UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811- 07584

Rydex Series Funds

(Exact name of registrant as specified in charter)

702 King Farm Boulevard, Suite 200
Rockville, Maryland 20850

(Address of principal executive offices) (Zip code)

Amy J. Lee

Rydex Series Funds
702 King Farm Boulevard, Suite 200
Rockville, Maryland 20850

(Name and address of agent for service)

Registrant's telephone number, including area code: 1-301-296-5100

Date of fiscal year end: March 31

Date of reporting period: April 1, 2019 - March 31, 2020

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The registrant’s annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “Investment Company Act”), is as follows:

3.31.2020

Rydex Funds Annual Report

Sector Funds

Banking Fund

Basic Materials Fund

Biotechnology Fund

Consumer Products Fund

Electronics Fund

Energy Fund

Energy Services Fund

Financial Services Fund

Health Care Fund

Internet Fund

Leisure Fund

Precious Metals Fund

Real Estate Fund

Retailing Fund

Technology Fund

Telecommunications Fund

Transportation Fund

Utilities Fund

Beginning on January 1, 2021, paper copies of the Funds’ annual and semi-annual shareholder reports may no longer be sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from a fund electronically by calling 800.820.0888, going to GuggenheimInvestments.com/myaccount, or by contacting your financial intermediary.

You may elect to receive all future shareholder reports in paper free of charge. If you hold shares of a fund directly, you can inform the Fund that you wish to receive paper copies of reports by calling 800.820.0888. If you hold shares of a fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper will apply to all Guggenheim Funds in which you are invested and may apply to all funds held with your financial intermediary.

GuggenheimInvestments.com RSECF-ANN-2-0320x0321

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
ABOUT SHAREHOLDERS’ FUND EXPENSES	5
BANKING FUND	10
BASIC MATERIALS FUND	18
BIOTECHNOLOGY FUND	26
CONSUMER PRODUCTS FUND	34
ELECTRONICS FUND	42
ENERGY FUND	51
ENERGY SERVICES FUND	59
FINANCIAL SERVICES FUND	67
HEALTH CARE FUND	77
INTERNET FUND	85
LEISURE FUND	93
PRECIOUS METALS FUND	102
REAL ESTATE FUND	110
RETAILING FUND	119
TECHNOLOGY FUND	127
TELECOMMUNICATIONS FUND	136
TRANSPORTATION FUND	144
UTILITIES FUND	152
NOTES TO FINANCIAL STATEMENTS	160
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	174
OTHER INFORMATION	175
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	177
GUGGENHEIM INVESTMENTS PRIVACY NOTICE	182

THE RYDEX FUNDS ANNUAL REPORT | 1

March 31, 2020

Dear Shareholder:

The fiscal year ended March 31, 2020, concluded on a somber note. Even though markets performed well for most of the period, the emergence of a novel and highly contagious form of coronavirus in the last weeks of the period adversely impacted global commercial activity and contributed to significant volatility in certain markets, unseen since the great recession of 2008.

As it spread beyond Asia to virtually every country in the world, many governments and businesses instituted quarantines and closures, which has resulted in significant disruption in manufacturing, supply chains, consumer demand and economic activity. The U.S. Federal Reserve responded quickly to provide liquidity in order to ensure that the U.S. markets continued to function efficiently. The fiscal policy included a spending bill worth over $2 trillion to assist consumers, states, small businesses and certain industries. While these actions helped stabilize the market, volatile conditions continued into April.

As discussed in this annual shareholder report, these events have affected performance of many of our funds (the “Fund” or “Funds”). We encourage you to read the Economic and Market Overview section of the report, which follows this letter, and then the Performance Report and Fund Profile for each Fund.

Security Investors, LLC (the “Investment Adviser”), the Investment Adviser for the Funds, is part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC (“Guggenheim”), a global, diversified financial services firm. An affiliate of Guggenheim and the Investment Adviser, Guggenheim Funds Distributors, LLC, is the distributor of the Funds.

Together, we are committed to the safety and prosperity of our clients, our employees, and our shareholders. The resources of the firm are being made fully available not only to support our clients, but also to support our employees and their families.

Please practice the appropriate prudence for the protection not only of your health and that of your friends and loved ones but also for our neighbors and communities. Thank you for the trust you place in us.

Sincerely,

Security Investors, LLC

April 30, 2020

Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at guggenheiminvestments.com or call 800.820.0888.

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.

The global ongoing crisis caused by the outbreak of COVID-19 is causing materially reduced consumer demand and economic output, disrupting supply chains, resulting in market closures, travel restrictions and quarantines, and adversely impacting local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and health conditions all over the world, the Funds’ investments and a shareholder’s investment in a Fund are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational risks.

Sector funds may not be suitable for all investors. Investing in sector funds is more volatile than investing in broadly diversified funds, as there is a greater risk due to the concentration of the fund’s holdings in issuers within the same sector or industry. Certain of the sector funds are considered non-diversified and can invest a greater portion of their assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund.

2 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) March 31, 2020

The 12-month period ended March 31, 2020, was a wild ride for markets. While the U.S. economy was generally in good shape in 2019, recessionary fears rose throughout the year, prompting the U.S. Federal Reserve (the “Fed”) to announce a rate cut on July 31, the first since 2008, amid growing downside risks to policymakers’ baseline growth and inflation forecasts. Key among those risks were slowing global growth, the threat of additional U.S.-China tariffs, and the possible ramifications surrounding Brexit. The Fed subsequently cut rates twice more in 2019, which caused markets to rally toward the end of the year and into early 2020. Stocks reached new highs and credit spreads tightened to historic levels. Since then, the global outbreak of the coronavirus, COVID-19, has been at the center of everything. As of this writing, COVID-19 has spread to 210 countries, resulted in over 2.5 million cases, and caused over 170,000 deaths. Thus far, the U.S. makes up more than 30% of global cases, and 25% of global deaths. States have required the labor force to work from home if possible, individuals to practice social distancing, and non-essential businesses to shut down.

Closures, quarantines, and social distancing efforts have impacted the travel, hospitality, restaurants, and retail industries, with activity down 100% in some areas of the country. Further exacerbating the decline in output will be reduced business investment, which was already stalling due to falling profits, trade conflicts, and political uncertainty. The coronavirus shock and collapse in oil prices will likely further depress capital expenditures.

In response to the crisis, the Federal Open Market Committee cut rates by a further 125 basis points in the first quarter of 2020 and passed a series of stimulus programs. Among these were the Primary and Secondary Market Corporate Credit Facilities, which are lending programs primarily targeting investment-grade corporate bond issuers, implemented in concert with the U.S. Treasury. It was only after the announcement of this program that corporate credit found some relief from the selloff, but we expect this relief may be temporary.

With an alphabet soup of monetary programs targeting relief from the coronavirus impact, fiscal policy has also stepped up to the plate with a spending bill worth over $2 trillion that aims to assist consumers, states, small businesses, and certain industries. There is no question that these programs will help ease the economic fallout from virus containment measures, but even $2 trillion may be too small given the magnitude of the economic shock that we are facing. Additionally, it is far from clear that fiscal measures are an adequate solution to the issue at hand: the physical impediment to consumer spending. Fiscal and monetary policy can do their part, but ultimately it is public health policy that will likely be the greatest determinant of the economic outlook.

For the 12 months ended March 31, 2020, the Standard & Poor’s 500^® (“S&P 500”) Index* returned -6.98%. The decline, while significant, represents something of a recovery in stocks. The S&P 500 peaked at 3,386.15 on February 19, 2020, before plummeting 33.9% to a low of 2,237.40 on March 23, 2020, then recovering some lost ground by the end of the month.

The consensus estimate for S&P 500 earnings per share in 2020 is still around $150. Our research shows S&P 500 earnings per share could fall below $100. Similarly, economists have no way to calibrate how bad the economic data could be based on history. The March U.S. non-farm payrolls report was evidence of this, as it showed a decline in payrolls of 700,000 jobs versus survey expectations of a decline of only 100,000 jobs. We currently expect that second quarter U.S. real gross domestic product (“GDP”) quarter-over-quarter growth could fall by 40% annualized and the unemployment rate could rise to at least 20%. Beyond that, the severity of the crisis depends on containment of the virus and the effectiveness of social distancing measures put in place, but expectations for a quick and sustained V-shaped recovery appear overly optimistic.

For the 12 months ended March 31, 2020, the MSCI Europe-Australasia-Far East (“EAFE”) Index* returned -13.92%. The return of the MSCI Emerging Markets Index* was -17.36%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted an 8.93% return for the 12-month period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned -6.94%. The return of the ICE Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 2.25% for the 12-month period.

The opinions and forecasts expressed may not actually come to pass. This information is subject to change at any time, based on market and other conditions, and should not be construed as a recommendation of any specific security or strategy.

*Index Definitions:

The following indices are referenced throughout this report. Indices are unmanaged and not available for direct investment. Index performance does not reflect transaction costs, fees, or expenses.

Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, mortgage-backed securities or “MBS” (agency fixed-rate and hybrid adjustable-rate mortgage, or “ARM”, pass-throughs), asset-backed securities (“ABS”), and commercial mortgage-backed securities (“CMBS”) (agency and non-agency).

THE RYDEX FUNDS ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) March 31, 2020

Bloomberg Barclays U.S. Corporate High Yield Index measures the U.S. dollar-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB +/BB + or below.

ICE BofA Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged market Index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income.

MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

MSCI Emerging Markets Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets.

MSCI U.S. REIT Index is a free float market capitalization weighted index that is comprised of equity real estate investment trust (“REIT”) securities that belong to the MSCI U.S. Investable Market 2500 Index. The MSCI U.S. REIT Index includes only REIT securities that are of reasonable size in terms of full and free float-adjusted market capitalization to ensure that the performance of the equity REIT universe can be captured and replicated in actual institutional and retail portfolios of different sizes.

S&P 500^® is a broad-based index, the performance of which is based on the performance of 500 widely held common stocks chosen for market size, liquidity, and industry group representation.

S&P 500^® Consumer Discretionary Index is a sub-index of the S&P 500^® . The Consumer Discretionary Index includes companies in the following industries: automobiles and components, consumer durables, apparel, hotels, restaurants, leisure, media and retailing.

S&P 500^® Consumer Staples Index is a sub-index of the S&P 500^® . The Consumer Staples Index comprises companies whose businesses are less sensitive to economic cycles. It includes manufacturers and distributors of food, beverages and tobacco and producers of non-durable household goods and personal products. It also includes food & drug retailing companies as well as hypermarkets and consumer super centers.

S&P 500^® Energy Index is a sub-index of the S&P 500^® . The Energy Index comprises companies whose businesses are dominated by either of the following activities: the construction or provision of oil rigs, drilling equipment and other energy-related equipment and services, including seismic data collection; companies engaged in the exploration, production, marketing, refining and/or transportation of oil and gas products, coal and other consumable fuels.

S&P 500^® Financials Index is a sub-index of the S&P 500^® . The Financials Index contains companies involved in activities such as banking, mortgage finance, consumer finance, specialized finance, investment banking and brokerage, asset management and custody, corporate lending, insurance, and financial investment, and real estate, including REITs.

S&P 500^® Health Care Index is a sub-index of the S&P 500^® . The Health Care Index encompasses two main industry groups. The first includes companies which manufacture health care equipment and supplies or provide health care related services, including distributors of health care products, providers of basic health-care services, and owners and operators of health care facilities and organizations. The first group also includes companies operating in the health care technology industry. The second group includes companies primarily involved in the research, development, production and marketing of pharmaceuticals, biotechnology and life sciences products.

S&P 500^® Industrials Index is a sub-index of the S&P 500^® . The Industrials Index includes companies whose businesses are dominated by one of the following activities: the manufacture and distribution of capital goods, including aerospace & defense, construction, engineering & building products, electrical equipment and industrial machinery; the provision of commercial services and supplies, including printing, environmental, office and security services; the provision of professional services, including employment and research & consulting services; or the provision of transportation services, including airlines, couriers, marine, road & rail and transportation infrastructure.

S&P 500^® Information Technology Index is a sub-index of the S&P 500^® . The Information Technology Index covers the following general areas: technology software & services, including companies that primarily develop software in various fields such as the internet, applications, systems, databases management and/or home entertainment, and companies that provide information technology consulting and services, as well as data processing and outsourced services; secondly, technology hardware & equipment, including manufacturers and distributors of communications equipment, computers & peripherals, electronic equipment and related instruments; and thirdly, semiconductors & semiconductor equipment manufacturers.

S&P 500^® Materials Index is a sub-index of the S&P 500^® . The Materials Index encompasses a wide range of commodity-related manufacturing industries. Included in this sector are companies that manufacture chemicals, construction materials, glass, paper, forest products and related packaging products, and metals, minerals and mining companies, including producers of steel.

S&P 500^® Telecommunications Services Index is a sub-index of the S&P 500^® . The Telecommunications Services Index contains companies that provide communications services primarily through a fixed-line, cellular, wireless, high bandwidth and/or fiber optic cable network.

S&P 500^® Utilities Index is a sub-index of the S&P 500^® . The Utilities Index encompasses those companies considered electric, gas or water utilities, or companies that operate as independent producers and/or distributors of power.

4 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses, and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, other distributions, and exchange fees, and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund’s gross income and reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning September 30, 2019 and ending March 31, 2020.

The following tables illustrate the Funds’ costs in two ways:

Table 1. Based on actual Fund return: This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fifth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return: This section is intended to help investors compare a fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments, and contingent deferred sales charges (“CDSC”) on redemptions, if any. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

More information about the Funds’ expenses, including annual expense ratios for periods up to five years (subject to the Fund’s inception date), can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

THE RYDEX FUNDS ANNUAL REPORT | 5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2019	Ending Account Value March 31, 2020	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Banking Fund
Investor Class	1.48%	(33.77%)	$ 1,000.00	$ 662.30	$ 6.15
A-Class	1.74%	(33.85%)	1,000.00	661.50	7.23
C-Class	2.48%	(34.09%)	1,000.00	659.10	10.29
H-Class	1.74%	(33.84%)	1,000.00	661.60	7.23
Basic Materials Fund
Investor Class	1.49%	(24.51%)	1,000.00	754.90	6.54
A-Class	1.74%	(24.61%)	1,000.00	753.90	7.63
C-Class	2.48%	(24.87%)	1,000.00	751.30	10.86
H-Class	1.73%	(24.59%)	1,000.00	754.10	7.59
Biotechnology Fund
Investor Class	1.49%	2.18%	1,000.00	1,021.80	7.53
A-Class	1.73%	2.04%	1,000.00	1,020.40	8.74
C-Class	2.48%	1.67%	1,000.00	1,016.70	12.50
H-Class	1.73%	2.05%	1,000.00	1,020.50	8.74
Consumer Products Fund
Investor Class	1.48%	(14.05%)	1,000.00	859.50	6.88
A-Class	1.73%	(14.17%)	1,000.00	858.30	8.04
C-Class	2.48%	(14.49%)	1,000.00	855.10	11.50
H-Class	1.73%	(14.17%)	1,000.00	858.30	8.04
Electronics Fund
Investor Class	1.49%	(2.91%)	1,000.00	970.90	7.34
A-Class	1.74%	(3.03%)	1,000.00	969.70	8.57
C-Class	2.48%	(3.39%)	1,000.00	966.10	12.19
H-Class	1.74%	(3.03%)	1,000.00	969.70	8.57
Energy Fund
Investor Class	1.49%	(52.54%)	1,000.00	474.60	5.49
A-Class	1.74%	(52.57%)	1,000.00	474.30	6.41
C-Class	2.48%	(52.76%)	1,000.00	472.40	9.13
H-Class	1.73%	(52.58%)	1,000.00	474.20	6.38
Energy Services Fund
Investor Class	1.49%	(62.61%)	1,000.00	373.90	5.12
A-Class	1.74%	(62.65%)	1,000.00	373.50	5.97
C-Class	2.49%	(62.78%)	1,000.00	372.20	8.54
H-Class	1.73%	(62.63%)	1,000.00	373.70	5.94
Financial Services Fund
Investor Class	1.49%	(26.04%)	1,000.00	739.60	6.48
A-Class	1.73%	(26.14%)	1,000.00	738.60	7.52
C-Class	2.48%	(26.41%)	1,000.00	735.90	10.76
H-Class	1.74%	(26.14%)	1,000.00	738.60	7.56
Health Care Fund
Investor Class	1.48%	(1.82%)	1,000.00	981.80	7.33
A-Class	1.74%	(1.94%)	1,000.00	980.60	8.62
C-Class	2.48%	(2.27%)	1,000.00	977.30	12.26
H-Class	1.72%	(1.94%)	1,000.00	980.60	8.52

6 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2019	Ending Account Value March 31, 2020	Expenses Paid During Period2
Internet Fund
Investor Class	1.48%	(5.01%)	$ 1,000.00	$ 949.90	$ 7.21
A-Class	1.74%	(5.13%)	1,000.00	948.70	8.48
C-Class	2.48%	(5.48%)	1,000.00	945.20	12.06
H-Class	1.72%	(5.13%)	1,000.00	948.70	8.38
Leisure Fund
Investor Class	1.49%	(24.32%)	1,000.00	756.80	6.54
A-Class	1.74%	(24.42%)	1,000.00	755.80	7.64
C-Class	2.48%	(24.70%)	1,000.00	753.00	10.87
H-Class	1.73%	(24.41%)	1,000.00	755.90	7.59
Precious Metals Fund
Investor Class	1.39%	(10.96%)	1,000.00	890.40	6.57
A-Class	1.63%	(11.08%)	1,000.00	889.20	7.70
C-Class	2.38%	(11.43%)	1,000.00	885.70	11.22
H-Class	1.63%	(11.10%)	1,000.00	889.00	7.70
Real Estate Fund
A-Class	1.72%	(28.66%)	1,000.00	713.40	7.37
C-Class	2.47%	(28.94%)	1,000.00	710.60	10.56
H-Class	1.74%	(28.66%)	1,000.00	713.40	7.45
Retailing Fund
Investor Class	1.48%	(15.90%)	1,000.00	841.00	6.81
A-Class	1.73%	(15.99%)	1,000.00	840.10	7.96
C-Class	2.48%	(16.30%)	1,000.00	837.00	11.39
H-Class	1.73%	(15.98%)	1,000.00	840.20	7.96
Technology Fund
Investor Class	1.48%	(5.17%)	1,000.00	948.30	7.21
A-Class	1.73%	(5.29%)	1,000.00	947.10	8.42
C-Class	2.48%	(5.64%)	1,000.00	943.60	12.05
H-Class	1.73%	(5.29%)	1,000.00	947.10	8.42
Telecommunications Fund
Investor Class	1.49%	(10.95%)	1,000.00	890.50	7.04
A-Class	1.74%	(11.06%)	1,000.00	889.40	8.22
C-Class	2.49%	(11.40%)	1,000.00	886.00	11.74
H-Class	1.75%	(11.08%)	1,000.00	889.20	8.27
Transportation Fund
Investor Class	1.49%	(23.73%)	1,000.00	762.70	6.57
A-Class	1.74%	(23.82%)	1,000.00	761.80	7.66
C-Class	2.48%	(24.11%)	1,000.00	758.90	10.91
H-Class	1.73%	(23.82%)	1,000.00	761.80	7.62
Utilities Fund
Investor Class	1.49%	(16.25%)	1,000.00	837.50	6.84
A-Class	1.73%	(16.36%)	1,000.00	836.40	7.94
C-Class	2.48%	(16.67%)	1,000.00	833.30	11.37
H-Class	1.74%	(16.37%)	1,000.00	836.30	7.99

THE RYDEX FUNDS ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2019	Ending Account Value March 31, 2020	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Banking Fund
Investor Class	1.48%	5.00%	$ 1,000.00	$ 1,017.60	$ 7.47
A-Class	1.74%	5.00%	1,000.00	1,016.30	8.77
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.74%	5.00%	1,000.00	1,016.30	8.77
Basic Materials Fund
Investor Class	1.49%	5.00%	1,000.00	1,017.55	7.52
A-Class	1.74%	5.00%	1,000.00	1,016.30	8.77
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
Biotechnology Fund
Investor Class	1.49%	5.00%	1,000.00	1,017.55	7.52
A-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
Consumer Products Fund
Investor Class	1.48%	5.00%	1,000.00	1,017.60	7.47
A-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
Electronics Fund
Investor Class	1.49%	5.00%	1,000.00	1,017.55	7.52
A-Class	1.74%	5.00%	1,000.00	1,016.30	8.77
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.74%	5.00%	1,000.00	1,016.30	8.77
Energy Fund
Investor Class	1.49%	5.00%	1,000.00	1,017.55	7.52
A-Class	1.74%	5.00%	1,000.00	1,016.30	8.77
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
Energy Services Fund
Investor Class	1.49%	5.00%	1,000.00	1,017.55	7.52
A-Class	1.74%	5.00%	1,000.00	1,016.30	8.77
C-Class	2.49%	5.00%	1,000.00	1,012.55	12.53
H-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
Financial Services Fund
Investor Class	1.49%	5.00%	1,000.00	1,017.55	7.52
A-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.74%	5.00%	1,000.00	1,016.30	8.77
Health Care Fund
Investor Class	1.48%	5.00%	1,000.00	1,017.60	7.47
A-Class	1.74%	5.00%	1,000.00	1,016.30	8.77
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.72%	5.00%	1,000.00	1,016.40	8.67

8 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2019	Ending Account Value March 31, 2020	Expenses Paid During Period2
Internet Fund
Investor Class	1.48%	5.00%	$ 1,000.00	$ 1,017.60	$ 7.47
A-Class	1.74%	5.00%	1,000.00	1,016.30	8.77
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.72%	5.00%	1,000.00	1,016.40	8.67
Leisure Fund
Investor Class	1.49%	5.00%	1,000.00	1,017.55	7.52
A-Class	1.74%	5.00%	1,000.00	1,016.30	8.77
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
Precious Metals Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.05	7.01
A-Class	1.63%	5.00%	1,000.00	1,016.85	8.22
C-Class	2.38%	5.00%	1,000.00	1,013.10	11.98
H-Class	1.63%	5.00%	1,000.00	1,016.85	8.22
Real Estate Fund
A-Class	1.72%	5.00%	1,000.00	1,016.40	8.67
C-Class	2.47%	5.00%	1,000.00	1,012.65	12.43
H-Class	1.74%	5.00%	1,000.00	1,016.30	8.77
Retailing Fund
Investor Class	1.48%	5.00%	1,000.00	1,017.60	7.47
A-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
Technology Fund
Investor Class	1.48%	5.00%	1,000.00	1,017.60	7.47
A-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
Telecommunications Fund
Investor Class	1.49%	5.00%	1,000.00	1,017.55	7.52
A-Class	1.74%	5.00%	1,000.00	1,016.30	8.77
C-Class	2.49%	5.00%	1,000.00	1,012.55	12.53
H-Class	1.75%	5.00%	1,000.00	1,016.25	8.82
Transportation Fund
Investor Class	1.49%	5.00%	1,000.00	1,017.55	7.52
A-Class	1.74%	5.00%	1,000.00	1,016.30	8.77
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
Utilities Fund
Investor Class	1.49%	5.00%	1,000.00	1,017.55	7.52
A-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.74%	5.00%	1,000.00	1,016.30	8.77

1	Annualized and excludes expenses of the underlying funds in which the Funds invest, if any.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period September 30, 2019 to March 31, 2020.

THE RYDEX FUNDS ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

BANKING FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the banking sector, including commercial banks (and their holding companies) and savings and loan institutions (“Banking Companies”).

For the one-year period ended March 31, 2020, Banking Fund Investor Class returned -30.08%, compared with -17.15% for the S&P 500 Financials Index. The broader S&P 500 Index returned -6.98%.

All industries detracted from return, led by regional banks, diversified banks, and consumer finance.

SunTrust Banks, Inc., First Citizens BancShares, Inc. – Class A, and F.N.B. Corp. contributed the most to the Fund’s return for the period. Wells Fargo & Co., Citigroup, Inc., and Capital One Financial Corp. detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	April 1, 1998
A-Class	September 1, 2004
C-Class	March 30, 2001
H-Class	April 1, 1998

Ten Largest Holdings (% of Total Net Assets)
JPMorgan Chase & Co.	4.5%
Bank of America Corp.	4.1%
Citigroup, Inc.	3.7%
Wells Fargo & Co.	3.7%
U.S. Bancorp	3.6%
PNC Financial Services Group, Inc.	3.3%
Truist Financial Corp.	3.1%
Bank of New York Mellon Corp.	3.0%
State Street Corp.	2.4%
Capital One Financial Corp.	2.2%
Top Ten Total	33.6%
“Ten Largest Holdings” excludes any temporary cash investments.

10 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(30.08%)	(2.95%)	0.87%
A-Class Shares	(30.25%)	(3.18%)	0.62%
A-Class Shares with sales charge‡	(33.57%)	(4.12%)	0.13%
C-Class Shares	(30.78%)	(3.91%)	(0.13%)
C-Class Shares with CDSC§	(31.47%)	(3.91%)	(0.13%)
H-Class Shares**	(30.24%)	(3.18%)	0.50%
S&P 500 Financials Index	(17.15%)	3.37%	6.89%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Financials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 11

SCHEDULE OF INVESTMENTS	March 31, 2020
BANKING FUND

	Shares		Value
COMMON STOCKS† - 100.0%
Banks - 90.9%
JPMorgan Chase & Co.		10,554	$	950,177
Bank of America Corp.		41,471		880,429
Citigroup, Inc.		18,531		780,526
Wells Fargo & Co.		27,022		775,531
U.S. Bancorp		22,415		772,197
PNC Financial Services Group, Inc.		7,288		697,607
Truist Financial Corp.		21,506		663,245
Bank of New York Mellon Corp.		18,733		630,927
State Street Corp.		9,402		500,845
Northern Trust Corp.		6,201		467,928
First Republic Bank		5,242		431,312
M&T Bank Corp.		3,886		401,929
KeyCorp		30,724		318,608
Fifth Third Bancorp		21,081		313,053
SVB Financial Group*		1,995		301,405
Huntington Bancshares, Inc.		36,411		298,934
Regions Financial Corp.		32,823		294,422
Royal Bank of Canada		4,747		292,178
Commerce Bancshares, Inc.		5,656		284,780
Toronto-Dominion Bank		6,716		284,691
HSBC Holdings plc ADR1		9,981		279,568
Citizens Financial Group, Inc.		14,440		271,616
UBS Group AG*		29,140		269,836
Bank of Nova Scotia		6,556		266,174
Canadian Imperial Bank of Commerce		4,315		250,141
HDFC Bank Ltd. ADR		6,333		243,567
Prosperity Bancshares, Inc.		5,025		242,456
Bank of Montreal		4,663		234,362
First Financial Bankshares, Inc.		8,568		229,965
Popular, Inc.		6,531		228,585
ICICI Bank Ltd. ADR		26,778		227,613
Signature Bank		2,784		223,806
CVB Financial Corp.		11,095		222,455
Credit Suisse Group AG ADR*		27,087		219,134
Zions Bancorp North America		7,979		213,518
Glacier Bancorp, Inc.		6,207		211,069
East West Bancorp, Inc.		7,591		195,392
Cullen/Frost Bankers, Inc.		3,480		194,149
Valley National Bancorp		25,716		187,984
Comerica, Inc.		6,259		183,639
Western Alliance Bancorporation		5,895		180,446
TCF Financial Corp.		7,949		180,124
Pinnacle Financial Partners, Inc.		4,758		178,615
Old National Bancorp		13,337		175,915
UMB Financial Corp.		3,709		172,023
CenterState Bank Corp.		9,683		166,838
Umpqua Holdings Corp.		15,282		166,574
Simmons First National Corp. — Class A		9,001		165,618
United Bankshares, Inc.		7,085		163,522
Columbia Banking System, Inc.		5,807		155,628
First Hawaiian, Inc.		9,350		154,556
Fulton Financial Corp.		13,408		154,058
First Horizon National Corp.		18,918		152,479
Home BancShares, Inc.		12,695		152,213
Synovus Financial Corp.		8,629		151,525
Associated Banc-Corp.		11,836		151,382
Bank OZK		8,929		149,114
Cathay General Bancorp		6,315		144,929
PacWest Bancorp		7,682		137,661
Webster Financial Corp.		5,766		132,041
Ameris Bancorp		5,553		131,939
IBERIABANK Corp.		3,637		131,514
Wintrust Financial Corp.		3,939		129,436
United Community Banks, Inc.		7,006		128,280
First Financial Bancorp		8,545		127,406
First Midwest Bancorp, Inc.		9,556		126,474
Hancock Whitney Corp.		6,198		120,985
CIT Group, Inc.		6,321		109,101
Texas Capital Bancshares, Inc.*		4,027		89,279
Cadence BanCorp		11,782		77,172
Total Banks				19,292,600
Savings & Loans - 4.4%
New York Community Bancorp, Inc.		27,457		257,821
People’s United Financial, Inc.		22,500		248,625
Investors Bancorp, Inc.		20,821		166,360
Sterling Bancorp		13,656		142,705
Pacific Premier Bancorp, Inc.		5,785		108,990
Total Savings & Loans				924,501
Insurance - 2.5%
Equitable Holdings, Inc.		18,806		271,747
Voya Financial, Inc.		6,507		263,859
Total Insurance				535,606
Diversified Financial Services - 2.2%
Capital One Financial Corp.		9,355		471,679
Total Common Stocks
(Cost $32,062,165)				21,224,386

12 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
BANKING FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.3%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	49,246	$	49,246
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		18,940		18,940
Total Repurchase Agreements
(Cost $68,186)				68,186

	Shares
SECURITIES LENDING COLLATERAL†,3 - 0.2%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		46,079		46,079
Total Securities Lending Collateral
(Cost $46,079)				46,079
Total Investments - 100.5%
(Cost $32,176,430)			$	21,338,651
Other Assets & Liabilities, net - (0.5)%				(116,485	)
Total Net Assets - 100.0%			$	21,222,166

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	21,224,386	$	—	$	—	$	21,224,386
Repurchase Agreements		—		68,186		—		68,186
Securities Lending Collateral		46,079		—		—		46,079
Total Assets	$	21,270,465	$	68,186	$	—	$	21,338,651

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 13

BANKING FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $43,752 of securities loaned (cost $32,108,244)	$	21,270,465
Repurchase agreements, at value (cost $68,186)		68,186
Cash		54,666
Receivables:
Dividends		73,666
Fund shares sold		12,539
Foreign tax reclaims		544
Securities lending income		32
Total assets		21,480,098
Liabilities:
Payable for:
Fund shares redeemed		148,853
Return of securities lending collateral		46,079
Management fees		16,952
Transfer agent and administrative fees		6,589
Portfolio accounting fees		1,995
Distribution and service fees		1,370
Trustees’ fees*		555
Miscellaneous		35,539
Total liabilities		257,932
Commitments and contingent liabilities (Note 9)		—
Net assets	$	21,222,166
Net assets consist of:
Paid in capital	$	35,048,770
Total distributable earnings (loss)		(13,826,604	)
Net assets	$	21,222,166
Investor Class:
Net assets	$	17,507,231
Capital shares outstanding		337,781
Net asset value per share	$	51.83
A-Class:
Net assets	$	2,788,734
Capital shares outstanding		59,366
Net asset value per share	$	46.98
Maximum offering price per share (Net asset value divided by 95.25%)	$	49.32
C-Class:
Net assets	$	764,049
Capital shares outstanding		18,380
Net asset value per share	$	41.57
H-Class:
Net assets	$	162,152
Capital shares outstanding		3,546
Net asset value per share	$	45.73

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $8,700)	$	608,934
Interest		1,933
Income from securities lending, net		97
Total investment income		610,964
Expenses:
Management fees		177,245
Distribution and service fees:
A-Class		11,254
C-Class		12,262
H-Class		5,568
Transfer agent and administrative fees		53,734
Portfolio accounting fees		20,852
Professional fees		8,941
Trustees’ fees*		3,797
Custodian fees		2,856
Line of credit fees		53
Miscellaneous		40,835
Total expenses		337,397
Net investment income		273,567
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		15,650
Net realized gain		15,650
Net change in unrealized appreciation (depreciation) on:
Investments		(12,335,006	)
Net change in unrealized appreciation (depreciation)		(12,335,006	)
Net realized and unrealized loss		(12,319,356	)
Net decrease in net assets resulting from operations	$	(12,045,789	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

14 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

BANKING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	273,567		$	179,656
Net realized gain on investments		15,650			800,892
Net change in unrealized appreciation (depreciation) on investments		(12,335,006	)		(4,677,698	)
Net decrease in net assets resulting from operations		(12,045,789	)		(3,697,150	)
Distributions to shareholders:
Investor Class		(108,737	)		(97,425	)
A-Class		(31,237	)		(93,207	)
C-Class		(9,418	)		(91,847	)
H-Class		(30,264	)		(5,420	)
Total distributions to shareholders		(179,656	)		(287,899	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		97,783,948			106,641,289
A-Class		840,548			4,740,864
C-Class		1,729,649			5,542,911
H-Class		8,514,542			73,023,137
Distributions reinvested
Investor Class		108,041			91,809
A-Class		30,103			89,208
C-Class		9,418			91,561
H-Class		30,213			5,361
Cost of shares redeemed
Investor Class		(75,479,771	)		(124,774,957	)
A-Class		(1,702,700	)		(3,478,711	)
C-Class		(1,910,665	)		(7,834,143	)
H-Class		(10,167,108	)		(85,075,671	)
Net increase (decrease) from capital share transactions		19,786,218			(30,937,342	)
Net increase (decrease) in net assets		7,560,773			(34,922,391	)
Net assets:
Beginning of year		13,661,393			48,583,784
End of year	$	21,222,166		$	13,661,393
Capital share activity:
Shares sold
Investor Class		1,226,311			1,312,693
A-Class		11,635			65,441
C-Class		27,344			79,933
H-Class		120,683			1,002,598
Shares issued from reinvestment of distributions
Investor Class		1,272			1,285
A-Class		391			1,372
C-Class		138			1,575
H-Class		403			85
Shares redeemed
Investor Class		(970,220	)		(1,537,374	)
A-Class		(24,173	)		(47,026	)
C-Class		(30,321	)		(117,694	)
H-Class		(140,736	)		(1,164,683	)
Net increase (decrease) in shares		222,727			(401,795	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 15

BANKING FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	74.58		$	86.27		$	76.86		$	56.13		$	62.71
Income (loss) from investment operations:
Net investment income (loss)a		1.14			.81			.60			.53			.68
Net gain (loss) on investments (realized and unrealized)		(23.38	)		(10.92	)		9.12			20.51			(6.97	)
Total from investment operations		(22.24	)		(10.11	)		9.72			21.04			(6.29	)
Less distributions from:
Net investment income		(.51	)		(1.58	)		(.31	)		(.31	)		(.29	)
Total distributions		(.51	)		(1.58	)		(.31	)		(.31	)		(.29	)
Net asset value, end of period	$	51.83		$	74.58		$	86.27		$	76.86		$	56.13
Total Return		(30.08	%)		(11.63	%)		12.63	%		37.53	%		(10.10	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,507		$	5,997		$	26,209		$	41,473		$	7,206
Ratios to average net assets:
Net investment income (loss)		1.47	%		0.97	%		0.73	%		0.74	%		1.07	%
Total expenses		1.48	%		1.46	%		1.38	%		1.38	%		1.34	%
Portfolio turnover rate		360	%		633	%		772	%		907	%		514	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	67.81		$	78.80		$	70.41		$	51.55		$	57.76
Income (loss) from investment operations:
Net investment income (loss)a		.87			.57			.37			.33			.40
Net gain (loss) on investments (realized and unrealized)		(21.19	)		(9.98	)		8.33			18.84			(6.32	)
Total from investment operations		(20.32	)		(9.41	)		8.70			19.17			(5.92	)
Less distributions from:
Net investment income		(.51	)		(1.58	)		(.31	)		(.31	)		(.29	)
Total distributions		(.51	)		(1.58	)		(.31	)		(.31	)		(.29	)
Net asset value, end of period	$	46.98		$	67.81		$	78.80		$	70.41		$	51.55
Total Returnb		(30.25	%)		(11.85	%)		12.37	%		37.21	%		(10.31	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,789		$	4,849		$	4,076		$	5,934		$	876
Ratios to average net assets:
Net investment income (loss)		1.23	%		0.76	%		0.50	%		0.51	%		0.69	%
Total expenses		1.73	%		1.72	%		1.63	%		1.63	%		1.59	%
Portfolio turnover rate		360	%		633	%		772	%		907	%		514	%

16 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

BANKING FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	60.51		$	71.05		$	63.98		$	47.22		$	53.34
Income (loss) from investment operations:
Net investment income (loss)a		.31			(.05	)		(.17	)		(.05	)		.03
Net gain (loss) on investments (realized and unrealized)		(18.74	)		(8.91	)		7.55			17.12			(5.86	)
Total from investment operations		(18.43	)		(8.96	)		7.38			17.07			(5.83	)
Less distributions from:
Net investment income		(.51	)		(1.58	)		(.31	)		(.31	)		(.29	)
Total distributions		(.51	)		(1.58	)		(.31	)		(.31	)		(.29	)
Net asset value, end of period	$	41.57		$	60.51		$	71.05		$	63.98		$	47.22
Total Returnb		(30.78	%)		(12.51	%)		11.54	%		36.18	%		(10.99	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	764		$	1,284		$	4,079		$	5,634		$	3,188
Ratios to average net assets:
Net investment income (loss)		0.49	%		(0.07	%)		(0.25	%)		(0.09	%)		0.05	%
Total expenses		2.48	%		2.46	%		2.38	%		2.37	%		2.35	%
Portfolio turnover rate		360	%		633	%		772	%		907	%		514	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	66.00		$	76.78		$	68.61		$	50.22		$	56.30
Income (loss) from investment operations:
Net investment income (loss)a		.74			.45			.39			.29			.33
Net gain (loss) on investments (realized and unrealized)		(20.50	)		(9.65	)		8.09			18.41			(6.12	)
Total from investment operations		(19.76	)		(9.20	)		8.48			18.70			(5.79	)
Less distributions from:
Net investment income		(.51	)		(1.58	)		(.31	)		(.31	)		(.29	)
Total distributions		(.51	)		(1.58	)		(.31	)		(.31	)		(.29	)
Net asset value, end of period	$	45.73		$	66.00		$	76.78		$	68.61		$	50.22
Total Return		(30.24	%)		(11.89	%)		12.38	%		37.26	%		(10.34	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	162		$	1,531		$	14,220		$	8,467		$	1,360
Ratios to average net assets:
Net investment income (loss)		1.02	%		0.60	%		0.52	%		0.45	%		0.57	%
Total expenses		1.74	%		1.70	%		1.62	%		1.63	%		1.68	%
Portfolio turnover rate		360	%		633	%		772	%		907	%		514	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 17

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

BASIC MATERIALS FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies engaged in the mining, manufacture, or sale of basic materials, such as lumber, steel, iron, aluminum, concrete, chemicals, and other basic building and manufacturing materials (“Basic Materials Companies”).

For the one-year period ended March 31, 2020, Basic Materials Fund Investor Class returned -23.61%, compared with -16.57% for the S&P 500 Materials Index. The broader S&P 500 Index returned -6.98%.

The gold industry contributed the most to return, followed by the silver industry. Specialty chemicals detracted the most from return, followed by the steel industry and diversified chemicals.

Newmont Corp., Barrick Gold Corp., and AngloGold Ashanti Ltd. ADR contributed the most to the Fund’s return for the period. DuPont de Nemours, Inc., Dow, Inc., and Freeport-McMoRan, Inc. detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	April 1, 1998
A-Class	September 1, 2004
C-Class	May 3, 2001
H-Class	April 14, 1998

Ten Largest Holdings (% of Total Net Assets)
Newmont Corp.	3.9%
Air Products & Chemicals, Inc.	3.7%
Ecolab, Inc.	3.6%
Sherwin-Williams Co.	3.5%
Barrick Gold Corp.	3.1%
Ball Corp.	2.8%
Linde plc	2.8%
Corteva, Inc.	2.3%
DuPont de Nemours, Inc.	2.2%
PPG Industries, Inc.	2.1%
Top Ten Total	30.0%
“Ten Largest Holdings” excludes any temporary cash investments.

