than $1.00 per share.<br />&#xA0;&#xA0;<br />Rating Agency Risk: Ratings represent the opinion of a Nationally Recognized<br />Statistical Rating Organization ("NRSRO") regarding the quality of the security<br />and are not a guarantee of quality. NRSROs may fail to make timely credit<br />ratings in response to subsequent events. In addition, NRSROs are subject to <br />an inherent conflict of interest because they are often compensated by the <br />same issuers whose securities they grade.<br />&#xA0;&#xA0;<br />Sector Focus Risk: A fund that focuses its investments in the securities of a<br />particular bond market sector (e.g., housing agency bonds or airport bonds) is<br />subject to the risk that adverse circumstances will have a greater impact on the<br />fund than a fund that does not focus its investments in a particular sector. It<br />is possible that economic, business or political developments or other changes<br />affecting one security in the area of focus will affect other securities in that<br />area of focus in the same manner, thereby increasing the risk of such<br />investments.</tt> The Fund's Fees and Expenses The Fund's Principal Investment Strategies www.TouchstoneInvestments.com <tt>The bar chart and performance table below illustrate some indication of the<br />risks of investing in the Fund. The bar chart shows changes in performance of<br />the Fund's Class A shares for each of the last 10 calendar years. The Fund's<br />past performance does not necessarily indicate how it will perform in the<br />future. Updated performance and current yield information is available at no<br />cost by visiting www.TouchstoneInvestments.com or by calling 1.800.543.0407.</tt> <tt>This table describes the fees and expenses that you may pay if you buy and hold<br />shares of the Fund:</tt> <div style="display:none">~ http://www.TouchstoneInvestments.com/role/OperatingExpensesData_S000003119Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display:none">~ http://www.TouchstoneInvestments.com/role/PerformanceTableData_S000003119Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> An investment in the Fund is not a bank deposit and is not insured or guaranteed by the FDIC or any other government agency. <div style="display:none">~ http://www.TouchstoneInvestments.com/role/ShareholderFeesData_S000003119Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> TTSXX -15 Tax-Free Money Market Fund - Class S 92 373 -0.0040 1533 675 0.0001 0.0045 0.0050 2013-10-29 0.0084 0.0035 0.0090 0.0130 0.0098 2003-02-03 TTFXX 0.0131 -15 Worst Quarter: Best Quarter: 2012-09-30 Tax-Free Money Market Fund - Class A 91 2007-06-30 359 0.0000 0.0067 -0.0035 0.0001 1469 647 0.0288 0.0074 0.0001 0.0049 0.0177 0.0050 2013-10-29 2011-12-31 0.0019 0.0097 0.0175 The year-to-date return 0.0001 0.0053 0.0025 0.0118 0.0089 0.0124 0.0271 0.0001 0000352667 ck0000352667:SummaryS000003119Memberck0000352667:S000003119Memberck0000352667:C000008453Member 2012-10-30 2012-10-30 0000352667 ck0000352667:SummaryS000003119Memberck0000352667:S000003119Memberck0000352667:C000008454Member 2012-10-30 2012-10-30 0000352667 ck0000352667:SummaryS000003119Memberck0000352667:S000003119Member 2012-10-30 2012-10-30 0000352667 ck0000352667:SummaryS000003121Memberck0000352667:S000003121Memberck0000352667:C000008456Member 2012-10-30 2012-10-30 0000352667 ck0000352667:SummaryS000003121Memberck0000352667:S000003121Memberck0000352667:C000008457Member 2012-10-30 2012-10-30 0000352667 ck0000352667:SummaryS000003121Memberck0000352667:S000003121Member 2012-10-30 2012-10-30 0000352667 ck0000352667:SummaryS000003122Memberck0000352667:S000003122Memberck0000352667:C000008458Member 2012-10-30 2012-10-30 0000352667 ck0000352667:SummaryS000003122Memberck0000352667:S000003122Memberck0000352667:C000008459Member 2012-10-30 2012-10-30 0000352667 ck0000352667:SummaryS000003122Memberck0000352667:S000003122Memberrr:AfterTaxesOnDistributionsMemberck0000352667:C000008458Member 2012-10-30 2012-10-30 0000352667 ck0000352667:SummaryS000003122Memberck0000352667:S000003122Memberrr:AfterTaxesOnDistributionsAndSalesMemberck0000352667:C000008458Member 2012-10-30 2012-10-30 0000352667 ck0000352667:SummaryS000003122Memberck0000352667:S000003122Memberck0000352667:RRINDEX00001Member 2012-10-30 2012-10-30 0000352667 ck0000352667:SummaryS000003122Memberck0000352667:S000003122Member 2012-10-30 2012-10-30 0000352667 2012-10-30 