Multi-Hedge Strategies Fund (Prospectus Summary): | Multi-Hedge Strategies Fund

Multi-Hedge Strategies Fund  

RYDEX SERIES FUNDS

Multi-Hedge Strategies Fund

Supplement dated July 25, 2011
to each currently effective Prospectus for the Fund listed above

This supplement provides new and additional information beyond that contained in the currently effective Prospectuses for the Fund listed above (the “Fund”) and should be read in conjunction with the Fund’s Prospectuses.

•Effectively immediately, the Fees and Expenses Table and Example information currently disclosed in the Fund’s Prospectuses is replaced in

       its entirety with the Fees and Expenses Table and Example information set forth below. The Fees and Expenses Table and Example

       information below reflect the Fund’s revised “Acquired Fund Fees and Expenses.”

       Acquired Fund Fees and Expenses generally represent the expenses a fund indirectly incurs through its investment in other investment

       companies, such as other mutual funds. In the Fund’s case, its Acquired Fund Fees and Expenses have been adjusted to include the

       expenses the Fund indirectly incurs through its investment in business development companies (BDCs), a type of investment company

       that more closely resembles an operating company than a mutual fund. The Fund may invest in BDCs in addition to other types of

       investment companies from time to time when doing so will further the Fund’s investment objective.

      Unlike the other fees and expenses included in the Fund’s Fees and Expenses Tables, the Acquired Fund Fees and Expenses are not direct

      costs paid by Fund shareholders and do not affect the calculation of the Fund’s net asset value or the Fund’s cost of operations. Rather,

      Acquired Fund Fees and Expenses are similar to the expenses paid by any operating company in the Fund’s portfolio and indirectly borne

      by the Fund. Thus, despite the fact that Acquired Fund Fees and Expenses appear to increase the Fund’s expense ratio, they have no effect

      on a shareholder’s cost of investing in the Fund and are included in the Fund’s expense ratio only to comply with SEC rules. For more

      precise information about the Fund’s operating expenses, shareholders are encouraged to review the Fund’s financial statements.

PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.

SER-1-SUP5-0711x0512

SHAREHOLDER FEES (fees paid directly from your investment)  

Shareholder Fees Multi-Hedge Strategies Fund	H-Class Shares	A-Class Shares	C-Class Shares	Institutional Class Shares
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	none	4.75%	none	none
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	none	none	1.00%	none

ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)  

Annual Fund Operating Expenses Multi-Hedge Strategies Fund		H-Class Shares	A-Class Shares	C-Class Shares	Institutional Class Shares
Management Fees of the Fund and Subsidiary		1.30%	1.30%	1.30%	1.30%
Distribution and Shareholder Service (12b-1) Fees		0.25%	0.25%	1.00%	none
Other Expenses		2.14%	2.00%	2.11%	3.83%
Other Expenses of the Fund		none	none	none	none
Other Expenses of the Subsidiary		0.02%	0.02%	0.02%	0.02%
Short Dividend Expense		2.12%	1.98%	2.09%	3.81%
Acquired Fund Fees and Expenses		0.14%	0.14%	0.14%	0.14%
Total Annual Fund Operating Expenses	[1]	3.83%	3.69%	4.55%	5.27%
Fee Waiver	[2]	0.15%	0.15%	0.15%	0.15%
Total Annual Fund Operating Expenses After Fee Waiver	[1]	3.68%	3.54%	4.40%	5.12%

EXAMPLE —

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated, and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

Expense Example Multi-Hedge Strategies Fund (USD $)	Expense Example, With Redemption, 1 Year	Expense Example, With Redemption, 3 Years	Expense Example, With Redemption, 5 Years	Expense Example, With Redemption, 10 Years
H-Class Shares	370	1,126	1,902	3,932
A-Class Shares	815	1,509	2,224	4,104
C-Class Shares	541	1,332	2,233	4,534
Institutional Class Shares	512	1,533	2,522	5,089

You would pay the following expenses if you did not redeem your shares:  

Expense Example, No Redemption (USD $)	Expense Example, No Redemption, 1 Year	Expense Example, No Redemption, 3 Years	Expense Example, No Redemption, 5 Years	Expense Example, No Redemption, 10 Years
C-Class Shares Multi-Hedge Strategies Fund	441	1,332	2,233	4,534

[1] The Total Annual Fund Operating Expenses in this fee table (before and after any applicable fee waivers) may not correlate to the expense ratios in the Fund’s financial highlights and financial statements because the financial highlights and financial statements reflect only the operating expenses of the Fund and do not include acquired fund fees and expenses, which are fees and expenses incurred indirectly by the Fund through its investments in certain underlying investment companies

[2] The Advisor has contractually agreed to waive the management fee it receives from the Fund in an amount equal to the management fee paid to the Advisor by the Subsidiary. This undertaking will continue in effect for so long as the Fund invests in the Subsidiary, and may be terminated only with the approval of the Fund’s Board of Trustees. In any event, this undertaking will continue through April 30, 2012.