18 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(23.61%)	(1.44%)	0.64%
A-Class Shares	(23.80%)	(1.68%)	0.38%
A-Class Shares with sales charge‡	(27.43%)	(2.64%)	(0.10%)
C-Class Shares	(24.35%)	(2.41%)	(0.36%)
C-Class Shares with CDSC§	(25.06%)	(2.41%)	(0.36%)
H-Class Shares**	(23.81%)	(1.69%)	0.26%
S&P 500 Materials Index	(16.57%)	0.57%	5.57%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Materials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class shares and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 19

SCHEDULE OF INVESTMENTS	March 31, 2020
BASIC MATERIALS FUND

	Shares		Value
COMMON STOCKS† - 99.9%
Chemicals - 43.1%
Air Products & Chemicals, Inc.		3,458	$	690,251
Ecolab, Inc.		4,284		667,576
Sherwin-Williams Co.		1,409		647,464
Linde plc		3,011		520,903
DuPont de Nemours, Inc.		12,083		412,030
PPG Industries, Inc.		4,734		395,762
Dow, Inc.		13,079		382,430
International Flavors & Fragrances, Inc.1		3,296		336,456
FMC Corp.		4,114		336,073
LyondellBasell Industries N.V. — Class A		6,638		329,444
RPM International, Inc.		4,670		277,865
Celanese Corp. — Class A		3,513		257,819
Albemarle Corp.		4,373		246,506
Eastman Chemical Co.		4,628		215,572
CF Industries Holdings, Inc.		7,701		209,467
Balchem Corp.		2,002		197,637
Westlake Chemical Corp.		4,860		185,506
Axalta Coating Systems Ltd.*		9,945		171,750
Mosaic Co.		15,329		165,860
Ashland Global Holdings, Inc.		3,152		157,821
Huntsman Corp.		10,818		156,104
Nutrien Ltd.1		4,585		155,615
Valvoline, Inc.		10,433		136,568
Element Solutions, Inc.*		16,285		136,142
Olin Corp.		10,715		125,044
WR Grace & Co.		3,486		124,102
Innospec, Inc.		1,740		120,913
PolyOne Corp.		4,940		93,712
Chemours Co.		10,082		89,427
Ingevity Corp.*		2,450		86,240
Total Chemicals				8,028,059
Mining - 19.7%
Newmont Corp.		15,921		720,903
Barrick Gold Corp.		31,247		572,445
Freeport-McMoRan, Inc.		37,491		253,064
Wheaton Precious Metals Corp.		9,157		252,092
Franco-Nevada Corp.		2,503		249,099
Rio Tinto plc ADR		5,245		238,962
Royal Gold, Inc.		2,692		236,115
AngloGold Ashanti Ltd. ADR		11,953		198,779
Agnico Eagle Mines Ltd.		4,992		198,632
BHP Group Ltd. ADR1		5,115		187,669
Pan American Silver Corp.		10,418		149,290
Kirkland Lake Gold Ltd.		5,010		148,296
Teck Resources Ltd. — Class B		13,577		102,642
Kaiser Aluminum Corp.		1,347		93,320
Alcoa Corp.*		10,319		63,565
Total Mining				3,664,873
Packaging & Containers - 14.0%
Ball Corp.		8,088		522,970
Crown Holdings, Inc.*		4,956		287,646
Packaging Corporation of America		3,277		284,542
Westrock Co.		8,772		247,897
Sonoco Products Co.		4,530		209,966
Amcor plc		24,790		201,295
Berry Global Group, Inc.*		5,957		200,810
Silgan Holdings, Inc.		6,810		197,626
Graphic Packaging Holding Co.		14,925		182,085
Sealed Air Corp.		6,919		170,968
O-I Glass, Inc.		12,973		92,238
Total Packaging & Containers				2,598,043
Iron & Steel - 8.2%
Vale S.A. ADR		41,208		341,614
Nucor Corp.		8,259		297,489
Reliance Steel & Aluminum Co.		2,649		232,026
Steel Dynamics, Inc.		8,896		200,516
Commercial Metals Co.		8,329		131,515
ArcelorMittal S.A.1		10,351		96,575
United States Steel Corp.1		12,790		80,705
Allegheny Technologies, Inc.*		8,887		75,539
Carpenter Technology Corp.		3,473		67,724
Total Iron & Steel				1,523,703
Building Materials - 5.8%
Vulcan Materials Co.		3,453		373,166
Martin Marietta Materials, Inc.		1,714		324,340
Eagle Materials, Inc.		2,430		141,961
Louisiana-Pacific Corp.		6,963		119,624
Summit Materials, Inc. — Class A*		7,640		114,600
Total Building Materials				1,073,691
Biotechnology - 2.3%
Corteva, Inc.		18,501		434,773
Forest Products & Paper - 2.2%
International Paper Co.		10,413		324,157
Domtar Corp.		4,286		92,749
Total Forest Products & Paper				416,906
Household Products & Housewares - 1.5%
Avery Dennison Corp.		2,807		285,949
Housewares - 1.4%
Scotts Miracle-Gro Co. — Class A		2,620		268,288
Miscellaneous Manufacturing - 1.4%
AptarGroup, Inc.		2,664		265,175
Coal - 0.3%
Warrior Met Coal, Inc.		5,621		59,695
Total Common Stocks
(Cost $19,274,802)				18,619,155

20 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
BASIC MATERIALS FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.7%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	88,344	$	88,344
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		33,978		33,978
Total Repurchase Agreements
(Cost $122,322)				122,322

	Shares
SECURITIES LENDING COLLATERAL†,3 - 3.4%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		641,991		641,991
Total Securities Lending Collateral
(Cost $641,991)				641,991
Total Investments - 104.0%
(Cost $20,039,115)			$	19,383,468
Other Assets & Liabilities, net - (4.0)%				(753,668	)
Total Net Assets - 100.0%			$	18,629,800

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	18,619,155	$	—	$	—	$	18,619,155
Repurchase Agreements		—		122,322		—		122,322
Securities Lending Collateral		641,991		—		—		641,991
Total Assets	$	19,261,146	$	122,322	$	—	$	19,383,468

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 21

BASIC MATERIALS FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $623,426 of securities loaned (cost $19,916,793)	$	19,261,146
Repurchase agreements, at value (cost $122,322)		122,322
Cash		98,495
Receivables:
Dividends		58,049
Fund shares sold		15,161
Foreign tax reclaims		252
Securities lending income		249
Total assets		19,555,674
Liabilities:
Payable for:
Return of securities lending collateral		641,991
Deferred foreign capital gain taxes		130,382
Fund shares redeemed		100,534
Management fees		13,944
Transfer agent and administrative fees		5,371
Distribution and service fees		2,145
Portfolio accounting fees		1,641
Trustees’ fees*		456
Miscellaneous		29,410
Total liabilities		925,874
Commitments and contingent liabilities (Note 9)		—
Net assets	$	18,629,800
Net assets consist of:
Paid in capital	$	23,960,865
Total distributable earnings (loss)		(5,331,065	)
Net assets	$	18,629,800
Investor Class:
Net assets	$	13,313,072
Capital shares outstanding		314,033
Net asset value per share	$	42.39
A-Class:
Net assets	$	2,965,733
Capital shares outstanding		75,246
Net asset value per share	$	39.41
Maximum offering price per share (Net asset value divided by 95.25%)	$	41.38
C-Class:
Net assets	$	1,526,243
Capital shares outstanding		44,672
Net asset value per share	$	34.17
H-Class:
Net assets	$	824,752
Capital shares outstanding		21,617
Net asset value per share	$	38.15

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $6,434)	$	737,126
Interest		5,787
Income from securities lending, net		5,769
Total investment income		748,682
Expenses:
Management fees		286,857
Distribution and service fees:
A-Class		14,592
C-Class		24,930
H-Class		3,387
Transfer agent and administrative fees		85,639
Portfolio accounting fees		33,747
Registration fees		32,808
Professional fees		17,593
Trustees’ fees*		8,651
Custodian fees		5,088
Line of credit fees		15
Miscellaneous		27,422
Total expenses		540,729
Net investment income		207,953
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,496,946
Net realized gain		1,496,946
Net change in unrealized appreciation (depreciation) on:
Investments		(7,784,086	)
Net change in unrealized appreciation (depreciation)		(7,784,086	)
Net realized and unrealized loss		(6,287,140	)
Net decrease in net assets resulting from operations	$	(6,079,187	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

22 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

BASIC MATERIALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	207,953		$	190,591
Net realized gain on investments		1,496,946			1,031,495
Net change in unrealized appreciation (depreciation) on investments		(7,784,086	)		(3,199,686	)
Net decrease in net assets resulting from operations		(6,079,187	)		(1,977,600	)
Distributions to shareholders:
Investor Class		(1,041,004	)		(309,723	)
A-Class		(222,796	)		(105,350	)
C-Class		(126,761	)		(55,959	)
H-Class		(70,981	)		(22,701	)
Total distributions to shareholders		(1,461,542	)		(493,733	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		29,131,033			60,791,910
A-Class		1,863,446			13,521,729
C-Class		1,431,379			1,838,738
H-Class		5,043,330			53,900,702
Distributions reinvested
Investor Class		1,023,950			302,395
A-Class		212,298			100,455
C-Class		125,218			53,020
H-Class		70,857			22,649
Cost of shares redeemed
Investor Class		(37,986,062	)		(84,799,935	)
A-Class		(4,863,920	)		(15,127,115	)
C-Class		(2,316,529	)		(4,248,363	)
H-Class		(5,432,603	)		(61,389,310	)
Net decrease from capital share transactions		(11,697,603	)		(35,033,125	)
Net decrease in net assets		(19,238,332	)		(37,504,458	)
Net assets:
Beginning of year		37,868,132			75,372,590
End of year	$	18,629,800		$	37,868,132
Capital share activity:
Shares sold
Investor Class		497,060			1,043,944
A-Class		33,828			242,632
C-Class		30,294			36,405
H-Class		97,382			980,871
Shares issued from reinvestment of distributions
Investor Class		17,636			5,738
A-Class		3,930			2,037
C-Class		2,668			1,219
H-Class		1,355			474
Shares redeemed
Investor Class		(660,790	)		(1,444,031	)
A-Class		(87,985	)		(279,290	)
C-Class		(49,672	)		(85,424	)
H-Class		(104,189	)		(1,122,063	)
Net decrease in shares		(218,483	)		(617,488	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 23

BASIC MATERIALS FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	58.04		$	60.37		$	55.71		$	45.18		$	50.18
Income (loss) from investment operations:
Net investment income (loss)a		.43			.35			.11			.18			.26
Net gain (loss) on investments (realized and unrealized)		(13.42	)		(1.85	)		4.80			10.92			(4.39	)
Total from investment operations		(12.99	)		(1.50	)		4.91			11.10			(4.13	)
Less distributions from:
Net investment income		(.90	)		(.24	)		(.25	)		(.57	)		(.87	)
Net realized gains		(1.76	)		(.59	)		—			—			—
Total distributions		(2.66	)		(.83	)		(.25	)		(.57	)		(.87	)
Net asset value, end of period	$	42.39		$	58.04		$	60.37		$	55.71		$	45.18
Total Return		(23.61	%)		(2.36	%)		8.81	%		24.65	%		(8.07	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,313		$	26,704		$	51,589		$	56,854		$	30,653
Ratios to average net assets:
Net investment income (loss)		0.74	%		0.59	%		0.18	%		0.35	%		0.55	%
Total expenses		1.48	%		1.47	%		1.38	%		1.37	%		1.35	%
Portfolio turnover rate		67	%		247	%		257	%		361	%		471	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	54.27		$	56.66		$	52.42		$	42.65		$	47.54
Income (loss) from investment operations:
Net investment income (loss)a		.26			.25			(.01	)		.03			.10
Net gain (loss) on investments (realized and unrealized)		(12.46	)		(1.81	)		4.50			10.31			(4.12	)
Total from investment operations		(12.20	)		(1.56	)		4.49			10.34			(4.02	)
Less distributions from:
Net investment income		(.90	)		(.24	)		(.25	)		(.57	)		(.87	)
Net realized gains		(1.76	)		(.59	)		—			—			—
Total distributions		(2.66	)		(.83	)		(.25	)		(.57	)		(.87	)
Net asset value, end of period	$	39.41		$	54.27		$	56.66		$	52.42		$	42.65
Total Returnb		(23.80	%)		(2.60	%)		8.56	%		24.33	%		(8.29	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,966		$	6,810		$	9,070		$	16,355		$	4,152
Ratios to average net assets:
Net investment income (loss)		0.48	%		0.45	%		(0.02	%)		0.06	%		0.24	%
Total expenses		1.73	%		1.72	%		1.63	%		1.62	%		1.60	%
Portfolio turnover rate		67	%		247	%		257	%		361	%		471	%

24 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

BASIC MATERIALS FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	47.73		$	50.32		$	46.93		$	38.52		$	43.36
Income (loss) from investment operations:
Net investment income (loss)a		(.11	)		(.21	)		(.38	)		(.29	)		(.17	)
Net gain (loss) on investments (realized and unrealized)		(10.79	)		(1.55	)		4.02			9.27			(3.80	)
Total from investment operations		(10.90	)		(1.76	)		3.64			8.98			(3.97	)
Less distributions from:
Net investment income		(.90	)		(.24	)		(.25	)		(.57	)		(.87	)
Net realized gains		(1.76	)		(.59	)		—			—			—
Total distributions		(2.66	)		(.83	)		(.25	)		(.57	)		(.87	)
Net asset value, end of period	$	34.17		$	47.73		$	50.32		$	46.93		$	38.52
Total Returnb		(24.35	%)		(3.35	%)		7.75	%		23.41	%		(8.98	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,526		$	2,930		$	5,494		$	5,824		$	2,430
Ratios to average net assets:
Net investment income (loss)		(0.23	%)		(0.42	%)		(0.75	%)		(0.66	%)		(0.43	%)
Total expenses		2.47	%		2.47	%		2.38	%		2.37	%		2.35	%
Portfolio turnover rate		67	%		247	%		257	%		361	%		471	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	52.62		$	54.95		$	50.84		$	41.37		$	46.19
Income (loss) from investment operations:
Net investment income (loss)a		.27			.12			(.05	)		.01			.09
Net gain (loss) on investments (realized and unrealized)		(12.08	)		(1.62	)		4.41			10.03			(4.04	)
Total from investment operations		(11.81	)		(1.50	)		4.36			10.04			(3.95	)
Less distributions from:
Net investment income		(.90	)		(.24	)		(.25	)		(.57	)		(.87	)
Net realized gains		(1.76	)		(.59	)		—			—			—
Total distributions		(2.66	)		(.83	)		(.25	)		(.57	)		(.87	)
Net asset value, end of period	$	38.15		$	52.62		$	54.95		$	50.84		$	41.37
Total Return		(23.81	%)		(2.59	%)		8.57	%		24.36	%		(8.36	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	825		$	1,424		$	9,220		$	8,077		$	2,612
Ratios to average net assets:
Net investment income (loss)		0.51	%		0.21	%		(0.09	%)		0.03	%		0.24	%
Total expenses		1.72	%		1.71	%		1.62	%		1.62	%		1.64	%
Portfolio turnover rate		67	%		247	%		257	%		361	%		471	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 25

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

BIOTECHNOLOGY FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the biotechnology industry, including companies involved in research and development, genetic, or other biological engineering, and in the design, manufacture, or sale of related biotechnology products or services (“Biotechnology Companies”).

For the one-year period ended March 31, 2020, Biotechnology Fund Investor Class returned -9.91%, compared with -1.01% for the S&P 500 Health Care Index. The broader S&P 500 Index returned -6.98%.

All industries detracted from return, led by biotechnology, life sciences tools & services and pharmaceuticals.

Medicines Co., Array BioPharma, Inc., and Biogen, Inc. contributed the most to the Fund’s return for the period. Bluebird Bio, Inc., Amarin Corporation plc ADR, and Sage Therapeutics, Inc. detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	April 1, 1998
A-Class	September 1, 2004
C-Class	March 30, 2001
H-Class	April 1, 1998

Ten Largest Holdings (% of Total Net Assets)
Gilead Sciences, Inc.	8.0%
Amgen, Inc.	7.7%
AbbVie, Inc.	7.5%
Regeneron Pharmaceuticals, Inc.	6.4%
Vertex Pharmaceuticals, Inc.	6.3%
Biogen, Inc.	5.9%
Illumina, Inc.	4.4%
Seattle Genetics, Inc.	3.4%
Alexion Pharmaceuticals, Inc.	3.0%
BioMarin Pharmaceutical, Inc.	3.0%
Top Ten Total	55.6%
“Ten Largest Holdings” excludes any temporary cash investments.

26 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(9.91%)	(0.63%)	13.18%
A-Class Shares	(10.14%)	(0.88%)	12.90%
A-Class Shares with sales charge‡	(14.40%)	(1.84%)	12.35%
C-Class Shares	(10.80%)	(1.62%)	12.06%
C-Class Shares with CDSC§	(11.65%)	(1.62%)	12.06%
H-Class Shares**	(10.12%)	(0.90%)	12.75%
S&P 500 Health Care Index	(1.01%)	6.01%	12.83%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Health Care Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class shares and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 27

SCHEDULE OF INVESTMENTS	March 31, 2020
BIOTECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 99.6%
Biotechnology - 77.2%
Gilead Sciences, Inc.		163,732	$	12,240,604
Amgen, Inc.		58,142		11,787,128
Regeneron Pharmaceuticals, Inc.*		20,112		9,820,488
Vertex Pharmaceuticals, Inc.*		40,445		9,623,888
Biogen, Inc.*		28,829		9,120,919
Illumina, Inc.*		24,935		6,810,247
Seattle Genetics, Inc.*		44,885		5,178,831
Alexion Pharmaceuticals, Inc.*		51,833		4,654,085
BioMarin Pharmaceutical, Inc.*		53,836		4,549,142
Incyte Corp.*		57,026		4,176,014
Alnylam Pharmaceuticals, Inc.*		35,690		3,884,856
ACADIA Pharmaceuticals, Inc.*		69,528		2,937,558
Guardant Health, Inc.*		39,438		2,744,885
Ionis Pharmaceuticals, Inc.*		56,232		2,658,649
Exact Sciences Corp.*		44,657		2,590,106
Exelixis, Inc.*		148,806		2,562,439
United Therapeutics Corp.*		26,008		2,466,209
Ultragenyx Pharmaceutical, Inc.*		43,750		1,943,813
Nektar Therapeutics*		104,961		1,873,554
PTC Therapeutics, Inc.*		41,710		1,860,683
FibroGen, Inc.*		50,727		1,762,763
Blueprint Medicines Corp.*		29,512		1,725,862
Mirati Therapeutics, Inc.*		21,283		1,636,024
Immunomedics, Inc.*		120,092		1,618,840
BeiGene Ltd. ADR*		12,580		1,548,724
Bluebird Bio, Inc.*		28,921		1,329,209
Arrowhead Pharmaceuticals, Inc.*		44,717		1,286,508
Intercept Pharmaceuticals, Inc.*		19,573		1,232,316
Ligand Pharmaceuticals, Inc. — Class B*,1		14,791		1,075,602
Myriad Genetics, Inc.*		60,813		870,234
Sage Therapeutics, Inc.*		20,116		577,732
Amarin Corporation plc ADR*,1		130,623		522,492
Total Biotechnology				118,670,404
Pharmaceuticals - 19.2%
AbbVie, Inc.		151,830		11,567,928
Neurocrine Biosciences, Inc.*		34,429		2,979,830
Mylan N.V.*		188,846		2,815,694
Sarepta Therapeutics, Inc.*		28,749		2,812,227
PRA Health Sciences, Inc.*		28,111		2,334,337
Jazz Pharmaceuticals plc*		18,477		1,842,896
Global Blood Therapeutics, Inc.*		32,973		1,684,591
Agios Pharmaceuticals, Inc.*		43,958		1,559,630
Alkermes plc*		106,006		1,528,606
Portola Pharmaceuticals, Inc.*		63,270		451,115
Total Pharmaceuticals				29,576,854
Healthcare-Products - 1.9%
Bio-Techne Corp.		15,528		2,944,419
Healthcare-Services - 1.3%
Syneos Health, Inc.*		49,240		1,941,041
Total Common Stocks
(Cost $83,320,381)				153,132,718
RIGHTS††† - 0.0%
Biotechnology - 0.0%
Clinical Data, Inc.*,2		24,000		—
Total Rights
(Cost $—)				—
	Face Amount
REPURCHASE AGREEMENTS††,3 - 0.4%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	466,498		466,498
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		179,422		179,422
Total Repurchase Agreements
(Cost $645,920)				645,920
	Shares
SECURITIES LENDING COLLATERAL†,4 - 1.2%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%5		1,830,522		1,830,522
Total Securities Lending Collateral
(Cost $1,830,522)				1,830,522
Total Investments - 101.2%
(Cost $85,796,823)			$	155,609,160
Other Assets & Liabilities, net - (1.2)%				(1,792,478	)
Total Net Assets - 100.0%			$	153,816,682

28 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
BIOTECHNOLOGY FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Security was fair valued by the Valuation Committee at March 31, 2020. The total market value of fair valued securities amounts to $0, (cost $0) or 0.0% of total net assets.
3	Repurchase Agreements — See Note 6.
4	Securities lending collateral — See Note 7.
5	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs			Total
Common Stocks	$	153,132,718	$	—	$	—		$	153,132,718
Rights		—		—		—	*		—
Repurchase Agreements		—		645,920		—			645,920
Securities Lending Collateral		1,830,522		—		—			1,830,522
Total Assets	$	154,963,240	$	645,920	$	—		$	155,609,160

* Security has a market value of $0.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 29

BIOTECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $1,090,544 of securities loaned (cost $85,150,903)	$	154,963,240
Repurchase agreements, at value (cost $645,920)		645,920
Cash		517,842
Receivables:
Fund shares sold		1,104,077
Securities lending income		678
Total assets		157,231,757
Liabilities:
Payable for:
Return of securities lending collateral		1,830,522
Securities purchased		918,577
Fund shares redeemed		249,554
Management fees		111,953
Transfer agent and administrative fees		41,517
Portfolio accounting fees		13,171
Distribution and service fees		12,982
Trustees’ fees*		3,629
Miscellaneous		233,170
Total liabilities		3,415,075
Commitments and contingent liabilities (Note 9)		—
Net assets	$	153,816,682
Net assets consist of:
Paid in capital	$	81,984,634
Total distributable earnings (loss)		71,832,048
Net assets	$	153,816,682
Investor Class:
Net assets	$	122,194,217
Capital shares outstanding		1,703,769
Net asset value per share	$	71.72
A-Class:
Net assets	$	14,565,233
Capital shares outstanding		224,350
Net asset value per share	$	64.92
Maximum offering price per share (Net asset value divided by 95.25%)	$	68.16
C-Class:
Net assets	$	8,691,826
Capital shares outstanding		155,629
Net asset value per share	$	55.85
H-Class:
Net assets	$	8,365,406
Capital shares outstanding		133,417
Net asset value per share	$	62.70

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $305)	$	1,640,029
Interest		17,340
Income from securities lending, net		87,333
Total investment income		1,744,702
Expenses:
Management fees		1,623,000
Distribution and service fees:
A-Class		46,813
C-Class		109,773
H-Class		30,180
Transfer agent and administrative fees		485,942
Portfolio accounting fees		190,939
Registration fees		178,488
Professional fees		90,247
Trustees’ fees*		46,220
Custodian fees		27,417
Line of credit fees		985
Miscellaneous		175,023
Total expenses		3,005,027
Net investment loss		(1,260,325	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		30,914,727
Net realized gain		30,914,727
Net change in unrealized appreciation (depreciation) on:
Investments		(50,590,210	)
Net change in unrealized appreciation (depreciation)		(50,590,210	)
Net realized and unrealized loss		(19,675,483	)
Net decrease in net assets resulting from operations	$	(20,935,808	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

30 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

BIOTECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,260,325	)	$	(2,323,341	)
Net realized gain on investments		30,914,727			20,676,333
Net change in unrealized appreciation (depreciation) on investments		(50,590,210	)		(2,119,169	)
Net increase (decrease) in net assets resulting from operations		(20,935,808	)		16,233,823
Distributions to shareholders:
Investor Class		(7,452,087	)		(20,899,598	)
A-Class		(840,011	)		(2,845,408	)
C-Class		(571,551	)		(2,017,464	)
H-Class		(695,143	)		(1,678,559	)
Total distributions to shareholders		(9,558,792	)		(27,441,029	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		103,363,667			175,638,002
A-Class		2,369,625			9,604,414
C-Class		2,263,964			3,143,702
H-Class		35,583,269			92,660,528
Distributions reinvested
Investor Class		7,185,311			19,858,630
A-Class		820,588			2,754,996
C-Class		559,459			1,958,952
H-Class		694,706			1,677,352
Cost of shares redeemed
Investor Class		(142,739,172	)		(220,835,959	)
A-Class		(9,063,961	)		(15,320,741	)
C-Class		(6,580,327	)		(10,075,316	)
H-Class		(38,250,877	)		(99,694,575	)
Net decrease from capital share transactions		(43,793,748	)		(38,630,015	)
Net decrease in net assets		(74,288,348	)		(49,837,221	)
Net assets:
Beginning of year		228,105,030			277,942,251
End of year	$	153,816,682		$	228,105,030
Capital share activity:
Shares sold
Investor Class		1,275,833			1,962,897
A-Class		33,243			117,041
C-Class		37,703			43,301
H-Class		504,782			1,191,990
Shares issued from reinvestment of distributions
Investor Class		85,509			267,817
A-Class		10,780			40,736
C-Class		8,524			33,107
H-Class		9,449			25,640
Shares redeemed
Investor Class		(1,793,859	)		(2,509,948	)
A-Class		(126,300	)		(190,944	)
C-Class		(106,316	)		(139,375	)
H-Class		(562,751	)		(1,290,035	)
Net decrease in shares		(623,403	)		(447,773	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 31

BIOTECHNOLOGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	83.02		$	87.17		$	79.72		$	68.30		$	93.63
Income (loss) from investment operations:
Net investment income (loss)a		(.44	)		(.68	)		(.62	)		(.57	)		(.75	)
Net gain (loss) on investments (realized and unrealized)		(7.26	)		6.42			12.77			11.99			(23.30	)
Total from investment operations		(7.70	)		5.74			12.15			11.42			(24.05	)
Less distributions from:
Net realized gains		(3.60	)		(9.89	)		(4.70	)		—			(1.28	)
Total distributions		(3.60	)		(9.89	)		(4.70	)		—			(1.28	)
Net asset value, end of period	$	71.72		$	83.02		$	87.17		$	79.72		$	68.30
Total Return		(9.91	%)		7.94	%		15.34	%		16.71	%		(25.98	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	122,194		$	177,344		$	210,564		$	238,614		$	260,476
Ratios to average net assets:
Net investment income (loss)		(0.56	%)		(0.79	%)		(0.70	%)		(0.76	%)		(0.84	%)
Total expenses		1.48	%		1.46	%		1.37	%		1.37	%		1.32	%
Portfolio turnover rate		64	%		100	%		105	%		207	%		83	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	75.66		$	80.55		$	74.16		$	63.69		$	87.63
Income (loss) from investment operations:
Net investment income (loss)a		(.57	)		(.82	)		(.76	)		(.70	)		(.91	)
Net gain (loss) on investments (realized and unrealized)		(6.57	)		5.82			11.85			11.17			(21.75	)
Total from investment operations		(7.14	)		5.00			11.09			10.47			(22.66	)
Less distributions from:
Net realized gains		(3.60	)		(9.89	)		(4.70	)		—			(1.28	)
Total distributions		(3.60	)		(9.89	)		(4.70	)		—			(1.28	)
Net asset value, end of period	$	64.92		$	75.66		$	80.55		$	74.16		$	63.69
Total Returnb		(10.14	%)		7.68	%		15.04	%		16.42	%		(26.17	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	14,565		$	23,199		$	27,370		$	36,849		$	48,672
Ratios to average net assets:
Net investment income (loss)		(0.80	%)		(1.04	%)		(0.93	%)		(1.01	%)		(1.09	%)
Total expenses		1.73	%		1.71	%		1.62	%		1.61	%		1.57	%
Portfolio turnover rate		64	%		100	%		105	%		207	%		83	%

32 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

BIOTECHNOLOGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	66.05		$	72.14		$	67.34		$	58.27		$	80.88
Income (loss) from investment operations:
Net investment income (loss)a		(.97	)		(1.27	)		(1.25	)		(1.11	)		(1.40	)
Net gain (loss) on investments (realized and unrealized)		(5.63	)		5.07			10.75			10.18			(19.93	)
Total from investment operations		(6.60	)		3.80			9.50			9.07			(21.33	)
Less distributions from:
Net realized gains		(3.60	)		(9.89	)		(4.70	)		—			(1.28	)
Total distributions		(3.60	)		(9.89	)		(4.70	)		—			(1.28	)
Net asset value, end of period	$	55.85		$	66.05		$	72.14		$	67.34		$	58.27
Total Returnb		(10.80	%)		6.87	%		14.18	%		15.55	%		(26.72	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,692		$	14,248		$	20,104		$	20,997		$	26,185
Ratios to average net assets:
Net investment income (loss)		(1.56	%)		(1.79	%)		(1.70	%)		(1.76	%)		(1.84	%)
Total expenses		2.48	%		2.46	%		2.37	%		2.36	%		2.33	%
Portfolio turnover rate		64	%		100	%		105	%		207	%		83	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	73.18		$	78.26		$	72.16		$	62.00		$	85.38
Income (loss) from investment operations:
Net investment income (loss)a		(.59	)		(.82	)		(.69	)		(.70	)		(.96	)
Net gain (loss) on investments (realized and unrealized)		(6.29	)		5.63			11.49			10.86			(21.14	)
Total from investment operations		(6.88	)		4.81			10.80			10.16			(22.10	)
Less distributions from:
Net realized gains		(3.60	)		(9.89	)		(4.70	)		—			(1.28	)
Total distributions		(3.60	)		(9.89	)		(4.70	)		—			(1.28	)
Net asset value, end of period	$	62.70		$	73.18		$	78.26		$	72.16		$	62.00
Total Return		(10.12	%)		7.66	%		15.04	%		16.39	%		(26.22	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,365		$	13,315		$	19,905		$	19,308		$	27,346
Ratios to average net assets:
Net investment income (loss)		(0.85	%)		(1.06	%)		(0.87	%)		(1.04	%)		(1.17	%)
Total expenses		1.73	%		1.71	%		1.62	%		1.61	%		1.65	%
Portfolio turnover rate		64	%		100	%		105	%		207	%		83	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 33

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

CONSUMER PRODUCTS FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies engaged in manufacturing finished goods and services both domestically and internationally (“Consumer Products Companies”).

For the one-year period ended March 31, 2020, Consumer Products Fund Investor Class returned -8.81%, compared with -0.59% for the S&P 500 Consumer Staples Index. The broader S&P 500 Index returned -6.98%.

Household products contributed the most to return, followed by food retail. The tobacco industry detracted the most from return, followed by personal products and packaged foods & meats.

Procter & Gamble Co., Kroger Co., and Hershey Co. contributed the most to the Fund’s return for the period. Altria Group, Inc., Beyond Meat, Inc., and Coty, Inc. – Class A detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	July 6, 1998
A-Class	September 1, 2004
C-Class	July 24, 2001
H-Class	August 17, 1998

Ten Largest Holdings (% of Total Net Assets)
Procter & Gamble Co.	7.3%
Coca-Cola Co.	5.9%
PepsiCo, Inc.	5.7%
Philip Morris International, Inc.	4.1%
Mondelez International, Inc. — Class A	3.8%
Altria Group, Inc.	3.5%
Colgate-Palmolive Co.	3.5%
Estee Lauder Companies, Inc. — Class A	3.2%
Kimberly-Clark Corp.	3.0%
General Mills, Inc.	2.7%
Top Ten Total	42.7%
“Ten Largest Holdings” excludes any temporary cash investments.

34 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(8.81%)	2.09%	8.45%
A-Class Shares	(9.04%)	1.84%	8.19%
A-Class Shares with sales charge‡	(13.36%)	0.85%	7.67%
C-Class Shares	(9.73%)	1.08%	7.38%
C-Class Shares with CDSC§	(10.60%)	1.08%	7.38%
H-Class Shares**	(9.05%)	1.82%	8.04%
S&P 500 Consumer Staples Index	(0.59%)	5.19%	9.99%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Consumer Staples Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class shares and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 35

SCHEDULE OF INVESTMENTS	March 31, 2020
CONSUMER PRODUCTS FUND

	Shares		Value
COMMON STOCKS† - 99.2%
Food - 37.6%
Mondelez International, Inc. — Class A		78,002	$	3,906,340
General Mills, Inc.		51,753		2,731,006
Hormel Foods Corp.		52,931		2,468,702
Kroger Co.		80,392		2,421,407
Hershey Co.		18,264		2,419,980
Kraft Heinz Co.		94,765		2,344,486
Kellogg Co.		34,615		2,076,554
McCormick & Company, Inc.		13,618		1,922,998
Tyson Foods, Inc. — Class A		30,824		1,783,785
Campbell Soup Co.		38,395		1,772,313
JM Smucker Co.		15,931		1,768,341
Sysco Corp.		37,633		1,717,194
Conagra Brands, Inc.		54,237		1,591,314
Lamb Weston Holdings, Inc.		20,223		1,154,733
Post Holdings, Inc.*		12,388		1,027,832
Ingredion, Inc.		13,125		990,937
Lancaster Colony Corp.		6,311		912,823
Beyond Meat, Inc.*,1		13,690		911,754
Hain Celestial Group, Inc.*		30,760		798,837
Pilgrim’s Pride Corp.*		41,950		760,134
Sprouts Farmers Market, Inc.*		37,426		695,749
Sanderson Farms, Inc.		5,434		670,121
US Foods Holding Corp.*		35,740		632,955
Simply Good Foods Co.*		28,380		546,599
Hostess Brands, Inc.*		45,960		489,934
Total Food				38,516,828
Beverages - 25.4%
Coca-Cola Co.		135,833		6,010,610
PepsiCo, Inc.		48,992		5,883,939
Keurig Dr Pepper, Inc.		107,876		2,618,151
Monster Beverage Corp.*		44,480		2,502,445
Brown-Forman Corp. — Class B		40,877		2,269,082
Constellation Brands, Inc. — Class A		15,505		2,222,797
Molson Coors Beverage Co. — Class B		31,019		1,210,051
Boston Beer Company, Inc. — Class A*		2,775		1,019,979
Coca-Cola European Partners plc		25,079		941,215
Anheuser-Busch InBev S.A. ADR1		16,239		716,465
National Beverage Corp.*,1		14,840		632,926
Total Beverages				26,027,660
Cosmetics & Personal Care - 15.5%
Procter & Gamble Co.		68,356		7,519,160
Colgate-Palmolive Co.		54,345		3,606,334
Estee Lauder Companies, Inc. — Class A		20,358		3,243,844
Unilever N.V. — Class Y		19,271		940,232
Coty, Inc. — Class A		123,269		636,068
Total Cosmetics & Personal Care				15,945,638
Agriculture - 11.3%
Philip Morris International, Inc.		57,694		4,209,354
Altria Group, Inc.		93,627		3,620,556
Archer-Daniels-Midland Co.		53,423		1,879,421
Bunge Ltd.		24,453		1,003,307
British American Tobacco plc ADR		25,474		870,956
Total Agriculture				11,583,594
Household Products & Housewares - 7.1%
Kimberly-Clark Corp.		24,171		3,090,746
Clorox Co.		13,900		2,408,175
Church & Dwight Company, Inc.		28,661		1,839,463
Total Household Products & Housewares				7,338,384
Retail - 1.0%
Casey’s General Stores, Inc.		7,392		979,366
Pharmaceuticals - 0.8%
Herbalife Nutrition Ltd.*		26,925		785,133
Electrical Components & Equipment - 0.5%
Energizer Holdings, Inc.1		17,895		541,324
Total Common Stocks
(Cost $65,541,430)				101,717,927
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.3%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	218,315		218,315
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		83,967		83,967
Total Repurchase Agreements
(Cost $302,282)				302,282
	Shares
SECURITIES LENDING COLLATERAL†,3 - 2.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		2,038,986		2,038,986
Total Securities Lending Collateral
(Cost $2,038,986)				2,038,986
Total Investments - 101.5%
(Cost $67,882,698)			$	104,059,195
Other Assets & Liabilities, net - (1.5)%				(1,508,594	)
Total Net Assets - 100.0%			$	102,550,601

36 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
CONSUMER PRODUCTS FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	101,717,927	$	—	$	—	$	101,717,927
Repurchase Agreements		—		302,282		—		302,282
Securities Lending Collateral		2,038,986		—		—		2,038,986
Total Assets	$	103,756,913	$	302,282	$	—	$	104,059,195

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 37

CONSUMER PRODUCTS FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $1,997,674 of securities loaned (cost $67,580,416)	$	103,756,913
Repurchase agreements, at value (cost $302,282)		302,282
Cash		242,343
Receivables:
Fund shares sold		370,508
Dividends		291,846
Foreign tax reclaims		16,717
Securities lending income		1,319
Total assets		104,981,928
Liabilities:
Payable for:
Return of securities lending collateral		2,038,986
Fund shares redeemed		102,459
Management fees		76,784
Transfer agent and administrative fees		28,809
Distribution and service fees		11,325
Portfolio accounting fees		9,033
Trustees’ fees*		2,508
Miscellaneous		161,423
Total liabilities		2,431,327
Commitments and contingent liabilities (Note 9)		—
Net assets	$	102,550,601
Net assets consist of:
Paid in capital	$	67,779,817
Total distributable earnings (loss)		34,770,784
Net assets	$	102,550,601
Investor Class:
Net assets	$	79,889,890
Capital shares outstanding		1,510,855
Net asset value per share	$	52.88
A-Class:
Net assets	$	8,560,804
Capital shares outstanding		178,793
Net asset value per share	$	47.88
Maximum offering price per share (Net asset value divided by 95.25%)	$	50.27
C-Class:
Net assets	$	9,815,524
Capital shares outstanding		244,910
Net asset value per share	$	40.08
H-Class:
Net assets	$	4,284,383
Capital shares outstanding		93,281
Net asset value per share	$	45.93

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends	$	3,969,962
Interest		14,004
Income from securities lending, net		95,075
Total investment income		4,079,041
Expenses:
Management fees		1,312,236
Distribution and service fees:
A-Class		30,566
C-Class		129,635
H-Class		24,419
Transfer agent and administrative fees		392,177
Portfolio accounting fees		154,379
Registration fees		140,544
Professional fees		78,691
Trustees’ fees*		37,919
Custodian fees		22,255
Line of credit fees		166
Miscellaneous		138,216
Total expenses		2,461,203
Net investment income		1,617,838
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		13,380,802
Net realized gain		13,380,802
Net change in unrealized appreciation (depreciation) on:
Investments		(24,843,578	)
Net change in unrealized appreciation (depreciation)		(24,843,578	)
Net realized and unrealized loss		(11,462,776	)
Net decrease in net assets resulting from operations	$	(9,844,938	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

38 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

CONSUMER PRODUCTS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,617,838		$	2,388,987
Net realized gain on investments		13,380,802			8,964,531
Net change in unrealized appreciation (depreciation) on investments		(24,843,578	)		(5,695,254	)
Net increase (decrease) in net assets resulting from operations		(9,844,938	)		5,658,264
Distributions to shareholders:
Investor Class		(2,921,088	)		(7,795,828	)
A-Class		(339,079	)		(1,054,007	)
C-Class		(437,102	)		(1,332,532	)
H-Class		(268,490	)		(1,079,571	)
Total distributions to shareholders		(3,965,759	)		(11,261,938	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		103,025,889			126,325,719
A-Class		3,280,213			8,189,512
C-Class		652,064			2,366,920
H-Class		17,063,752			45,048,235
Distributions reinvested
Investor Class		2,872,298			7,631,394
A-Class		332,113			1,010,234
C-Class		427,574			1,233,939
H-Class		268,419			1,079,166
Cost of shares redeemed
Investor Class		(158,047,872	)		(141,637,774	)
A-Class		(7,590,061	)		(20,049,184	)
C-Class		(4,860,834	)		(11,139,212	)
H-Class		(22,448,593	)		(45,804,251	)
Net decrease from capital share transactions		(65,025,038	)		(25,745,302	)
Net decrease in net assets		(78,835,735	)		(31,348,976	)
Net assets:
Beginning of year		181,386,336			212,735,312
End of year	$	102,550,601		$	181,386,336
Capital share activity:
Shares sold
Investor Class		1,679,253			2,148,163
A-Class		58,717			149,654
C-Class		13,969			50,365
H-Class		320,741			869,311
Shares issued from reinvestment of distributions
Investor Class		46,060			133,743
A-Class		5,877			19,435
C-Class		9,019			27,930
H-Class		4,951			21,618
Shares redeemed
Investor Class		(2,609,348	)		(2,387,261	)
A-Class		(137,756	)		(375,382	)
C-Class		(103,813	)		(237,726	)
H-Class		(426,735	)		(896,322	)
Net decrease in shares		(1,139,065	)		(476,472	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 39

CONSUMER PRODUCTS FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	59.56		$	61.08		$	66.06		$	62.84		$	58.55
Income (loss) from investment operations:
Net investment income (loss)a		.72			.92			.56			.51			.61
Net gain (loss) on investments (realized and unrealized)		(5.71	)		1.40			(.37	)		3.58			4.92
Total from investment operations		(4.99	)		2.32			.19			4.09			5.53
Less distributions from:
Net investment income		(.77	)		(.80	)		(.44	)		(.58	)		(.49	)
Net realized gains		(.92	)		(3.04	)		(4.73	)		(.29	)		(.75	)
Total distributions		(1.69	)		(3.84	)		(5.17	)		(.87	)		(1.24	)
Net asset value, end of period	$	52.88		$	59.56		$	61.08		$	66.06		$	62.84
Total Return		(8.81	%)		4.09	%		(0.04	%)		6.62	%		9.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	79,890		$	142,633		$	152,717		$	207,683		$	276,578
Ratios to average net assets:
Net investment income (loss)		1.17	%		1.56	%		0.86	%		0.79	%		1.03	%
Total expenses		1.47	%		1.46	%		1.38	%		1.36	%		1.34	%
Portfolio turnover rate		59	%		84	%		80	%		75	%		104	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	54.21		$	56.08		$	61.21		$	58.43		$	54.66
Income (loss) from investment operations:
Net investment income (loss)a		.51			.69			.36			.33			.45
Net gain (loss) on investments (realized and unrealized)		(5.15	)		1.28			(.32	)		3.32			4.56
Total from investment operations		(4.64	)		1.97			.04			3.65			5.01
Less distributions from:
Net investment income		(.77	)		(.80	)		(.44	)		(.58	)		(.49	)
Net realized gains		(.92	)		(3.04	)		(4.73	)		(.29	)		(.75	)
Total distributions		(1.69	)		(3.84	)		(5.17	)		(.87	)		(1.24	)
Net asset value, end of period	$	47.88		$	54.21		$	56.08		$	61.21		$	58.43
Total Returnb		(9.04	%)		3.82	%		(0.28	%)		6.35	%		9.38	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,561		$	13,659		$	25,698		$	40,272		$	53,560
Ratios to average net assets:
Net investment income (loss)		0.92	%		1.28	%		0.60	%		0.56	%		0.82	%
Total expenses		1.72	%		1.71	%		1.63	%		1.62	%		1.60	%
Portfolio turnover rate		59	%		84	%		80	%		75	%		104	%

40 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

CONSUMER PRODUCTS FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	45.98		$	48.50		$	54.00		$	52.04		$	49.18
Income (loss) from investment operations:
Net investment income (loss)a		.08			.28			(.07	)		(.10	)		.03
Net gain (loss) on investments (realized and unrealized)		(4.29	)		1.04			(.26	)		2.93			4.07
Total from investment operations		(4.21	)		1.32			(.33	)		2.83			4.10
Less distributions from:
Net investment income		(.77	)		(.80	)		(.44	)		(.58	)		(.49	)
Net realized gains		(.92	)		(3.04	)		(4.73	)		(.29	)		(.75	)
Total distributions		(1.69	)		(3.84	)		(5.17	)		(.87	)		(1.24	)
Net asset value, end of period	$	40.08		$	45.98		$	48.50		$	54.00		$	52.04
Total Returnb		(9.73	%)		3.06	%		(1.02	%)		5.55	%		8.57	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,816		$	14,976		$	23,531		$	28,380		$	23,799
Ratios to average net assets:
Net investment income (loss)		0.16	%		0.60	%		(0.13	%)		(0.20	%)		0.05	%
Total expenses		2.47	%		2.46	%		2.38	%		2.36	%		2.35	%
Portfolio turnover rate		59	%		84	%		80	%		75	%		104	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	52.07		$	54.02		$	59.15		$	56.50		$	52.94
Income (loss) from investment operations:
Net investment income (loss)a		.46			.69			.38			.31			.39
Net gain (loss) on investments (realized and unrealized)		(4.91	)		1.20			(.34	)		3.21			4.41
Total from investment operations		(4.45	)		1.89			.04			3.52			4.80
Less distributions from:
Net investment income		(.77	)		(.80	)		(.44	)		(.58	)		(.49	)
Net realized gains		(.92	)		(3.04	)		(4.73	)		(.29	)		(.75	)
Total distributions		(1.69	)		(3.84	)		(5.17	)		(.87	)		(1.24	)
Net asset value, end of period	$	45.93		$	52.07		$	54.02		$	59.15		$	56.50
Total Return		(9.05	%)		3.84	%		(0.32	%)		6.35	%		9.29	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,284		$	10,118		$	10,788		$	35,387		$	65,702
Ratios to average net assets:
Net investment income (loss)		0.86	%		1.32	%		0.65	%		0.54	%		0.72	%
Total expenses		1.72	%		1.71	%		1.63	%		1.61	%		1.66	%
Portfolio turnover rate		59	%		84	%		80	%		75	%		104	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights prior to that date reflect the performance of the former Advisor Class.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 41

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

ELECTRONICS FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the electronics sector, including semiconductor manufacturers and distributors, and makers and vendors of other electronic components and devices (“Electronics Companies”).

For the one-year period ended March 31, 2020, Electronics Fund Investor Class returned 8.99%, compared with 10.43% for the S&P 500 Information Technology Index. The broader S&P 500 Index returned -6.98%.

Semiconductors contributed the most to return, followed by semiconductor equipment. Electrical components & equipment was the only detractor from return.

NVIDIA Corp., Advanced Micro Devices, Inc., and Cypress Semiconductor Corp. contributed the most to the Fund’s return for the period. Xilinx, Inc., Broadcom, Inc., and ON Semiconductor Corp. detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	April 1, 1998
A-Class	September 1, 2004
C-Class	March 26, 2001
H-Class	April 2, 1998

Ten Largest Holdings (% of Total Net Assets)
Intel Corp.	9.1%
NVIDIA Corp.	8.2%
Texas Instruments, Inc.	5.3%
Broadcom, Inc.	5.1%
QUALCOMM, Inc.	4.7%
Advanced Micro Devices, Inc.	4.5%
Micron Technology, Inc.	3.6%
Applied Materials, Inc.	3.5%
Lam Research Corp.	3.3%
Analog Devices, Inc.	3.1%
Top Ten Total	50.4%
“Ten Largest Holdings” excludes any temporary cash investments.