2012-10-30 pure iso4217:USD Touchstone Advisors and the Trust have entered into an expense limitation agreement whereby Touchstone Advisors has contractually agreed to waive a portion of its fees and/or reimburse certain Fund expenses in order to limit annual fund operating expenses to 0.89% and 0.90% for Class A shares and Class S shares, respectively. This expense limitation will remain in effect until at least October 29, 2013 but can be terminated by a vote of the Board of Trustees of the Fund if they deem the termination to be beneficial to the shareholders. Touchstone Advisors is entitled to recoup, subject to approval by the Board of Trustees of the Fund, such amounts reduced or reimbursed for a period of up to three (3) years from the year in which Touchstone Advisors reduced its compensation and/or assumed expenses for the Fund. No recoupment will occur unless the Fund's expenses are below the expense limitation. See the discussion entitled "Contractual Fee Waiver Agreement" under the section entitled "The Funds' Management" in the Fund's Prospectus for more information. The fee waivers do not correlate to the ratio of net expenses to average net assets shown in the annual report due to an additional voluntary fee waiver. During the last fiscal year, Touchstone Advisors voluntarily waived additional fees or reimbursed certain Fund expenses. Due to the voluntary fee waivers, the Fund's actual ratio of net expenses to average net assets was 0.33% and 0.33% for Class A shares and Class S shares, respectively. The Fund is authorized under its 12b-1 plan for Class S shares to pay an annual fee of up to 1.00% of its average daily net assets. The Fund currently intends to limit the amount of 12b-1 fees for Class S shares to a maximum of 0.35% per annum of the average daily net assets of Class S shares. Touchstone Advisors and the Trust have entered into an expense limitation agreement whereby Touchstone Advisors has contractually agreed to waive a portion of its fees and/or reimburse certain Fund expenses in order to limit annual fund operating expenses to 0.75% and 0.50% for Class A shares and Institutional shares, respectively. This expense limitation will remain in effect until at least October 29, 2013 but can be terminated by a vote of the Board of Trustees of the Fund if they deem the termination to be beneficial to the shareholders. Touchstone Advisors is entitled to recoup, subject to approval by the Board of Trustees of the Fund, such amounts reduced or reimbursed for a period of up to three (3) years from the year in which Touchstone Advisors reduced its compensation and/or assumed expenses for the Fund. No recoupment will occur unless the Fund's expenses are below the expense limitation. See the discussion entitled "Contractual Fee Waiver Agreement" under the section entitled "The Funds' Management" in the Fund's Prospectus for more information. The fee waivers do not correlate to the ratio of net expenses to average net assets shown in the annual report due to an additional voluntary fee waiver. During the last fiscal year, Touchstone Advisors voluntarily waived additional fees or reimbursed certain Fund expenses. Due to the voluntary fee waivers, the Fund's actual ratio of net expenses to average net assets was 0.29% and 0.28% for Class A shares and Institutional shares, respectively. Touchstone Advisors and the Trust have entered into an expense limitation agreement whereby Touchstone Advisors has contractually agreed to waive a portion of its fees and/or reimburse certain Fund expenses in order to limit annual fund operating expenses to 0.85% and 1.60% for Class A shares and Class C shares, respectively. This expense limitation will remain in effect until at least October 29, 2013 but can be terminated by a vote of the Board of Trustees of the Fund if they deem the termination to be beneficial to the shareholders. Touchstone Advisors is entitled to recoup, subject to approval by the Board of Trustees of the Fund, such amounts reduced or reimbursed for a period of up to three (3) years from the year in which Touchstone Advisors reduced its compensation and/or assumed expenses for the Fund. No recoupment will occur unless the Fund's expenses are below the expense limitation. See the discussion entitled "Contractual Fee Waiver Agreement" under the section entitled "The Funds' Management" in the Fund's Prospectus for more information.