42 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	8.99%	12.66%	11.23%
A-Class Shares	8.72%	12.39%	10.96%
A-Class Shares with sales charge‡	3.56%	11.30%	10.42%
C-Class Shares	7.91%	11.55%	10.13%
C-Class Shares with CDSC§	6.91%	11.55%	10.13%
H-Class Shares**	8.72%	12.36%	10.80%
S&P 500 Information Technology Index	10.43%	17.05%	15.79%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 43

SCHEDULE OF INVESTMENTS	March 31, 2020
ELECTRONICS FUND

	Shares		Value
COMMON STOCKS† - 99.6%
Semiconductors - 94.0%
Intel Corp.		74,833	$	4,049,962
NVIDIA Corp.		13,846		3,649,806
Texas Instruments, Inc.		23,649		2,363,245
Broadcom, Inc.		9,674		2,293,705
QUALCOMM, Inc.		31,154		2,107,568
Advanced Micro Devices, Inc.*		44,076		2,004,576
Micron Technology, Inc.*		38,670		1,626,460
Applied Materials, Inc.		33,704		1,544,317
Lam Research Corp.		6,061		1,454,640
Analog Devices, Inc.		15,209		1,363,487
KLA Corp.		8,241		1,184,561
Xilinx, Inc.		14,103		1,099,188
Marvell Technology Group Ltd.		43,732		989,655
NXP Semiconductor N.V.		11,473		951,456
Skyworks Solutions, Inc.		10,372		927,049
Taiwan Semiconductor Manufacturing Company Ltd. ADR		18,860		901,319
Microchip Technology, Inc.		13,260		899,028
Maxim Integrated Products, Inc.		18,162		882,855
Cypress Semiconductor Corp.		34,541		805,496
ASML Holding N.V. — Class G		2,931		766,867
Teradyne, Inc.		13,583		735,791
Monolithic Power Systems, Inc.		4,263		713,882
Qorvo, Inc.*		8,584		692,128
Mellanox Technologies Ltd.*		5,503		667,624
Entegris, Inc.		14,119		632,108
Inphi Corp.*		6,764		535,506
MKS Instruments, Inc.		6,056		493,261
STMicroelectronics N.V. — Class Y1		22,612		483,218
Cirrus Logic, Inc.*		7,221		473,914
Cree, Inc.*		12,965		459,739
Silicon Laboratories, Inc.*		5,277		450,709
ON Semiconductor Corp.*		36,012		447,989
Cabot Microelectronics Corp.		3,860		440,580
Power Integrations, Inc.		4,848		428,224
Lattice Semiconductor Corp.*		22,650		403,623
Semtech Corp.*		9,889		370,838
Diodes, Inc.*		8,552		347,511
Brooks Automation, Inc.		11,355		346,328
Synaptics, Inc.*		5,932		343,285
Ambarella, Inc.*		6,614		321,176
MACOM Technology Solutions Holdings, Inc.*		13,797		261,177
Total Semiconductors				41,913,851
Energy-Alternate Sources - 3.7%
SolarEdge Technologies, Inc.*		7,817		640,056
Enphase Energy, Inc.*		18,806		607,245
First Solar, Inc.*		11,763		424,174
Total Energy-Alternate Sources				1,671,475
Electrical Components & Equipment - 1.2%
Universal Display Corp.		4,198		553,212
Electronics - 0.7%
Advanced Energy Industries, Inc.*		6,410		310,821
Total Common Stocks
(Cost $38,710,079)				44,449,359
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.1%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	18,067		18,067
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		6,949		6,949
Total Repurchase Agreements
(Cost $25,016)				25,016
	Shares
SECURITIES LENDING COLLATERAL†,3 - 0.9%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		382,670		382,670
Total Securities Lending Collateral
(Cost $382,670)				382,670
Total Investments - 100.6%
(Cost $39,117,765)			$	44,857,045
Other Assets & Liabilities, net - (0.6)%				(260,618	)
Total Net Assets - 100.0%			$	44,596,427

44 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
ELECTRONICS FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	44,449,359	$	—	$	—	$	44,449,359
Repurchase Agreements		—		25,016		—		25,016
Securities Lending Collateral		382,670		—		—		382,670
Total Assets	$	44,832,029	$	25,016	$	—	$	44,857,045

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 45

ELECTRONICS FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $375,984 of securities loaned (cost $39,092,749)	$	44,832,029
Repurchase agreements, at value (cost $25,016)		25,016
Cash		20,056
Receivables:
Securities sold		2,031,527
Fund shares sold		39,824
Dividends		26,030
Securities lending income		152
Total assets		46,974,634
Liabilities:
Payable for:
Fund shares redeemed		1,867,324
Return of securities lending collateral		382,670
Management fees		34,691
Transfer agent and administrative fees		13,612
Portfolio accounting fees		4,081
Distribution and service fees		2,306
Trustees’ fees*		1,126
Miscellaneous		72,397
Total liabilities		2,378,207
Commitments and contingent liabilities (Note 9)		—
Net assets	$	44,596,427
Net assets consist of:
Paid in capital	$	43,076,608
Total distributable earnings (loss)		1,519,819
Net assets	$	44,596,427
Investor Class:
Net assets	$	38,633,862
Capital shares outstanding		280,664
Net asset value per share	$	137.65
A-Class:
Net assets	$	2,119,673
Capital shares outstanding		16,682
Net asset value per share	$	127.06
Maximum offering price per share (Net asset value divided by 95.25%)	$	133.40
C-Class:
Net assets	$	1,701,379
Capital shares outstanding		15,208
Net asset value per share	$	111.87
H-Class:
Net assets	$	2,141,513
Capital shares outstanding		17,363
Net asset value per share	$	123.34

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $3,006)	$	847,852
Interest		6,429
Income from securities lending, net		2,893
Total investment income		857,174
Expenses:
Management fees		490,166
Distribution and service fees:
A-Class		11,611
C-Class		20,570
H-Class		14,000
Transfer agent and administrative fees		147,575
Portfolio accounting fees		57,666
Professional fees		26,670
Trustees’ fees*		9,173
Custodian fees		8,098
Line of credit fees		112
Miscellaneous		113,702
Total expenses		899,343
Net investment loss		(42,169	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,148,578
Net realized gain		1,148,578
Net change in unrealized appreciation (depreciation) on:
Investments		(42,610	)
Net change in unrealized appreciation (depreciation)		(42,610	)
Net realized and unrealized gain		1,105,968
Net increase in net assets resulting from operations	$	1,063,799

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

46 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

ELECTRONICS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(42,169	)	$	7,066
Net realized gain on investments		1,148,578			202,557
Net change in unrealized appreciation (depreciation) on investments		(42,610	)		(3,295,899	)
Net increase (decrease) in net assets resulting from operations		1,063,799			(3,086,276	)
Distributions to shareholders:
Investor Class		(5,526	)		(1,489,940	)
A-Class		(535	)		(286,771	)
C-Class		(238	)		(117,497	)
H-Class		(767	)		(92,551	)
Total distributions to shareholders		(7,066	)		(1,986,759	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		165,434,553			69,011,457
A-Class		9,059,406			12,638,504
C-Class		3,919,399			1,776,804
H-Class		45,691,721			99,278,587
Distributions reinvested
Investor Class		5,505			1,470,138
A-Class		231			143,678
C-Class		236			112,532
H-Class		766			92,532
Cost of shares redeemed
Investor Class		(145,938,377	)		(103,905,626	)
A-Class		(11,409,121	)		(11,505,886	)
C-Class		(3,756,574	)		(3,275,148	)
H-Class		(47,020,457	)		(124,802,844	)
Net increase (decrease) from capital share transactions		15,987,288			(58,965,272	)
Net increase (decrease) in net assets		17,044,021			(64,038,307	)
Net assets:
Beginning of year		27,552,406			91,590,713
End of year	$	44,596,427		$	27,552,406
Capital share activity:
Shares sold
Investor Class		1,149,672			539,688
A-Class		68,041			108,795
C-Class		34,152			16,457
H-Class		378,999			823,516
Shares issued from reinvestment of distributions
Investor Class		35			13,668
A-Class		2			1,443
C-Class		2			1,271
H-Class		5			957
Shares redeemed
Investor Class		(1,016,632	)		(803,674	)
A-Class		(84,795	)		(101,201	)
C-Class		(31,651	)		(29,683	)
H-Class		(394,124	)		(1,041,614	)
Net increase (decrease) in shares		103,706			(470,377	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 47

ELECTRONICS FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	126.31		$	136.98		$	110.00		$	81.23		$	83.54
Income (loss) from investment operations:
Net investment income (loss)a		—	c		.27			(.11	)		.15			.02
Net gain (loss) on investments (realized and unrealized)		11.35			(.29	)		27.15			28.62			(2.20	)
Total from investment operations		11.35			(.02	)		27.04			28.77			(2.18	)
Less distributions from:
Net investment income		(.01	)		—			(.06	)		—			(.13	)
Net realized gains		—			(10.65	)		—			—			—
Total distributions		(.01	)		(10.65	)		(.06	)		—			(.13	)
Net asset value, end of period	$	137.65		$	126.31		$	136.98		$	110.00		$	81.23
Total Return		8.99	%		1.35	%		24.59	%		35.41	%		(2.61	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	38,634		$	18,642		$	54,505		$	51,722		$	8,217
Ratios to average net assets:
Net investment income (loss)		—	d		0.21	%		(0.08	%)		0.16	%		0.02	%
Total expenses		1.48	%		1.46	%		1.38	%		1.38	%		1.34	%
Portfolio turnover rate		265	%		521	%		457	%		643	%		769	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	116.88		$	127.98		$	103.03		$	76.25		$	78.62
Income (loss) from investment operations:
Net investment income (loss)a		(.31	)		(.03	)		(.33	)		(.18	)		(.20	)
Net gain (loss) on investments (realized and unrealized)		10.50			(.42	)		25.34			26.96			(2.04	)
Total from investment operations		10.19			(.45	)		25.01			26.78			(2.24	)
Less distributions from:
Net investment income		(.01	)		—			(.06	)		—			(.13	)
Net realized gains		—			(10.65	)		—			—			—
Total distributions		(.01	)		(10.65	)		(.06	)		—			(.13	)
Net asset value, end of period	$	127.06		$	116.88		$	127.98		$	103.03		$	76.25
Total Returnb		8.72	%		1.10	%		24.29	%		35.11	%		(2.84	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,120		$	3,908		$	3,122		$	4,408		$	1,762
Ratios to average net assets:
Net investment income (loss)		(0.23	%)		(0.02	%)		(0.29	%)		(0.19	%)		(0.26	%)
Total expenses		1.73	%		1.72	%		1.63	%		1.63	%		1.60	%
Portfolio turnover rate		265	%		521	%		457	%		643	%		769	%

48 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

ELECTRONICS FUND

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	103.69		$	115.77		$	93.90		$	70.02		$	72.76
Income (loss) from investment operations:
Net investment income (loss)a		(1.14	)		(.91	)		(1.14	)		(.69	)		(.63	)
Net gain (loss) on investments (realized and unrealized)		9.33			(.52	)		23.07			24.57			(1.98	)
Total from investment operations		8.19			(1.43	)		21.93			23.88			(2.61	)
Less distributions from:
Net investment income		(.01	)		—			(.06	)		—			(.13	)
Net realized gains		—			(10.65	)		—			—			—
Total distributions		(.01	)		(10.65	)		(.06	)		—			(.13	)
Net asset value, end of period	$	111.87		$	103.69		$	115.77		$	93.90		$	70.02
Total Returnb		7.91	%		0.34	%		23.36	%		34.09	%		(3.58	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,701		$	1,317		$	2,855		$	2,556		$	719
Ratios to average net assets:
Net investment income (loss)		(0.96	%)		(0.83	%)		(1.07	%)		(0.85	%)		(0.91	%)
Total expenses		2.48	%		2.45	%		2.38	%		2.38	%		2.35	%
Portfolio turnover rate		265	%		521	%		457	%		643	%		769	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 49

ELECTRONICS FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016f
Per Share Data
Net asset value, beginning of period	$	113.47		$	124.62		$	100.33		$	74.32		$	76.66
Income (loss) from investment operations:
Net investment income (loss)a		(.30	)		(.54	)		(.41	)		(.08	)		(.30	)
Net gain (loss) on investments (realized and unrealized)		10.18			.04	e		24.76			26.09			(1.91	)
Total from investment operations		9.88			(.50	)		24.35			26.01			(2.21	)
Less distributions from:
Net investment income		(.01	)		—			(.06	)		—			(.13	)
Net realized gains		—			(10.65	)		—			—			—
Total distributions		(.01	)		(10.65	)		(.06	)		—			(.13	)
Net asset value, end of period	$	123.34		$	113.47		$	124.62		$	100.33		$	74.32
Total Return		8.72	%		1.08	%		24.29	%		34.98	%		(2.88	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,142		$	3,686		$	31,109		$	23,134		$	11,257
Ratios to average net assets:
Net investment income (loss)		(0.22	%)		(0.45	%)		(0.36	%)		(0.09	%)		(0.40	%)
Total expenses		1.73	%		1.68	%		1.63	%		1.63	%		1.74	%
Portfolio turnover rate		265	%		521	%		457	%		643	%		769	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Less than $0.01 per share.
d	Less than 0.01% or (0.01%).
e	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the year because of the sales and repurchases of Fund shares in relation to fluctuating market value of the investments of the Fund.
f	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

50 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

ENERGY FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies involved in the energy field, including the exploration, production, and development of oil, gas, coal, and alternative sources of energy (“Energy Companies”).

For the one-year period ended March 31, 2020, Energy Fund Investor Class returned -59.61%, compared with -52.42% for the S&P 500 Energy Index. The broader S&P 500 Index returned -6.98%.

All industries detracted from return, led by exploration & production, integrated oil & gas, and storage & transportation.

Anadarko Petroleum Corp., Renewable Energy Group, Inc., and Ecopetrol SA ADR contributed the most to the Fund’s return for the period. Exxon Mobil Corp., Chevron Corp., and Occidental Petroleum Corp. detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	April 21, 1998
A-Class	September 1, 2004
C-Class	April 19, 2001
H-Class	May 5, 1998

Ten Largest Holdings (% of Total Net Assets)
Exxon Mobil Corp.	10.0%
Chevron Corp.	9.7%
Kinder Morgan, Inc.	4.4%
ConocoPhillips	4.3%
Phillips 66	3.6%
Williams Companies, Inc.	3.4%
BP plc ADR	3.3%
EOG Resources, Inc.	3.2%
Valero Energy Corp.	3.2%
Cabot Oil & Gas Corp. — Class A	2.8%
Top Ten Total	47.9%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 51

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(59.61%)	(21.07%)	(9.98%)
A-Class Shares	(59.69%)	(21.26%)	(10.20%)
A-Class Shares with sales charge‡	(61.60%)	(22.02%)	(10.63%)
C-Class Shares	(60.01%)	(21.85%)	(10.88%)
C-Class Shares with CDSC§	(60.40%)	(21.85%)	(10.88%)
H-Class Shares**	(59.73%)	(21.30%)	(10.34%)
S&P 500 Energy Index	(52.42%)	(14.22%)	(3.75%)
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Energy Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class shares and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

52 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
ENERGY FUND

	Shares		Value
COMMON STOCKS† - 99.7%
Oil & Gas - 71.7%
Exxon Mobil Corp.		16,478	$	625,670
Chevron Corp.		8,433		611,055
ConocoPhillips		8,768		270,054
Phillips 66		4,180		224,257
BP plc ADR		8,441		205,876
EOG Resources, Inc.		5,604		201,296
Valero Energy Corp.		4,382		198,768
Cabot Oil & Gas Corp. — Class A		10,248		176,163
Marathon Petroleum Corp.		6,839		161,537
Pioneer Natural Resources Co.		2,217		155,523
Hess Corp.		4,651		154,878
Concho Resources, Inc.		3,261		139,734
Occidental Petroleum Corp.		10,101		116,970
Royal Dutch Shell plc — Class A ADR		2,816		98,250
Petroleo Brasileiro S.A. ADR		16,752		92,136
HollyFrontier Corp.		3,741		91,692
Diamondback Energy, Inc.		2,846		74,565
Equities Corp.		10,036		70,955
Suncor Energy, Inc.		4,274		67,529
Noble Energy, Inc.		9,459		57,132
Devon Energy Corp.		8,153		56,337
CVR Energy, Inc.		3,307		54,665
Marathon Oil Corp.		16,532		54,390
Continental Resources, Inc.1		6,982		53,342
Helmerich & Payne, Inc.		3,324		52,021
Cimarex Energy Co.		2,962		49,850
Parsley Energy, Inc. — Class A		8,680		49,736
Canadian Natural Resources Ltd.		3,611		48,929
Equinor ASA ADR		4,008		48,817
Delek US Holdings, Inc.		3,082		48,572
WPX Energy, Inc.*		11,761		35,871
Apache Corp.		8,567		35,810
Murphy Oil Corp.1		5,224		32,023
PBF Energy, Inc. — Class A		4,122		29,184
Patterson-UTI Energy, Inc.		9,233		21,698
PDC Energy, Inc.*		3,191		19,816
Matador Resources Co.*,1		5,418		13,437
SM Energy Co.		6,758		8,245
Total Oil & Gas				4,506,783
Pipelines - 17.1%
Kinder Morgan, Inc.		19,690		274,085
Williams Companies, Inc.		15,100		213,665
Cheniere Energy, Inc.*		4,285		143,548
Enbridge, Inc.		3,934		114,440
ONEOK, Inc.		4,972		108,439
TC Energy Corp.		2,184		96,751
Equitrans Midstream Corp.		9,710		48,841
Plains GP Holdings, LP — Class A*		6,520		36,577
Targa Resources Corp.		5,129		35,442
Total Pipelines				1,071,788
Oil & Gas Services - 9.3%
Schlumberger Ltd.		12,432		167,708
Baker Hughes Co.		13,419		140,899
Halliburton Co.		12,603		86,331
National Oilwell Varco, Inc.		8,261		81,206
TechnipFMC plc		8,533		57,512
Apergy Corp.*,1		3,158		18,158
Core Laboratories N.V.		1,637		16,927
Oceaneering International, Inc.*		5,383		15,826
Total Oil & Gas Services				584,567
Metal Fabricate & Hardware - 0.9%
Tenaris S.A. ADR		4,531		54,598
Transportation - 0.7%
Golar LNG Ltd.		5,472		43,119
Total Common Stocks
(Cost $5,845,976)				6,260,855
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.4%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	19,782		19,782
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		7,609		7,609
Total Repurchase Agreements
(Cost $27,391)				27,391
	Shares
SECURITIES LENDING COLLATERAL†,3 - 1.3%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		82,547		82,547
Total Securities Lending Collateral
(Cost $82,547)				82,547
Total Investments - 101.4%
(Cost $5,955,914)			$	6,370,793
Other Assets & Liabilities, net - (1.4)%				(90,802	)
Total Net Assets - 100.0%			$	6,279,991

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 53

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
ENERGY FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	6,260,855	$	—	$	—	$	6,260,855
Repurchase Agreements		—		27,391		—		27,391
Securities Lending Collateral		82,547		—		—		82,547
Total Assets	$	6,343,402	$	27,391	$	—	$	6,370,793

54 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

ENERGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $80,316 of securities loaned (cost $5,928,523)	$	6,343,402
Repurchase agreements, at value (cost $27,391)		27,391
Cash		21,960
Receivables:
Securities sold		4,925,219
Fund shares sold		46,708
Dividends		22,840
Securities lending income		85
Total assets		11,387,605
Liabilities:
Payable for:
Fund shares redeemed		5,002,464
Return of securities lending collateral		82,547
Management fees		5,946
Transfer agent and administrative fees		2,504
Distribution and service fees		789
Portfolio accounting fees		699
Trustees’ fees*		193
Miscellaneous		12,472
Total liabilities		5,107,614
Commitments and contingent liabilities (Note 9)		—
Net assets	$	6,279,991
Net assets consist of:
Paid in capital	$	37,979,045
Total distributable earnings (loss)		(31,699,054	)
Net assets	$	6,279,991
Investor Class:
Net assets	$	4,216,209
Capital shares outstanding		154,738
Net asset value per share	$	27.25
A-Class:
Net assets	$	985,265
Capital shares outstanding		38,885
Net asset value per share	$	25.34
Maximum offering price per share (Net asset value divided by 95.25%)	$	26.60
C-Class:
Net assets	$	432,495
Capital shares outstanding		19,579
Net asset value per share	$	22.09
H-Class:
Net assets	$	646,022
Capital shares outstanding		26,330
Net asset value per share	$	24.54

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $7,284)	$	570,112
Interest		1,726
Income from securities lending, net		554
Total investment income		572,392
Expenses:
Management fees		154,896
Distribution and service fees:
A-Class		5,865
C-Class		11,118
H-Class		2,617
Transfer agent and administrative fees		46,313
Portfolio accounting fees		18,223
Registration fees		17,884
Professional fees		6,129
Trustees’ fees*		4,349
Custodian fees		2,794
Line of credit fees		132
Miscellaneous		18,324
Total expenses		288,644
Net investment income		283,748
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(9,339,262	)
Net realized loss		(9,339,262	)
Net change in unrealized appreciation (depreciation) on:
Investments		(1,785,606	)
Net change in unrealized appreciation (depreciation)		(1,785,606	)
Net realized and unrealized loss		(11,124,868	)
Net decrease in net assets resulting from operations	$	(10,841,120	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 55

ENERGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	283,748		$	148,597
Net realized loss on investments		(9,339,262	)		(9,602,012	)
Net change in unrealized appreciation (depreciation) on investments		(1,785,606	)		336,517
Net decrease in net assets resulting from operations		(10,841,120	)		(9,116,898	)
Distributions to shareholders:
Investor Class		(106,562	)		(247,372	)
A-Class		(19,401	)		(26,067	)
C-Class		(9,575	)		(17,550	)
H-Class		(13,058	)		(6,251	)
Total distributions to shareholders		(148,596	)		(297,240	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		47,410,108			155,653,200
A-Class		1,055,200			5,378,833
C-Class		1,008,571			1,958,179
H-Class		36,112,670			88,531,263
Distributions reinvested
Investor Class		104,747			245,486
A-Class		18,695			25,507
C-Class		9,210			17,124
H-Class		12,847			6,251
Cost of shares redeemed
Investor Class		(51,362,661	)		(168,124,848	)
A-Class		(1,906,514	)		(4,690,758	)
C-Class		(1,541,437	)		(3,921,283	)
H-Class		(35,653,612	)		(89,229,010	)
Net decrease from capital share transactions		(4,732,176	)		(14,150,056	)
Net decrease in net assets		(15,721,892	)		(23,564,194	)
Net assets:
Beginning of year		22,001,883			45,566,077
End of year	$	6,279,991		$	22,001,883
Capital share activity:
Shares sold
Investor Class		1,046,777			1,891,436
A-Class		18,724			74,180
C-Class		21,951			29,583
H-Class		672,358			1,229,643
Shares issued from reinvestment of distributions
Investor Class		1,810			3,804
A-Class		347			423
C-Class		196			322
H-Class		246			107
Shares redeemed
Investor Class		(1,131,664	)		(2,158,043	)
A-Class		(33,297	)		(66,186	)
C-Class		(31,899	)		(60,832	)
H-Class		(659,678	)		(1,238,272	)
Net decrease in shares		(94,129	)		(293,835	)

56 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

ENERGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	68.00		$	74.41		$	78.73		$	66.61		$	92.98
Income (loss) from investment operations:
Net investment income (loss)a		.97			.35			.61			.40			1.12
Net gain (loss) on investments (realized and unrealized)		(41.24	)		(6.29	)		(4.37	)		12.24			(26.37	)
Total from investment operations		(40.27	)		(5.94	)		(3.76	)		12.64			(25.25	)
Less distributions from:
Net investment income		(.48	)		(.47	)		(.56	)		(.52	)		(.52	)
Net realized gains		—			—			—			—			(.60	)
Total distributions		(.48	)		(.47	)		(.56	)		(.52	)		(1.12	)
Net asset value, end of period	$	27.25		$	68.00		$	74.41		$	78.73		$	66.61
Total Return		(59.61	%)		(7.94	%)		(4.78	%)		18.99	%		(27.30	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,216		$	16,172		$	37,253		$	24,284		$	22,216
Ratios to average net assets:
Net investment income (loss)		1.65	%		0.46	%		0.82	%		0.52	%		1.38	%
Total expenses		1.48	%		1.46	%		1.37	%		1.37	%		1.35	%
Portfolio turnover rate		428	%		525	%		954	%		996	%		595	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	63.43		$	69.61		$	73.86		$	62.67		$	87.76
Income (loss) from investment operations:
Net investment income (loss)a		.82			.21			.54			.23			.76
Net gain (loss) on investments (realized and unrealized)		(38.43	)		(5.92	)		(4.23	)		11.48			(24.73	)
Total from investment operations		(37.61	)		(5.71	)		(3.69	)		11.71			(23.97	)
Less distributions from:
Net investment income		(.48	)		(.47	)		(.56	)		(.52	)		(.52	)
Net realized gains		—			—			—			—			(.60	)
Total distributions		(.48	)		(.47	)		(.56	)		(.52	)		(1.12	)
Net asset value, end of period	$	25.34		$	63.43		$	69.61		$	73.86		$	62.67
Total Returnb		(59.69	%)		(8.16	%)		(4.99	%)		18.65	%		(27.46	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	985		$	3,369		$	3,111		$	4,980		$	6,274
Ratios to average net assets:
Net investment income (loss)		1.50	%		0.33	%		0.78	%		0.31	%		1.02	%
Total expenses		1.73	%		1.71	%		1.63	%		1.62	%		1.60	%
Portfolio turnover rate		428	%		525	%		954	%		996	%		595	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 57

ENERGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	55.80		$	61.76		$	66.10		$	56.55		$	79.93
Income (loss) from investment operations:
Net investment income (loss)a		.36			(.36	)		(.01	)		(.29	)		.08
Net gain (loss) on investments (realized and unrealized)		(33.59	)		(5.13	)		(3.77	)		10.36			(22.34	)
Total from investment operations		(33.23	)		(5.49	)		(3.78	)		10.07			(22.26	)
Less distributions from:
Net investment income		(.48	)		(.47	)		(.56	)		(.52	)		(.52	)
Net realized gains		—			—			—			—			(.60	)
Total distributions		(.48	)		(.47	)		(.56	)		(.52	)		(1.12	)
Net asset value, end of period	$	22.09		$	55.80		$	61.76		$	66.10		$	56.55
Total Returnb		(60.01	%)		(8.83	%)		(5.73	%)		17.76	%		(28.01	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	432		$	1,637		$	3,721		$	4,331		$	4,198
Ratios to average net assets:
Net investment income (loss)		0.76	%		(0.56	%)		(0.02	%)		(0.45	%)		0.15	%
Total expenses		2.48	%		2.45	%		2.38	%		2.37	%		2.35	%
Portfolio turnover rate		428	%		525	%		954	%		996	%		595	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c			Year Ended March 31, 2016c,d
Per Share Data
Net asset value, beginning of period	$	61.50		$	67.51		$	71.68		$	60.90		$	85.36
Income (loss) from investment operations:
Net investment income (loss)a		.64			.40			.99			.02			.40
Net gain (loss) on investments (realized and unrealized)		(37.12	)		(5.94	)		(4.60	)		11.28			(23.74	)
Total from investment operations		(36.48	)		(5.54	)		(3.61	)		11.30			(23.34	)
Less distributions from:
Net investment income		(.48	)		(.47	)		(.56	)		(.52	)		(.52	)
Net realized gains		—			—			—			—			(.60	)
Total distributions		(.48	)		(.47	)		(.56	)		(.52	)		(1.12	)
Net asset value, end of period	$	24.54		$	61.50		$	67.51		$	71.68		$	60.90
Total Return		(59.73	%)		(8.16	%)		(5.03	%)		18.57	%		(27.53	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	646		$	824		$	1,480		$	2,556		$	2,795
Ratios to average net assets:
Net investment income (loss)		1.25	%		0.54	%		1.50	%		0.03	%		0.55	%
Total expenses		1.72	%		1.70	%		1.63	%		1.63	%		1.70	%
Portfolio turnover rate		428	%		525	%		954	%		996	%		595	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Reverse share split — Per share amounts for the periods presented through March 31, 2017 have been restated to reflect a 1:4 reverse share split effective November 7, 2016.
d	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights prior to that date reflect the performance of the former Advisor Class.

58 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

ENERGY SERVICES FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the energy services field, including those that provide services and equipment in the areas of oil, coal, and gas exploration and production (“Energy Services Companies”).

For the one-year period ended March 31, 2020, Energy Services Fund Investor Class returned -73.21%, compared with -52.42% for the S&P 500 Energy Index. The broader S&P 500 Index returned -6.98%.

All industries detracted from return, led by oil & gas equipment & services and oil & gas drilling.

National Asset Recovery Corp. was the only holding to contribute to the Fund’s return for the period. Schlumberger Ltd., Baker Hughes Co., and Halliburton Co. detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	April 1, 1998
A-Class	September 1, 2004
C-Class	March 30, 2001
H-Class	April 2, 1998

Ten Largest Holdings (% of Total Net Assets)
Schlumberger Ltd.	16.0%
Baker Hughes Co.	13.3%
National Oilwell Varco, Inc.	7.5%
Halliburton Co.	4.7%
Tenaris S.A. ADR	4.4%
Helmerich & Payne, Inc.	4.3%
TechnipFMC plc	4.1%
SEACOR Holdings, Inc.	3.9%
Dril-Quip, Inc.	3.8%
Cactus, Inc. — Class A	3.5%
Top Ten Total	65.5%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 59

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(73.21%)	(33.18%)	(18.94%)
A-Class Shares	(73.26%)	(33.34%)	(19.14%)
A-Class Shares with sales charge‡	(74.53%)	(33.98%)	(19.53%)
C-Class Shares	(73.46%)	(33.83%)	(19.74%)
C-Class Shares with CDSC§	(73.72%)	(33.83%)	(19.74%)
H-Class Shares**	(73.19%)	(33.34%)	(19.25%)
S&P 500 Energy Index	(52.42%)	(14.22%)	(3.75%)
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Energy Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

60 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
ENERGY SERVICES FUND

	Shares		Value
COMMON STOCKS† - 99.1%
Oil & Gas Services - 75.3%
Schlumberger Ltd.		28,696	$	387,109
Baker Hughes Co.		30,684		322,182
National Oilwell Varco, Inc.		18,499		181,845
Halliburton Co.		16,472		112,833
TechnipFMC plc		14,557		98,114
Dril-Quip, Inc.*		2,988		91,134
Archrock, Inc.		19,580		73,621
RPC, Inc.1		32,229		66,392
DMC Global, Inc.		2,792		64,244
Matrix Service Co.*		5,294		50,134
Solaris Oilfield Infrastructure, Inc. — Class A		8,890		46,672
Core Laboratories N.V.		4,393		45,424
Liberty Oilfield Services, Inc. — Class A		15,891		42,747
Apergy Corp.*,1		7,424		42,688
ProPetro Holding Corp.*		14,958		37,395
Oceaneering International, Inc.*		12,667		37,241
US Silica Holdings, Inc.		18,142		32,656
NexTier Oilfield Solutions, Inc.*		27,688		32,395
Helix Energy Solutions Group, Inc.*		19,567		32,090
Oil States International, Inc.*		9,325		18,930
Total Oil & Gas Services				1,815,846
Oil & Gas - 10.0%
Helmerich & Payne, Inc.		6,581		102,993
Patterson-UTI Energy, Inc.		21,726		51,056
Transocean Ltd.*		41,045		47,612
Diamond Offshore Drilling, Inc.*		22,151		40,536
Total Oil & Gas				242,197
Transportation - 5.9%
SEACOR Holdings, Inc.*		3,449		92,985
Tidewater, Inc.*		7,056		49,956
Total Transportation				142,941
Metal Fabricate & Hardware - 4.4%
Tenaris S.A. ADR		8,811		106,173
Machinery-Diversified - 3.5%
Cactus, Inc. — Class A		7,294		84,610
Total Common Stocks
(Cost $4,470,017)				2,391,767

	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.8%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	14,588		14,588
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		5,611		5,611
Total Repurchase Agreements
(Cost $20,199)				20,199
		Shares
SECURITIES LENDING COLLATERAL†,3 - 3.2%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		76,274		76,274
Total Securities Lending Collateral
(Cost $76,274)				76,274
Total Investments - 103.1%
(Cost $4,566,490)			$	2,488,240
Other Assets & Liabilities, net - (3.1)%				(74,783	)
Total Net Assets - 100.0%			$	2,413,457

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 61

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
ENERGY SERVICES FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	2,391,767	$	—	$	—	$	2,391,767
Repurchase Agreements		—		20,199		—		20,199
Securities Lending Collateral		76,274		—		—		76,274
Total Assets	$	2,468,041	$	20,199	$	—	$	2,488,240

62 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

ENERGY SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $71,231 of securities loaned (cost $4,546,291)	$	2,468,041
Repurchase agreements, at value (cost $20,199)		20,199
Cash		16,194
Receivables:
Fund shares sold		30,842
Dividends		15,438
Securities lending income		216
Total assets		2,550,930
Liabilities:
Payable for:
Return of securities lending collateral		76,274
Fund shares redeemed		52,863
Management fees		2,132
Transfer agent and administrative fees		879
Distribution and service fees		350
Portfolio accounting fees		251
Trustees’ fees*		72
Miscellaneous		4,652
Total liabilities		137,473
Commitments and contingent liabilities (Note 9)		—
Net assets	$	2,413,457
Net assets consist of:
Paid in capital	$	40,112,562
Total distributable earnings (loss)		(37,699,105	)
Net assets	$	2,413,457
Investor Class:
Net assets	$	1,502,480
Capital shares outstanding		298,506
Net asset value per share	$	5.03
A-Class:
Net assets	$	191,039
Capital shares outstanding		40,643
Net asset value per share	$	4.70
Maximum offering price per share (Net asset value divided by 95.25%)	$	4.93
C-Class:
Net assets	$	192,400
Capital shares outstanding		46,486
Net asset value per share	$	4.14
H-Class:
Net assets	$	527,538
Capital shares outstanding		115,746
Net asset value per share	$	4.56

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $1,716)	$	222,210
Interest		956
Income from securities lending, net		657
Total investment income		223,823
Expenses:
Management fees		73,713
Distribution and service fees:
A-Class		1,507
C-Class		5,764
H-Class		3,708
Transfer agent and administrative fees		21,933
Registration fees		8,857
Portfolio accounting fees		8,672
Professional fees		3,219
Trustees’ fees*		2,399
Custodian fees		1,459
Line of credit fees		211
Miscellaneous		7,559
Total expenses		139,001
Net investment income		84,822
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(4,960,531	)
Net realized loss		(4,960,531	)
Net change in unrealized appreciation (depreciation) on:
Investments		(3,553,608	)
Net change in unrealized appreciation (depreciation)		(3,553,608	)
Net realized and unrealized loss		(8,514,139	)
Net decrease in net assets resulting from operations	$	(8,429,317	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 63

ENERGY SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	84,822		$	8,235
Net realized loss on investments		(4,960,531	)		(9,567,766	)
Net change in unrealized appreciation (depreciation) on investments		(3,553,608	)		150,990
Net decrease in net assets resulting from operations		(8,429,317	)		(9,408,541	)
Distributions to shareholders:
Investor Class		(5,823	)		(100,286	)
A-Class		(749	)		(12,025	)
C-Class		(806	)		(12,784	)
H-Class		(856	)		(19,170	)
Total distributions to shareholders		(8,234	)		(144,265	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		46,095,104			87,233,777
A-Class		603,109			6,191,055
C-Class		778,132			1,750,392
H-Class		42,129,255			157,012,452
Distributions reinvested
Investor Class		5,544			97,137
A-Class		737			11,808
C-Class		805			12,741
H-Class		848			19,147
Cost of shares redeemed
Investor Class		(45,009,881	)		(83,475,137	)
A-Class		(691,018	)		(5,678,528	)
C-Class		(885,394	)		(2,469,916	)
H-Class		(47,122,584	)		(162,786,956	)
Net decrease from capital share transactions		(4,095,343	)		(2,082,028	)
Net decrease in net assets		(12,532,894	)		(11,634,834	)
Net assets:
Beginning of year		14,946,351			26,581,185
End of year	$	2,413,457		$	14,946,351
Capital share activity:
Shares sold
Investor Class		3,093,160			3,598,503
A-Class		40,459			317,922
C-Class		65,538			84,483
H-Class		3,087,907			6,965,608
Shares issued from reinvestment of distributions
Investor Class		401			5,599
A-Class		57			726
C-Class		71			882
H-Class		68			1,217
Shares redeemed
Investor Class		(3,161,898	)		(3,561,879	)
A-Class		(46,995	)		(305,767	)
C-Class		(71,994	)		(119,081	)
H-Class		(3,347,726	)		(7,278,381	)
Net decrease in shares		(340,952	)		(290,168	)

64 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

ENERGY SERVICES FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	18.80		$	25.20		$	32.24		$	28.41		$	39.36
Income (loss) from investment operations:
Net investment income (loss)a		.16			.01			.59	d		.01			.29
Net gain (loss) on investments (realized and unrealized)		(13.91	)		(6.19	)		(7.38	)		4.07			(10.90	)
Total from investment operations		(13.75	)		(6.18	)		(6.79	)		4.08			(10.61	)
Less distributions from:
Net investment income		(.02	)		(.22	)		(.25	)		(.25	)		(.34	)
Total distributions		(.02	)		(.22	)		(.25	)		(.25	)		(.34	)
Net asset value, end of period	$	5.03		$	18.80		$	25.20		$	32.24		$	28.41
Total Return		(73.21	%)		(24.43	%)		(21.11	%)		14.38	%		(27.05	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,502		$	6,896		$	8,181		$	11,757		$	9,521
Ratios to average net assets:
Net investment income (loss)		1.11	%		0.06	%		2.19	%e		0.03	%		0.83	%
Total expenses		1.48	%		1.46	%		1.38	%		1.38	%		1.35	%
Portfolio turnover rate		810	%		1,453	%		1,824	%		1,830	%		1,241	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	17.60		$	23.68		$	30.39		$	26.86		$	37.32
Income (loss) from investment operations:
Net investment income (loss)a		.13			.12			.60	d		(.14	)		.24
Net gain (loss) on investments (realized and unrealized)		(13.01	)		(5.98	)		(7.06	)		3.92			(10.36	)
Total from investment operations		(12.88	)		(5.86	)		(6.46	)		3.78			(10.12	)
Less distributions from:
Net investment income		(.02	)		(.22	)		(.25	)		(.25	)		(.34	)
Total distributions		(.02	)		(.22	)		(.25	)		(.25	)		(.34	)
Net asset value, end of period	$	4.70		$	17.60		$	23.68		$	30.39		$	26.86
Total Returnb		(73.26	%)		(24.65	%)		(21.31	%)		14.09	%		(27.22	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	191		$	829		$	811		$	1,295		$	2,849
Ratios to average net assets:
Net investment income (loss)		0.94	%		0.60	%		2.37	%e		(0.47	%)		0.73	%
Total expenses		1.73	%		1.73	%		1.63	%		1.62	%		1.59	%
Portfolio turnover rate		810	%		1,453	%		1,824	%		1,830	%		1,241	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 65

ENERGY SERVICES FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	15.62		$	21.20		$	27.44		$	24.46		$	34.28
Income (loss) from investment operations:
Net investment income (loss)a		.02			(.17	)		.38	d		(.33	)		(.05	)
Net gain (loss) on investments (realized and unrealized)		(11.48	)		(5.19	)		(6.37	)		3.56			(9.43	)
Total from investment operations		(11.46	)		(5.36	)		(5.99	)		3.23			(9.48	)
Less distributions from:
Net investment income		(.02	)		(.22	)		(.25	)		(.25	)		(.34	)
Total distributions		(.02	)		(.22	)		(.25	)		(.25	)		(.34	)
Net asset value, end of period	$	4.14		$	15.62		$	21.20		$	27.44		$	24.46
Total Returnb		(73.46	%)		(25.17	%)		(21.89	%)		13.22	%		(27.76	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	192		$	826		$	1,836		$	3,258		$	2,544
Ratios to average net assets:
Net investment income (loss)		0.20	%		(0.84	%)		1.66	%e		(1.23	%)		(0.16	%)
Total expenses		2.48	%		2.45	%		2.38	%		2.37	%		2.35	%
Portfolio turnover rate		810	%		1,453	%		1,824	%		1,830	%		1,241	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	17.03		$	22.93		$	29.47		$	26.07		$	36.29
Income (loss) from investment operations:
Net investment income (loss)a		.11			.03			.19	d		(.08	)		.05
Net gain (loss) on investments (realized and unrealized)		(12.56	)		(5.71	)		(6.48	)		3.73			(9.93	)
Total from investment operations		(12.45	)		(5.68	)		(6.29	)		3.65			(9.88	)
Less distributions from:
Net investment income		(.02	)		(.22	)		(.25	)		(.25	)		(.34	)
Total distributions		(.02	)		(.22	)		(.25	)		(.25	)		(.34	)
Net asset value, end of period	$	4.56		$	17.03		$	22.93		$	29.47		$	26.07
Total Return		(73.19	%)		(24.67	%)		(21.40	%)		14.02	%		(27.31	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	528		$	6,395		$	15,754		$	4,193		$	1,700
Ratios to average net assets:
Net investment income (loss)		0.77	%		0.15	%		0.76	%e		(0.29	%)		0.15	%
Total expenses		1.72	%		1.70	%		1.63	%		1.62	%		1.67	%
Portfolio turnover rate		810	%		1,453	%		1,824	%		1,830	%		1,241	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.
d	Net investments income per share includes $0.54, $0.50, $0.45, and $0.50 for Investor Class, A-Class, C-Class, and H-Class, respectively resulting from a special dividend from Baker Hughes, a GE Co., LLC on July 05, 2017.
e	Net investment income to average net assets includes 1.99% from Investor Class, A-Class, C-Class, and H-Class, resulting from a special dividend from Baker Hughes, a GE Co., LLC on July 05, 2017.

66 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

FINANCIAL SERVICES FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the financial services sector (“Financial Services Companies”).

For the one-year period ended March 31, 2020, Financial Services Fund Investor Class returned -19.88%, compared with -17.15% for the S&P 500 Financials Index. The broader S&P 500 Index returned -6.98%.

Financial exchanges & data contributed the most to return, followed by industrial REITs. Regional banks, diversified banks, and retail REITs detracted the most from return.

Equinix, Inc., MSCI, Inc. – Class A, and Prologis, Inc. contributed the most to the Fund’s return for the period. Simon Property Group, Inc., Wells Fargo & Co., and Citigroup, Inc. detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	April 2, 1998
A-Class	September 1, 2004
C-Class	April 19, 2001
H-Class	April 6, 1998

Ten Largest Holdings (% of Total Net Assets)
Berkshire Hathaway, Inc. — Class B	3.8%
JPMorgan Chase & Co.	2.7%
Bank of America Corp.	2.2%
American Tower Corp. — Class A	1.9%
Wells Fargo & Co.	1.6%
Crown Castle International Corp.	1.6%
Equinix, Inc.	1.5%
BlackRock, Inc. — Class A	1.5%
S&P Global, Inc.	1.5%
CME Group, Inc. — Class A	1.4%
Top Ten Total	19.7%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 67

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(19.88%)	0.41%	4.89%
A-Class Shares	(20.07%)	0.15%	4.63%
A-Class Shares with sales charge‡	(23.87%)	(0.82%)	4.12%
C-Class Shares	(20.66%)	(0.59%)	3.86%
C-Class Shares with CDSC§	(21.45%)	(0.59%)	3.86%
H-Class Shares**	(20.08%)	0.14%	4.49%
S&P 500 Financials Index	(17.15%)	3.37%	6.89%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and S&P 500 Financials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

68 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
FINANCIAL SERVICES FUND

	Shares		Value
COMMON STOCKS† - 99.5%
REITs - 30.1%
American Tower Corp. — Class A		873	$	190,096
Crown Castle International Corp.		1,077		155,519
Equinix, Inc.		244		152,395
Prologis, Inc.		1,696		136,308
Digital Realty Trust, Inc.		842		116,962
SBA Communications Corp.		430		116,087
Public Storage		571		113,406
Equity Residential		1,353		83,494
AvalonBay Communities, Inc.		514		75,645
Alexandria Real Estate Equities, Inc.		525		71,956
Extra Space Storage, Inc.		701		67,128
Duke Realty Corp.		2,063		66,800
Realty Income Corp.		1,338		66,713
Essex Property Trust, Inc.		298		65,631
Welltower, Inc.		1,418		64,916
Sun Communities, Inc.		496		61,926
Boston Properties, Inc.		662		61,056
Mid-America Apartment Communities, Inc.		584		60,169
Healthpeak Properties, Inc.		2,459		58,647
UDR, Inc.		1,587		57,989
Invitation Homes, Inc.		2,685		57,378
Medical Properties Trust, Inc.		3,160		54,636
WP Carey, Inc.		934		54,247
Weyerhaeuser Co.		3,134		53,121
CyrusOne, Inc.		832		51,376
Americold Realty Trust		1,480		50,379
American Homes 4 Rent — Class A		2,148		49,834
Simon Property Group, Inc.		902		49,484
Iron Mountain, Inc.		1,889		44,958
VICI Properties, Inc.		2,673		44,479
Ventas, Inc.		1,607		43,068
Host Hotels & Resorts, Inc.		3,890		42,946
CubeSmart		1,558		41,739
Regency Centers Corp.		1,026		39,429
Gaming and Leisure Properties, Inc.		1,401		38,822
Douglas Emmett, Inc.		1,255		38,290
Omega Healthcare Investors, Inc.		1,437		38,138
Vornado Realty Trust		1,052		38,093
Apartment Investment & Management Co. — Class A		1,073		37,716
AGNC Investment Corp.		3,481		36,829
Cousins Properties, Inc.		1,195		34,978
Lamar Advertising Co. — Class A		666		34,152
STAG Industrial, Inc.		1,307		29,434
STORE Capital Corp.		1,585		28,720
Kimco Realty Corp.		2,855		27,608
SL Green Realty Corp.		593		25,558
Brixmor Property Group, Inc.		2,338		22,211
Sabra Health Care REIT, Inc.		1,931		21,087
Park Hotels & Resorts, Inc.		1,914		15,140
Macerich Co.		1,421		8,000
Total REITs				2,994,693
Banks - 24.1%
JPMorgan Chase & Co.		3,016		271,530
Bank of America Corp.		10,129		215,039
Wells Fargo & Co.		5,594		160,548
Citigroup, Inc.		3,322		139,923
Goldman Sachs Group, Inc.		797		123,208
Morgan Stanley		3,548		120,632
U.S. Bancorp		3,218		110,860
PNC Financial Services Group, Inc.		1,047		100,219
Truist Financial Corp.		3,080		94,987
Bank of New York Mellon Corp.		2,691		90,633
State Street Corp.		1,351		71,968
Northern Trust Corp.		886		66,857
First Republic Bank		748		61,545
M&T Bank Corp.		556		57,507
HSBC Holdings plc ADR		1,850		51,818
HDFC Bank Ltd. ADR		1,201		46,190
KeyCorp		4,407		45,701
Fifth Third Bancorp		3,022		44,877
ICICI Bank Ltd. ADR		5,068		43,078
SVB Financial Group*		284		42,907
Huntington Bancshares, Inc.		5,222		42,873
Popular, Inc.		1,207		42,245
Regions Financial Corp.		4,708		42,231
Commerce Bancshares, Inc.		815		41,035
Citizens Financial Group, Inc.		2,071		38,955
Signature Bank		402		32,317
Zions Bancorp North America		1,148		30,720
East West Bancorp, Inc.		1,088		28,005
Comerica, Inc.		896		26,289
TCF Financial Corp.		1,136		25,742
First Horizon National Corp.		2,714		21,875
Synovus Financial Corp.		1,240		21,774
PacWest Bancorp		1,099		19,694
Wintrust Financial Corp.		566		18,599
Texas Capital Bancshares, Inc.*		580		12,859
Total Banks				2,405,240
Insurance - 21.9%
Berkshire Hathaway, Inc. — Class B*		2,071		378,641
Progressive Corp.		1,804		133,207
Marsh & McLennan Companies, Inc.		1,334		115,338
Chubb Ltd.		892		99,628
Allstate Corp.		1,070		98,151
Willis Towers Watson plc		516		87,643
Travelers Companies, Inc.		867		86,137
MetLife, Inc.		2,693		82,325
Aflac, Inc.		2,343		80,224
Arthur J Gallagher & Co.		875		71,321
Prudential Financial, Inc.		1,308		68,199
Aon plc		393		64,861
American International Group, Inc.		2,580		62,565
Brown & Brown, Inc.		1,681		60,886
Cincinnati Financial Corp.		785		59,228
Arch Capital Group Ltd.*		2,057		58,542

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 69

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
FINANCIAL SERVICES FUND

	Shares		Value
Hartford Financial Services Group, Inc.		1,539	$	54,234
Loews Corp.		1,523		53,046
Erie Indemnity Co. — Class A		353		52,329
Everest Re Group Ltd.		255		49,067
Principal Financial Group, Inc.		1,411		44,221
Assurant, Inc.		424		44,134
eHealth, Inc.*		304		42,809
Equitable Holdings, Inc.		2,694		38,928
Fidelity National Financial, Inc.		1,560		38,813
Voya Financial, Inc.		929		37,671
Athene Holding Ltd. — Class A*		1,478		36,684
Lincoln National Corp.		1,149		30,242
Unum Group		1,675		25,142
Brighthouse Financial, Inc.*		1,014		24,508
Total Insurance				2,178,724
Diversified Financial Services - 14.4%
BlackRock, Inc. — Class A		346		152,230
CME Group, Inc. — Class A		825		142,651
American Express Co.		1,613		138,089
Intercontinental Exchange, Inc.		1,521		122,821
Charles Schwab Corp.		3,265		109,769
T. Rowe Price Group, Inc.		866		84,565
Nasdaq, Inc.		775		73,586
TD Ameritrade Holding Corp.		2,086		72,301
Capital One Financial Corp.		1,346		67,865
Ameriprise Financial, Inc.		538		55,134
Cboe Global Markets, Inc.		609		54,353
Raymond James Financial, Inc.		781		49,359
E*TRADE Financial Corp.		1,391		47,739
Franklin Resources, Inc.		2,748		45,864
SEI Investments Co.		942		43,652
Synchrony Financial		2,663		42,848
Discover Financial Services		1,198		42,733
LPL Financial Holdings, Inc.		583		31,733
Ally Financial, Inc.		2,197		31,703
Invesco Ltd.		3,115		28,284
Total Diversified Financial Services				1,437,279
Private Equity - 3.3%
Blackstone Group, Inc. — Class A		2,890		131,697
KKR & Company, Inc. — Class A		3,331		78,179
Apollo Global Management, Inc.		1,890		63,315
Brookfield Asset Management, Inc. — Class A		1,241		54,914
Total Private Equity				328,105
Commercial Services - 3.3%
S&P Global, Inc.		591		144,825
Moody’s Corp.		555		117,382
MarketAxess Holdings, Inc.		198		65,849
Total Commercial Services				328,056
Software - 1.1%
MSCI, Inc. — Class A		360		104,026
Savings & Loans - 0.7%
New York Community Bancorp, Inc.		3,938		36,978
People’s United Financial, Inc.		3,232		35,713
Total Savings & Loans				72,691
Media - 0.6%
FactSet Research Systems, Inc.		236		61,520
Total Common Stocks
(Cost $9,332,906)				9,910,334
	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.6%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	44,782		44,782
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		17,224		17,224
Total Repurchase Agreements
(Cost $62,006)				62,006
Total Investments - 100.1%
(Cost $9,394,912)			$	9,972,340
Other Assets & Liabilities, net - (0.1)%				(10,125	)
Total Net Assets - 100.0%			$	9,962,215

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

70 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
FINANCIAL SERVICES FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	9,910,334	$	—	$	—	$	9,910,334
Repurchase Agreements		—		62,006		—		62,006
Total Assets	$	9,910,334	$	62,006	$	—	$	9,972,340

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 71

FINANCIAL SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value (cost $9,332,906)	$	9,910,334
Repurchase agreements, at value (cost $62,006)		62,006
Cash		50,011
Receivables:
Fund shares sold		114,060
Dividends		25,396
Foreign tax reclaims		295
Securities lending income		6
Total assets		10,162,108
Liabilities:
Payable for:
Securities purchased		124,302
Fund shares redeemed		42,238
Management fees		8,336
Transfer agent and administrative fees		3,330
Distribution and service fees		1,985
Portfolio accounting fees		981
Trustees’ fees*		284
Miscellaneous		18,437
Total liabilities		199,893
Commitments and contingent liabilities (Note 9)		—
Net assets	$	9,962,215
Net assets consist of:
Paid in capital	$	10,594,433
Total distributable earnings (loss)		(632,218	)
Net assets	$	9,962,215
Investor Class:
Net assets	$	2,968,290
Capital shares outstanding		54,166
Net asset value per share	$	54.80
A-Class:
Net assets	$	5,744,973
Capital shares outstanding		112,417
Net asset value per share	$	51.10
Maximum offering price per share (Net asset value divided by 95.25%)	$	53.65
C-Class:
Net assets	$	638,020
Capital shares outstanding		14,310
Net asset value per share	$	44.59
H-Class:
Net assets	$	610,932
Capital shares outstanding		12,334
Net asset value per share	$	49.53

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $1,375)	$	623,115
Interest		2,586
Income from securities lending, net		53
Total investment income		625,754
Expenses:
Management fees		208,075
Distribution and service fees:
A-Class		19,779
C-Class		9,693
H-Class		9,901
Transfer agent and administrative fees		62,076
Portfolio accounting fees		24,479
Registration fees		23,056
Professional fees		12,263
Trustees’ fees*		5,850
Custodian fees		3,630
Line of credit fees		34
Miscellaneous		22,008
Total expenses		400,844
Net investment income		224,910
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		967,033
Net realized gain		967,033
Net change in unrealized appreciation (depreciation) on:
Investments		(3,396,384	)
Net change in unrealized appreciation (depreciation)		(3,396,384	)
Net realized and unrealized loss		(2,429,351	)
Net decrease in net assets resulting from operations	$	(2,204,441	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

72 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

FINANCIAL SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	224,910		$	177,282
Net realized gain on investments		967,033			4,257,309
Net change in unrealized appreciation (depreciation) on investments		(3,396,384	)		(3,956,634	)
Net increase (decrease) in net assets resulting from operations		(2,204,441	)		477,957
Distributions to shareholders:
Investor Class		(64,630	)		(564,622	)
A-Class		(36,597	)		(342,005	)
C-Class		(5,315	)		(70,151	)
H-Class		(8,748	)		(560,062	)
Total distributions to shareholders		(115,290	)		(1,536,840	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		49,827,414			65,186,396
A-Class		4,186,426			3,561,906
C-Class		1,741,582			1,960,408
H-Class		18,267,949			77,362,348
Distributions reinvested
Investor Class		63,368			552,353
A-Class		36,296			339,699
C-Class		5,268			69,278
H-Class		8,748			560,062
Cost of shares redeemed
Investor Class		(51,288,443	)		(84,529,582	)
A-Class		(4,716,834	)		(4,236,390	)
C-Class		(1,914,065	)		(3,184,480	)
H-Class		(19,106,628	)		(80,120,580	)
Net decrease from capital share transactions		(2,888,919	)		(22,478,582	)
Net decrease in net assets		(5,208,650	)		(23,537,465	)
Net assets:
Beginning of year		15,170,865			38,708,330
End of year	$	9,962,215		$	15,170,865
Capital share activity:
Shares sold
Investor Class		673,773			904,721
A-Class		61,997			54,277
C-Class		28,914			32,994
H-Class		274,440			1,254,996
Shares issued from reinvestment of distributions
Investor Class		821			8,628
A-Class		504			5,669
C-Class		84			1,312
H-Class		125			9,640
Shares redeemed
Investor Class		(692,918	)		(1,189,781	)
A-Class		(68,450	)		(63,756	)
C-Class		(32,121	)		(53,504	)
H-Class		(288,019	)		(1,284,564	)
Net decrease in shares		(40,850	)		(319,368	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 73

FINANCIAL SERVICES FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d
Per Share Data
Net asset value, beginning of period	$	68.68		$	72.17		$	65.14		$	53.90		$	57.78
Income (loss) from investment operations:
Net investment income (loss)a		.83			.53			.61			.55			.77
Net gain (loss) on investments (realized and unrealized)		(14.39	)		(.86	)f		6.79			11.14			(4.19	)
Total from investment operations		(13.56	)		(.33	)		7.40			11.69			(3.42	)
Less distributions from:
Net investment income		(.32	)		(.89	)		(.37	)		(.45	)		(.30	)
Net realized gains		—			(2.27	)		—			—			(.16	)
Total distributions		(.32	)		(3.16	)		(.37	)		(.45	)		(.46	)
Net asset value, end of period	$	54.80		$	68.68		$	72.17		$	65.14		$	53.90
Total Return		(19.88	%)		(0.14	%)		11.37	%		21.72	%		(5.95	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,968		$	4,978		$	25,183		$	39,214		$	15,110
Ratios to average net assets:
Net investment income (loss)		1.12	%		0.74	%		0.89	%		0.90	%		1.36	%
Total expenses		1.48	%		1.45	%		1.38	%		1.38	%		1.34	%
Portfolio turnover rate		249	%		410	%		347	%		389	%		268	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d
Per Share Data
Net asset value, beginning of period	$	64.22		$	67.88		$	61.44		$	51.00		$	54.83
Income (loss) from investment operations:
Net investment income (loss)a		.54			.37			.53			.41			.46
Net gain (loss) on investments (realized and unrealized)		(13.34	)		(.87	)f		6.28			10.48			(3.83	)
Total from investment operations		(12.80	)		(.50	)		6.81			10.89			(3.37	)
Less distributions from:
Net investment income		(.32	)		(.89	)		(.37	)		(.45	)		(.30	)
Net realized gains		—			(2.27	)		—			—			(.16	)
Total distributions		(.32	)		(3.16	)		(.37	)		(.45	)		(.46	)
Net asset value, end of period	$	51.10		$	64.22		$	67.88		$	61.44		$	51.00
Total Returnb		(20.07	%)		(0.41	%)		11.08	%		21.42	%		(6.17	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,745		$	7,602		$	8,293		$	1,834		$	1,039
Ratios to average net assets:
Net investment income (loss)		0.78	%		0.55	%		0.81	%		0.73	%		0.87	%
Total expenses		1.72	%		1.71	%		1.63	%		1.62	%		1.60	%
Portfolio turnover rate		249	%		410	%		347	%		389	%		268	%

74 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

FINANCIAL SERVICES FUND

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d
Per Share Data
Net asset value, beginning of period	$	56.49		$	60.56		$	55.26		$	46.24		$	50.14
Income (loss) from investment operations:
Net investment income (loss)a		.01			(.16	)		—	e		(.07	)		.11
Net gain (loss) on investments (realized and unrealized)		(11.59	)		(.75	)f		5.67			9.54			(3.55	)
Total from investment operations		(11.58	)		(.91	)		5.67			9.47			(3.44	)
Less distributions from:
Net investment income		(.32	)		(.89	)		(.37	)		(.45	)		(.30	)
Net realized gains		—			(2.27	)		—			—			(.16	)
Total distributions		(.32	)		(3.16	)		(.37	)		(.45	)		(.46	)
Net asset value, end of period	$	44.59		$	56.49		$	60.56		$	55.26		$	46.24
Total Returnb		(20.66	%)		(1.15	%)		10.27	%		20.51	%		(6.89	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	638		$	985		$	2,218		$	2,270		$	1,065
Ratios to average net assets:
Net investment income (loss)		0.02	%		(0.27	%)		—	g		(0.13	%)		0.22	%
Total expenses		2.47	%		2.46	%		2.38	%		2.37	%		2.35	%
Portfolio turnover rate		249	%		410	%		347	%		389	%		268	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 75

FINANCIAL SERVICES FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016c,d
Per Share Data
Net asset value, beginning of period	$	62.26		$	65.93		$	59.67		$	49.53		$	53.30
Income (loss) from investment operations:
Net investment income (loss)a		.54			.03			.46			.33			.43
Net gain (loss) on investments (realized and unrealized)		(12.95	)		(.54	)f		6.17			10.26			(3.74	)
Total from investment operations		(12.41	)		(.51	)		6.63			10.59			(3.31	)
Less distributions from:
Net investment income		(.32	)		(.89	)		(.37	)		(.45	)		(.30	)
Net realized gains		—			(2.27	)		—			—			(.16	)
Total distributions		(.32	)		(3.16	)		(.37	)		(.45	)		(.46	)
Net asset value, end of period	$	49.53		$	62.26		$	65.93		$	59.67		$	49.53
Total Return		(20.08	%)		(0.42	%)		11.11	%		21.43	%		(6.25	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	611		$	1,606		$	3,014		$	18,259		$	3,028
Ratios to average net assets:
Net investment income (loss)		0.81	%		0.05	%		0.72	%		0.58	%		0.83	%
Total expenses		1.72	%		1.73	%		1.63	%		1.63	%		1.65	%
Portfolio turnover rate		249	%		410	%		347	%		389	%		268	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.
d	Share split — Per share amounts for the periods presented through March 31, 2017 have been restated to reflect a 2:1 share split effective October 31, 2016.
e	Net investment income is less than $0.01 per share.
f	The amount shown for a share outstanding throughout the period does not accord with the aggregate net gains on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.
g	Less than 0.01%.

76 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

HEALTH CARE FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the health care industry (“Health Care Companies”).

For the one-year period ended March 31, 2020, Health Care Fund Investor Class returned -5.49%, compared with -1.01% for the S&P 500 Health Care Index. The broader S&P 500 Index returned -6.98%.

Health care technology contributed the most to the Fund’s return, followed by health care services and health care distributors. Pharmaceuticals, biotechnology, and life sciences tools & services detracted the most from return.

DexCom, Inc., Teladoc Health, Inc., and Array BioPharma, Inc. contributed the most to the Fund’s return for the period. Tilray, Inc., Canopy Growth Corp., and Amarin Corporation plc ADR detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	April 17, 1998
A-Class	September 1, 2004
C-Class	March 30, 2001
H-Class	May 11, 1998

Ten Largest Holdings (% of Total Net Assets)
Johnson & Johnson	3.7%
UnitedHealth Group, Inc.	3.0%
Merck & Company, Inc.	2.7%
Pfizer, Inc.	2.6%
Eli Lilly & Co.	2.5%
Abbott Laboratories	2.4%
Bristol-Myers Squibb Co.	2.3%
Gilead Sciences, Inc.	2.2%
Amgen, Inc.	2.1%
Thermo Fisher Scientific, Inc.	2.1%
Top Ten Total	25.6%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 77

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(5.49%)	2.55%	10.70%
A-Class Shares	(5.76%)	2.28%	10.43%
A-Class Shares with sales charge‡	(10.25%)	1.28%	9.89%
C-Class Shares	(6.45%)	1.52%	9.63%
C-Class Shares with CDSC§	(7.38%)	1.52%	9.63%
H-Class Shares**	(5.73%)	2.26%	10.29%
S&P 500 Health Care Index	(1.01%)	6.01%	12.83%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Health Care Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

78 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
HEALTH CARE FUND

	Shares		Value
COMMON STOCKS† - 99.4%
Pharmaceuticals - 35.0%
Johnson & Johnson		5,580	$	731,705
Merck & Company, Inc.		7,012		539,503
Pfizer, Inc.		15,726		513,297
Eli Lilly & Co.		3,559		493,704
Bristol-Myers Squibb Co.		8,081		450,435
AbbVie, Inc.		5,407		411,959
CVS Health Corp.		5,504		326,552
Cigna Corp.		1,809		320,519
Allergan plc		1,742		308,508
Becton Dickinson and Co.		1,326		304,675
Zoetis, Inc.		2,524		297,050
DexCom, Inc.*		864		232,649
McKesson Corp.		1,531		207,083
AmerisourceBergen Corp. — Class A		2,069		183,106
Cardinal Health, Inc.		3,189		152,881
AstraZeneca plc ADR		3,062		136,749
Novartis AG ADR		1,512		124,664
GW Pharmaceuticals plc ADR*,1		1,266		110,864
GlaxoSmithKline plc ADR		2,917		110,525
Neurocrine Biosciences, Inc.*		1,225		106,024
Elanco Animal Health, Inc.*		4,679		104,763
Mylan N.V.*		6,727		100,300
Sarepta Therapeutics, Inc.*		1,025		100,266
Jazz Pharmaceuticals plc*		995		99,241
Canopy Growth Corp.*,1		6,639		95,734
Alkermes plc*		6,272		90,442
Horizon Therapeutics plc*		3,009		89,127
PRA Health Sciences, Inc.*		1,002		83,206
Bausch Health Companies, Inc.*		4,458		69,099
Global Blood Therapeutics, Inc.*		1,175		60,031
Total Pharmaceuticals				6,954,661
Healthcare-Products - 26.5%
Abbott Laboratories		5,929		467,857
Thermo Fisher Scientific, Inc.		1,464		415,190
Danaher Corp.		2,882		398,898
Medtronic plc		3,357		302,734
Stryker Corp.		1,774		295,353
Intuitive Surgical, Inc.*		586		290,193
Baxter International, Inc.		3,320		269,551
Boston Scientific Corp.*		7,359		240,124
Edwards Lifesciences Corp.*		1,255		236,718
ResMed, Inc.		1,269		186,911
IDEXX Laboratories, Inc.*		761		184,345
Zimmer Biomet Holdings, Inc.		1,554		157,078
Wright Medical Group N.V.*		5,058		144,912
Cooper Companies, Inc.		519		143,073
STERIS plc		1,002		140,250
Masimo Corp.*		775		137,268
Teleflex, Inc.		464		135,887
Insulet Corp.*		800		132,544
Align Technology, Inc.*		708		123,157
Novocure Ltd.*		1,632		109,899
Varian Medical Systems, Inc.*		1,057		108,512
Hologic, Inc.*		3,004		105,440
ABIOMED, Inc.*		696		101,031
Dentsply Sirona, Inc.		2,597		100,841
Henry Schein, Inc.*		1,917		96,847
Repligen Corp.*		998		96,347
Tandem Diabetes Care, Inc.*		1,340		86,229
NuVasive, Inc.*		1,092		55,321
Total Healthcare-Products				5,262,510
Biotechnology - 19.8%
Gilead Sciences, Inc.		5,833		436,075
Amgen, Inc.		2,071		419,854
Regeneron Pharmaceuticals, Inc.*		717		350,104
Vertex Pharmaceuticals, Inc.*		1,441		342,886
Biogen, Inc.*		1,027		324,922
Illumina, Inc.*		887		242,258
Seattle Genetics, Inc.*		1,600		184,608
Alexion Pharmaceuticals, Inc.*		1,846		165,752
BioMarin Pharmaceutical, Inc.*		1,917		161,987
ncyte Corp.*		2,032		148,803
Alnylam Pharmaceuticals, Inc.*		1,271		138,348
ACADIA Pharmaceuticals, Inc.*		2,478		104,696
Guardant Health, Inc.*		1,404		97,718
Ionis Pharmaceuticals, Inc.*		2,004		94,749
Exact Sciences Corp.*		1,591		92,278
Exelixis, Inc.*		5,299		91,249
United Therapeutics Corp.*		926		87,808
Nektar Therapeutics*		3,739		66,741
Blueprint Medicines Corp.*		1,050		61,404
Mirati Therapeutics, Inc.*		759		58,344
Immunomedics, Inc.*		4,277		57,654
Bluebird Bio, Inc.*		1,030		47,339
Arrowhead Pharmaceuticals, Inc.*		1,593		45,831
Intercept Pharmaceuticals, Inc.*		696		43,820
Sage Therapeutics, Inc.*		1,233		35,412
Amarin Corporation plc ADR*,1		7,069		28,276
Total Biotechnology				3,928,916
Healthcare-Services - 13.4%
UnitedHealth Group, Inc.		2,363		589,285
Centene Corp.*		5,113		303,763
Anthem, Inc.		1,209		274,492
Humana, Inc.		798		250,588
Teladoc Health, Inc.*		1,223		189,577
HCA Healthcare, Inc.		2,009		180,509
IQVIA Holdings, Inc.*		1,492		160,927
DaVita, Inc.*		1,738		132,192
Laboratory Corporation of America Holdings*		998		126,137
Molina Healthcare, Inc.*		894		124,901
Quest Diagnostics, Inc.		1,471		118,121
Amedisys, Inc.*		588		107,922
Universal Health Services, Inc. — Class B		1,023		101,359
Total Healthcare-Services				2,659,773

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 79

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
HEALTH CARE FUND

	Shares		Value
Electronics - 2.4%
Agilent Technologies, Inc.		2,510	$	179,766
Mettler-Toledo International, Inc.*		230		158,817
Waters Corp.*		692		125,979
Total Electronics				464,562
Software - 2.0%
Veeva Systems, Inc. — Class A*		1,386		216,729
Cerner Corp.		2,765		174,167
Total Software				390,896
Commercial Services - 0.3%
HealthEquity, Inc.*		1,269		64,199
Total Common Stocks
(Cost $16,341,077)				19,725,517
SECURITIES LENDING COLLATERAL†,2 - 1.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%3		207,901		207,901
Total Securities Lending Collateral
(Cost $207,901)				207,901
Total Investments - 100.4%
(Cost $16,548,978)			$	19,933,418
Other Assets & Liabilities, net - (0.4)%				(73,015	)
Total Net Assets - 100.0%			$	19,860,403

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Securities lending collateral — See Note 7.
3	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	19,725,517	$	—	$	—	$	19,725,517
Securities Lending Collateral		207,901		—		—		207,901
Total Assets	$	19,933,418	$	—	$	—	$	19,933,418

80 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

HEALTH CARE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $186,466 of securities loaned (cost $16,548,978)	$	19,933,418
Cash		124
Receivables:
Securities sold		3,312,395
Fund shares sold		168,041
Dividends		19,026
Foreign tax reclaims		4,792
Securities lending income		2,753
Total assets		23,440,549
Liabilities:
Line of credit		85,000
Payable for:
Fund shares redeemed		3,219,095
Return of securities lending collateral		207,901
Management fees		17,569
Transfer agent and administrative fees		6,978
Distribution and service fees		3,367
Portfolio accounting fees		2,067
Trustees’ fees*		584
Miscellaneous		37,585
Total liabilities		3,580,146
Commitments and contingent liabilities (Note 9)		—
Net assets	$	19,860,403
Net assets consist of:
Paid in capital	$	22,169,741
Total distributable earnings (loss)		(2,309,338	)
Net assets	$	19,860,403
Investor Class:
Net assets	$	12,407,894
Capital shares outstanding		409,916
Net asset value per share	$	30.27
A-Class:
Net assets	$	3,605,848
Capital shares outstanding		131,952
Net asset value per share	$	27.33
Maximum offering price per share (Net asset value divided by 95.25%)	$	28.69
C-Class:
Net assets	$	2,826,029
Capital shares outstanding		121,768
Net asset value per share	$	23.21
H-Class:
Net assets	$	1,020,632
Capital shares outstanding		38,788
Net asset value per share	$	26.31

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $939)	$	443,669
Interest		4,465
Income from securities lending, net		60,897
Total investment income		509,031
Expenses:
Management fees		336,745
Distribution and service fees:
A-Class		14,343
C-Class		37,049
H-Class		7,221
Transfer agent and administrative fees		100,853
Registration fees		55,417
Portfolio accounting fees		39,617
Professional fees		23,708
Trustees’ fees*		13,121
Custodian fees		6,044
Line of credit fees		68
Miscellaneous		8,862
Total expenses		643,048
Net investment loss		(134,017	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		10,948,048
Net realized gain		10,948,048
Net change in unrealized appreciation (depreciation) on:
Investments		(14,177,522	)
Net change in unrealized appreciation (depreciation)		(14,177,522	)
Net realized and unrealized loss		(3,229,474	)
Net decrease in net assets resulting from operations	$	(3,363,491	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 81

HEALTH CARE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(134,017	)	$	(469,696	)
Net realized gain (loss) on investments		10,948,048			(7,605,390	)
Net change in unrealized appreciation (depreciation) on investments		(14,177,522	)		11,915,715
Net increase (decrease) in net assets resulting from operations		(3,363,491	)		3,840,629
Distributions to shareholders:
Investor Class		—			(1,361,205	)
A-Class		—			(91,162	)
C-Class		—			(89,879	)
H-Class		—			(269,508	)
Total distributions to shareholders		—			(1,811,754	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		117,439,229			274,055,410
A-Class		8,301,767			23,446,942
C-Class		2,538,334			5,228,919
H-Class		12,331,415			93,563,271
Distributions reinvested
Investor Class		—			1,349,970
A-Class		—			89,439
C-Class		—			88,910
H-Class		—			269,487
Cost of shares redeemed
Investor Class		(166,245,050	)		(279,558,964	)
A-Class		(9,724,774	)		(22,601,547	)
C-Class		(3,855,410	)		(6,354,868	)
H-Class		(18,823,192	)		(91,153,918	)
Net decrease from capital share transactions		(58,037,681	)		(1,576,949	)
Net increase (decrease) in net assets		(61,401,172	)		451,926
Net assets:
Beginning of year		81,261,575			80,809,649
End of year	$	19,860,403		$	81,261,575
Capital share activity:
Shares sold
Investor Class		3,523,340			8,641,302
A-Class		285,931			858,664
C-Class		101,419			212,824
H-Class		409,835			3,465,327
Shares issued from reinvestment of distributions
Investor Class		—			44,480
A-Class		—			3,252
C-Class		—			3,772
H-Class		—			10,185
Shares redeemed
Investor Class		(5,117,046	)		(9,021,071	)
A-Class		(321,745	)		(812,305	)
C-Class		(154,580	)		(259,344	)
H-Class		(653,035	)		(3,400,098	)
Net decrease in shares		(1,925,881	)		(253,012	)

82 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

HEALTH CARE FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	32.03		$	28.88		$	27.82		$	28.65		$	35.83
Income (loss) from investment operations:
Net investment income (loss)a		(.06	)		(.13	)		(.13	)		(.10	)		(.04	)
Net gain (loss) on investments (realized and unrealized)		(1.70	)		3.78			3.82			2.79			(5.11	)
Total from investment operations		(1.76	)		3.65			3.69			2.69			(5.15	)
Less distributions from:
Net realized gains		—			(.50	)		(2.63	)		(3.52	)		(2.03	)
Total distributions		—			(.50	)		(2.63	)		(3.52	)		(2.03	)
Net asset value, end of period	$	30.27		$	32.03		$	28.88		$	27.82		$	28.65
Total Return		(5.49	%)		12.75	%		13.38	%		10.20	%		(14.82	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,408		$	64,185		$	67,542		$	36,468		$	44,663
Ratios to average net assets:
Net investment income (loss)		(0.19	%)		(0.42	%)		(0.43	%)		(0.36	%)		(0.11	%)
Total expenses		1.47	%		1.46	%		1.38	%		1.37	%		1.34	%
Portfolio turnover rate		248	%		341	%		394	%		699	%		249	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	29.00		$	26.26		$	25.56		$	26.68		$	33.60
Income (loss) from investment operations:
Net investment income (loss)a		(.12	)		(.19	)		(.19	)		(.17	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		(1.55	)		3.43			3.52			2.57			(4.76	)
Total from investment operations		(1.67	)		3.24			3.33			2.40			(4.89	)
Less distributions from:
Net realized gains		—			(.50	)		(2.63	)		(3.52	)		(2.03	)
Total distributions		—			(.50	)		(2.63	)		(3.52	)		(2.03	)
Net asset value, end of period	$	27.33		$	29.00		$	26.26		$	25.56		$	26.68
Total Returnb		(5.76	%)		12.46	%		13.14	%		9.85	%		(15.04	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,606		$	4,865		$	3,102		$	4,626		$	6,410
Ratios to average net assets:
Net investment income (loss)		(0.43	%)		(0.68	%)		(0.69	%)		(0.62	%)		(0.42	%)
Total expenses		1.73	%		1.72	%		1.63	%		1.62	%		1.59	%
Portfolio turnover rate		248	%		341	%		394	%		699	%		249	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 83

HEALTH CARE FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	24.81		$	22.69		$	22.58		$	24.13		$	30.82
Income (loss) from investment operations:
Net investment income (loss)a		(.30	)		(.35	)		(.34	)		(.33	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		(1.30	)		2.97			3.08			2.30			(4.33	)
Total from investment operations		(1.60	)		2.62			2.74			1.97			(4.66	)
Less distributions from:
Net realized gains		—			(.50	)		(2.63	)		(3.52	)		(2.03	)
Total distributions		—			(.50	)		(2.63	)		(3.52	)		(2.03	)
Net asset value, end of period	$	23.21		$	24.81		$	22.69		$	22.58		$	24.13
Total Returnb		(6.45	%)		11.68	%		12.24	%		9.07	%		(15.67	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,826		$	4,340		$	4,940		$	4,959		$	8,284
Ratios to average net assets:
Net investment income (loss)		(1.20	%)		(1.42	%)		(1.42	%)		(1.37	%)		(1.17	%)
Total expenses		2.48	%		2.46	%		2.38	%		2.37	%		2.35	%
Portfolio turnover rate		248	%		341	%		394	%		699	%		249	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	27.91		$	25.29		$	24.72		$	25.91		$	32.71
Income (loss) from investment operations:
Net investment income (loss)a		(.13	)		(.18	)		(.21	)		(.16	)		(.14	)
Net gain (loss) on investments (realized and unrealized)		(1.47	)		3.30			3.41			2.49			(4.63	)
Total from investment operations		(1.60	)		3.12			3.20			2.33			(4.77	)
Less distributions from:
Net realized gains		—			(.50	)		(2.63	)		(3.52	)		(2.03	)
Total distributions		—			(.50	)		(2.63	)		(3.52	)		(2.03	)
Net asset value, end of period	$	26.31		$	27.91		$	25.29		$	24.72		$	25.91
Total Return		(5.73	%)		12.46	%		13.06	%		9.87	%		(15.08	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,021		$	7,871		$	5,225		$	4,809		$	5,244
Ratios to average net assets:
Net investment income (loss)		(0.45	%)		(0.66	%)		(0.77	%)		(0.62	%)		(0.44	%)
Total expenses		1.72	%		1.73	%		1.64	%		1.62	%		1.71	%
Portfolio turnover rate		248	%		341	%		394	%		699	%		249	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

84 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

INTERNET FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that provide products or services designed for or related to the Internet (“Internet Companies”).

For the one-year period ended March 31, 2020, Internet Fund Investor Class returned -8.25%, compared with 10.43% for the S&P 500 Information Technology Index. The broader S&P 500 Index returned -6.98%.

Interactive home entertainment contributed the most to return, followed by Internet services & infrastructure and specialized REITs. Interactive media & services, communications equipment, and Internet & direct marketing retail detracted the most from return.

Amazon.com, Inc., Shopify, Inc. – Class A, and Pinduoduo, Inc. ADR contributed the most to the Fund’s return for the period. Cisco Systems, Inc., Wayfair, Inc. – Class A, and Expedia Group, Inc. detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	April 6, 2000
A-Class	September 1, 2004
C-Class	April 19, 2001
H-Class	April 6, 2000

Ten Largest Holdings (% of Total Net Assets)
Amazon.com, Inc.	9.4%
Alphabet, Inc. — Class A	7.6%
Facebook, Inc. — Class A	5.6%
Netflix, Inc.	3.9%
Alibaba Group Holding Ltd. ADR	3.5%
Cisco Systems, Inc.	3.4%
salesforce.com, Inc.	3.1%
PayPal Holdings, Inc.	2.9%
Activision Blizzard, Inc.	2.0%
Uber Technologies, Inc.	1.9%
Top Ten Total	43.3%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 85

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(8.25%)	10.06%	12.28%
A-Class Shares	(8.48%)	9.78%	12.00%
A-Class Shares with sales charge‡	(12.82%)	8.72%	11.46%
C-Class Shares	(9.16%)	8.97%	11.16%
C-Class Shares with CDSC§	(10.03%)	8.97%	11.16%
H-Class Shares**	(8.49%)	9.77%	11.84%
S&P 500 Information Technology Index	10.43%	17.05%	15.79%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

86 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
INTERNET FUND

	Shares		Value
COMMON STOCKS† - 99.7%
Internet - 60.3%
Amazon.com, Inc.*		749	$	1,460,340
Alphabet, Inc. — Class A*		1,016		1,180,541
Facebook, Inc. — Class A*		5,267		878,536
Netflix, Inc.*		1,612		605,306
Alibaba Group Holding Ltd. ADR*		2,784		541,432
Uber Technologies, Inc.*		10,797		301,452
Booking Holdings, Inc.*		206		277,136
JD.com, Inc. ADR*		6,678		270,459
Shopify, Inc. — Class A*		489		203,879
eBay, Inc.		6,748		202,845
VeriSign, Inc.*		1,121		201,881
Chewy, Inc. — Class A*		5,274		197,722
Baidu, Inc. ADR*		1,792		180,616
Okta, Inc.*		1,460		178,500
Match Group, Inc.*,1		2,607		172,166
Twitter, Inc.*		6,993		171,748
Snap, Inc. — Class A*		13,438		159,778
Pinduoduo, Inc. ADR*		4,127		148,696
IAC/InterActiveCorp*		819		146,789
MercadoLibre, Inc.*		290		141,688
GoDaddy, Inc. — Class A*		2,249		128,441
Pinterest, Inc. — Class A*		7,610		117,499
Spotify Technology S.A.*		912		110,753
Trip.com Group Ltd. ADR*		4,703		110,285
Zillow Group, Inc. — Class C*,1		3,041		109,537
JOYY, Inc. ADR*		1,977		105,295
F5 Networks, Inc.*		919		97,993
Wix.com Ltd.*		948		95,577
Autohome, Inc. ADR*		1,317		93,533
Expedia Group, Inc.		1,656		93,183
Weibo Corp. ADR*		2,721		90,092
Etsy, Inc.*		2,302		88,489
Baozun, Inc. ADR*,1		3,135		87,592
Wayfair, Inc. — Class A*,1		1,490		79,626
GrubHub, Inc.*		1,919		78,161
Momo, Inc. ADR		3,454		74,917
Anaplan, Inc.*		2,263		68,478
TripAdvisor, Inc.		3,039		52,848
Cargurus, Inc.*		2,468		46,744
Stitch Fix, Inc. — Class A*,1		2,745		34,862
Total Internet				9,385,415
Software - 22.8%
salesforce.com, Inc.*		3,309		476,430
Activision Blizzard, Inc.		5,143		305,905
Electronic Arts, Inc.*		2,352		235,600
Veeva Systems, Inc. — Class A*		1,497		234,086
Citrix Systems, Inc.		1,537		217,562
DocuSign, Inc.*		2,235		206,514
Akamai Technologies, Inc.*		1,979		181,059
NetEase, Inc. ADR		534		171,393
Take-Two Interactive Software, Inc.*		1,381		163,800
Twilio, Inc. — Class A*		1,661		148,643
Sea Ltd. ADR*		3,035		134,481
Coupa Software, Inc.*		934		130,508
MongoDB, Inc.*		934		127,528
Dropbox, Inc. — Class A*		6,647		120,311
HUYA, Inc. ADR*		6,130		103,903
Five9, Inc.*		1,348		103,068
Smartsheet, Inc. — Class A*		2,368		98,296
HubSpot, Inc.*		735		97,895
j2 Global, Inc.		1,030		77,095
New Relic, Inc.*		1,326		61,314
Nutanix, Inc. — Class A*		3,531		55,790
Cornerstone OnDemand, Inc.*		1,460		46,355
Pluralsight, Inc. — Class A*		4,062		44,601
Total Software				3,542,137
Telecommunications - 8.7%
Cisco Systems, Inc.		13,270		521,644
Motorola Solutions, Inc.		1,465		194,728
Arista Networks, Inc.*		866		175,408
Ciena Corp.*		2,733		108,801
Juniper Networks, Inc.		5,264		100,753
LogMeIn, Inc.		1,071		89,193
Viavi Solutions, Inc.*		5,417		60,724
CommScope Holding Company, Inc.*		5,293		48,219
ViaSat, Inc.*		1,313		47,163
Total Telecommunications				1,346,633
Commercial Services - 4.5%
PayPal Holdings, Inc.*		4,668		446,914
CoStar Group, Inc.*		355		208,460
2U, Inc.*		2,260		47,957
Total Commercial Services				703,331
Diversified Financial Services - 1.7%
TD Ameritrade Holding Corp.		4,721		163,629
E*TRADE Financial Corp.		3,159		108,417
Total Diversified Financial Services				272,046
Banks - 1.0%
Northern Trust Corp.		2,017		152,203
Computers - 0.7%
Lumentum Holdings, Inc.*		1,395		102,812
Total Common Stocks
(Cost $12,489,542)				15,504,577

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 87

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
INTERNET FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.4%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	49,050	$	49,050
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		18,865		18,865
Total Repurchase Agreements
(Cost $67,915)				67,915

	Shares
SECURITIES LENDING COLLATERAL†,3 - 2.4%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		380,695		380,695
Total Securities Lending Collateral
(Cost $380,695)				380,695
Total Investments - 102.5%
(Cost $12,938,152)			$	15,953,187
Other Assets & Liabilities, net - (2.5)%				(395,572	)
Total Net Assets - 100.0%			$	15,557,615

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	15,504,577	$	—	$	—	$	15,504,577
Repurchase Agreements		—		67,915		—		67,915
Securities Lending Collateral		380,695		—		—		380,695
Total Assets	$	15,885,272	$	67,915	$	—	$	15,953,187

88 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INTERNET FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $372,658 of securities loaned (cost $12,870,237)	$	15,885,272
Repurchase agreements, at value (cost $67,915)		67,915
Cash		54,448
Receivables:
Securities sold		761,255
Fund shares sold		4,528
Dividends		2,282
Securities lending income		620
Total assets		16,776,320
Liabilities:
Payable for:
Fund shares redeemed		787,476
Return of securities lending collateral		380,695
Management fees		13,089
Transfer agent and administrative fees		5,007
Distribution and service fees		2,099
Portfolio accounting fees		1,540
Trustees’ fees*		440
Miscellaneous		28,359
Total liabilities		1,218,705
Commitments and contingent liabilities (Note 9)		—
Net assets	$	15,557,615
Net assets consist of:
Paid in capital	$	17,198,691
Total distributable earnings (loss)		(1,641,076	)
Net assets	$	15,557,615
Investor Class:
Net assets	$	10,740,957
Capital shares outstanding		102,071
Net asset value per share	$	105.23
A-Class:
Net assets	$	2,060,195
Capital shares outstanding		21,223
Net asset value per share	$	97.07
Maximum offering price per share (Net asset value divided by 95.25%)	$	101.91
C-Class:
Net assets	$	1,931,489
Capital shares outstanding		23,298
Net asset value per share	$	82.90
H-Class:
Net assets	$	824,974
Capital shares outstanding		8,804
Net asset value per share	$	93.70

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $2,282)	$	117,276
Interest		3,893
Income from securities lending, net		11,749
Total investment income		132,918
Expenses:
Management fees		281,235
Distribution and service fees:
A-Class		5,146
C-Class		26,196
H-Class		6,726
Transfer agent and administrative fees		83,874
Portfolio accounting fees		33,086
Registration fees		27,549
Professional fees		9,555
Trustees’ fees*		7,296
Custodian fees		4,932
Line of credit fees		6
Miscellaneous		39,906
Total expenses		525,507
Net investment loss		(392,589	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(1,629,638	)
Net realized loss		(1,629,638	)
Net change in unrealized appreciation (depreciation) on:
Investments		(5,406,274	)
Net change in unrealized appreciation (depreciation)		(5,406,274	)
Net realized and unrealized loss		(7,035,912	)
Net decrease in net assets resulting from operations	$	(7,428,501	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 89

INTERNET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(392,589	)	$	(686,372	)
Net realized gain (loss) on investments		(1,629,638	)		4,214,037
Net change in unrealized appreciation (depreciation) on investments		(5,406,274	)		(1,071,761	)
Net increase (decrease) in net assets resulting from operations		(7,428,501	)		2,455,904
Distributions to shareholders:
Investor Class		(710,898	)		(2,159,316	)
A-Class		(61,275	)		(338,414	)
C-Class		(101,725	)		(434,832	)
H-Class		(29,916	)		(182,752	)
Total distributions to shareholders		(903,814	)		(3,115,314	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		108,639,586			123,670,906
A-Class		4,695,934			7,631,660
C-Class		2,609,673			3,862,907
H-Class		15,624,744			119,411,263
Distributions reinvested
Investor Class		702,319			2,113,338
A-Class		59,412			324,899
C-Class		101,270			429,191
H-Class		29,888			182,647
Cost of shares redeemed
Investor Class		(106,635,760	)		(151,216,911	)
A-Class		(4,620,680	)		(9,166,861	)
C-Class		(3,528,541	)		(3,937,169	)
H-Class		(24,253,605	)		(138,271,570	)
Net decrease from capital share transactions		(6,575,760	)		(44,965,700	)
Net decrease in net assets		(14,908,075	)		(45,625,110	)
Net assets:
Beginning of year		30,465,690			76,090,800
End of year	$	15,557,615		$	30,465,690
Capital share activity:
Shares sold
Investor Class		884,862			969,839
A-Class		43,934			70,880
C-Class		27,414			36,507
H-Class		145,036			1,015,803
Shares issued from reinvestment of distributions
Investor Class		6,142			20,344
A-Class		563			3,370
C-Class		1,121			5,130
H-Class		293			1,960
Shares redeemed
Investor Class		(919,270	)		(1,187,111	)
A-Class		(41,913	)		(84,558	)
C-Class		(37,179	)		(38,110	)
H-Class		(229,294	)		(1,178,750	)
Net decrease in shares		(118,291	)		(364,696	)

90 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INTERNET FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	118.80		$	124.80		$	95.33		$	77.91		$	77.87
Income (loss) from investment operations:
Net investment income (loss)a		(1.30	)		(1.29	)		(.80	)		(.60	)		(.41	)
Net gain (loss) on investments (realized and unrealized)		(8.17	)		10.79			30.27			18.02			.78
Total from investment operations		(9.47	)		9.50			29.47			17.42			.37
Less distributions from:
Net realized gains		(4.10	)		(15.50	)		—			—			(.33	)
Total distributions		(4.10	)		(15.50	)		—			—			(.33	)
Net asset value, end of period	$	105.23		$	118.80		$	124.80		$	95.33		$	77.91
Total Return		(8.25	%)		9.39	%		30.91	%		22.36	%		0.46	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,741		$	15,484		$	40,843		$	17,670		$	24,435
Ratios to average net assets:
Net investment income (loss)		(1.08	%)		(1.00	%)		(0.71	%)		(0.70	%)		(0.52	%)
Total expenses		1.47	%		1.45	%		1.38	%		1.37	%		1.35	%
Portfolio turnover rate		359	%		349	%		305	%		518	%		520	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	110.18		$	117.20		$	89.75		$	73.54		$	73.71
Income (loss) from investment operations:
Net investment income (loss)a		(1.32	)		(1.46	)		(1.01	)		(.76	)		(.69	)
Net gain (loss) on investments (realized and unrealized)		(7.69	)		9.94			28.46			16.97			.85
Total from investment operations		(9.01	)		8.48			27.45			16.21			.16
Less distributions from:
Net realized gains		(4.10	)		(15.50	)		—			—			(.33	)
Total distributions		(4.10	)		(15.50	)		—			—			(.33	)
Net asset value, end of period	$	97.07		$	110.18		$	117.20		$	89.75		$	73.54
Total Returnb		(8.48	%)		9.13	%		30.57	%		22.04	%		0.20	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,060		$	2,054		$	3,393		$	2,139		$	1,803
Ratios to average net assets:
Net investment income (loss)		(1.20	%)		(1.27	%)		(0.96	%)		(0.95	%)		(0.92	%)
Total expenses		1.73	%		1.71	%		1.63	%		1.62	%		1.60	%
Portfolio turnover rate		359	%		349	%		305	%		518	%		520	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 91

INTERNET FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	95.40		$	104.40		$	80.55		$	66.49		$	67.17
Income (loss) from investment operations:
Net investment income (loss)a		(1.96	)		(2.08	)		(1.60	)		(1.24	)		(1.03	)
Net gain (loss) on investments (realized and unrealized)		(6.44	)		8.58			25.45			15.30			.68
Total from investment operations		(8.40	)		6.50			23.85			14.06			(.35	)
Less distributions from:
Net realized gains		(4.10	)		(15.50	)		—			—			(.33	)
Total distributions		(4.10	)		(15.50	)		—			—			(.33	)
Net asset value, end of period	$	82.90		$	95.40		$	104.40		$	80.55		$	66.49
Total Returnb		(9.16	%)		8.31	%		29.61	%		21.13	%		(0.54	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,931		$	3,047		$	2,967		$	2,321		$	2,798
Ratios to average net assets:
Net investment income (loss)		(2.06	%)		(2.01	%)		(1.70	%)		(1.71	%)		(1.53	%)
Total expenses		2.47	%		2.46	%		2.38	%		2.37	%		2.35	%
Portfolio turnover rate		359	%		349	%		305	%		518	%		520	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	106.51		$	113.84		$	87.18		$	71.40		$	71.64
Income (loss) from investment operations:
Net investment income (loss)a		(1.41	)		(1.51	)		(1.07	)		(.78	)		(.72	)
Net gain (loss) on investments (realized and unrealized)		(7.30	)		9.68			27.73			16.56			.81
Total from investment operations		(8.71	)		8.17			26.66			15.78			.09
Less distributions from:
Net realized gains		(4.10	)		(15.50	)		—			—			(.33	)
Total distributions		(4.10	)		(15.50	)		—			—			(.33	)
Net asset value, end of period	$	93.70		$	106.51		$	113.84		$	87.18		$	71.40
Total Return		(8.49	%)		9.12	%		30.59	%		22.09	%		0.11	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	825		$	9,880		$	28,889		$	2,384		$	7,132
Ratios to average net assets:
Net investment income (loss)		(1.30	%)		(1.27	%)		(1.04	%)		(1.03	%)		(0.97	%)
Total expenses		1.71	%		1.70	%		1.63	%		1.62	%		1.67	%
Portfolio turnover rate		359	%		349	%		305	%		518	%		520	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

92 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

LEISURE FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies engaged in leisure and entertainment businesses (“Leisure Companies”).

For the one-year period ended March 31, 2020, Leisure Fund Investor Class returned -22.96%, compared with -10.77% for the S&P 500 Consumer Discretionary Index. The broader S&P 500 Index returned -6.98%.

Interactive home entertainment was the only contributor to return. Hotels, resorts & cruise lines; restaurants, and casinos & gaming detracted the most from return.

Netflix, Inc., Activision Blizzard, Inc., and Stars Group, Inc. contributed the most to the Fund’s return for the period. Carnival Corp., ViacomCBS, Inc. – Class B, and Altria Group, Inc. detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	April 1, 1998
A-Class	September 1, 2004
C-Class	May 3, 2001
H-Class	June 3, 1998

Ten Largest Holdings (% of Total Net Assets)
Netflix, Inc.	5.3%
Comcast Corp. — Class A	4.3%
Walt Disney Co.	4.2%
McDonald’s Corp.	4.0%
Charter Communications, Inc. — Class A	3.9%
Philip Morris International, Inc.	3.8%
Starbucks Corp.	3.0%
Altria Group, Inc.	2.9%
Activision Blizzard, Inc.	2.7%
Electronic Arts, Inc.	2.1%
Top Ten Total	36.2%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 93

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(22.96%)	0.22%	8.67%
A-Class Shares	(23.15%)	(0.03%)	8.38%
A-Class Shares with sales charge‡	(26.80%)	(1.00%)	7.85%
C-Class Shares	(23.73%)	(0.78%)	7.57%
C-Class Shares with CDSC§	(24.49%)	(0.78%)	7.57%
H-Class Shares**	(23.17%)	(0.04%)	8.25%
S&P 500 Consumer Discretionary Index	(10.77%)	7.36%	13.56%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Consumer Discretionary Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

94 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
LEISURE FUND

	Shares		Value
COMMON STOCKS† - 99.1%
Media - 24.0%
Comcast Corp. — Class A		6,352	$	218,382
Walt Disney Co.		2,198		212,327
Charter Communications, Inc. — Class A*		446		194,594
Liberty Broadband Corp. — Class C*		753		83,372
Altice USA, Inc. — Class A*		3,001		66,892
Fox Corp. — Class A		2,546		60,162
Discovery, Inc. — Class A*		2,823		54,879
Liberty Global plc — Class C*		3,282		51,560
DISH Network Corp. — Class A*		2,384		47,656
New York Times Co. — Class A		1,402		43,055
News Corp. — Class A		4,101		36,807
ViacomCBS, Inc. — Class B		2,379		33,330
TEGNA, Inc.		2,248		24,413
World Wrestling Entertainment, Inc. — Class A		687		23,310
Nexstar Media Group, Inc. — Class A		386		22,284
AMC Networks, Inc. — Class A*		741		18,014
Sinclair Broadcast Group, Inc. — Class A1		1,036		16,659
Total Media				1,207,696
Retail - 18.7%
McDonald’s Corp.		1,219		201,562
Starbucks Corp.		2,278		149,756
Domino’s Pizza, Inc.		231		74,860
Chipotle Mexican Grill, Inc. — Class A*		114		74,602
Yum! Brands, Inc.		1,083		74,218
Yum China Holdings, Inc.		1,320		56,272
Restaurant Brands International, Inc.		1,048		41,951
Darden Restaurants, Inc.		685		37,305
Dunkin’ Brands Group, Inc.		665		35,311
Wendy’s Co.		2,012		29,938
Wingstop, Inc.		368		29,330
Texas Roadhouse, Inc. — Class A		704		29,075
Papa John’s International, Inc.		448		23,910
Cracker Barrel Old Country Store, Inc.1		245		20,389
Shake Shack, Inc. — Class A*		481		18,153
Jack in the Box, Inc.		346		12,127
Cheesecake Factory, Inc.		669		11,426
Bloomin’ Brands, Inc.		1,240		8,854
Dave & Buster’s Entertainment, Inc.		554		7,246
Brinker International, Inc.		594		7,134
Total Retail				943,419
Software - 12.0%
Activision Blizzard, Inc.		2,253		134,008
Electronic Arts, Inc.*		1,031		103,275
NetEase, Inc. ADR		276		88,585
Bilibili, Inc. ADR*		3,137		73,469
Sea Ltd. ADR*		1,639		72,624
Take-Two Interactive Software, Inc.*		605		71,759
HUYA, Inc. ADR*		3,368		57,088
Total Software				600,808
Lodging - 10.5%
Las Vegas Sands Corp.		2,081		88,380
Marriott International, Inc. — Class A		922		68,975
Hilton Worldwide Holdings, Inc.		995		67,899
Huazhu Group Ltd. ADR		1,491		42,836
Wynn Resorts Ltd.		546		32,864
Hyatt Hotels Corp. — Class A		670		32,093
Melco Resorts & Entertainment Ltd. ADR		2,462		30,529
Caesars Entertainment Corp.*		4,432		29,960
MGM Resorts International		2,462		29,052
Choice Hotels International, Inc.		462		28,298
Wyndham Hotels & Resorts, Inc.		777		24,483
Wyndham Destinations, Inc.		835		18,119
Boyd Gaming Corp.		1,181		17,030
Hilton Grand Vacations, Inc.*		980		15,455
Total Lodging				525,973
Internet - 8.6%
Netflix, Inc.*		706		265,103
Spotify Technology S.A.*		482		58,534
iQIYI, Inc. ADR*		3,227		57,441
Roku, Inc.*		572		50,038
Total Internet				431,116
Agriculture - 7.7%
Philip Morris International, Inc.		2,656		193,782
Altria Group, Inc.		3,814		147,487
British American Tobacco plc ADR		1,357		46,396
Total Agriculture				387,665
Beverages - 7.1%
Brown-Forman Corp. — Class B		1,665		92,424
Constellation Brands, Inc. — Class A		631		90,460
Luckin Coffee, Inc. ADR*,1		1,844		50,139
Molson Coors Beverage Co. — Class B		1,264		49,309
Boston Beer Company, Inc. — Class A*		113		41,534
Anheuser-Busch InBev S.A. ADR1		784		34,590
Total Beverages				358,456
Entertainment - 4.5%
Live Nation Entertainment, Inc.*		1,047		47,597
Vail Resorts, Inc.		256		37,814
Churchill Downs, Inc.		338		34,797
Marriott Vacations Worldwide Corp.		357		19,842
Penn National Gaming, Inc.*		1,332		16,850
International Game Technology plc		2,311		13,750
Cinemark Holdings, Inc.		1,145		11,668
Scientific Games Corp. — Class A*		1,159		11,242
Six Flags Entertainment Corp.		850		10,659
SeaWorld Entertainment, Inc.*		963		10,612
Eldorado Resorts, Inc.*		721		10,382
Total Entertainment				225,213

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 95

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
LEISURE FUND

	Shares		Value
Leisure Time - 3.8%
Planet Fitness, Inc. — Class A*		694	$	33,798
Carnival Corp.		2,376		31,292
Royal Caribbean Cruises Ltd.		807		25,961
Brunswick Corp.		721		25,502
Harley-Davidson, Inc.		1,279		24,211
Polaris, Inc.		494		23,786
Callaway Golf Co.		1,326		13,552
Norwegian Cruise Line Holdings Ltd.*		1,221		13,382
Total Leisure Time				191,484
Toys, Games & Hobbies - 1.6%
Hasbro, Inc.		713		51,015
Mattel, Inc.*		3,227		28,430
Total Toys, Games & Hobbies				79,445
Food Service - 0.6%
Aramark		1,494		29,835
Total Common Stocks
(Cost $5,109,907)				4,981,110
RIGHTS††† - 0.0%
Media - 0.0%
Nexstar Media Group, Inc.*,2		8,160		—
Total Rights
(Cost $—)				—

	Face Amount
REPURCHASE AGREEMENTS††,3 - 0.3%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	11,819		11,819
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		4,546		4,546
Total Repurchase Agreements
(Cost $16,365)				16,365
		Shares
SECURITIES LENDING COLLATERAL†,4 - 1.6%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%5		82,215		82,215
Total Securities Lending Collateral
(Cost $82,215)				82,215
Total Investments - 101.0%
(Cost $5,208,487)			$	5,079,690
Other Assets & Liabilities, net - (1.0)%				(50,023	)
Total Net Assets - 100.0%			$	5,029,667

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Security was fair valued by the Valuation Committee at March 31, 2020. The total market value of fair valued securities amounts to $0, (cost $0) or 0.0% of total net assets.
3	Repurchase Agreements — See Note 6.
4	Securities lending collateral — See Note 7.
5	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

96 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
LEISURE FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs			Total
Common Stocks	$	4,981,110	$	—	$	—		$	4,981,110
Rights		—		—		—	*		—
Repurchase Agreements		—		16,365		—			16,365
Securities Lending Collateral		82,215		—		—			82,215
Total Assets	$	5,063,325	$	16,365	$	—		$	5,079,690

* Security has a market value of $0.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 97

LEISURE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $83,959 of securities loaned (cost $5,192,122)	$	5,063,325
Repurchase agreements, at value (cost $16,365)		16,365
Cash		13,544
Receivables:
Fund shares sold		295,227
Dividends		11,238
Foreign tax reclaims		2,866
Securities lending income		37
Total assets		5,402,602
Liabilities:
Payable for:
Securities purchased		267,299
Return of securities lending collateral		82,215
Fund shares redeemed		9,491
Management fees		3,458
Transfer agent and administrative fees		1,603
Distribution and service fees		667
Portfolio accounting fees		407
Trustees’ fees*		118
Miscellaneous		7,677
Total liabilities		372,935
Commitments and contingent liabilities (Note 9)		—
Net assets	$	5,029,667
Net assets consist of:
Paid in capital	$	5,844,212
Total distributable earnings (loss)		(814,545	)
Net assets	$	5,029,667
Investor Class:
Net assets	$	2,838,791
Capital shares outstanding		53,549
Net asset value per share	$	53.01
A-Class:
Net assets	$	816,383
Capital shares outstanding		16,863
Net asset value per share	$	48.41
Maximum offering price per share (Net asset value divided by 95.25%)	$	50.82
C-Class:
Net assets	$	398,354
Capital shares outstanding		9,386
Net asset value per share	$	42.44
H-Class:
Net assets	$	976,139
Capital shares outstanding		20,763
Net asset value per share	$	47.01

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $1,397)	$	255,899
Interest		1,801
Income from securities lending, net		1,382
Total investment income		259,082
Expenses:
Management fees		135,502
Distribution and service fees:
A-Class		3,149
C-Class		5,987
H-Class		6,374
Transfer agent and administrative fees		40,440
Portfolio accounting fees		15,941
Registration fees		14,087
Professional fees		7,108
Trustees’ fees*		3,658
Custodian fees		2,463
Line of credit fees		114
Miscellaneous		16,120
Total expenses		250,943
Net investment income		8,139
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,615,962
Net realized gain		2,615,962
Net change in unrealized appreciation (depreciation) on:
Investments		(4,127,911	)
Net change in unrealized appreciation (depreciation)		(4,127,911	)
Net realized and unrealized loss		(1,511,949	)
Net decrease in net assets resulting from operations	$	(1,503,810	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

98 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

LEISURE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	8,139		$	41,239
Net realized gain on investments		2,615,962			1,581,983
Net change in unrealized appreciation (depreciation) on investments		(4,127,911	)		(249,813	)
Net increase (decrease) in net assets resulting from operations		(1,503,810	)		1,373,409
Distributions to shareholders:
Investor Class		(32,961	)		(544,748	)
A-Class		(2,491	)		(159,698	)
C-Class		(1,724	)		(75,803	)
H-Class		(3,983	)		(112,344	)
Total distributions to shareholders		(41,159	)		(892,593	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		42,468,953			38,144,920
A-Class		2,130,439			2,186,461
C-Class		73,859			101,371
H-Class		14,647,439			46,226,618
Distributions reinvested
Investor Class		32,394			530,279
A-Class		2,404			139,178
C-Class		1,724			75,270
H-Class		3,946			111,434
Cost of shares redeemed
Investor Class		(50,743,318	)		(42,002,040	)
A-Class		(2,347,132	)		(4,372,624	)
C-Class		(372,260	)		(630,920	)
H-Class		(14,108,477	)		(47,422,116	)
Net decrease from capital share transactions		(8,210,029	)		(6,912,169	)
Net decrease in net assets		(9,754,998	)		(6,431,353	)
Net assets:
Beginning of year		14,784,665			21,216,018
End of year	$	5,029,667		$	14,784,665
Capital share activity:
Shares sold
Investor Class		587,907			540,063
A-Class		33,729			33,355
C-Class		1,552			1,663
H-Class		226,956			724,014
Shares issued from reinvestment of distributions
Investor Class		440			8,323
A-Class		36			2,384
C-Class		29			1,456
H-Class		60			1,965
Shares redeemed
Investor Class		(704,990	)		(583,497	)
A-Class		(35,774	)		(68,076	)
C-Class		(6,497	)		(10,981	)
H-Class		(223,449	)		(738,591	)
Net decrease in shares		(120,001	)		(87,922	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 99

LEISURE FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	68.98		$	71.23		$	70.95		$	61.36		$	60.75
Income (loss) from investment operations:
Net investment income (loss)a		.08			.32			.36			.52			.22
Net gain (loss) on investments (realized and unrealized)		(15.86	)		2.18			4.48			9.38			.82
Total from investment operations		(15.78	)		2.50			4.84			9.90			1.04
Less distributions from:
Net investment income		(.19	)		(.52	)		(1.64	)		(.31	)		(.32	)
Net realized gains		—			(4.23	)		(2.92	)		—			(.11	)
Total distributions		(.19	)		(4.75	)		(4.56	)		(.31	)		(.43	)
Net asset value, end of period	$	53.01		$	68.98		$	71.23		$	70.95		$	61.36
Total Return		(22.96	%)		4.06	%		6.71	%		16.20	%		1.72	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,839		$	11,739		$	14,625		$	14,413		$	15,173
Ratios to average net assets:
Net investment income (loss)		0.11	%		0.45	%		0.49	%		0.81	%		0.35	%
Total expenses		1.48	%		1.46	%		1.38	%		1.38	%		1.34	%
Portfolio turnover rate		369	%		323	%		442	%		352	%		339	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	63.17		$	65.82		$	66.03		$	57.27		$	56.88
Income (loss) from investment operations:
Net investment income (loss)a		.01			.11			.17			.23			.08
Net gain (loss) on investments (realized and unrealized)		(14.58	)		1.99			4.18			8.84			.74
Total from investment operations		(14.57	)		2.10			4.35			9.07			.82
Less distributions from:
Net investment income		(.19	)		(.52	)		(1.64	)		(.31	)		(.32	)
Net realized gains		—			(4.23	)		(2.92	)		—			(.11	)
Total distributions		(.19	)		(4.75	)		(4.56	)		(.31	)		(.43	)
Net asset value, end of period	$	48.41		$	63.17		$	65.82		$	66.03		$	57.27
Total Returnb		(23.15	%)		3.79	%		6.46	%		15.91	%		1.45	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	816		$	1,192		$	3,371		$	2,180		$	7,990
Ratios to average net assets:
Net investment income (loss)		0.02	%		0.17	%		0.24	%		0.40	%		0.15	%
Total expenses		1.73	%		1.71	%		1.63	%		1.62	%		1.60	%
Portfolio turnover rate		369	%		323	%		442	%		352	%		339	%

100 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

LEISURE FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	55.82		$	59.16		$	60.23		$	52.65		$	52.72
Income (loss) from investment operations:
Net investment income (loss)a		(.42	)		(.32	)		(.36	)		(.18	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		(12.77	)		1.73			3.85			8.07			.64
Total from investment operations		(13.19	)		1.41			3.49			7.89			.36
Less distributions from:
Net investment income		(.19	)		(.52	)		(1.64	)		(.31	)		(.32	)
Net realized gains		—			(4.23	)		(2.92	)		—			(.11	)
Total distributions		(.19	)		(4.75	)		(4.56	)		(.31	)		(.43	)
Net asset value, end of period	$	42.44		$	55.82		$	59.16		$	60.23		$	52.65
Total Returnb		(23.73	%)		3.03	%		5.66	%		15.05	%		0.69	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	398		$	798		$	1,311		$	1,327		$	1,353
Ratios to average net assets:
Net investment income (loss)		(0.74	%)		(0.56	%)		(0.58	%)		(0.33	%)		(0.54	%)
Total expenses		2.48	%		2.46	%		2.38	%		2.37	%		2.35	%
Portfolio turnover rate		369	%		323	%		442	%		352	%		339	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	61.36		$	64.06		$	64.38		$	55.85		$	55.50
Income (loss) from investment operations:
Net investment income (loss)a		(.01	)		(.29	)		.07			.20			.27
Net gain (loss) on investments (realized and unrealized)		(14.15	)		2.34			4.17			8.64			.51
Total from investment operations		(14.16	)		2.05			4.24			8.84			.78
Less distributions from:
Net investment income		(.19	)		(.52	)		(1.64	)		(.31	)		(.32	)
Net realized gains		—			(4.23	)		(2.92	)		—			(.11	)
Total distributions		(.19	)		(4.75	)		(4.56	)		(.31	)		(.43	)
Net asset value, end of period	$	47.01		$	61.36		$	64.06		$	64.38		$	55.85
Total Return		(23.17	%)		3.81	%		6.45	%		15.90	%		1.41	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	976		$	1,055		$	1,910		$	3,769		$	13,212
Ratios to average net assets:
Net investment income (loss)		(0.01	%)		(0.45	%)		0.10	%		0.34	%		0.49	%
Total expenses		1.72	%		1.69	%		1.63	%		1.63	%		1.64	%
Portfolio turnover rate		369	%		323	%		442	%		352	%		339	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The Financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 101

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

PRECIOUS METALS FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in U.S. and foreign companies that are involved in the precious metals sector, including exploration, mining, production and development, and other precious metals-related services (“Precious Metals Companies”).

For the one-year period ended March 31, 2020, Precious Metals Fund Investor Class returned 3.65%, compared with -16.57% for the S&P 500 Materials Index. The broader S&P 500 Index returned -6.98%.

The gold industry was the only contributor to return. The copper and silver industries detracted the most from return.

Barrick Gold Corp., Newmont Corp., and Franco-Nevada Corp. contributed the most to the Fund’s return for the period. Freeport-McMoRan, Inc., Harmony Gold Mining Co. Ltd. ADR, and Osisko Gold Royalties Ltd. detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	December 1, 1993
A-Class	September 1, 2004
C-Class	April 27, 2001
H-Class	August 1, 2003

Ten Largest Holdings (% of Total Net Assets)
Newmont Corp.	11.1%
Barrick Gold Corp.	10.1%
Franco-Nevada Corp.	7.6%
Wheaton Precious Metals Corp.	6.0%
Agnico Eagle Mines Ltd.	4.4%
AngloGold Ashanti Ltd. ADR	4.1%
Freeport-McMoRan, Inc.	3.9%
Kinross Gold Corp.	3.7%
Kirkland Lake Gold Ltd.	3.6%
VanEck Vectors Junior Gold Miners ETF	3.6%
Top Ten Total	58.1%
“Ten Largest Holdings” excludes any temporary cash investments.

102 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	3.65%	3.89%	(6.17%)
A-Class Shares	3.39%	3.62%	(6.41%)
A-Class Shares with sales charge‡	(1.52%)	2.62%	(6.87%)
C-Class Shares	2.65%	2.87%	(7.10%)
C-Class Shares with CDSC§	1.65%	2.87%	(7.10%)
H-Class Shares**	3.46%	3.57%	(6.54%)
S&P 500 Materials Index	(16.57%)	0.57%	5.57%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Materials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 103

SCHEDULE OF INVESTMENTS	March 31, 2020
PRECIOUS METALS FUND

	Shares		Value
COMMON STOCKS† - 95.9%
Mining - 95.9%
Newmont Corp.		153,248	$	6,939,069
Barrick Gold Corp.		344,575		6,312,614
Franco-Nevada Corp.		47,426		4,719,836
Wheaton Precious Metals Corp.		136,089		3,746,530
Agnico Eagle Mines Ltd.		69,228		2,754,582
AngloGold Ashanti Ltd. ADR		153,883		2,559,074
Freeport-McMoRan, Inc.		360,817		2,435,515
Kinross Gold Corp.*		581,527		2,314,478
Kirkland Lake Gold Ltd.1		76,879		2,275,618
Royal Gold, Inc.		25,830		2,265,549
Gold Fields Ltd. ADR		399,023		1,895,359
B2Gold Corp.		575,336		1,760,528
Novagold Resources, Inc.*		224,868		1,659,526
Yamana Gold, Inc.1		557,664		1,533,576
Pan American Silver Corp.		105,740		1,515,254
Alamos Gold, Inc. — Class A		294,188		1,470,940
Sibanye Stillwater Ltd. ADR*,1		282,937		1,335,463
Osisko Gold Royalties Ltd.1		142,426		1,059,649
SSR Mining, Inc.*		92,312		1,050,511
Eldorado Gold Corp.*		161,430		996,023
Harmony Gold Mining Company Ltd. ADR*,1		433,232		944,446
IAMGOLD Corp.*		403,978		921,070
First Majestic Silver Corp.*		148,556		919,562
Sandstorm Gold Ltd.*		170,977		856,595
Pretium Resources, Inc.*,1		144,500		819,315
Hecla Mining Co.		443,511		807,190
MAG Silver Corp.*		98,399		755,704
Seabridge Gold, Inc.*,1		76,174		712,227
Silvercorp Metals, Inc.		198,172		648,022
Coeur Mining, Inc.*		199,479		640,328
Fortuna Silver Mines, Inc.*,1		237,076		547,646
Endeavour Silver Corp.*,1		273,816		366,913
Gold Resource Corp.		123,507		339,644
Total Mining				59,878,356
Total Common Stocks
(Cost $50,492,787)				59,878,356
EXCHANGE-TRADED FUNDS† - 3.6%
VanEck Vectors Junior Gold Miners ETF		80,753		2,269,159
Total Exchange-Traded Funds
(Cost $2,277,227)				2,269,159
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.7%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	300,880		300,880
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		115,723		115,723
Total Repurchase Agreements
(Cost $416,603)				416,603
	Shares
SECURITIES LENDING COLLATERAL†,3 - 6.7%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		4,212,644		4,212,644
Total Securities Lending Collateral
(Cost $4,212,644)				4,212,644
Total Investments - 106.9%
(Cost $57,399,261)			$	66,776,762
Other Assets & Liabilities, net - (6.9)%				(4,304,968	)
Total Net Assets - 100.0%			$	62,471,794

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

104 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
PRECIOUS METALS FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	59,878,356	$	—	$	—	$	59,878,356
Exchange-Traded Funds		2,269,159		—		—		2,269,159
Repurchase Agreements		—		416,603		—		416,603
Securities Lending Collateral		4,212,644		—		—		4,212,644
Total Assets	$	66,360,159	$	416,603	$	—	$	66,776,762

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 105

PRECIOUS METALS FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $3,888,207 of securities loaned (cost $56,982,658)	$	66,360,159
Repurchase agreements, at value (cost $416,603)		416,603
Cash		338,004
Receivables:
Fund shares sold		868,987
Securities sold		844,765
Dividends		44,556
Foreign tax reclaims		5,434
Securities lending income		4,484
Total assets		68,882,992
Liabilities:
Payable for:
Return of securities lending collateral		4,212,644
Fund shares redeemed		1,735,137
Deferred foreign capital gain taxes		276,532
Management fees		46,198
Transfer agent and administrative fees		19,613
Portfolio accounting fees		6,160
Distribution and service fees		5,035
Trustees’ fees*		1,685
Miscellaneous		108,194
Total liabilities		6,411,198
Commitments and contingent liabilities (Note 9)		—
Net assets	$	62,471,794
Net assets consist of:
Paid in capital	$	116,683,538
Total distributable earnings (loss)		(54,211,744	)
Net assets	$	62,471,794
Investor Class:
Net assets	$	46,153,174
Capital shares outstanding		1,741,307
Net asset value per share	$	26.50
A-Class:
Net assets	$	12,802,848
Capital shares outstanding		509,220
Net asset value per share	$	25.14
Maximum offering price per share (Net asset value divided by 95.25%)	$	26.39
C-Class:
Net assets	$	1,685,779
Capital shares outstanding		79,650
Net asset value per share	$	21.16
H-Class:
Net assets	$	1,829,993
Capital shares outstanding		75,293
Net asset value per share	$	24.30

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $65,157)	$	737,776
Interest		14,577
Income from securities lending, net		24,511
Total investment income		776,864
Expenses:
Management fees		601,942
Distribution and service fees:
A-Class		40,492
C-Class		24,648
H-Class		8,934
Transfer agent and administrative fees		204,861
Portfolio accounting fees		80,258
Professional fees		39,519
Trustees’ fees*		15,871
Custodian fees		11,441
Line of credit fees		13
Miscellaneous		150,765
Total expenses		1,178,744
Net investment loss		(401,880	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		395,134
Net realized gain		395,134
Net change in unrealized appreciation (depreciation) on:
Investments		(1,122,240	)
Net change in unrealized appreciation (depreciation)		(1,122,240	)
Net realized and unrealized loss		(727,106	)
Net decrease in net assets resulting from operations	$	(1,128,986	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

106 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PRECIOUS METALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(401,880	)	$	(315,529	)
Net realized gain (loss) on investments		395,134			(11,808,144	)
Net change in unrealized appreciation (depreciation) on investments		(1,122,240	)		7,296,954
Net decrease in net assets resulting from operations		(1,128,986	)		(4,826,719	)
Distributions to shareholders:
Investor Class		(1,495,304	)		(375,623	)
A-Class		(408,150	)		(174,388	)
C-Class		(74,684	)		(41,752	)
H-Class		(76,974	)		(26,797	)
Total distributions to shareholders		(2,055,112	)		(618,560	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		345,983,213			241,203,549
A-Class		5,044,797			7,901,916
C-Class		2,843,601			2,271,183
H-Class		27,234,035			139,186,676
Distributions reinvested
Investor Class		1,474,406			361,878
A-Class		401,562			171,857
C-Class		73,474			41,057
H-Class		76,042			25,498
Cost of shares redeemed
Investor Class		(331,255,162	)		(239,242,751	)
A-Class		(7,292,781	)		(5,992,947	)
C-Class		(3,692,608	)		(6,279,462	)
H-Class		(28,223,011	)		(136,898,554	)
Net increase from capital share transactions		12,667,568			2,749,900
Net increase (decrease) in net assets		9,483,470			(2,695,379	)
Net assets:
Beginning of year		52,988,324			55,683,703
End of year	$	62,471,794		$	52,988,324
Capital share activity:
Shares sold
Investor Class		11,365,343			9,657,928
A-Class		183,721			322,537
C-Class		115,029			112,787
H-Class		1,041,882			6,003,655
Shares issued from reinvestment of distributions
Investor Class		44,117			15,591
A-Class		12,660			7,773
C-Class		2,746			2,176
H-Class		2,479			1,193
Shares redeemed
Investor Class		(10,958,332	)		(9,638,186	)
A-Class		(258,645	)		(253,204	)
C-Class		(151,938	)		(302,237	)
H-Class		(1,078,358	)		(5,985,054	)
Net increase (decrease) in shares		320,704			(55,041	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 107

PRECIOUS METALS FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	26.14		$	27.07		$	30.82		$	27.37		$	25.11
Income (loss) from investment operations:
Net investment income (loss)a		(.12	)		(.12	)		(.17	)		(.23	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		1.23	e		(.48	)		(1.96	)		4.85			2.44
Total from investment operations		1.11			(.60	)		(2.13	)		4.62			2.37
Less distributions from:
Net investment income		(.75	)		(.33	)		(1.62	)		(1.17	)		(.11	)
Total distributions		(.75	)		(.33	)		(1.62	)		(1.17	)		(.11	)
Net asset value, end of period	$	26.50		$	26.14		$	27.07		$	30.82		$	27.37
Total Return		3.65	%		(2.08	%)		(6.98	%)		16.91	%		9.67	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	46,153		$	33,724		$	33,968		$	43,530		$	49,321
Ratios to average net assets:
Net investment income (loss)		(0.40	%)		(0.47	%)		(0.57	%)		(0.67	%)		(0.31	%)
Total expensesb		1.38	%		1.39	%		1.28	%		1.27	%		1.25	%
Portfolio turnover rate		277	%		571	%		630	%		508	%		797	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	24.89		$	25.85		$	29.59		$	26.39		$	24.28
Income (loss) from investment operations:
Net investment income (loss)a		(.19	)		(.17	)		(.22	)		(.27	)		(.12	)
Net gain (loss) on investments (realized and unrealized)		1.19	e		(.46	)		(1.90	)		4.64			2.34
Total from investment operations		1.00			(.63	)		(2.12	)		4.37			2.22
Less distributions from:
Net investment income		(.75	)		(.33	)		(1.62	)		(1.17	)		(.11	)
Total distributions		(.75	)		(.33	)		(1.62	)		(1.17	)		(.11	)
Net asset value, end of period	$	25.14		$	24.89		$	25.85		$	29.59		$	26.39
Total Returnc		3.39	%		(2.30	%)		(7.24	%)		16.59	%		9.38	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,803		$	14,222		$	12,781		$	12,085		$	3,711
Ratios to average net assets:
Net investment income (loss)		(0.67	%)		(0.73	%)		(0.79	%)		(0.82	%)		(0.54	%)
Total expensesb		1.63	%		1.64	%		1.53	%		1.52	%		1.50	%
Portfolio turnover rate		277	%		571	%		630	%		508	%		797	%

108 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PRECIOUS METALS FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	21.19		$	22.24		$	25.89		$	23.38		$	21.67
Income (loss) from investment operations:
Net investment income (loss)a		(.35	)		(.32	)		(.39	)		(.46	)		(.26	)
Net gain (loss) on investments (realized and unrealized)		1.07	e		(.40	)		(1.64	)		4.14			2.08
Total from investment operations		.72			(.72	)		(2.03	)		3.68			1.82
Less distributions from:
Net investment income		(.75	)		(.33	)		(1.62	)		(1.17	)		(.11	)
Total distributions		(.75	)		(.33	)		(1.62	)		(1.17	)		(.11	)
Net asset value, end of period	$	21.16		$	21.19		$	22.24		$	25.89		$	23.38
Total Returnc		2.65	%		(3.08	%)		(7.95	%)		15.76	%		8.66	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,686		$	2,412		$	6,697		$	7,607		$	6,825
Ratios to average net assets:
Net investment income (loss)		(1.41	%)		(1.53	%)		(1.56	%)		(1.59	%)		(1.34	%)
Total expensesb		2.38	%		2.37	%		2.28	%		2.27	%		2.25	%
Portfolio turnover rate		277	%		571	%		630	%		508	%		797	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016d
Per Share Data
Net asset value, beginning of period	$	24.06		$	25.02		$	28.73		$	25.64		$	23.64
Income (loss) from investment operations:
Net investment income (loss)a		(.22	)		(.18	)		(.25	)		(.31	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		1.21	e		(.45	)		(1.84	)		4.57			2.22
Total from investment operations		.99			(.63	)		(2.09	)		4.26			2.11
Less distributions from:
Net investment income		(.75	)		(.33	)		(1.62	)		(1.17	)		(.11	)
Total distributions		(.75	)		(.33	)		(1.62	)		(1.17	)		(.11	)
Net asset value, end of period	$	24.30		$	24.06		$	25.02		$	28.73		$	25.64
Total Return		3.46	%		(2.33	%)		(7.36	%)		16.65	%		9.17	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,830		$	2,630		$	2,239		$	2,954		$	2,556
Ratios to average net assets:
Net investment income (loss)		(0.78	%)		(0.78	%)		(0.92	%)		(0.94	%)		(0.53	%)
Total expensesb		1.63	%		1.63	%		1.53	%		1.52	%		1.59	%
Portfolio turnover rate		277	%		571	%		630	%		508	%		797	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Does not include expenses of the underlying funds in which the Fund invests.
c	Total return does not reflect the impact of any applicable sales charges.
d	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.
e	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the year because of the sales and repurchase of fund shares in relation to fluctuating market value of the investments of the Fund.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 109

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

REAL ESTATE FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the real estate industry, including real estate investment trusts (“REITs”) (collectively, “Real Estate Companies”).

For the one-year period ended March 31, 2020, Real Estate Fund H-Class returned -24.27%, compared with -20.99% for the MSCI U.S. REIT Index. The broader S&P 500 Index returned -6.98%.

Industrial REITs was the only contributor to return. Retail REITs, residential REITs, and mortgage REITs detracted the most from return.

Equinix, Inc., Prologis, Inc., and SBA Communications Corp. contributed the most to the Fund’s return for the period. Simon Property Group, Inc., New Residential Investment Corp., and Macerich Co. detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	September 1, 2004
C-Class	February 20, 2004
H-Class	February 20, 2004

Ten Largest Holdings (% of Total Net Assets)
Prologis, Inc.	4.3%
American Tower Corp. — Class A	4.2%
Crown Castle International Corp.	3.5%
Equinix, Inc.	3.4%
Digital Realty Trust, Inc.	2.6%
SBA Communications Corp.	2.6%
Public Storage	2.5%
Equity Residential	1.9%
AvalonBay Communities, Inc.	1.7%
Alexandria Real Estate Equities, Inc.	1.6%
Top Ten Total	28.3%
“Ten Largest Holdings” excludes any temporary cash investments.

110 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(24.28%)	(2.34%)	4.62%
A-Class Shares with sales charge‡	(27.89%)	(3.28%)	4.11%
C-Class Shares	(24.86%)	(3.08%)	3.80%
C-Class Shares with CDSC§	(25.60%)	(3.08%)	3.80%
H-Class Shares**	(24.27%)	(2.33%)	4.60%
MSCI U.S. REIT Index	(20.99%)	(0.42%)	7.43%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and MSCI U.S. REIT Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on H-Class shares and A-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 111

SCHEDULE OF INVESTMENTS	March 31, 2020
REAL ESTATE FUND

	Shares		Value
COMMON STOCKS† - 99.6%
REITs - 96.5%
REITs-DIVERSIFIED - 26.6%
American Tower Corp. — Class A		682	$	148,506
Crown Castle International Corp.		840		121,296
Equinix, Inc.		188		117,419
Digital Realty Trust, Inc.		659		91,542
SBA Communications Corp.		335		90,440
Duke Realty Corp.		1,609		52,099
WP Carey, Inc.		731		42,456
Weyerhaeuser Co.		2,445		41,443
CoreSite Realty Corp.		320		37,088
VICI Properties, Inc.		2,088		34,744
Gaming and Leisure Properties, Inc.		1,092		30,259
Vornado Realty Trust		822		29,765
Lamar Advertising Co. — Class A		522		26,768
PotlatchDeltic Corp.		601		18,865
Outfront Media, Inc.		1,161		15,650
New Residential Investment Corp.		2,582		12,936
EPR Properties		517		12,522
Total REITs-Diversified				923,798
REITs-APARTMENTS - 12.7%
Equity Residential		1,058		65,289
AvalonBay Communities, Inc.		403		59,310
Essex Property Trust, Inc.		230		50,655
Mid-America Apartment Communities, Inc.		461		47,497
UDR, Inc.		1,236		45,163
Invitation Homes, Inc.		2,098		44,834
American Homes 4 Rent — Class A		1,681		38,999
Camden Property Trust		471		37,322
Apartment Investment & Management Co. — Class A		841		29,561
American Campus Communities, Inc.		850		23,588
Total REITs-Apartments				442,218
REITs-WAREHOUSE/INDUSTRIES - 10.9%
Prologis, Inc.		1,867		150,051
CyrusOne, Inc.		649		40,076
Americold Realty Trust		1,160		39,486
Rexford Industrial Realty, Inc.		773		31,701
QTS Realty Trust, Inc. — Class A		512		29,701
First Industrial Realty Trust, Inc.		868		28,844
EastGroup Properties, Inc.		265		27,687
STAG Industrial, Inc.		1,022		23,015
Innovative Industrial Properties, Inc.1		197		14,958
Total REITs-Warehouse/Industries				385,519
REITs-OFFICE PROPERTY - 10.0%
Alexandria Real Estate Equities, Inc.		416		57,017
Boston Properties, Inc.		525		48,421
Kilroy Realty Corp.		558		35,545
Douglas Emmett, Inc.		981		29,930
JBG SMITH Properties		898		28,583
Cousins Properties, Inc.		934		27,338
Hudson Pacific Properties, Inc.		1,022		25,918
Highwoods Properties, Inc.		726		25,715
SL Green Realty Corp.		465		20,042
Paramount Group, Inc.		1,991		17,521
Brandywine Realty Trust		1,645		17,305
Empire State Realty Trust, Inc. — Class A		1,773		15,886
Total REITs-Office Property				349,221
REITs-HEALTH CARE - 9.1%
Welltower, Inc.		1,110		50,816
Healthpeak Properties, Inc.		1,924		45,887
Medical Properties Trust, Inc.		2,466		42,637
Ventas, Inc.		1,256		33,661
Healthcare Trust of America, Inc. — Class A		1,288		31,273
Omega Healthcare Investors, Inc.		1,122		29,778
Healthcare Realty Trust, Inc.		989		27,623
Physicians Realty Trust		1,548		21,579
Sabra Health Care REIT, Inc.		1,508		16,467
CareTrust REIT, Inc.		1,054		15,589
Total REITs-Health Care				315,310
REITs-STORAGE - 6.8%
Public Storage		447		88,779
Extra Space Storage, Inc.		549		52,572
Iron Mountain, Inc.		1,474		35,081
CubeSmart		1,218		32,630
Life Storage, Inc.		324		30,634
Total REITs-Storage				239,696
REITs-HOTELS - 4.9%
MGM Growth Properties LLC — Class A		1,580		37,399
Host Hotels & Resorts, Inc.		3,041		33,573
Sunstone Hotel Investors, Inc.		1,949		16,976
Apple Hospitality REIT, Inc.		1,831		16,790
Ryman Hospitality Properties, Inc.		393		14,089
Park Hotels & Resorts, Inc.		1,492		11,802
Pebblebrook Hotel Trust		1,068		11,631
RLJ Lodging Trust		1,505		11,619
DiamondRock Hospitality Co.		2,055		10,439
Service Properties Trust		1,288		6,955
Total REITs-Hotels				171,273
REITs-SHOPPING CENTERS - 4.1%
Regency Centers Corp.		805		30,936
Federal Realty Investment Trust		379		28,277
Kimco Realty Corp.		2,234		21,603
Brixmor Property Group, Inc.		1,830		17,385
Weingarten Realty Investors		1,004		14,488
Urban Edge Properties		1,245		10,968
Retail Opportunity Investments Corp.		1,273		10,553
Retail Properties of America, Inc. — Class A		1,955		10,107
Total REITs-Shopping Centers				144,317

112 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
REAL ESTATE FUND

	Shares		Value
REITs-SINGLE TENANT - 3.7%
Realty Income Corp.		1,042	$	51,954
National Retail Properties, Inc.		890		28,649
STORE Capital Corp.		1,240		22,469
Spirit Realty Capital, Inc.		704		18,410
Essential Properties Realty Trust, Inc.		896		11,702
Total REITs-Single Tenant				133,184
REITs-MORTGAGE - 3.3%
Annaly Capital Management, Inc.		6,024		30,542
AGNC Investment Corp.		2,721		28,788
Blackstone Mortgage Trust, Inc. — Class A		927		17,261
Starwood Property Trust, Inc.		1,648		16,892
Chimera Investment Corp.		1,463		13,313
Two Harbors Investment Corp.		2,100		8,001
Total REITs-Mortgage				114,797
REITs-MANUFACTURED HOMES - 2.7%
Sun Communities, Inc.		390		48,692
Equity LifeStyle Properties, Inc.		802		46,099
Total REITs-Manufactured Homes				94,791
REITs-REGIONAL MALLS - 1.7%
Simon Property Group, Inc.		713		39,115
Brookfield Property REIT, Inc. — Class A1		929		7,887
Macerich Co.		1,106		6,227
Tanger Factory Outlet Centers, Inc.1		1,235		6,175
Total REITs-Regional Malls				59,404
Total REITs				3,373,528
Real Estate - 3.1%
Real Estate Management/Services - 1.4%
Jones Lang LaSalle, Inc.		271		27,366
Redfin Corp.*		1,025		15,805
Realogy Holdings Corp.		1,690		5,087
Total Real Estate Management/Services				48,258
Real Estate Services - 1.3%
CBRE Group, Inc. — Class A*		1,167		44,007
Real Estate Operations/Development - 0.4%
Howard Hughes Corp.*		290		14,651
Total Real Estate				106,916
Total Common Stocks
(Cost $3,904,351)				3,480,444
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.7%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	18,547		18,547
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		7,133		7,133
Total Repurchase Agreements
(Cost $25,680)				25,680
	Shares
SECURITIES LENDING COLLATERAL†,3 - 0.7%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		24,081		24,081
Total Securities Lending Collateral
(Cost $24,081)				24,081
Total Investments - 101.0%
(Cost $3,954,112)			$	3,530,205
Other Assets & Liabilities, net - (1.0)%				(34,798	)
Total Net Assets - 100.0%			$	3,495,407

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 113

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
REAL ESTATE FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	3,480,444	$	—	$	—	$	3,480,444
Repurchase Agreements		—		25,680		—		25,680
Securities Lending Collateral		24,081		—		—		24,081
Total Assets	$	3,504,525	$	25,680	$	—	$	3,530,205

114 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

REAL ESTATE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $22,369 of securities loaned (cost $3,928,432)	$	3,504,525
Repurchase agreements, at value (cost $25,680)		25,680
Cash		20,588
Receivables:
Dividends		23,029
Securities sold		20,675
Fund shares sold		602
Securities lending income		36
Total assets		3,595,135
Liabilities:
Payable for:
Fund shares redeemed		60,009
Return of securities lending collateral		24,081
Management fees		3,706
Distribution and service fees		1,432
Transfer agent and administrative fees		1,415
Portfolio accounting fees		436
Trustees’ fees*		129
Miscellaneous		8,520
Total liabilities		99,728
Commitments and contingent liabilities (Note 9)		—
Net assets	$	3,495,407
Net assets consist of:
Paid in capital	$	10,169,180
Total distributable earnings (loss)		(6,673,773	)
Net assets	$	3,495,407
A-Class:
Net assets	$	781,290
Capital shares outstanding		25,450
Net asset value per share	$	30.70
Maximum offering price per share (Net asset value divided by 95.25%)	$	32.23
C-Class:
Net assets	$	429,728
Capital shares outstanding		16,227
Net asset value per share	$	26.48
H-Class:
Net assets	$	2,284,389
Capital shares outstanding		74,580
Net asset value per share	$	30.63

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends	$	711,134
Interest		2,676
Income from securities lending, net		1,010
Total investment income		714,820
Expenses:
Management fees		200,564
Distribution and service fees:
A-Class		2,278
C-Class		9,112
H-Class		54,433
Transfer agent and administrative fees		59,314
Portfolio accounting fees		23,595
Registration fees		20,893
Professional fees		10,018
Trustees’ fees*		6,417
Printing fees		6,396
Pricing fees		5,509
Custodian fees		3,405
Line of credit fees		184
Miscellaneous		10,576
Total expenses		412,694
Net investment income		302,126
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,681,715
Net realized gain		1,681,715
Net change in unrealized appreciation (depreciation) on:
Investments		(2,946,772	)
Net change in unrealized appreciation (depreciation)		(2,946,772	)
Net realized and unrealized loss		(1,265,057	)
Net decrease in net assets resulting from operations	$	(962,931	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 115

REAL ESTATE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	302,126		$	520,024
Net realized gain (loss) on investments		1,681,715			(5,228,397	)
Net change in unrealized appreciation (depreciation) on investments		(2,946,772	)		2,127,300
Net decrease in net assets resulting from operations		(962,931	)		(2,581,073	)
Distributions to shareholders:
A-Class		(17,317	)		(33,828	)
C-Class		(21,349	)		(4,978	)
H-Class		(210,026	)		(297,344	)
Total distributions to shareholders		(248,692	)		(336,150	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,220,926			13,139,494
C-Class		3,584,439			1,944,282
H-Class		147,081,645			295,819,345
Distributions reinvested
A-Class		16,981			33,696
C-Class		21,107			4,913
H-Class		206,460			296,798
Cost of shares redeemed
A-Class		(853,685	)		(12,570,391	)
C-Class		(3,697,102	)		(2,346,594	)
H-Class		(162,669,284	)		(283,887,233	)
Net increase (decrease) from capital share transactions		(15,088,513	)		12,434,310
Net increase (decrease) in net assets		(16,300,136	)		9,517,087
Net assets:
Beginning of year		19,795,543			10,278,456
End of year	$	3,495,407		$	19,795,543
Capital share activity:
Shares sold
A-Class		29,793			335,956
C-Class		97,673			57,543
H-Class		3,500,708			7,753,438
Shares issued from reinvestment of distributions
A-Class		399			888
C-Class		573			148
H-Class		4,858			7,837
Shares redeemed
A-Class		(20,691	)		(334,426	)
C-Class		(101,540	)		(69,615	)
H-Class		(3,879,104	)		(7,558,789	)
Net increase (decrease) in shares		(367,331	)		192,980

116 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

REAL ESTATE FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	41.24		$	35.92		$	37.55		$	37.31		$	38.34
Income (loss) from investment operations:
Net investment income (loss)a		.56			.46			.65			.34			.65
Net gain (loss) on investments (realized and unrealized)		(10.37	)		5.12	c		(2.08	)		2.15			(1.24	)
Total from investment operations		(9.81	)		5.58			(1.43	)		2.49			(.59	)
Less distributions from:
Net investment income		(.73	)		(.26	)		(.20	)		(2.25	)		(.44	)
Total distributions		(.73	)		(.26	)		(.20	)		(2.25	)		(.44	)
Net asset value, end of period	$	30.70		$	41.24		$	35.92		$	37.55		$	37.31
Total Returnb		(24.28	%)		15.58	%		(3.85	%)		7.17	%		(1.46	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	781		$	658		$	486		$	1,762		$	9,223
Ratios to average net assets:
Net investment income (loss)		1.33	%		1.18	%		1.69	%		0.89	%		1.82	%
Total expenses		1.72	%		1.72	%		1.63	%		1.63	%		1.62	%
Portfolio turnover rate		539	%		877	%		1,010	%		1,060	%		880	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	35.94		$	31.57		$	33.28		$	33.56		$	34.81
Income (loss) from investment operations:
Net investment income (loss)a		.26			.31			.29			.19			.22
Net gain (loss) on investments (realized and unrealized)		(8.99	)		4.32	c		(1.80	)		1.78			(1.03	)
Total from investment operations		(8.73	)		4.63			(1.51	)		1.97			(.81	)
Less distributions from:
Net investment income		(.73	)		(.26	)		(.20	)		(2.25	)		(.44	)
Total distributions		(.73	)		(.26	)		(.20	)		(2.25	)		(.44	)
Net asset value, end of period	$	26.48		$	35.94		$	31.57		$	33.28		$	33.56
Total Returnb		(24.86	%)		14.72	%		(4.56	%)		6.37	%		(2.25	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	430		$	702		$	993		$	999		$	1,947
Ratios to average net assets:
Net investment income (loss)		0.71	%		0.94	%		0.86	%		0.56	%		0.69	%
Total expenses		2.47	%		2.46	%		2.38	%		2.38	%		2.36	%
Portfolio turnover rate		539	%		877	%		1,010	%		1,060	%		880	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 117

REAL ESTATE FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	41.14		$	35.82		$	37.45		$	37.21		$	38.25
Income (loss) from investment operations:
Net investment income (loss)a		.55			.65			.92			.27			.71
Net gain (loss) on investments (realized and unrealized)		(10.33	)		4.93	c		(2.35	)		2.22			(1.31	)
Total from investment operations		(9.78	)		5.58			(1.43	)		2.49			(.60	)
Less distributions from:
Net investment income		(.73	)		(.26	)		(.20	)		(2.25	)		(.44	)
Total distributions		(.73	)		(.26	)		(.20	)		(2.25	)		(.44	)
Net asset value, end of period	$	30.63		$	41.14		$	35.82		$	37.45		$	37.21
Total Return		(24.27	%)		15.63	%		(3.86	%)		7.18	%		(1.49	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,284		$	18,436		$	8,800		$	6,322		$	34,504
Ratios to average net assets:
Net investment income (loss)		1.30	%		1.69	%		2.43	%		0.70	%		1.97	%
Total expenses		1.72	%		1.71	%		1.63	%		1.62	%		1.62	%
Portfolio turnover rate		539	%		877	%		1,010	%		1,060	%		880	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the year because of the sales and repurchase of fund shares in relation to fluctuating market value of the investments of the Fund.

118 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

RETAILING FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies engaged in merchandising finished goods and services, including department stores, mail order operations, and other companies involved in selling products to consumers (“Retailing Companies”).

For the one-year period ended March 31, 2020, Retailing Fund Investor Class returned -14.47%, compared with -10.77% for the S&P 500 Consumer Discretionary Index. The broader S&P 500 Index returned -6.98%.

Hypermarkets & super centers contributed the most to return, followed by general merchandise stores. The apparel retail industry, department stores, and specialty stores detracted the most from return.

Amazon.com, Inc., Walmart, Inc., and Pinduduo, Inc. ADR contributed the most to the Fund’s return for the period. Kohl’s Corp., Gap, Inc., and Ulta Beauty, Inc. detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	April 1, 1998
A-Class	September 1, 2004
C-Class	May 9, 2001
H-Class	April 21, 1998

Ten Largest Holdings (% of Total Net Assets)
Amazon.com, Inc.	14.4%
Walmart, Inc.	7.5%
Alibaba Group Holding Ltd. ADR	4.4%
Home Depot, Inc.	4.3%
Costco Wholesale Corp.	3.9%
Lowe’s Companies, Inc.	3.2%
TJX Companies, Inc.	3.1%
Booking Holdings, Inc.	2.8%
JD.com, Inc. ADR	2.8%
Dollar General Corp.	2.8%
Top Ten Total	49.2%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 119

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(14.47%)	0.39%	8.48%
A-Class Shares	(14.66%)	0.16%	8.23%
A-Class Shares with sales charge‡	(18.72%)	(0.81%)	7.71%
C-Class Shares	(15.31%)	(0.60%)	7.41%
C-Class Shares with CDSC§	(16.16%)	(0.60%)	7.41%
H-Class Shares**	(14.64%)	0.15%	8.12%
S&P 500 Consumer Discretionary Index	(10.77%)	7.36%	13.56%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P Consumer Discretionary Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

120 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
RETAILING FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Retail - 58.0%
Walmart, Inc.		2,853	$	324,158
Home Depot, Inc.		1,002		187,083
Costco Wholesale Corp.		601		171,363
Lowe’s Companies, Inc.		1,606		138,196
TJX Companies, Inc.		2,858		136,641
Dollar General Corp.		808		122,016
Target Corp.		1,263		117,421
Walgreens Boots Alliance, Inc.		2,491		113,963
Ross Stores, Inc.		1,118		97,232
O’Reilly Automotive, Inc.*		263		79,176
Tiffany & Co.		605		78,348
AutoZone, Inc.*		89		75,294
Dollar Tree, Inc.*		1,021		75,013
Tractor Supply Co.		730		61,722
Best Buy Company, Inc.		1,080		61,560
Burlington Stores, Inc.*		344		54,510
Ulta Beauty, Inc.*		304		53,413
Genuine Parts Co.		753		50,700
CarMax, Inc.*		823		44,302
Carvana Co.*,1		770		42,419
BJ’s Wholesale Club Holdings, Inc.*		1,584		40,345
Advance Auto Parts, Inc.		427		39,848
Five Below, Inc.*		424		29,841
Floor & Decor Holdings, Inc. — Class A*		902		28,945
L Brands, Inc.		2,480		28,669
Ollie’s Bargain Outlet Holdings, Inc.*		610		28,267
Williams-Sonoma, Inc.		656		27,893
Foot Locker, Inc.		1,036		22,844
Gap, Inc.		2,917		20,536
National Vision Holdings, Inc.*		984		19,109
Nordstrom, Inc.		1,242		19,052
RH*		186		18,687
Dick’s Sporting Goods, Inc.		871		18,517
Urban Outfitters, Inc.*		1,208		17,202
American Eagle Outfitters, Inc.		2,142		17,029
Kohl’s Corp.		1,128		16,458
Macy’s, Inc.		2,836		13,925
Abercrombie & Fitch Co. — Class A		1,227		11,153
Bed Bath & Beyond, Inc.		1,756		7,393
Signet Jewelers Ltd.		1,016		6,553
Children’s Place, Inc.		310		6,064
Total Retail				2,522,860
Internet - 38.6%
Amazon.com, Inc.*		321		625,860
Alibaba Group Holding Ltd. ADR*		994		193,313
Booking Holdings, Inc.*		92		123,769
JD.com, Inc. ADR*		3,043		123,242
eBay, Inc.		3,015		90,631
Chewy, Inc. — Class A*		2,357		88,364
Pinduoduo, Inc. ADR*		1,921		69,214
MercadoLibre, Inc.*		134		65,470
Trip.com Group Ltd. ADR*		2,184		51,215
Baozun, Inc. ADR*,1		1,499		41,882
Expedia Group, Inc.		740		41,640
Etsy, Inc.*		1,029		39,555
Stamps.com, Inc.*		280		36,422
Wayfair, Inc. — Class A*,1		666		35,591
GrubHub, Inc.*		858		34,946
Stitch Fix, Inc. — Class A*,1		1,226		15,570
Total Internet				1,676,684
Distribution & Wholesale - 2.1%
Pool Corp.		276		54,309
LKQ Corp.*		1,883		38,620
Total Distribution & Wholesale				92,929
Commercial Services - 0.8%
Monro, Inc.		413		18,093
Aaron’s, Inc.		681		15,513
Total Commercial Services				33,606
Total Common Stocks
(Cost $4,460,248)				4,326,079
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.0%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	461		461
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		178		178
Total Repurchase Agreements
(Cost $639)				639

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 121

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
RETAILING FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,3 - 2.3%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		98,999	$	98,999
Total Securities Lending Collateral
(Cost $98,999)				98,999
Total Investments - 101.8%
(Cost $4,559,886)			$	4,425,717
Other Assets & Liabilities, net - (1.8)%				(78,547	)
Total Net Assets - 100.0%			$	4,347,170

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	4,326,079	$	—	$	—	$	4,326,079
Repurchase Agreements		—		639		—		639
Securities Lending Collateral		98,999		—		—		98,999
Total Assets	$	4,425,078	$	639	$	—	$	4,425,717

122 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

RETAILING FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $100,476 of securities loaned (cost $4,559,247)	$	4,425,078
Repurchase agreements, at value (cost $639)		639
Cash		512
Receivables:
Securities sold		32,393
Dividends		8,152
Fund shares sold		193
Securities lending income		155
Total assets		4,467,122
Liabilities:
Payable for:
Return of securities lending collateral		98,999
Management fees		5,356
Transfer agent and administrative fees		2,120
Portfolio accounting fees		630
Distribution and service fees		437
Trustees’ fees*		190
Miscellaneous		12,220
Total liabilities		119,952
Commitments and contingent liabilities (Note 9)		—
Net assets	$	4,347,170
Net assets consist of:
Paid in capital	$	6,519,531
Total distributable earnings (loss)		(2,172,361	)
Net assets	$	4,347,170
Investor Class:
Net assets	$	3,315,767
Capital shares outstanding		115,835
Net asset value per share	$	28.62
A-Class:
Net assets	$	455,995
Capital shares outstanding		16,887
Net asset value per share	$	27.00
Maximum offering price per share (Net asset value divided by 95.25%)	$	28.35
C-Class:
Net assets	$	230,282
Capital shares outstanding		9,730
Net asset value per share	$	23.67
H-Class:
Net assets	$	345,126
Capital shares outstanding		13,098
Net asset value per share	$	26.35

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $547)	$	170,309
Interest		1,802
Income from securities lending, net		13,180
Total investment income		185,291
Expenses:
Management fees		122,908
Distribution and service fees:
A-Class		4,066
C-Class		3,882
H-Class		3,148
Transfer agent and administrative fees		36,694
Registration fees		16,180
Portfolio accounting fees		14,460
Professional fees		9,364
Trustees’ fees*		4,559
Custodian fees		2,118
Line of credit fees		92
Miscellaneous		6,642
Total expenses		224,113
Net investment loss		(38,822	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,774,021
Net realized gain		4,774,021
Net change in unrealized appreciation (depreciation) on:
Investments		(6,572,492	)
Net change in unrealized appreciation (depreciation)		(6,572,492	)
Net realized and unrealized loss		(1,798,471	)
Net decrease in net assets resulting from operations	$	(1,837,293	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 123

RETAILING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(38,822	)	$	(83,642	)
Net realized gain on investments		4,774,021			488,545
Net change in unrealized appreciation (depreciation) on investments		(6,572,492	)		2,257,492
Net increase (decrease) in net assets resulting from operations		(1,837,293	)		2,662,395
Distributions to shareholders:
Investor Class		—			(62,096	)
A-Class		—			(2,423	)
C-Class		—			(1,147	)
H-Class		—			(6,646	)
Total distributions to shareholders		—			(72,312	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		31,349,501			109,264,472
A-Class		3,834,435			10,313,921
C-Class		834,190			2,192,820
H-Class		3,326,658			71,311,377
Distributions reinvested
Investor Class		—			61,699
A-Class		—			2,355
C-Class		—			1,137
H-Class		—			6,629
Cost of shares redeemed
Investor Class		(48,988,755	)		(108,396,873	)
A-Class		(9,222,466	)		(6,184,722	)
C-Class		(1,028,876	)		(2,382,440	)
H-Class		(9,207,289	)		(70,311,011	)
Net increase (decrease) from capital share transactions		(29,102,602	)		5,879,364
Net increase (decrease) in net assets		(30,939,895	)		8,469,447
Net assets:
Beginning of year		35,287,065			26,817,618
End of year	$	4,347,170		$	35,287,065
Capital share activity:
Shares sold
Investor Class		925,612			3,410,858
A-Class		124,928			333,772
C-Class		29,194			82,019
H-Class		105,560			2,409,627
Shares issued from reinvestment of distributions
Investor Class		—			2,028
A-Class		—			82
C-Class		—			45
H-Class		—			236
Shares redeemed
Investor Class		(1,489,548	)		(3,391,851	)
A-Class		(291,563	)		(194,378	)
C-Class		(36,199	)		(89,015	)
H-Class		(295,381	)		(2,388,929	)
Net increase (decrease) in shares		(927,397	)		174,494

124 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

RETAILING FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	33.46		$	30.17		$	26.78		$	26.98		$	28.13
Income (loss) from investment operations:
Net investment income (loss)a		(.06	)		(.02	)		.11			.03			(.03	)
Net gain (loss) on investments (realized and unrealized)		(4.78	)		3.35			3.28			(.23	)		(1.10	)
Total from investment operations		(4.84	)		3.33			3.39			(.20	)		(1.13	)
Less distributions from:
Net investment income		—			(.03	)		—			—			(.02	)
Net realized gains		—			(.01	)		—			—			—
Total distributions		—			(.04	)		—			—			(.02	)
Net asset value, end of period	$	28.62		$	33.46		$	30.17		$	26.78		$	26.98
Total Return		(14.47	%)		11.06	%		12.66	%		(0.74	%)		(4.01	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,316		$	22,748		$	19,876		$	8,498		$	10,265
Ratios to average net assets:
Net investment income (loss)		(0.17	%)		(0.07	%)		0.40	%		0.10	%		(0.10	%)
Total expenses		1.47	%		1.45	%		1.37	%		1.37	%		1.34	%
Portfolio turnover rate		228	%		314	%		1,306	%		887	%		238	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	31.64		$	28.60		$	25.44		$	25.69		$	26.85
Income (loss) from investment operations:
Net investment income (loss)a		(.13	)		(.05	)		—	b		(.08	)		(.09	)
Net gain (loss) on investments (realized and unrealized)		(4.51	)		3.13			3.16			(.17	)		(1.05	)
Total from investment operations		(4.64	)		3.08			3.16			(.25	)		(1.14	)
Less distributions from:
Net investment income		—			(.03	)		—			—			(.02	)
Net realized gains		—			(.01	)		—			—			—
Total distributions		—			(.04	)		—			—			(.02	)
Net asset value, end of period	$	27.00		$	31.64		$	28.60		$	25.44		$	25.69
Total Returnc		(14.66	%)		10.80	%		12.42	%		(0.97	%)		(4.24	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	456		$	5,806		$	1,260		$	1,217		$	6,313
Ratios to average net assets:
Net investment income (loss)		(0.42	%)		(0.16	%)		—	e		(0.34	%)		(0.36	%)
Total expenses		1.72	%		1.72	%		1.63	%		1.62	%		1.60	%
Portfolio turnover rate		228	%		314	%		1,306	%		887	%		238	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 125

RETAILING FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	27.95		$	25.46		$	22.83		$	23.23		$	24.46
Income (loss) from investment operations:
Net investment income (loss)a		(.33	)		(.31	)		(.17	)		(.23	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		(3.95	)		2.84			2.80			(.17	)		(.97	)
Total from investment operations		(4.28	)		2.53			2.63			(.40	)		(1.21	)
Less distributions from:
Net investment income		—			(.03	)		—			—			(.02	)
Net realized gains		—			(.01	)		—			—			—
Total distributions		—			(.04	)		—			—			(.02	)
Net asset value, end of period	$	23.67		$	27.95		$	25.46		$	22.83		$	23.23
Total Returnc		(15.31	%)		9.97	%		11.52	%		(1.76	%)		(4.94	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	230		$	468		$	603		$	1,601		$	2,532
Ratios to average net assets:
Net investment income (loss)		(1.16	%)		(1.15	%)		(0.71	%)		(1.00	%)		(1.04	%)
Total expenses		2.48	%		2.46	%		2.38	%		2.37	%		2.35	%
Portfolio turnover rate		228	%		314	%		1,306	%		887	%		238	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016d
Per Share Data
Net asset value, beginning of period	$	30.87		$	27.91		$	24.83		$	25.07		$	26.22
Income (loss) from investment operations:
Net investment income (loss)a		(.20	)		(.11	)		.05			(—	)b		(.11	)
Net gain (loss) on investments (realized and unrealized)		(4.32	)		3.11			3.03			(.24	)		(1.02	)
Total from investment operations		(4.52	)		3.00			3.08			(.24	)		(1.13	)
Less distributions from:
Net investment income		—			(.03	)		—			—			(.02	)
Net realized gains		—			(.01	)		—			—			—
Total distributions		—			(.04	)		—			—			(.02	)
Net asset value, end of period	$	26.35		$	30.87		$	27.91		$	24.83		$	25.07
Total Return		(14.64	%)		10.81	%		12.40	%		(0.96	%)		(4.31	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	345		$	6,265		$	5,079		$	411		$	3,407
Ratios to average net assets:
Net investment income (loss)		(0.64	%)		(0.37	%)		0.18	%		(—	)e		(0.44	%)
Total expenses		1.72	%		1.70	%		1.62	%		1.62	%		1.71	%
Portfolio turnover rate		228	%		314	%		1,306	%		887	%		238	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Net investment income is less than $0.01 per share.
c	Total return does not reflect the impact of any applicable sales charges.
d	Effective September 30, 2015, the Fund’s Advisor Class were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.
e	Less than 0.01% or (0.01%).

126 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

TECHNOLOGY FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the technology sector, including computer software and service companies, semiconductor manufacturers, networking and telecommunications equipment manufacturers, PC hardware, and peripherals companies (“Technology Companies”).

For the one-year period ended March 31, 2020, Technology Fund Investor Class returned -1.06%, compared with 10.43% for the S&P 500 Information Technology Index. The broader S&P 500 Index returned -6.98%.

Semiconductors contributed the most to the Fund’s return, followed by systems software and semiconductor equipment. Interactive media & services, IT consulting, and communications equipment detracted the most from return.

Microsoft Corp., Apple, Inc., and Zoom Video Communications, Inc. – Class A contributed the most to the Fund’s return for the period. DXC Technology Co., Cisco Systems, Inc., and VMware, Inc. – Class A detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	April 14, 1998
A-Class	September 1, 2004
C-Class	April 18, 2001
H-Class	April 29, 1998

Ten Largest Holdings (% of Total Net Assets)
Microsoft Corp.	5.3%
Apple, Inc.	4.9%
Alphabet, Inc. — Class A	4.0%
Facebook, Inc. — Class A	3.0%
Visa, Inc. — Class A	2.5%
Intel Corp.	2.2%
Mastercard, Inc. — Class A	2.1%
NVIDIA Corp.	2.0%
Adobe, Inc.	1.9%
Oracle Corp.	1.8%
Top Ten Total	29.7%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 127

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(1.06%)	11.86%	11.51%
A-Class Shares	(1.31%)	11.59%	11.22%
A-Class Shares with sales charge‡	(6.00%)	10.50%	10.68%
C-Class Shares	(2.05%)	10.76%	10.40%
C-Class Shares with CDSC§	(3.02%)	10.76%	10.40%
H-Class Shares**	(1.30%)	11.57%	11.08%
S&P 500 Information Technology Index	10.43%	17.05%	15.79%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

128 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
TECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 99.6%
Software - 32.2%
Microsoft Corp.		11,984	$	1,889,997
Adobe, Inc.*		2,079		661,621
Oracle Corp.		13,366		645,979
salesforce.com, Inc.*		3,984		573,616
Zoom Video Communications, Inc. — Class A*		3,448		503,822
Fidelity National Information Services, Inc.		3,623		440,702
ServiceNow, Inc.*		1,411		404,364
Fiserv, Inc.*		4,141		393,354
Intuit, Inc.		1,706		392,380
Activision Blizzard, Inc.		6,191		368,241
VMware, Inc. — Class A*		2,859		346,225
Autodesk, Inc.*		1,880		293,468
Electronic Arts, Inc.*		2,834		283,882
Atlassian Corporation plc — Class A*		1,996		273,971
Workday, Inc. — Class A*		2,050		266,951
Citrix Systems, Inc.		1,851		262,009
NetEase, Inc. ADR		813		260,940
DocuSign, Inc.*		2,693		248,833
Synopsys, Inc.*		1,776		228,731
ANSYS, Inc.*		983		228,518
Cadence Design Systems, Inc.*		3,457		228,300
Paychex, Inc.		3,527		221,919
Splunk, Inc.*		1,739		219,514
Akamai Technologies, Inc.*		2,382		217,929
Take-Two Interactive Software, Inc.*		1,664		197,367
Jack Henry & Associates, Inc.		1,245		193,274
Twilio, Inc. — Class A*		2,000		178,980
Paycom Software, Inc.*		809		163,426
Coupa Software, Inc.*		1,125		157,196
MongoDB, Inc.*		1,125		153,607
SS&C Technologies Holdings, Inc.		3,502		153,458
Dropbox, Inc. — Class A*		8,005		144,890
Alteryx, Inc. — Class A*		1,386		131,906
PTC, Inc.*		2,137		130,806
Nutanix, Inc. — Class A*		4,249		67,134
Total Software				11,527,310
Semiconductors - 19.6%
Intel Corp.		14,794		800,651
NVIDIA Corp.		2,739		722,000
Texas Instruments, Inc.		4,677		467,373
Broadcom, Inc.		1,913		453,572
QUALCOMM, Inc.		6,158		416,589
Advanced Micro Devices, Inc.*		8,714		396,313
Micron Technology, Inc.*		7,644		321,507
Applied Materials, Inc.		6,664		305,345
Lam Research Corp.		1,199		287,760
Analog Devices, Inc.		3,009		269,757
KLA Corp.		1,631		234,440
Taiwan Semiconductor Manufacturing Company Ltd. ADR		4,627		221,124
Xilinx, Inc.		2,789		217,375
NXP Semiconductor N.V.		2,610		216,447
ASML Holding N.V. — Class G		780		204,079
Marvell Technology Group Ltd.		8,648		195,704
Skyworks Solutions, Inc.		2,050		183,229
Microchip Technology, Inc.		2,623		177,839
Maxim Integrated Products, Inc.		3,590		174,510
Cypress Semiconductor Corp.		6,830		159,276
Teradyne, Inc.		2,685		145,446
Qorvo, Inc.*		1,697		136,829
IPG Photonics Corp.*		1,042		114,912
Cree, Inc.*		2,565		90,955
ON Semiconductor Corp.*		7,121		88,585
Total Semiconductors				7,001,617
Internet - 16.1%
Alphabet, Inc. — Class A*		1,224		1,422,227
Facebook, Inc. — Class A*		6,341		1,057,679
Shopify, Inc. — Class A*		705		293,936
Baidu, Inc. ADR*		2,452		247,137
VeriSign, Inc.*		1,353		243,662
Okta, Inc.*		1,755		214,566
Match Group, Inc.*,1		3,141		207,432
Twitter, Inc.*		8,420		206,795
Snap, Inc. — Class A*		16,176		192,333
Palo Alto Networks, Inc.*		1,125		184,455
IAC/InterActiveCorp*		988		177,079
CDW Corp.		1,718		160,238
NortonLifeLock, Inc.		8,407		157,295
Weibo Corp. ADR*		4,573		151,412
Pinterest, Inc. — Class A*		9,163		141,477
Zendesk, Inc.*		2,087		133,589
Zillow Group, Inc. — Class C*,1		3,660		131,833
Momo, Inc. ADR		5,905		128,079
Proofpoint, Inc.*		1,179		120,954
F5 Networks, Inc.*		1,104		117,719
TripAdvisor, Inc.		3,660		63,647
Total Internet				5,753,544
Computers - 13.7%
Apple, Inc.		6,847		1,741,124
International Business Machines Corp.		4,407		488,868
Accenture plc — Class A		1,992		325,214
Dell Technologies, Inc. — Class C*		6,586		260,476
HP, Inc.		14,561		252,779
Cognizant Technology Solutions Corp. — Class A		5,067		235,463
Fortinet, Inc.*		2,133		215,796
Check Point Software Technologies Ltd.*		1,967		197,762
Crowdstrike Holdings, Inc. — Class A*		3,527		196,383
Seagate Technology plc		3,656		178,413
Zscaler, Inc.*		2,789		169,739
Western Digital Corp.		3,818		158,905
Hewlett Packard Enterprise Co.		15,669		152,146
NetApp, Inc.		3,262		135,993
Lumentum Holdings, Inc.*		1,681		123,890
DXC Technology Co.		4,469		58,320
Total Computers				4,891,271

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 129

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
TECHNOLOGY FUND

	Shares		Value
Diversified Financial Services - 5.0%
Visa, Inc. — Class A		5,561	$	895,988
Mastercard, Inc. — Class A		3,150		760,914
Western Union Co.		6,718		121,798
Total Diversified Financial Services				1,778,700
Commercial Services - 4.8%
PayPal Holdings, Inc.*		5,619		537,963
Automatic Data Processing, Inc.		2,743		374,913
Global Payments, Inc.		2,187		315,431
Square, Inc. — Class A*		4,457		233,458
FleetCor Technologies, Inc.*		954		177,959
Euronet Worldwide, Inc.*		996		85,377
Total Commercial Services				1,725,101
Telecommunications - 3.8%
Cisco Systems, Inc.		15,976		628,017
Motorola Solutions, Inc.		1,764		234,471
Arista Networks, Inc.*		1,042		211,057
Corning, Inc.		8,773		180,197
Juniper Networks, Inc.		6,337		121,290
Total Telecommunications				1,375,032
Electronics - 2.2%
Amphenol Corp. — Class A		2,851		207,781
Keysight Technologies, Inc.*		2,316		193,803
TE Connectivity Ltd.		2,274		143,216
Trimble, Inc.*		4,187		133,272
FLIR Systems, Inc.		2,747		87,602
Total Electronics				765,674
Energy-Alternate Sources - 1.1%
SolarEdge Technologies, Inc.*		2,204		180,464
Enphase Energy, Inc.*		3,718		120,054
First Solar, Inc.*		2,324		83,803
Total Energy-Alternate Sources				384,321
Office & Business Equipment - 0.4%
Zebra Technologies Corp. — Class A*		797		146,329
Advertising - 0.4%
Trade Desk, Inc. — Class A*		701		135,293
Electrical Components & Equipment - 0.3%
Universal Display Corp.		830		109,378
Total Common Stocks
(Cost $22,846,110)				35,593,570
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.4%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	90,517		90,517
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		34,814		34,814
Total Repurchase Agreements
(Cost $125,331)				125,331
	Shares
SECURITIES LENDING COLLATERAL†,3 - 0.7%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		265,039		265,039
Total Securities Lending Collateral
(Cost $265,039)				265,039
Total Investments - 100.7%
(Cost $23,236,480)			$	35,983,940
Other Assets & Liabilities, net - (0.7)%				(240,938	)
Total Net Assets - 100.0%			$	35,743,002

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

130 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
TECHNOLOGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	35,593,570	$	—	$	—	$	35,593,570
Repurchase Agreements		—		125,331		—		125,331
Securities Lending Collateral		265,039		—		—		265,039
Total Assets	$	35,858,609	$	125,331	$	—	$	35,983,940

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 131

TECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $254,399 of securities loaned (cost $23,111,149)	$	35,858,609
Repurchase agreements, at value (cost $125,331)		125,331
Cash		100,479
Receivables:
Fund shares sold		144,742
Dividends		21,624
Foreign tax reclaims		1,107
Securities lending income		643
Total assets		36,252,535
Liabilities:
Payable for:
Return of securities lending collateral		265,039
Fund shares redeemed		119,701
Management fees		32,235
Transfer agent and administrative fees		12,635
Distribution and service fees		5,328
Portfolio accounting fees		3,792
Trustees’ fees*		1,082
Miscellaneous		69,721
Total liabilities		509,533
Commitments and contingent liabilities (Note 9)		—
Net assets	$	35,743,002
Net assets consist of:
Paid in capital	$	26,099,955
Total distributable earnings (loss)		9,643,047
Net assets	$	35,743,002
Investor Class:
Net assets	$	23,190,409
Capital shares outstanding		231,415
Net asset value per share	$	100.21
A-Class:
Net assets	$	5,321,290
Capital shares outstanding		57,345
Net asset value per share	$	92.79
Maximum offering price per share (Net asset value divided by 95.25%)	$	97.42
C-Class:
Net assets	$	3,795,973
Capital shares outstanding		46,162
Net asset value per share	$	82.23
H-Class:
Net assets	$	3,435,330
Capital shares outstanding		37,869
Net asset value per share	$	90.72

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $1,816)	$	969,260
Interest		8,798
Income from securities lending, net		4,811
Total investment income		982,869
Expenses:
Management fees		652,616
Distribution and service fees:
A-Class		16,849
C-Class		51,652
H-Class		20,338
Transfer agent and administrative fees		195,100
Portfolio accounting fees		76,778
Registration fees		63,345
Professional fees		27,843
Trustees’ fees*		16,776
Custodian fees		11,131
Line of credit fees		126
Miscellaneous		88,409
Total expenses		1,220,963
Net investment loss		(238,094	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		7,471,785
Net realized gain		7,471,785
Net change in unrealized appreciation (depreciation) on:
Investments		(9,218,136	)
Net change in unrealized appreciation (depreciation)		(9,218,136	)
Net realized and unrealized loss		(1,746,351	)
Net decrease in net assets resulting from operations	$	(1,984,445	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

132 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

TECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(238,094	)	$	(522,994	)
Net realized gain on investments		7,471,785			3,767,489
Net change in unrealized appreciation (depreciation) on investments		(9,218,136	)		(1,364,919	)
Net increase (decrease) in net assets resulting from operations		(1,984,445	)		1,879,576
Distributions to shareholders:
Investor Class		(218,299	)		(3,080,009	)
A-Class		(36,076	)		(302,692	)
C-Class		(29,921	)		(250,584	)
H-Class		(44,819	)		(892,083	)
Total distributions to shareholders		(329,115	)		(4,525,368	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		114,605,193			237,217,659
A-Class		2,836,127			5,302,160
C-Class		3,924,183			4,603,973
H-Class		30,618,988			93,765,945
Distributions reinvested
Investor Class		214,441			2,784,344
A-Class		35,404			296,049
C-Class		29,756			248,701
H-Class		44,810			861,141
Cost of shares redeemed
Investor Class		(150,527,001	)		(253,756,561	)
A-Class		(3,403,826	)		(4,878,516	)
C-Class		(5,615,143	)		(6,113,433	)
H-Class		(40,117,567	)		(120,685,679	)
Net decrease from capital share transactions		(47,354,635	)		(40,354,217	)
Net decrease in net assets		(49,668,195	)		(43,000,009	)
Net assets:
Beginning of year		85,411,197			128,411,206
End of year	$	35,743,002		$	85,411,197
Capital share activity:
Shares sold
Investor Class		1,049,477			2,394,637
A-Class		28,267			57,645
C-Class		43,711			56,674
H-Class		314,033			1,031,403
Shares issued from reinvestment of distributions
Investor Class		1,897			31,341
A-Class		338			3,586
C-Class		320			3,364
H-Class		438			10,668
Shares redeemed
Investor Class		(1,419,055	)		(2,638,782	)
A-Class		(34,820	)		(54,600	)
C-Class		(64,028	)		(73,935	)
H-Class		(415,628	)		(1,366,969	)
Net decrease in shares		(495,050	)		(544,968	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 133

TECHNOLOGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	101.77		$	94.62		$	75.45		$	60.53		$	61.23
Income (loss) from investment operations:
Net investment income (loss)a		(.22	)		(.31	)		(.29	)		(.09	)		(.06	)
Net gain (loss) on investments (realized and unrealized)		(.80	)		11.99			20.66			15.01			(.64	)
Total from investment operations		(1.02	)		11.68			20.37			14.92			(.70	)
Less distributions from:
Net realized gains		(.54	)		(4.53	)		(1.20	)		—			—
Total distributions		(.54	)		(4.53	)		(1.20	)		—			—
Net asset value, end of period	$	100.21		$	101.77		$	94.62		$	75.45		$	60.53
Total Return		(1.06	%)		13.05	%		27.11	%		24.63	%		(1.14	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	23,190		$	60,972		$	76,820		$	55,016		$	22,167
Ratios to average net assets:
Net investment income (loss)		(0.20	%)		(0.32	%)		(0.34	%)		(0.13	%)		(0.10	%)
Total expenses		1.47	%		1.46	%		1.37	%		1.38	%		1.35	%
Portfolio turnover rate		165	%		255	%		270	%		320	%		388	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	94.51		$	88.40		$	70.74		$	56.88		$	57.69
Income (loss) from investment operations:
Net investment income (loss)a		(.41	)		(.49	)		(.45	)		(.25	)		(.14	)
Net gain (loss) on investments (realized and unrealized)		(.77	)		11.13			19.31			14.11			(.67	)
Total from investment operations		(1.18	)		10.64			18.86			13.86			(.81	)
Less distributions from:
Net realized gains		(.54	)		(4.53	)		(1.20	)		—			—
Total distributions		(.54	)		(4.53	)		(1.20	)		—			—
Net asset value, end of period	$	92.79		$	94.51		$	88.40		$	70.74		$	56.88
Total Returnb		(1.31	%)		12.77	%		26.77	%		24.37	%		(1.40	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,321		$	6,007		$	5,033		$	3,294		$	8,327
Ratios to average net assets:
Net investment income (loss)		(0.40	%)		(0.54	%)		(0.56	%)		(0.40	%)		(0.25	%)
Total expenses		1.73	%		1.71	%		1.63	%		1.63	%		1.60	%
Portfolio turnover rate		165	%		255	%		270	%		320	%		388	%

134 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

TECHNOLOGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	84.44		$	80.06		$	64.64		$	52.37		$	53.50
Income (loss) from investment operations:
Net investment income (loss)a		(1.06	)		(1.10	)		(1.02	)		(.64	)		(.59	)
Net gain (loss) on investments (realized and unrealized)		(.61	)		10.01			17.64			12.91			(.54	)
Total from investment operations		(1.67	)		8.91			16.62			12.27			(1.13	)
Less distributions from:
Net realized gains		(.54	)		(4.53	)		(1.20	)		—			—
Total distributions		(.54	)		(4.53	)		(1.20	)		—			—
Net asset value, end of period	$	82.23		$	84.44		$	80.06		$	64.64		$	52.37
Total Returnb		(2.05	%)		11.93	%		25.85	%		23.41	%		(2.11	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,796		$	5,586		$	6,409		$	3,203		$	2,234
Ratios to average net assets:
Net investment income (loss)		(1.17	%)		(1.33	%)		(1.37	%)		(1.12	%)		(1.12	%)
Total expenses		2.48	%		2.46	%		2.38	%		2.37	%		2.35	%
Portfolio turnover rate		165	%		255	%		270	%		320	%		388	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	92.40		$	86.54		$	69.27		$	55.72		$	56.54
Income (loss) from investment operations:
Net investment income (loss)a		(.47	)		(.64	)		(.46	)		(.30	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		(.67	)		11.03			18.93			13.85			(.59	)
Total from investment operations		(1.14	)		10.39			18.47			13.55			(.82	)
Less distributions from:
Net realized gains		(.54	)		(4.53	)		(1.20	)		—			—
Total distributions		(.54	)		(4.53	)		(1.20	)		—			—
Net asset value, end of period	$	90.72		$	92.40		$	86.54		$	69.27		$	55.72
Total Return		(1.30	%)		12.76	%		26.78	%		24.32	%		(1.45	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,435		$	12,846		$	40,149		$	21,504		$	1,829
Ratios to average net assets:
Net investment income (loss)		(0.47	%)		(0.71	%)		(0.58	%)		(0.46	%)		(0.42	%)
Total expenses		1.72	%		1.70	%		1.63	%		1.63	%		1.68	%
Portfolio turnover rate		165	%		255	%		270	%		320	%		388	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights or periods prior to that date reflect the performance of the former Advisor Class.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 135

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

TELECOMMUNICATIONS FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies engaged in the development, manufacture, or sale of communications services or communications equipment (“Telecommunications Companies”).

For the one-year period ended March 31, 2020, Telecommunications Fund Investor Class returned -10.74%, compared with -3.31% for the S&P 500 Telecommunications Services Index. The broader S&P 500 Index returned -6.98%.

Wireless telecommunication services was the only contributor to return. Communications equipment, integrated telecommunication services, and alternative carriers detracted the most from return.

Sprint Corp., T-Mobile US, Inc., and Cogent Communications Holdings, Inc. contributed the most to the Fund’s return for the period. Cisco Systems, Inc., Arista Networks, Inc., and ViaSat, Inc. detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	April 1, 1998
A-Class	September 1, 2004
C-Class	April 18, 2001
H-Class	April 1, 1998

Ten Largest Holdings (% of Total Net Assets)
Verizon Communications, Inc.	14.0%
AT&T, Inc.	11.7%
Cisco Systems, Inc.	11.5%
T-Mobile US, Inc.	5.2%
Sprint Corp.	4.2%
Arista Networks, Inc.	3.9%
Motorola Solutions, Inc.	3.8%
CenturyLink, Inc.	2.7%
Ubiquiti, Inc.	2.6%
Ciena Corp.	2.4%
Top Ten Total	62.0%
“Ten Largest Holdings” excludes any temporary cash investments.

136 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(10.74%)	1.62%	2.90%
A-Class Shares	(10.95%)	1.34%	2.65%
A-Class Shares with sales charge‡	(15.19%)	0.35%	2.15%
C-Class Shares	(11.62%)	0.59%	1.98%
C-Class Shares with CDSC§	(12.47%)	0.59%	1.98%
H-Class Shares**	(10.98%)	1.37%	2.53%
S&P 500 Telecommunication Services Index	(3.31%)	3.66%	8.11%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P Telecommunication Services index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 137

SCHEDULE OF INVESTMENTS	March 31, 2020
TELECOMMUNICATIONS FUND

	Shares		Value
COMMON STOCKS† - 100.2%
Telecommunications - 90.3%
Verizon Communications, Inc.		9,518	$	511,402
AT&T, Inc.		14,626		426,348
Cisco Systems, Inc.		10,715		421,207
T-Mobile US, Inc.*		2,275		190,872
Sprint Corp.*		17,644		152,091
Arista Networks, Inc.*		700		141,785
Motorola Solutions, Inc.		1,056		140,364
CenturyLink, Inc.		10,396		98,346
Ubiquiti, Inc.1		670		94,859
Ciena Corp.*		2,207		87,861
Juniper Networks, Inc.		4,251		81,364
GCI Liberty, Inc. — Class A*		1,416		80,670
Shenandoah Telecommunications Co.		1,296		63,828
Acacia Communications, Inc.*		900		60,462
Iridium Communications, Inc.*		2,649		59,152
China Mobile Ltd. ADR		1,500		56,505
EchoStar Corp. — Class A*		1,737		55,532
BCE, Inc.		1,302		53,200
Viavi Solutions, Inc.*		4,375		49,044
Vodafone Group plc ADR		3,551		48,897
America Movil SAB de CV — Class L ADR		4,034		47,520
Vonage Holdings Corp.*		6,503		47,017
Rogers Communications, Inc. — Class B		1,109		46,057
TELUS Corp.		2,844		44,878
Telephone & Data Systems, Inc.		2,457		41,179
CommScope Holding Company, Inc.*		4,275		38,945
InterDigital, Inc.		865		38,605
Telefonica Brasil S.A. ADR		4,021		38,320
ViaSat, Inc.*		1,061		38,111
NETGEAR, Inc.*		1,282		29,281
Plantronics, Inc.		1,384		13,923
Total Telecommunications				3,297,625
Internet - 5.0%
Cogent Communications Holdings, Inc.		976		80,003
F5 Networks, Inc.*		742		79,119
Boingo Wireless, Inc.*		2,283		24,223
Total Internet				183,345
Computers - 3.6%
Lumentum Holdings, Inc.*		1,126		82,986
NetScout Systems, Inc.*		2,000		47,340
Total Computers				130,326
Software - 1.3%
Bandwidth, Inc. — Class A*		701		47,170
Total Common Stocks
(Cost $3,750,447)				3,658,466
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.5%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	13,417		13,417
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		5,160		5,160
Total Repurchase Agreements
(Cost $18,577)				18,577
	Shares
SECURITIES LENDING COLLATERAL†,3 - 1.4%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		51,564		51,564
Total Securities Lending Collateral
(Cost $51,564)				51,564
Total Investments - 102.1%
(Cost $3,820,588)			$	3,728,607
Other Assets & Liabilities, net - (2.1)%				(78,265	)
Total Net Assets - 100.0%			$	3,650,342

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

138 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
TELECOMMUNICATIONS FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	3,658,466	$	—	$	—	$	3,658,466
Repurchase Agreements		—		18,577		—		18,577
Securities Lending Collateral		51,564		—		—		51,564
Total Assets	$	3,710,030	$	18,577	$	—	$	3,728,607

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 139

TELECOMMUNICATIONS FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $50,261 of securities loaned (cost $3,802,011)	$	3,710,030
Repurchase agreements, at value (cost $18,577)		18,577
Cash		14,894
Receivables:
Dividends		5,091
Fund shares sold		114
Securities lending income		17
Total assets		3,748,723
Liabilities:
Payable for:
Return of securities lending collateral		51,564
Fund shares redeemed		34,402
Management fees		3,357
Transfer agent and administrative fees		1,202
Portfolio accounting fees		395
Distribution and service fees		219
Trustees’ fees*		111
Miscellaneous		7,131
Total liabilities		98,381
Commitments and contingent liabilities (Note 9)		—
Net assets	$	3,650,342
Net assets consist of:
Paid in capital	$	6,404,548
Total distributable earnings (loss)		(2,754,206	)
Net assets	$	3,650,342
Investor Class:
Net assets	$	2,984,244
Capital shares outstanding		69,093
Net asset value per share	$	43.19
A-Class:
Net assets	$	445,735
Capital shares outstanding		11,314
Net asset value per share	$	39.40
Maximum offering price per share (Net asset value divided by 95.25%)	$	41.36
C-Class:
Net assets	$	115,999
Capital shares outstanding		3,365
Net asset value per share	$	34.47
H-Class:
Net assets	$	104,364
Capital shares outstanding		2,721
Net asset value per share	$	38.36

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $1,379)	$	146,069
Interest		497
Income from securities lending, net		187
Total investment income		146,753
Expenses:
Management fees		44,671
Distribution and service fees:
A-Class		1,413
C-Class		1,778
H-Class		904
Transfer agent and administrative fees		13,353
Registration fees		8,739
Portfolio accounting fees		5,255
Professional fees		3,072
Custodian fees		965
Trustees’ fees*		952
Line of credit fees		26
Miscellaneous		672
Total expenses		81,800
Net investment income		64,953
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(95,584	)
Net realized loss		(95,584	)
Net change in unrealized appreciation (depreciation) on:
Investments		(901,647	)
Net change in unrealized appreciation (depreciation)		(901,647	)
Net realized and unrealized loss		(997,231	)
Net decrease in net assets resulting from operations	$	(932,278	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

140 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

TELECOMMUNICATIONS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	64,953		$	143,466
Net realized loss on investments		(95,584	)		(2,345,965	)
Net change in unrealized appreciation (depreciation) on investments		(901,647	)		281,163
Net decrease in net assets resulting from operations		(932,278	)		(1,921,336	)
Distributions to shareholders:
Investor Class		(113,546	)		(19,936	)
A-Class		(17,634	)		(1,268	)
C-Class		(6,767	)		(740	)
H-Class		(15,192	)		(26,326	)
Total distributions to shareholders		(153,139	)		(48,270	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		24,964,902			56,729,206
A-Class		623,152			2,672,597
C-Class		1,848,670			1,119,858
H-Class		1,719,340			101,868,098
Distributions reinvested
Investor Class		112,956			19,788
A-Class		17,633			1,268
C-Class		6,726			722
H-Class		15,192			26,326
Cost of shares redeemed
Investor Class		(24,123,207	)		(54,522,942	)
A-Class		(640,505	)		(2,655,183	)
C-Class		(1,966,664	)		(1,246,196	)
H-Class		(1,924,759	)		(100,226,371	)
Net increase from capital share transactions		653,436			3,787,171
Net increase (decrease) in net assets		(431,981	)		1,817,565
Net assets:
Beginning of year		4,082,323			2,264,758
End of year	$	3,650,342		$	4,082,323
Capital share activity:
Shares sold
Investor Class		495,964			1,158,535
A-Class		13,794			59,475
C-Class		45,924			27,570
H-Class		38,272			2,399,817
Shares issued from reinvestment of distributions
Investor Class		2,364			409
A-Class		404			29
C-Class		176			18
H-Class		358			610
Shares redeemed
Investor Class		(488,814	)		(1,126,821	)
A-Class		(13,917	)		(58,699	)
C-Class		(48,887	)		(30,837	)
H-Class		(43,359	)		(2,396,248	)
Net increase in shares		2,279			33,858

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 141

TELECOMMUNICATIONS FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	50.17		$	47.66		$	47.95		$	42.91		$	45.56
Income (loss) from investment operations:
Net investment income (loss)a		.69			.46			.43			.49			.44
Net gain (loss) on investments (realized and unrealized)		(5.91	)		2.17	c		1.17			5.55			(1.64	)
Total from investment operations		(5.22	)		2.63			1.60			6.04			(1.20	)
Less distributions from:
Net investment income		(1.76	)		(.02	)		(1.89	)		(1.00	)		(1.45	)
Net realized gains		—			(.10	)		—			—			—
Total distributions		(1.76	)		(.12	)		(1.89	)		(1.00	)		(1.45	)
Net asset value, end of period	$	43.19		$	50.17		$	47.66		$	47.95		$	42.91
Total Return		(10.74	%)		5.52	%		3.33	%		14.21	%		(2.49	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,984		$	2,989		$	1,309		$	12,539		$	19,198
Ratios to average net assets:
Net investment income (loss)		1.38	%		0.94	%		0.89	%		1.09	%		0.97	%
Total expenses		1.48	%		1.47	%		1.38	%		1.38	%		1.34	%
Portfolio turnover rate		561	%		2,115	%		1,455	%		605	%		660	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	46.03		$	43.84		$	44.39		$	39.88		$	42.63
Income (loss) from investment operations:
Net investment income (loss)a		.31			.43			.20			.32			.58
Net gain (loss) on investments (realized and unrealized)		(5.18	)		1.88	c		1.14			5.19			(1.88	)
Total from investment operations		(4.87	)		2.31			1.34			5.51			(1.30	)
Less distributions from:
Net investment income		(1.76	)		(.02	)		(1.89	)		(1.00	)		(1.45	)
Net realized gains		—			(.10	)		—			—			—
Total distributions		(1.76	)		(.12	)		(1.89	)		(1.00	)		(1.45	)
Net asset value, end of period	$	39.40		$	46.03		$	43.84		$	44.39		$	39.88
Total Returnb		(10.95	%)		5.27	%		3.08	%		13.88	%		(2.90	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	446		$	508		$	448		$	1,081		$	1,544
Ratios to average net assets:
Net investment income (loss)		0.69	%		0.96	%		0.45	%		0.75	%		1.41	%
Total expenses		1.73	%		1.71	%		1.63	%		1.62	%		1.59	%
Portfolio turnover rate		561	%		2,115	%		1,455	%		605	%		660	%

142 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

TELECOMMUNICATIONS FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	40.81		$	39.17		$	40.14		$	36.43		$	39.35
Income (loss) from investment operations:
Net investment income (loss)a		.04			.06			(.09	)		.03			(.01	)
Net gain (loss) on investments (realized and unrealized)		(4.62	)		1.70	c		1.01			4.68			(1.46	)
Total from investment operations		(4.58	)		1.76			.92			4.71			(1.47	)
Less distributions from:
Net investment income		(1.76	)		(.02	)		(1.89	)		(1.00	)		(1.45	)
Net realized gains		—			(.10	)		—			—			—
Total distributions		(1.76	)		(.12	)		(1.89	)		(1.00	)		(1.45	)
Net asset value, end of period	$	34.47		$	40.81		$	39.17		$	40.14		$	36.43
Total Returnb		(11.62	%)		4.49	%		2.30	%		13.05	%		(3.59	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	116		$	251		$	368		$	406		$	248
Ratios to average net assets:
Net investment income (loss)		0.10	%		0.15	%		(0.22	%)		0.07	%		(0.03	%)
Total expenses		2.48	%		2.46	%		2.38	%		2.37	%		2.35	%
Portfolio turnover rate		561	%		2,115	%		1,455	%		605	%		660	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016d
Per Share Data
Net asset value, beginning of period	$	44.88		$	42.66		$	43.21		$	38.85		$	41.59
Income (loss) from investment operations:
Net investment income (loss)a		.44			1.16			(.06	)		.58			.17
Net gain (loss) on investments (realized and unrealized)		(5.20	)		1.18	c		1.40			4.78			(1.46	)
Total from investment operations		(4.76	)		2.34			1.34			5.36			(1.29	)
Less distributions from:
Net investment income		(1.76	)		(.02	)		(1.89	)		(1.00	)		(1.45	)
Net realized gains		—			(.10	)		—			—			—
Total distributions		(1.76	)		(.12	)		(1.89	)		(1.00	)		(1.45	)
Net asset value, end of period	$	38.36		$	44.88		$	42.66		$	43.21		$	38.85
Total Return		(10.98	%)		5.51	%		3.07	%		13.94	%		(2.95	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	104		$	334		$	140		$	1,213		$	10,353
Ratios to average net assets:
Net investment income (loss)		0.99	%		2.73	%		(0.14	%)		1.44	%		0.44	%
Total expenses		1.73	%		1.74	%		1.63	%		1.62	%		1.64	%
Portfolio turnover rate		561	%		2,115	%		1,455	%		605	%		659	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.
d	Effective September 30, 2015, the Fund’s Advisor Class were converted into H-Class Shares. The financial highlights for the periods prior to that date reflect the performance of the former Advisor Class.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 143

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

TRANSPORTATION FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies engaged in providing transportation services or companies engaged in the design, manufacture, distribution, or sale of transportation equipment (“Transportation Companies”).

For the one-year period ended March 31, 2020, Transportation Fund Investor Class returned -22.59%, compared with -19.47% for the S&P 500 Industrials Index. The broader S&P 500 Index returned -6.98%.

Airport services was the only contributor to return. Airlines, auto parts & equipment, and railroads detracted the most from return.

Tesla, Inc., Old Dominion Freight Line, Inc., and ZTO Express Cayman, Inc. ADR contributed the most to the Fund’s return for the period. General Motors Co., Delta Air Lines, Inc., and United Airlines Holdings, Inc. detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	April 2, 1998
A-Class	September 1, 2004
C-Class	May 14, 2001
H-Class	June 9, 1998

Ten Largest Holdings (% of Total Net Assets)
Tesla, Inc.	8.2%
Union Pacific Corp.	6.7%
United Parcel Service, Inc. — Class B	5.4%
Uber Technologies, Inc.	4.5%
CSX Corp.	4.5%
Norfolk Southern Corp.	4.1%
FedEx Corp.	3.8%
Old Dominion Freight Line, Inc.	3.1%
General Motors Co.	3.1%
Southwest Airlines Co.	2.6%
Top Ten Total	46.0%
“Ten Largest Holdings” excludes any temporary cash investments.

144 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(22.59%)	(3.28%)	6.36%
A-Class Shares	(22.78%)	(3.52%)	6.11%
A-Class Shares with sales charge‡	(26.44%)	(4.45%)	5.59%
C-Class Shares	(23.37%)	(4.25%)	5.32%
C-Class Shares with CDSC§	(24.11%)	(4.25%)	5.32%
H-Class Shares**	(22.78%)	(3.54%)	5.96%
S&P 500 Industrials Index	(19.47%)	2.97%	8.58%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Industrials Index are unmanaged indices and unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class share will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 145

SCHEDULE OF INVESTMENTS	March 31, 2020
TRANSPORTATION FUND

	Shares		Value
COMMON STOCKS† - 99.6%
Transportation - 50.1%
Union Pacific Corp.		2,831	$	399,284
United Parcel Service, Inc. — Class B		3,441		321,458
CSX Corp.		4,695		269,023
Norfolk Southern Corp.		1,666		243,236
FedEx Corp.		1,895		229,788
Old Dominion Freight Line, Inc.		1,406		184,552
Kansas City Southern		1,149		146,130
Expeditors International of Washington, Inc.		2,134		142,380
J.B. Hunt Transport Services, Inc.		1,369		126,263
CH Robinson Worldwide, Inc.		1,906		126,177
ZTO Express Cayman, Inc. ADR		3,928		104,013
Knight-Swift Transportation Holdings, Inc.		3,138		102,926
Canadian Pacific Railway Ltd.		427		93,765
Canadian National Railway Co.		1,116		86,635
Landstar System, Inc.		846		81,098
XPO Logistics, Inc.*		1,560		76,050
Werner Enterprises, Inc.		1,977		71,686
Saia, Inc.*		770		56,626
Hub Group, Inc. — Class A*		1,164		52,927
Kirby Corp.*		1,157		50,295
Ryder System, Inc.		1,431		37,836
Total Transportation				3,002,148
Auto Manufacturers - 15.6%
Tesla, Inc.*		941		493,084
General Motors Co.		8,840		183,695
Ford Motor Co.		29,482		142,398
Ferrari N.V.		499		76,132
Fiat Chrysler Automobiles N.V.		5,592		40,207
Total Auto Manufacturers				935,516
Airlines - 12.2%
Southwest Airlines Co.		4,428		157,681
Delta Air Lines, Inc.		4,692		133,863
United Airlines Holdings, Inc.*,1		2,400		75,720
American Airlines Group, Inc.1		5,534		67,460
Alaska Air Group, Inc.		1,902		54,150
JetBlue Airways Corp.*		5,562		49,780
Ryanair Holdings plc ADR*		924		49,055
Allegiant Travel Co. — Class A		433		35,419
SkyWest, Inc.		1,286		33,680
Copa Holdings S.A. — Class A		730		33,062
Spirit Airlines, Inc.*		1,814		23,382
Hawaiian Holdings, Inc.		1,772		18,500
Total Airlines				731,752
Auto Parts & Equipment - 8.9%
Lear Corp.		926		75,237
BorgWarner, Inc.		3,067		74,743
Aptiv plc		1,359		66,917
Dorman Products, Inc.*		954		52,728
Magna International, Inc.		1,481		47,273
Delphi Technologies plc*		5,736		46,175
Autoliv, Inc.		954		43,894
Visteon Corp.*		791		37,952
Goodyear Tire & Rubber Co.		5,580		32,476
Dana, Inc.		3,975		31,045
Adient plc*		2,921		26,493
Total Auto Parts & Equipment				534,933
Internet - 6.2%
Uber Technologies, Inc.*		9,714		271,215
Lyft, Inc. — Class A*		3,645		97,868
Total Internet				369,083
Commercial Services - 2.5%
AMERCO		330		95,881
Avis Budget Group, Inc.*		2,155		29,955
Hertz Global Holdings, Inc.*		4,269		26,382
Total Commercial Services				152,218
Leisure Time - 1.7%
Harley-Davidson, Inc.		2,913		55,143
Fox Factory Holding Corp.*		1,082		45,444
Total Leisure Time				100,587
Electronics - 1.5%
Gentex Corp.		4,211		93,316
Home Builders - 0.9%
Thor Industries, Inc.		1,231		51,923
Total Common Stocks
(Cost $6,576,049)				5,971,476
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.4%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	19,166		19,166
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		7,371		7,371
Total Repurchase Agreements
(Cost $26,537)				26,537

146 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
TRANSPORTATION FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,3 - 1.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		60,915	$	60,915
Total Securities Lending Collateral
(Cost $60,915)				60,915
Total Investments - 101.0%
(Cost $6,663,501)			$	6,058,928
Other Assets & Liabilities, net - (1.0)%				(61,412	)
Total Net Assets - 100.0%			$	5,997,516

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	5,971,476	$	—	$	—	$	5,971,476
Repurchase Agreements		—		26,537		—		26,537
Securities Lending Collateral		60,915		—		—		60,915
Total Assets	$	6,032,391	$	26,537	$	—	$	6,058,928

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 147

TRANSPORTATION FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $61,767 of securities loaned (cost $6,636,964)	$	6,032,391
Repurchase agreements, at value (cost $26,537)		26,537
Cash		21,841
Receivables:
Securities sold		150,410
Dividends		2,767
Foreign tax reclaims		300
Fund shares sold		211
Securities lending income		21
Total assets		6,234,478
Liabilities:
Payable for:
Fund shares redeemed		153,993
Return of securities lending collateral		60,915
Management fees		5,608
Transfer agent and administrative fees		2,238
Distribution and service fees		1,036
Portfolio accounting fees		660
Trustees’ fees*		190
Miscellaneous		12,322
Total liabilities		236,962
Commitments and contingent liabilities (Note 9)		—
Net assets	$	5,997,516
Net assets consist of:
Paid in capital	$	9,301,787
Total distributable earnings (loss)		(3,304,271	)
Net assets	$	5,997,516
Investor Class:
Net assets	$	3,283,439
Capital shares outstanding		87,807
Net asset value per share	$	37.39
A-Class:
Net assets	$	1,757,094
Capital shares outstanding		51,960
Net asset value per share	$	33.82
Maximum offering price per share (Net asset value divided by 95.25%)	$	35.51
C-Class:
Net assets	$	632,043
Capital shares outstanding		20,960
Net asset value per share	$	30.15
H-Class:
Net assets	$	324,940
Capital shares outstanding		9,936
Net asset value per share	$	32.70

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $1,656)	$	286,246
Interest		1,365
Income from securities lending, net		524
Total investment income		288,135
Expenses:
Management fees		119,294
Distribution and service fees:
A-Class		8,413
C-Class		13,293
H-Class		1,471
Transfer agent and administrative fees		35,675
Portfolio accounting fees		14,035
Registration fees		13,897
Professional fees		5,927
Trustees’ fees*		3,352
Custodian fees		2,194
Line of credit fees		46
Miscellaneous		13,079
Total expenses		230,676
Net investment income		57,459
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,024,892
Net realized gain		1,024,892
Net change in unrealized appreciation (depreciation) on:
Investments		(3,939,790	)
Net change in unrealized appreciation (depreciation)		(3,939,790	)
Net realized and unrealized loss		(2,914,898	)
Net decrease in net assets resulting from operations	$	(2,857,439	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

148 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

TRANSPORTATION FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	57,459		$	8,472
Net realized gain on investments		1,024,892			1,335,509
Net change in unrealized appreciation (depreciation) on investments		(3,939,790	)		(3,063,248	)
Net decrease in net assets resulting from operations		(2,857,439	)		(1,719,267	)
Distributions to shareholders:
Investor Class		(342,945	)		(1,010,270	)
A-Class		(187,023	)		(383,942	)
C-Class		(58,531	)		(201,966	)
H-Class		(21,428	)		(62,557	)
Total distributions to shareholders		(609,927	)		(1,658,735	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		61,127,966			88,665,130
A-Class		7,233,790			6,766,786
C-Class		1,125,341			1,542,021
H-Class		10,568,259			45,730,425
Distributions reinvested
Investor Class		328,816			967,012
A-Class		182,137			377,924
C-Class		57,266			195,596
H-Class		20,968			61,336
Cost of shares redeemed
Investor Class		(63,728,261	)		(96,051,965	)
A-Class		(8,147,172	)		(9,156,572	)
C-Class		(1,742,657	)		(2,449,793	)
H-Class		(10,652,942	)		(47,030,659	)
Net decrease from capital share transactions		(3,626,489	)		(10,382,759	)
Net decrease in net assets		(7,093,855	)		(13,760,761	)
Net assets:
Beginning of year		13,091,371			26,852,132
End of year	$	5,997,516		$	13,091,371
Capital share activity:
Shares sold
Investor Class		1,157,931			1,536,445
A-Class		147,945			125,939
C-Class		26,473			31,916
H-Class		236,551			858,575
Shares issued from reinvestment of distributions
Investor Class		6,317			20,042
A-Class		3,866			8,599
C-Class		1,360			4,919
H-Class		460			1,441
Shares redeemed
Investor Class		(1,236,077	)		(1,677,779	)
A-Class		(169,311	)		(170,903	)
C-Class		(42,772	)		(52,091	)
H-Class		(237,384	)		(886,172	)
Net decrease in shares		(104,641	)		(199,069	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 149

TRANSPORTATION FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	50.08		$	59.10		$	53.52		$	46.23		$	52.06
Income (loss) from investment operations:
Net investment income (loss)a		.30			.09			(.04	)		.09			.16
Net gain (loss) on investments (realized and unrealized)		(11.07	)		(4.02	)		6.85			7.37			(5.78	)
Total from investment operations		(10.77	)		(3.93	)		6.81			7.46			(5.62	)
Less distributions from:
Net investment income		(.15	)		—			—			(.17	)		(.21	)
Net realized gains		(1.77	)		(5.09	)		(1.23	)		—			—
Total distributions		(1.92	)		(5.09	)		(1.23	)		(.17	)		(.21	)
Net asset value, end of period	$	37.39		$	50.08		$	59.10		$	53.52		$	46.23
Total Return		(22.59	%)		(6.33	%)		12.67	%		16.14	%		(10.80	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,283		$	7,994		$	16,603		$	32,911		$	13,638
Ratios to average net assets:
Net investment income (loss)		0.58	%		0.16	%		(0.07	%)		0.17	%		0.33	%
Total expenses		1.48	%		1.46	%		1.37	%		1.38	%		1.34	%
Portfolio turnover rate		483	%		476	%		483	%		676	%		219	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	45.58		$	54.43		$	49.50		$	42.87		$	48.41
Income (loss) from investment operations:
Net investment income (loss)a		.17			(.01	)		(.07	)		(.06	)		.04
Net gain (loss) on investments (realized and unrealized)		(10.01	)		(3.75	)		6.23			6.86			(5.37	)
Total from investment operations		(9.84	)		(3.76	)		6.16			6.80			(5.33	)
Less distributions from:
Net investment income		(.15	)		—			—			(.17	)		(.21	)
Net realized gains		(1.77	)		(5.09	)		(1.23	)		—			—
Total distributions		(1.92	)		(5.09	)		(1.23	)		(.17	)		(.21	)
Net asset value, end of period	$	33.82		$	45.58		$	54.43		$	49.50		$	42.87
Total Returnb		(22.78	%)		(6.57	%)		12.38	%		15.87	%		(11.01	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,757		$	3,166		$	5,760		$	4,742		$	5,339
Ratios to average net assets:
Net investment income (loss)		0.37	%		(0.03	%)		(0.12	%)		(0.12	%)		0.08	%
Total expenses		1.73	%		1.71	%		1.63	%		1.63	%		1.60	%
Portfolio turnover rate		483	%		476	%		483	%		676	%		219	%

150 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

TRANSPORTATION FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	41.14		$	50.04		$	45.93		$	40.09		$	45.63
Income (loss) from investment operations:
Net investment income (loss)a		(.18	)		(.41	)		(.43	)		(.34	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		(8.89	)		(3.40	)		5.77			6.35			(5.09	)
Total from investment operations		(9.07	)		(3.81	)		5.34			6.01			(5.33	)
Less distributions from:
Net investment income		(.15	)		—			—			(.17	)		(.21	)
Net realized gains		(1.77	)		(5.09	)		(1.23	)		—			—
Total distributions		(1.92	)		(5.09	)		(1.23	)		(.17	)		(.21	)
Net asset value, end of period	$	30.15		$	41.14		$	50.04		$	45.93		$	40.09
Total Returnb		(23.37	%)		(7.27	%)		11.56	%		15.00	%		(11.69	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	632		$	1,477		$	2,560		$	2,307		$	2,977
Ratios to average net assets:
Net investment income (loss)		(0.43	%)		(0.87	%)		(0.87	%)		(0.81	%)		(0.57	%)
Total expenses		2.48	%		2.46	%		2.38	%		2.38	%		2.35	%
Portfolio turnover rate		483	%		476	%		483	%		676	%		219	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	44.14		$	52.90		$	48.15		$	41.71		$	47.12
Income (loss) from investment operations:
Net investment income (loss)a		(.02	)		(.02	)		(.13	)		(.13	)		(.09	)
Net gain (loss) on investments (realized and unrealized)		(9.50	)		(3.65	)		6.11			6.74			(5.11	)
Total from investment operations		(9.52	)		(3.67	)		5.98			6.61			(5.20	)
Less distributions from:
Net investment income		(.15	)		—			—			(.17	)		(.21	)
Net realized gains		(1.77	)		(5.09	)		(1.23	)		—			—
Total distributions		(1.92	)		(5.09	)		(1.23	)		(.17	)		(.21	)
Net asset value, end of period	$	32.70		$	44.14		$	52.90		$	48.15		$	41.71
Total Return		(22.78	%)		(6.61	%)		12.33	%		15.88	%		(11.04	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	325		$	455		$	1,929		$	4,127		$	9,031
Ratios to average net assets:
Net investment income (loss)		(0.03	%)		(0.04	%)		(0.24	%)		(0.30	%)		(0.20	%)
Total expenses		1.72	%		1.69	%		1.63	%		1.63	%		1.72	%
Portfolio turnover rate		483	%		476	%		483	%		676	%		219	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Effective September 30, 2015, the Fund’s Advisor Class share were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 151

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

UTILITIES FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that operate public utilities (“Utilities Companies”).

For the one-year period ended March 31, 2020, Utilities Fund Investor Class returned -8.74%, compared with -1.40% for the S&P 500 Utilities Index. The broader S&P 500 Index returned -6.98%.

Water utilities were the largest contributor to return, followed by the renewable electricity and oil & gas storage & transportation. Multi-utilities, electric utilities, and gas utilities detracted the most from return.

NextEra Energy, Inc., Southern Co., and American Water Works Co. contributed the most to the Fund’s return for the period. PG&E Corp., UGI Corp., and CenterPoint Energy, Inc. detracted the most from return.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Investor Class	April 3, 2000
A-Class	September 1, 2004
C-Class	April 27, 2001
H-Class	April 3, 2000

Ten Largest Holdings (% of Total Net Assets)
NextEra Energy, Inc.	6.6%
Duke Energy Corp.	4.5%
Dominion Energy, Inc.	4.4%
Southern Co.	4.3%
American Electric Power Company, Inc.	3.5%
Xcel Energy, Inc.	3.3%
Exelon Corp.	3.3%
WEC Energy Group, Inc.	3.1%
Eversource Energy	3.0%
Sempra Energy	2.9%
Top Ten Total	38.9%
“Ten Largest Holdings” excludes any temporary cash investments.

152 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(8.74%)	5.61%	8.75%
A-Class Shares	(8.96%)	5.35%	8.48%
A-Class Shares with sales charge‡	(13.29%)	4.33%	7.95%
C-Class Shares	(9.65%)	4.57%	7.66%
C-Class Shares with CDSC§	(10.55%)	4.57%	7.66%
H-Class Shares**	(8.97%)	5.34%	8.34%
S&P 500 Utilities Index	(1.40%)	8.28%	10.59%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and S&P 500 Utilities Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 153

SCHEDULE OF INVESTMENTS	March 31, 2020
UTILITIES FUND

	Shares		Value
COMMON STOCKS† - 99.9%
Electric - 82.9%
NextEra Energy, Inc.		12,585	$	3,028,203
Duke Energy Corp.		25,235		2,041,007
Dominion Energy, Inc.		27,958		2,018,288
Southern Co.		36,183		1,958,948
American Electric Power Company, Inc.		20,230		1,617,995
Xcel Energy, Inc.		25,300		1,525,590
Exelon Corp.		41,199		1,516,535
WEC Energy Group, Inc.		16,290		1,435,638
Eversource Energy		17,350		1,356,944
Sempra Energy		11,852		1,339,157
Consolidated Edison, Inc.		16,943		1,321,554
FirstEnergy Corp.		29,364		1,176,616
Public Service Enterprise Group, Inc.		26,070		1,170,804
Ameren Corp.		16,014		1,166,300
CMS Energy Corp.		18,835		1,106,556
Edison International		19,629		1,075,473
Entergy Corp.		11,407		1,071,916
DTE Energy Co.		10,735		1,019,503
PPL Corp.		39,878		984,189
Avangrid, Inc.		21,762		952,740
Evergy, Inc.		16,725		920,711
Alliant Energy Corp.		18,756		905,727
Pinnacle West Capital Corp.		9,876		748,502
AES Corp.		50,971		693,206
Vistra Energy Corp.		39,332		627,739
NRG Energy, Inc.		21,921		597,566
CenterPoint Energy, Inc.		38,265		591,194
OGE Energy Corp.		18,793		577,509
PG&E Corp.*		62,579		562,585
Portland General Electric Co.		11,121		533,141
IDACORP, Inc.		6,047		530,866
Black Hills Corp.		7,841		502,059
NorthWestern Corp.		7,376		441,306
ALLETE, Inc.		7,015		425,670
PNM Resources, Inc.		11,017		418,646
Total Electric				37,960,383
Gas - 10.2%
Atmos Energy Corp.		9,136		906,565
NiSource, Inc.		32,452		810,326
ONE Gas, Inc.		6,591		551,139
Southwest Gas Holdings, Inc.		7,421		516,205
Spire, Inc.		6,881		512,497
UGI Corp.		18,968		505,877
National Fuel Gas Co.		11,936		445,093
New Jersey Resources Corp.		12,948		439,844
Total Gas				4,687,546
Water - 4.5%
American Water Works Company, Inc.		10,753		1,285,628
Essential Utilities, Inc.		19,094		777,126
Total Water				2,062,754
Energy-Alternate Sources - 1.2%
TerraForm Power, Inc. — Class A		34,208		539,460
Building Materials - 1.1%
MDU Resources Group, Inc.		23,096		496,564
Total Common Stocks
(Cost $45,023,504)				45,746,707
	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.2%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	72,539		72,539
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		27,900		27,900
Total Repurchase Agreements
(Cost $100,439)				100,439
Total Investments - 100.1%
(Cost $45,123,943)			$	45,847,146
Other Assets & Liabilities, net - (0.1)%				(29,321	)
Total Net Assets - 100.0%			$	45,817,825

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 6.
	See Sector Classification in Other Information section.

154 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
UTILITIES FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	45,746,707	$	—	$	—	$	45,746,707
Repurchase Agreements		—		100,439		—		100,439
Total Assets	$	45,746,707	$	100,439	$	—	$	45,847,146

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 155

UTILITIES FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value (cost $45,023,504)	$	45,746,707
Repurchase agreements, at value (cost $100,439)		100,439
Cash		80,523
Receivables:
Dividends		108,793
Fund shares sold		59,425
Total assets		46,095,887
Liabilities:
Payable for:
Fund shares redeemed		140,051
Management fees		35,877
Transfer agent and administrative fees		13,922
Distribution and service fees		5,937
Portfolio accounting fees		4,221
Trustees’ fees*		1,187
Miscellaneous		76,867
Total liabilities		278,062
Commitments and contingent liabilities (Note 9)		—
Net assets	$	45,817,825
Net assets consist of:
Paid in capital	$	49,473,189
Total distributable earnings (loss)		(3,655,364	)
Net assets	$	45,817,825
Investor Class:
Net assets	$	34,072,744
Capital shares outstanding		815,116
Net asset value per share	$	41.80
A-Class:
Net assets	$	4,224,900
Capital shares outstanding		110,298
Net asset value per share	$	38.30
Maximum offering price per share (Net asset value divided by 95.25%)	$	40.21
C-Class:
Net assets	$	5,092,726
Capital shares outstanding		160,150
Net asset value per share	$	31.80
H-Class:
Net assets	$	2,427,455
Capital shares outstanding		65,854
Net asset value per share	$	36.86

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $162)	$	2,908,865
Interest		9,821
Income from securities lending, net		321
Total investment income		2,919,007
Expenses:
Management fees		825,548
Distribution and service fees:
A-Class		14,939
C-Class		65,769
H-Class		10,642
Transfer agent and administrative fees		246,178
Portfolio accounting fees		97,122
Registration fees		87,101
Professional fees		57,845
Trustees’ fees*		24,748
Custodian fees		13,904
Line of credit fees		624
Miscellaneous		79,851
Total expenses		1,524,271
Net investment income		1,394,736
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		9,293,608
Net realized gain		9,293,608
Net change in unrealized appreciation (depreciation) on:
Investments		(14,274,698	)
Net change in unrealized appreciation (depreciation)		(14,274,698	)
Net realized and unrealized loss		(4,981,090	)
Net decrease in net assets resulting from operations	$	(3,586,354	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

156 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

UTILITIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,394,736		$	965,922
Net realized gain (loss) on investments		9,293,608			(5,232,520	)
Net change in unrealized appreciation (depreciation) on investments		(14,274,698	)		12,114,697
Net increase (decrease) in net assets resulting from operations		(3,586,354	)		7,848,099
Distributions to shareholders:
Investor Class		(798,786	)		—
A-Class		(57,991	)		—
C-Class		(78,736	)		—
H-Class		(30,409	)		—
Total distributions to shareholders		(965,922	)		—
Capital share transactions:
Proceeds from sale of shares
Investor Class		218,676,498			323,470,925
A-Class		4,286,695			22,705,354
C-Class		3,360,227			3,526,128
H-Class		17,514,422			57,147,601
Distributions reinvested
Investor Class		795,101			—
A-Class		55,451			—
C-Class		77,101			—
H-Class		30,102			—
Cost of shares redeemed
Investor Class		(287,798,066	)		(232,777,368	)
A-Class		(5,302,118	)		(21,114,229	)
C-Class		(4,212,655	)		(4,556,272	)
H-Class		(20,710,730	)		(52,476,424	)
Net increase (decrease) from capital share transactions		(73,227,972	)		95,925,715
Net increase (decrease) in net assets		(77,780,248	)		103,773,814
Net assets:
Beginning of year		123,598,073			19,824,259
End of year	$	45,817,825		$	123,598,073
Capital share activity:
Shares sold
Investor Class		4,503,840			7,609,327
A-Class		99,339			589,193
C-Class		90,910			107,447
H-Class		411,293			1,572,817
Shares issued from reinvestment of distributions
Investor Class		16,472			—
A-Class		1,253			—
C-Class		2,093			—
H-Class		707			—
Shares redeemed
Investor Class		(5,986,116	)		(5,559,152	)
A-Class		(122,823	)		(553,480	)
C-Class		(114,995	)		(140,076	)
H-Class		(493,579	)		(1,448,772	)
Net increase (decrease) in shares		(1,591,606	)		2,177,304

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 157

UTILITIES FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	46.23		$	39.03		$	39.34		$	40.23		$	36.98
Income (loss) from investment operations:
Net investment income (loss)a		.74			.77			.68			.59			.73
Net gain (loss) on investments (realized and unrealized)		(4.72	)		6.43			.06			2.25			3.09
Total from investment operations		(3.98	)		7.20			.74			2.84			3.82
Less distributions from:
Net investment income		(.45	)		—			(.53	)		(.87	)		(.57	)
Net realized gains		—			—			(.52	)		(2.86	)		—
Total distributions		(.45	)		—			(1.05	)		(3.73	)		(.57	)
Net asset value, end of period	$	41.80		$	46.23		$	39.03		$	39.34		$	40.23
Total Return		(8.74	%)		18.45	%		1.72	%		8.04	%		10.61	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	34,073		$	105,443		$	9,006		$	24,116		$	50,753
Ratios to average net assets:
Net investment income (loss)		1.53	%		1.80	%		1.67	%		1.47	%		2.00	%
Total expenses		1.48	%		1.48	%		1.38	%		1.38	%		1.35	%
Portfolio turnover rate		169	%		390	%		452	%		507	%		475	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	42.50		$	35.97		$	36.43		$	37.63		$	34.70
Income (loss) from investment operations:
Net investment income (loss)a		.57			.47			.54			.45			.63
Net gain (loss) on investments (realized and unrealized)		(4.32	)		6.06			.05			2.08			2.87
Total from investment operations		(3.75	)		6.53			.59			2.53			3.50
Less distributions from:
Net investment income		(.45	)		—			(.53	)		(.87	)		(.57	)
Net realized gains		—			—			(.52	)		(2.86	)		—
Total distributions		(.45	)		—			(1.05	)		(3.73	)		(.57	)
Net asset value, end of period	$	38.30		$	42.50		$	35.97		$	36.43		$	37.63
Total Returnb		(8.96	%)		18.15	%		1.45	%		7.75	%		10.38	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,225		$	5,633		$	3,482		$	9,362		$	22,448
Ratios to average net assets:
Net investment income (loss)		1.29	%		1.21	%		1.43	%		1.20	%		1.85	%
Total expenses		1.73	%		1.72	%		1.63	%		1.63	%		1.60	%
Portfolio turnover rate		169	%		390	%		452	%		507	%		475	%

158 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

UTILITIES FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	35.63		$	30.39		$	31.15		$	32.96		$	30.70
Income (loss) from investment operations:
Net investment income (loss)a		.21			.26			.25			.22			.28
Net gain (loss) on investments (realized and unrealized)		(3.59	)		4.98			.04			1.70			2.55
Total from investment operations		(3.38	)		5.24			.29			1.92			2.83
Less distributions from:
Net investment income		(.45	)		—			(.53	)		(.87	)		(.57	)
Net realized gains		—			—			(.52	)		(2.86	)		—
Total distributions		(.45	)		—			(1.05	)		(3.73	)		(.57	)
Net asset value, end of period	$	31.80		$	35.63		$	30.39		$	31.15		$	32.96
Total Returnb		(9.65	%)		17.24	%		0.69	%		6.97	%		9.55	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,093		$	6,489		$	6,526		$	8,270		$	10,438
Ratios to average net assets:
Net investment income (loss)		0.57	%		0.79	%		0.78	%		0.69	%		0.94	%
Total expenses		2.47	%		2.46	%		2.38	%		2.37	%		2.35	%
Portfolio turnover rate		169	%		390	%		452	%		507	%		475	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	40.92		$	34.64		$	35.12		$	36.40		$	33.61
Income (loss) from investment operations:
Net investment income (loss)a		.50			.57			.31			.41			.54
Net gain (loss) on investments (realized and unrealized)		(4.11	)		5.71			.26			2.04			2.82
Total from investment operations		(3.61	)		6.28			.57			2.45			3.36
Less distributions from:
Net investment income		(.45	)		—			(.53	)		(.87	)		(.57	)
Net realized gains		—			—			(.52	)		(2.86	)		—
Total distributions		(.45	)		—			(1.05	)		(3.73	)		(.57	)
Net asset value, end of period	$	36.86		$	40.92		$	34.64		$	35.12		$	36.40
Total Return		(8.97	%)		18.13	%		1.44	%		7.80	%		10.31	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,427		$	6,033		$	810		$	5,379		$	6,448
Ratios to average net assets:
Net investment income (loss)		1.18	%		1.51	%		0.85	%		1.13	%		1.65	%
Total expenses		1.73	%		1.72	%		1.63	%		1.62	%		1.68	%
Portfolio turnover rate		169	%		390	%		452	%		507	%		475	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for the periods prior to that date reflect the performance of the former Advisor Class.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 159

NOTES TO FINANCIAL STATEMENTS

Note 1 – Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory trust, is registered with the SEC under the Investment Company Act of 1940 (”1940 Act”), as an open-ended investment company of the series type. Each series, in effect, is representing a separate fund (each a “Fund”). The Trust is authorized to issue an unlimited number of no par value shares. The Trust accounts for the assets of each Fund separately.

The Trust offers a combination of seven separate classes of shares: Investor Class shares, A-Class shares, C-Class shares, H-Class shares, P-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share (“NAV”), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. C-Class shares of each Fund automatically convert to A-Class shares of the same Fund on or about the 10th day of the month following the 10-year anniversary of the purchase of the C-Class shares. This conversion will be executed without any sales charge, fee or other charge. After the conversion is completed, the shares will be subject to all features and expenses of A-Class shares. Institutional Class shares are offered primarily for direct investment by institutions such as pension and profit sharing plans, endowments, foundations and corporations. Institutional Class shares require a minimum initial investment of $2 million and a minimum account balance of $1 million. At March 31, 2020, the Trust consisted of fifty-two funds.

This report covers the following funds (collectively, the “Funds”):

Fund Name	Investment Company Type
Banking Fund	Diversified
Basic Materials Fund	Diversified
Biotechnology Fund	Non-diversified
Consumer Products Fund	Diversified
Electronics Fund	Non-diversified
Energy Fund	Diversified
Energy Services Fund	Non-diversified
Financial Services Fund	Diversified
Health Care Fund	Diversified
Internet Fund	Diversified
Leisure Fund	Diversified
Precious Metals Fund	Non-diversified
Real Estate Fund	Diversified
Retailing Fund	Diversified
Technology Fund	Diversified
Telecommunications Fund	Non-diversified
Transportation Fund	Diversified
Utilities Fund	Diversified

At March 31, 2020, Investor Class, A-Class, C-Class and H-Class shares have been issued by the Funds.

The Funds invest in a specific industry sector. To the extent that investments are concentrated in a single sector, the Funds are subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting such sector.

The Funds seek capital appreciation and invest substantially all of their assets in equity securities of companies involved in their sector.

The Funds are designed and operated to accommodate frequent trading by shareholders and, unlike most mutual funds, offer unlimited exchange privileges with no minimum holding periods or transactions fees, which may cause the Funds to experience high portfolio turnover.

Security Investors, LLC, which operates under the name Guggenheim Investments (“GI”), provides advisory services. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities.

Significant Accounting Policies

The Funds operate as investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

160 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

The NAV of each Class of a fund is calculated by dividing the market value of a fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

(a) Valuation of Investments

The Board of Trustees of the Funds (the “Board”) has adopted policies and procedures for the valuation of the Funds’ investments (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Board has delegated to a valuation committee, consisting of representatives from Guggenheim’s investment management, fund administration, legal and compliance departments (the “Valuation Committee”), the day-to-day responsibility for implementing the Valuation Procedures, including, under most circumstances, the responsibility for determining the fair value of the Funds’ securities and/or other assets.

Valuations of the Funds’ securities and other assets are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Valuation Committee convenes monthly, or more frequently as needed, to review the valuation of all assets which have been fair valued for reasonableness. The Funds’ officers, through the Valuation Committee and consistent with the monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used and valuations provided by the pricing services.

If the pricing service cannot or does not provide a valuation for a particular investment or such valuation is deemed unreliable, such investment is fair valued by the Valuation Committee.

Equity securities listed or traded on a recognized U.S. securities exchange or the National Association of Securities Dealers Automated Quotations (“NASDAQ”) National Market System shall generally be valued on the basis of the last sale price on the primary U.S. exchange or market on which the security is listed or traded; provided, however, that securities listed on NASDAQ will be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. If there is no sale on the valuation date, exchange-traded U.S. equity securities will be valued on the basis of the last bid price.

Open-end investment companies are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds are valued at the last quoted sale price.

Repurchase agreements are generally valued at amortized cost, provided such amounts approximate market value.

Investments for which market quotations are not readily available are fair-valued as determined in good faith by GI subject to review and approval by the Valuation Committee, pursuant to methods established or ratified by the Board. Valuations in accordance with these methods are intended to reflect each security’s (or asset’s or liability’s) “fair value”. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over U.S. Treasury securities, and other information analysis.

(b) Currency Translations

The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds. Foreign investments may also subject the Funds to foreign government exchange restrictions, expropriation, taxation, or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments.

The Funds do not isolate that portion of the results of operations resulting from changes in the foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized gain or loss and unrealized appreciation or depreciation on investments.

Reported net realized foreign exchange gains and losses arise from sales of foreign currencies and currency gains or losses realized between the trade and settlement dates on investment transactions. Net unrealized appreciation and depreciation arise from changes in the fair values of assets and liabilities other than investments in securities at the fiscal period end, resulting from changes in exchange rates.

THE RYDEX FUNDS ANNUAL REPORT | 161

NOTES TO FINANCIAL STATEMENTS (continued)

(c) Foreign Taxes

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in their Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of March 31, 2020, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.

(d) Security Transactions

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries, if any. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from Real Estate Investment Trusts (“REITs”) is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

(e) Distributions

Distributions of net investment income and net realized gains, if any, are declared and paid at least annually. Dividends are reinvested in additional shares, unless shareholders request payment in cash. Distributions are recorded on the ex-dividend date and are determined in accordance with U.S. federal income tax regulations which may differ from U.S. GAAP.

(f) Class Allocations

Interest and dividend income, most expenses, all realized gains and losses, and all unrealized appreciation and depreciation are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution and service fees are charged directly to specific classes. In addition, certain expenses have been allocated to the individual Funds in the Trust based on the respective net assets of each Fund included in the Trust.

(g) Cash

The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 0.08% at March 31, 2020.

(h) Indemnifications

Under the Funds’ organizational documents, the Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

Note 2 – Investment Advisory Agreement and Other Agreements

Under the terms of an investment advisory contract, the Funds pay GI investment advisory fees calculated at the annualized rates below, based on the average daily net assets of the Funds:

Fund	Management Fees (as a % of Net Assets)
Banking Fund		0.85	%
Basic Materials Fund		0.85	%
Biotechnology Fund		0.85	%
Consumer Products Fund		0.85	%
Electronics Fund		0.85	%
Energy Fund		0.85	%
Energy Services Fund		0.85	%
Financial Services Fund		0.85	%
Health Care Fund		0.85	%
Internet Fund		0.85	%
Leisure Fund		0.85	%
Precious Metals Fund		0.75	%
Real Estate Fund		0.85	%
Retailing Fund		0.85	%
Technology Fund		0.85	%
Telecommunications Fund		0.85	%
Transportation Fund		0.85	%
Utilities Fund		0.85	%

162 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

When the aggregate assets of each series of the Trust (excluding the Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund) and each series of Rydex Dynamic Funds equal or exceed $10 billion, the advisory fee rate paid by each individual Fund will be reduced in accordance with the asset level and breakpoint schedule set forth below.

Fund Assets Under Management	Fund Asset-Based Breakpoint Reductions
$500 million - $1 billion		0.025	%
> $1 billion - $2 billion		0.050	%
> $2 billion		0.075	%

GI pays operating expenses on behalf of the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, among others, on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Board has adopted a Distribution Plan applicable to A-Class shares and H-Class shares for which GFD and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a Service Provider provides distribution services, the Funds will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services.

The Board has adopted a separate Distribution and Shareholder Services Plan applicable to its C-Class shares that allows the Funds to pay annual distribution and service fees of 1.00% of the Funds’ C-Class shares average daily net assets. The annual 0.25% service fee compensates a shareholder’s financial adviser for providing ongoing services to the shareholder. The annual distribution fee of 0.75% reimburses GFD for paying the shareholder’s financial adviser an ongoing sales commission. GFD advances the first year’s service and distribution fees to the financial adviser. GFD retains the service and distribution fees on accounts with no authorized dealer of record.

For the year ended March 31, 2020, GFD retained sales charges of $122,345 relating to sales of A-Class shares of the Trust.

Certain trustees and officers of the Trust are also officers of GI and/or GFD. The Trust does not compensate its officers or trustees who are officers, directors and/or employees of GI or GFD.

MUFG Investor Services (US), LLC (“MUIS”) acts as the Funds’ administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS maintains the books and records of the Funds’ securities and cash. U.S. Bank, N.A. (“U.S. Bank”) acts as the Funds’ custodian. As custodian, U.S. Bank is responsible for the custody of the Funds’ assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund’s average daily net assets and out of pocket expenses.

Note 3 – Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Funds from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax or federal excise tax is required.

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken, or to be taken, on U.S. federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Funds’ financial statements. The Funds’ U.S. federal income tax returns are subject to examination by the Internal Revenue Service (“IRS”) for a period of three years after they are filed.

THE RYDEX FUNDS ANNUAL REPORT | 163

NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid during the year ended March 31, 2020 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Return of Capital		Total Distributions
Banking Fund	$	179,656	$	—	$	—	$	179,656
Basic Materials Fund		1,119,758		341,784		—		1,461,542
Biotechnology Fund		—		9,558,792		—		9,558,792
Consumer Products Fund		2,524,545		1,441,214		—		3,965,759
Electronics Fund		7,066		—		—		7,066
Energy Fund		148,596		—		—		148,596
Energy Services Fund		8,234		—		—		8,234
Financial Services Fund		115,290		—		—		115,290
Internet Fund		—		903,814		—		903,814
Leisure Fund		41,159		—		—		41,159
Precious Metals Fund		2,055,112		—		—		2,055,112
Real Estate Fund		248,692		—		—		248,692
Technology Fund		—		329,115		—		329,115
Telecommunications Fund		153,139		—		—		153,139
Transportation Fund		139,337		470,590		—		609,927
Utilities Fund		965,922		—		—		965,922

The tax character of distributions paid during the year ended March 31, 2019 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Return of Capital		Total Distributions
Banking Fund	$	287,899	$	—	$	—	$	287,899
Basic Materials Fund		142,839		350,894		—		493,733
Biotechnology Fund		9,243,980		18,197,049		—		27,441,029
Consumer Products Fund		2,350,055		8,911,883		—		11,261,938
Electronics Fund		1,986,759		—		—		1,986,759
Energy Fund		297,240		—		—		297,240
Energy Services Fund		144,265		—		—		144,265
Financial Services Fund		433,322		1,103,518		—		1,536,840
Health Care Fund		1,811,754		—		—		1,811,754
Internet Fund		3,115,314		—		—		3,115,314
Leisure Fund		890,230		2,363		—		892,593
Precious Metals Fund		618,560		—		—		618,560
Real Estate Fund		336,150		—		—		336,150
Retailing Fund		72,312		—		—		72,312
Technology Fund		4,525,368		—		—		4,525,368
Telecommunications Fund		48,270		—		—		48,270
Transportation Fund		1,658,735		—		—		1,658,735

Note: For U.S. federal income tax purposes, short-term capital gain distributions are treated as ordinary income distributions.

164 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The tax components of distributable earnings/(loss) as of March 31, 2020 were as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation (Depreciation)			Accumulated Capital and Other Losses			Other Temporary Differences			Total
Banking Fund	$	273,567	$	—	$	(12,671,278	)	$	(1,428,893	)	$	—		$	(13,826,604	)
Basic Materials Fund		—		—		(3,593,788	)		(1,606,895	)		(130,382	)		(5,331,065	)
Biotechnology Fund		530,216		13,301,693		58,000,139			—			—			71,832,048
Consumer Products Fund		2,194,882		5,232,949		27,342,953			—			—			34,770,784
Electronics Fund		—		946,545		615,443			(42,169	)		—			1,519,819
Energy Fund		292,058		—		(14,673,393	)		(17,317,719	)		—			(31,699,054	)
Energy Services Fund		84,822		—		(8,989,382	)		(28,794,545	)		—			(37,699,105	)
Financial Services Fund		—		—		(632,218	)		—			—			(632,218	)
Health Care Fund		—		—		(2,286,306	)		(23,032	)		—			(2,309,338	)
Internet Fund		—		—		(441,857	)		(1,199,219	)		—			(1,641,076	)
Leisure Fund		—		—		(814,545	)		—			—			(814,545	)
Precious Metals Fund		1,336,241		—		(23,909,458	)		(31,361,995	)		(276,532	)		(54,211,744	)
Real Estate Fund		261,411		—		(1,415,548	)		(5,519,636	)		—			(6,673,773	)
Retailing Fund		—		—		(1,869,336	)		(303,025	)		—			(2,172,361	)
Technology Fund		—		1,060,519		9,113,514			(530,986	)		—			9,643,047
Telecommunications Fund		7,010		—		(1,261,111	)		(1,500,105	)		—			(2,754,206	)
Transportation Fund		—		—		(1,893,294	)		(1,410,977	)		—			(3,304,271	)
Utilities Fund		757,521		—		(4,412,885	)		—			—			(3,655,364	)

For U.S. federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. Under the RIC Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital loss carryforwards will retain their character as either short-term or long-term capital losses. As of March 31, 2020, capital loss carryforwards for the Funds were as follows:

	Unlimited						Total
Fund		Short-Term		Long-Term				Capital Loss Carryforward
Banking Fund	$	(1,324,816	)	$	(104,077	)	$	(1,428,893	)
Basic Materials Fund		(1,401,021	)		(205,874	)		(1,606,895	)
Energy Fund		(5,150,716	)		(12,167,003	)		(17,317,719	)
Energy Services Fund		(18,285,783	)		(10,508,762	)		(28,794,545	)
Internet Fund		(1,122,826	)		—			(1,122,826	)
Precious Metals Fund		(5,155,166	)		(26,206,829	)		(31,361,995	)
Real Estate Fund		(3,529,316	)		(1,990,320	)		(5,519,636	)
Telecommunications Fund		(1,500,105	)		—			(1,500,105	)

For the year ended March 31, 2020, the following capital loss carryforward amounts were utilized:

Fund	Utilized
Banking Fund	$	498,636
Basic Materials Fund		953,197
Electronics Fund		2,767,002
Health Care Fund		2,945,217
Leisure Fund		53,110
Precious Metals Fund		776,911
Retailing Fund		943,593
Telecommunications Fund		91,532
Utilities Fund		1,256,332

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to investments in real estate investment trusts, distributions in excess of taxable income, losses deferred due to wash sales, distributions in connection with redemption of fund shares, return of capital distributions received,

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NOTES TO FINANCIAL STATEMENTS (continued)

and the “mark-to-market,” recharacterization, or disposition of certain Passive Foreign Investment Companies (PFICs). Additional differences may result from the tax treatment of net operating losses, corporate actions, and foreign capital gains taxes. To the extent these differences are permanent and would require a reclassification between Paid in Capital and Total Distributable Earnings (Loss), such reclassifications are made in the period that the differences arise. These reclassifications have no effect on net assets or NAV per share.

The following adjustments were made on the Statements of Assets and Liabilities as of March 31, 2020 for permanent book/tax differences:

Fund	Paid In Capital			Total Distributable Earnings/(Loss)
Basic Materials Fund	$	(788,594	)	$	788,594
Biotechnology Fund		13,269,249			(13,269,249	)
Consumer Products Fund		4,377,757			(4,377,757	)
Electronics Fund		602,037			(602,037	)
Financial Services Fund		975,495			(975,495	)
Health Care Fund		2,071,233			(2,071,233	)
Internet Fund		(421,344	)		421,344
Leisure Fund		1,942,565			(1,942,565	)
Real Estate Fund		24,381			(24,381	)
Retailing Fund		3,364,483			(3,364,483	)
Technology Fund		4,678,136			(4,678,136	)
Transportation Fund		1,802,684			(1,802,684	)
Utilities Fund		7,337,419			(7,337,419	)

At March 31, 2020, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
Banking Fund	$	34,009,929	$	—	$	(12,671,278	)	$	(12,671,278	)
Basic Materials Fund		22,977,256		1,517,364		(5,111,152	)		(3,593,788	)
Biotechnology Fund		97,609,021		68,909,411		(10,909,272	)		58,000,139
Consumer Products Fund		76,716,242		31,729,192		(4,386,239	)		27,342,953
Electronics Fund		44,241,602		3,416,869		(2,801,426	)		615,443
Energy Fund		21,044,186		—		(14,673,393	)		(14,673,393	)
Energy Services Fund		11,477,622		—		(8,989,382	)		(8,989,382	)
Financial Services Fund		10,604,558		1,112,476		(1,744,694	)		(632,218	)
Health Care Fund		22,219,724		—		(2,286,306	)		(2,286,306	)
Internet Fund		16,395,044		658,948		(1,100,805	)		(441,857	)
Leisure Fund		5,894,235		332,033		(1,146,578	)		(814,545	)
Precious Metals Fund		90,686,220		—		(23,909,458	)		(23,909,458	)
Real Estate Fund		4,945,753		12,615		(1,428,163	)		(1,415,548	)
Retailing Fund		6,295,053		—		(1,869,336	)		(1,869,336	)
Technology Fund		26,870,426		10,087,807		(974,293	)		9,113,514
Telecommunications Fund		4,989,718		—		(1,261,111	)		(1,261,111	)
Transportation Fund		7,952,222		215,576		(2,108,870	)		(1,893,294	)
Utilities Fund		50,260,031		760,121		(5,173,006	)		(4,412,885	)

166 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Pursuant to U.S. federal income tax regulations applicable to regulated investment companies, the Funds have elected to treat net capital losses and certain ordinary losses realized between November 1 and March 31 of each year as occurring on the first day of the following tax year. The Funds have also elected to treat certain ordinary losses realized between January 1 and March 31 of each year as occurring on the first day of the following tax year. For the year ended March 31, 2020, the following losses reflected in the accompanying financial statements were deferred for Federal income tax purposes until April 1, 2020:

Fund	Ordinary			Capital
Electronics Fund	$	(42,169	)	$	—
Health Care Fund		(23,032	)		—
Internet Fund		(76,393	)		—
Retailing Fund		—			(303,025	)
Technology Fund		—			(530,986	)
Transportation Fund		—			(1,410,977	)

Note 4 – Fair Value Measurement

In accordance with U.S. GAAP, fair value is defined as the price that the Funds would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. U.S. GAAP establishes a three-tier fair value hierarchy based on the types of inputs used to value assets and liabilities and requires corresponding disclosure. The hierarchy and the corresponding inputs are summarized below:

Level 1 — quoted prices in active markets for identical assets or liabilities.

Level 2 — significant other observable inputs (for example quoted prices for securities that are similar based on characteristics such as interest rates, prepayment speeds, credit risk, etc.).

Level 3 — significant unobservable inputs based on the best information available under the circumstances, to the extent observable inputs are not available, which may include assumptions.

The types of inputs available depend on a variety of factors, such as the type of security and the characteristics of the markets in which it trades, if any. Fair valuation determinations that rely on fewer or no observable inputs require greater judgment. Accordingly, fair value determinations for Level 3 securities require the greatest amount of judgment.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The suitability of the techniques and sources employed to determine fair valuation are regularly monitored and subject to change.

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NOTES TO FINANCIAL STATEMENTS (continued)

Note 5 – Securities Transactions

For the year ended March 31, 2020, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Fund	Purchases		Sales
Banking Fund	$	90,768,914	$	70,792,370
Basic Materials Fund		21,938,025		34,779,994
Biotechnology Fund		120,529,503		174,299,465
Consumer Products Fund		90,078,463		157,426,346
Electronics Fund		160,830,485		144,903,337
Energy Fund		73,801,924		78,074,802
Energy Services Fund		71,159,747		75,126,166
Financial Services Fund		58,245,690		60,933,110
Health Care Fund		102,155,783		160,025,624
Internet Fund		115,965,380		123,601,910
Leisure Fund		54,492,451		62,742,576
Precious Metals Fund		224,412,914		214,257,800
Real Estate Fund		117,060,413		131,717,264
Retailing Fund		32,450,041		61,400,293
Technology Fund		122,821,958		170,459,120
Telecommunications Fund		26,248,402		25,652,273
Transportation Fund		65,782,417		69,856,468
Utilities Fund		162,399,942		234,664,407

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the year ended March 31, 2020, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Fund	Purchases		Sales		Realized Gain (Loss)
Banking Fund	$	5,545,432	$	5,988,236	$	(50,010	)
Basic Materials Fund		2,465,685		4,576,033		240,459
Biotechnology Fund		5,446,077		12,009,616		2,861,192
Consumer Products Fund		11,322,697		9,997,936		673,959
Electronics Fund		21,390,140		17,340,703		966,846
Energy Fund		6,824,652		5,348,510		(708,541	)
Energy Services Fund		6,216,775		4,677,034		(532,194	)
Financial Services Fund		10,386,399		9,611,374		266,685
Health Care Fund		15,196,016		25,039,013		1,203,817
Internet Fund		21,195,570		13,253,724		388,423
Leisure Fund		9,166,531		6,465,569		138,798
Precious Metals Fund		10,907,053		10,581,241		(67,938	)
Real Estate Fund		10,470,654		10,045,328		139,826
Retailing Fund		5,964,699		5,487,832		379,041
Technology Fund		22,706,674		27,922,149		1,541,457
Telecommunications Fund		4,270,017		2,330,790		49,818
Transportation Fund		4,671,993		5,295,324		(1,280	)
Utilities Fund		11,721,121		7,694,259		433,185

168 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Note 6 – Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The joint account includes other Funds in the Guggenheim complex not covered in this report. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At March 31, 2020, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
J.P. Morgan Securities LLC					U.S. Treasury Note
0.01%					2.00%
Due 04/01/20	$	129,371,353	$	129,371,389	11/30/22	$	125,405,900	$	131,958,818
BofA Securities, Inc.					U.S. Treasury Note
0.00%					2.13%
Due 04/01/20		49,758,213		49,758,213	08/15/21		49,322,100		50,753,381

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

Note 7 – Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds’ securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class Z. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

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NOTES TO FINANCIAL STATEMENTS (continued)

At March 31, 2020, the Funds participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

	Gross Amounts Not Offset in the Statements of Assets and Liabilities							Securities Lending Collateral
Fund	Value of Securities Loaned		Collateral Received(a)			Net Amount		Cash Collateral Invested			Cash Collateral Uninvested		Total Collateral
Banking Fund	$	43,752	$	(43,752	)	$	—	$	46,079		$	—	$	46,079
Basic Materials Fund		623,426		(623,426	)		—		641,991			—		641,991
Biotechnology Fund		1,090,544		(1,090,544	)		—		1,830,522			—		1,830,522
Consumer Products Fund		1,997,674		(1,997,674	)		—		2,038,986			—		2,038,986
Electronics Fund		375,984		(375,984	)		—		382,670			—		382,670
Energy Fund		80,316		(80,316	)		—		82,547			—		82,547
Energy Services Fund		71,231		(71,231	)		—		76,274			—		76,274
Health Care Fund		186,466		(186,466	)		—		207,901			—		207,901
Internet Fund		372,658		(372,658	)		—		380,695			—		380,695
Leisure Fund		83,959		(82,215	)		1,744		82,215	*		—		82,215
Precious Metals Fund		3,888,207		(3,888,207	)		—		4,212,644			—		4,212,644
Real Estate Fund		22,369		(22,369	)		—		24,081			—		24,081
Retailing Fund		100,476		(98,999	)		1,477		98,999	*		—		98,999
Technology Fund		254,399		(254,399	)		—		265,039			—		265,039
Telecommunications Fund		50,261		(50,261	)		—		51,564			—		51,564
Transportation Fund		61,767		(60,915	)		852		60,915	*		—		60,915

(a)	Actual collateral received by the Fund is generally greater than the amount shown due to overcollateralization.
*	Subsequent to March 31, 2020, additional collateral was received.

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers to evaluate potential risks.

Note 8 – Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 8, 2020. On March 30, 2020, the Board approved increasing the line of credit from $75,000,000 to $150,000,000. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 3.02% for the year ended March 31, 2020. On March 31, 2020, the Health Care Fund borrowed $85,000 under this agreement. The remaining Funds did not have any borrowings outstanding under this agreement at March 31, 2020.

170 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The average daily balances borrowed for the year ended March 31, 2020, were as follows:

Fund	Average Daily Balance
Banking Fund	$	1,530
Basic Materials Fund		519
Biotechnology Fund		34,705
Consumer Products Fund		6,855
Electronics Fund		3,199
Energy Fund		4,336
Energy Services Fund		6,705
Financial Services Fund		1,262
Health Care Fund		2,052
Internet Fund		216
Leisure Fund		3,973
Precious Metals Fund		391
Real Estate Fund		5,505
Retailing Fund		2,620
Technology Fund		4,590
Telecommunications Fund		883
Transportation Fund		1,760
Utilities Fund		20,697

Note 9 – Legal Proceedings

Tribune Company

Rydex Series Funds has been named as a defendant and a putative member of the proposed defendant class of shareholders in the case entitled Kirschner v. FitzSimons, No. 12-2652 (S.D.N.Y.) (formerly Official Committee of Unsecured Creditors of Tribune Co. v. FitzSimons, Adv. Pro. No. 10-54010 (Bankr. D. Del.)) (the “FitzSimons action”), as a result of ownership by certain series of the Rydex Series Funds of shares in the Tribune Company (“Tribune”) in 2007, when Tribune effected a leveraged buyout transaction (“LBO”) by which Tribune converted to a privately-held company. In his complaint, the plaintiff has alleged that, in connection with the LBO, Tribune insiders and shareholders were overpaid for their Tribune stock using financing that the insiders knew would, and ultimately did, leave Tribune insolvent. The plaintiff has asserted claims against certain insiders, major shareholders, professional advisers, and others involved in the LBO. The plaintiff is also attempting to obtain from former Tribune shareholders, including the Rydex Series Funds, the proceeds they received in connection with the LBO.

In June 2011, a group of Tribune creditors filed multiple actions against former Tribune shareholders involving state law constructive fraudulent conveyance claims arising out of the 2007 LBO (the “SLCFC actions”). Rydex Series Funds has been named as a defendant in one or more of these suits. In those actions, the creditors seek to recover from Tribune’s former shareholders the proceeds received in connection with the 2007 LBO.

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2296 (S.D.N.Y.) (the “MDL Proceeding”).

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order.

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments.

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NOTES TO FINANCIAL STATEMENTS (continued)

On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. On April 3, 2018, Justice Kennedy and Justice Thomas issued a “Statement” related to the petition for certiorari suggesting that the Second Circuit and/or District Court may want to take steps to reexamine the application of the Section 546(e) safe harbor to the previously dismissed state law constructive fraudulent transfer claims based on the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. On April 10, 2018, Plaintiffs filed in the Second Circuit a motion for that court to recall its mandate, vacate its prior decision, and remand to the district court for further proceedings consistent with Merit Management. On April 20, 2018, the shareholder defendants filed an opposition to Plaintiffs’ motion to recall the mandate. On May 15, 2018, the Second Circuit issued an order recalling the mandate “in anticipation of further panel review.” On December 19, 2019, the Second Circuit issued an amended opinion that again affirmed the district court’s ruling on the basis that plaintiffs’ claims were preempted by Section 546(e) of the Bankruptcy Code. Plaintiffs filed a motion for rehearing and rehearing en banc on January 2, 2020. The Second Circuit denied the petition on February 6, 2020.

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. On January 6, 2017, the United States District Court for the Southern District of New York granted the shareholder defendants’ motion to dismiss the intentional fraudulent conveyance claim in the FitzSimons action. In dismissing the intentional fraudulent conveyance claim, the Court denied the plaintiff’s request to amend the complaint. The plaintiff requested that the Court direct entry of a final judgment in order to make the order immediately appealable. On February 23, 2017, the Court issued an order stating that it intended to permit an interlocutory appeal of the dismissal order, but would wait to do so until it has resolved outstanding motions to dismiss filed by other defendants.

On July 18, 2017, the plaintiff submitted a letter to the District Court seeking leave to amend its complaint to add a constructive fraudulent transfer claim. The shareholder defendants opposed that request. On August 24, 2017, the Court denied the plaintiff’s request without prejudice to renewal of the request in the event of an intervening change in the law. On March 8, 2018, the plaintiff renewed his request for leave to file a motion to amend the complaint to assert a constructive fraudulent transfer claim based on the Supreme Court’s ruling in Merit Management Group LP v. FTI Consulting, Inc. The shareholder defendants opposed that request. On June 18, 2018 the District Court ordered that the request would be stayed pending further action by the Second Circuit in the SLCFC actions.

On December 18, 2018, plaintiff filed a letter with the District Court requesting that the stay be dissolved in order to permit briefing on the motion to amend the complaint and indicating plaintiff’s intention to file another motion to amend the complaint to reinstate claims for intentional fraudulent transfer. The shareholder defendants opposed that request. On January 14, 2019, the court held a case management conference, during which the court stated that it would not lift the stay prior to further action from the Second Circuit in the SLCFC actions. The court further stated that it would allow the plaintiff to file a motion to amend to try to reinstate its intentional fraudulent transfer claim. On January 23, 2019, the court ordered the parties still facing pending claims to participate in a mediation, to commence on January 28, 2019. The mediation did not result in a settlement of the claims against the shareholder defendants.

On April 4, 2019, plaintiff filed a motion to amend the Fifth Amended Complaint to assert a federal constructive fraudulent transfer claim against certain shareholder defendants. On April 10, 2019, the shareholder defendants filed a brief in opposition to plaintiff’s motion to amend. On April 12, 2019, the plaintiff filed a reply brief. On April 23, 2019, the court denied the plaintiff’s motion to amend. On June 13, 2019, the court entered judgment pursuant to Rule 54(b). On July 12, 2019, the Plaintiff filed a notice of appeal with respect to the dismissal of his claims and the District Court’s denial of his motion for leave to amend. Plaintiff filed an appellate brief on January 7, 2020. The shareholder defendants’ brief was filed on April 27, 2020.

None of these lawsuits alleges any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds held shares of Tribune and tendered these shares as part of Tribune’s LBO: Nova Fund, S&P 500^® Pure Value Fund, Multi-Cap Core Equity Fund, S&P 500^® Fund, Multi-Hedge Strategies Fund and Hedged Equity Fund (the “Funds”). The value of the proceeds received by the foregoing Funds was $28,220, $109,242, $9,860, $3,400, $1,181,160, and $10,880, respectively. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

172 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (concluded)

Note 10 – COVID-19 and Recent Developments

The global ongoing crisis caused by the outbreak of COVID-19 is causing materially reduced consumer demand and economic output, disrupting supply chains, resulting in market closures, travel restrictions and quarantines, and adversely impacting local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and health conditions all over the world, the Funds’ investments and a shareholder’s investment in a Fund are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational risks.

Note 11 – Subsequent Events

Share Splits

On May 18, 2020, the Board approved reverse share splits as follows:

Fund	Effective Date	Split Type
Energy Fund	August 7, 2020	One-for-Three Reverse Split
Energy Services Fund	August 7, 2020	One-for-Fifteen Reverse Split

The Funds evaluated subsequent events through the date the financial statements were available for issue and determined there were no material events other than the one disclosed above, that would require adjustment to or disclosure in the Funds’ financial statements.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of Banking Fund, Basic Materials Fund, Biotechnology Fund, Consumer Products Fund, Electronics Fund, Energy Fund, Energy Services Fund, Financial Services Fund, Health Care Fund, Internet Fund, Leisure Fund, Precious Metals Fund, Real Estate Fund, Retailing Fund, Technology Fund, Telecommunications Fund, Transportation Fund and Utilities Fund and the Board of Trustees of Rydex Series Funds

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of Banking Fund, Basic Materials Fund, Biotechnology Fund, Consumer Products Fund, Electronics Fund, Energy Fund, Energy Services Fund, Financial Services Fund, Health Care Fund, Internet Fund, Leisure Fund, Precious Metals Fund, Real Estate Fund, Retailing Fund, Technology Fund, Telecommunications Fund, Transportation Fund and Utilities Fund (collectively referred to as the “Funds”), (eighteen of the funds constituting Rydex Series Funds (the “Trust”)), including the schedules of investments, as of March 31, 2020, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (eighteen of the funds constituting Rydex Series Funds) at March 31, 2020, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2020, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Guggenheim investment companies since 1979.

Tysons, Virginia
May 28, 2020

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OTHER INFORMATION (Unaudited)

Federal Income Tax Information

This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

In January 2021, shareholders will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by shareholders in the calendar year 2020.

The Funds’ investment income (dividend income plus short-term capital gains, if any) qualifies as follows:

Of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2020, the following funds had the corresponding percentages qualify for the reduced tax rate pursuant to the Jobs and Growth Tax Relief and Reconciliation Act of 2003 or for the dividends received deduction for corporations. See the qualified dividend income and dividend received deduction columns, respectively, in the table below.

Additionally, of the taxable ordinary income distributions paid during the fiscal year ended March 31, 2020, the following funds had the corresponding percentages qualify as qualified short-term capital gains as permitted by IRC Section 871(k)(2). See qualified short-term capital gain column in the table below.

Fund	Qualified Dividend Income			Dividend Received Deduction			Qualified Short-Term Capital Gain
Banking Fund		100.00	%		100.00	%		0.00	%
Basic Materials Fund		100.00	%		100.00	%		100.00	%
Consumer Products Fund		100.00	%		97.55	%		100.00	%
Electronics Fund		100.00	%		100.00	%		0.00	%
Energy Fund		100.00	%		100.00	%		0.00	%
Energy Services Fund		100.00	%		25.22	%		0.00	%
Financial Services Fund		29.76	%		100.00	%		0.00	%
Leisure Fund		100.00	%		100.00	%		0.00	%
Precious Metals Fund		14.25	%		14.57	%		0.00	%
Real Estate Fund		16.90	%		17.18	%		0.00	%
Telecommunications Fund		85.94	%		81.08	%		0.00	%
Transportation Fund		100.00	%		100.00	%		100.00	%
Utilities Fund		100.00	%		100.00	%		0.00	%

With respect to the taxable year ended March 31, 2020, the Funds hereby designate as capital gain dividends the amounts listed below, or, if subsequently determined to be different, the net capital gain of such year:

Fund	From long-term capital gain:		From long-term capital gain, using proceeds from shareholder redemptions:
Basic Materials Fund	$	341,784	$	—
Biotechnology Fund		9,558,792		13,269,249
Consumer Products Fund		1,441,214		4,377,757
Electronics Fund		—		602,037
Financial Services Fund		—		241,098
Health Care Fund		—		2,262,271
Internet Fund		903,814		—
Leisure Fund		—		1,851,142
Retailing Fund		—		3,023,164
Technology Fund		329,115		4,678,136
Transportation Fund		470,590		1,802,684
Utilities Fund		—		4,189,762

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OTHER INFORMATION (Unaudited)(concluded)

Proposed regulations dated January 18, 2019 enable a regulated investment company to pay Section 199A dividends to its shareholders. Section 199A, enacted as part of the Tax Cuts and Jobs Act of 2017, may allow non-corporate tax payers a deduction of up to 20% of qualified business income from flow-through entities, including dividends from real estate investment trusts. The qualifying percentage of the Funds’ ordinary income and short-term capital gain distributions, if any, for the purposes of the Section 199A deduction was 36.40% for Financial Services Fund and 74.25% for Real Estate Fund.

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Information regarding how the Funds’ voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Sector Classification

Information in the Schedule of Investments is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds’ Forms N-PORT and N-Q are available on the SEC’s website at https://www.sec.gov. The Funds’ Forms N-PORT and N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by visiting guggenheiminvestments.com or by calling 800.820.0888.

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES
Randall C. Barnes (1951)	Trustee	Since 2019	Current: Private Investor (2001-present). Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).	157	Current: Purpose Investments Funds (2013-present). Former: Managed Duration Investment Grade Municipal Fund (2006-2016).
Angela Brock-Kyle (1959)	Trustee	Since 2016	Current: Founder and Chief Executive Officer, B.O.A.R.D.S. (2013-present). Former: Senior Leader, TIAA (1987-2012).	156	Current: Hunt Companies, Inc. (2019-present). Former: Infinity Property & Casualty Corp. (2014-2018).
Donald A. Chubb, Jr. (1946)	Trustee and Chair of the Valuation Oversight Committee	Since 2019	Current: Retired Former: Business broker and manager of commercial real estate, Griffith & Blair, Inc. (1997-2017).	156	Former: Midland Care, Inc. (2011-2016).
Jerry B. Farley (1946)	Trustee	Since 2019	Current: President, Washburn University (1997-present).	156	Current: CoreFirst Bank & Trust (2000-present). Former: Westar Energy, Inc. (2004-2018).
Roman Friedrich III (1946)	Trustee and Chair of the Contracts Review Committee	Since 2019	Current: Founder and Managing Partner, Roman Friedrich & Company (1998-present).	156	Former: Zincore Metals, Inc. (2009-2019).
Thomas F. Lydon, Jr. (1960)	Trustee and Vice Chair of the Contracts Review Committee	Since 2005 (Trustee) Since 2019 (Vice Chair of the Contracts Review Committee)	Current: President, Global Trends Investments (1996-present); Co-Chief Executive Officer, ETF Flows, LLC (2019-present); Chief Executive Officer, Lydon Media (2016-present).	156	Current: US Global Investors (GROW) (1995-present). Former: Harvest Volatility Edge Trust (3) (2017-2019).

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - concluded
Ronald A. Nyberg (1953)	Trustee and Chair of the Nominating and Governance Committee	Since 2019	Current: Partner, Momkus LLC (2016-present). Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).	157	Current: PPM Funds (9) (2018-present); Edward-Elmhurst Healthcare System (2012-present). Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-April 2020); Western Asset Inflation-Linked Income Fund (2003-April 2020) Managed Duration Investment Grade Municipal Fund (2003-2016).
Sandra G. Sponem (1958)	Trustee and Chair of the Audit Committee	Since 2016 (Trustee) Since 2019 (Chair of the Audit Committee)	Current: Retired. Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson-Companies, Inc. (2007-2017).	156	Current: SPDR Series Trust (78) (2018-present); SPDR Index Shares Funds (31) (2018-present); SSGA Active Trust (12) (2018-present); and SSGA Master Trust (1) (2018-present).
Ronald E. Toupin, Jr. (1958)	Trustee, Chair of the Board and Chair of the Executive Committee	Since 2019	Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999).	156	Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-April 2020); Western Asset Inflation-Linked Income Fund (2003-April 2020) Managed Duration Investment Grade Municipal Fund (2003-2016).

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INTERESTED TRUSTEE
Amy J. Lee**** (1961)	Trustee, Vice President and Chief Legal Officer	Since 2018 (Trustee) Since 2019 (Vice President and Chief Legal Officer)	Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: President and Chief Executive Officer, certain other funds in the Fund Complex (2017-2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).	156	None.

*	The business address of each Trustee is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each Trustee serves an indefinite term, until his or her successor is elected and qualified. Time served includes time served in the respective position for the Predecessor Corporation.
***	Each Trustee also serves on the boards of trustees of Guggenheim Funds Trust, Guggenheim Variable Funds Trust, Guggenheim Strategy Funds Trust, Fiduciary/Claymore Energy Infrastructure Fund, Guggenheim Taxable Municipal Managed Duration Trust, Guggenheim Strategic Opportunities Fund, Guggenheim Enhanced Equity Income Fund, Guggenheim Energy & Income Fund, Guggenheim Credit Allocation Fund, Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Funds and Transparent Value Trust. Messrs. Barnes and Nyberg also serve on the board of trustees of Advent Convertible & Income Fund.
****	This Trustee is deemed to be an “interested person” of the Funds under the 1940 Act by reason of her position with the Funds’ Investment Manager and/or the parent of the Investment Manager.

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS
Brian E. Binder (1972)	President and Chief Executive Officer	Since 2019	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President, Chief Executive Officer and Chairman of the Board of Managers, Guggenheim Funds Investment Advisors, LLC (2018-present); President and Chief Executive Officer, Security Investors, LLC (2018-present); Board Member of Guggenheim Partners Fund Management (Europe) Limited (2018-present); Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-present). Former: Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Head of Business Management and Consulting, Invesco Ltd. (2010-2012).
James M. Howley (1972)	Assistant Treasurer	Since 2016	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Mark E. Mathiasen (1978)	Secretary	Since 2017	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer	Since 2016	Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present).
Michael P. Megaris (1984)	Assistant Secretary	Since 2018	Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2012-present).
Elisabeth Miller (1968)	Chief Compliance Officer	Since 2012	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).
Margaux Misantone (1978)	AML Officer	Since 2017	Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Managing Director, Guggenheim Investments (2015-present). Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018).
William Rehder (1967)	Assistant Vice President	Since 2018	Current: Managing Director, Guggenheim Investments (2002-present).

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(concluded)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS - concluded
Kimberly J. Scott (1974)	Assistant Treasurer	Since 2016	Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
Bryan Stone (1979)	Vice President	Since 2019	Current: Vice President, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2013-present). Former: Senior Vice President, Neuberger Berman Group LLC (2009-2013); Vice President, Morgan Stanley (2002-2009).
John L. Sullivan (1955)	Chief Financial Officer, Chief Accounting Officer and Treasurer	Since 2016	Current: Chief Financial Officer, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and Chief Compliance Officer, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); Chief Financial Officer and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer	Since 2017	Current: Vice President, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (2017); Senior Analyst of US Fund Administration, HGINA (2014–2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	The business address of each officer is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each officer serves an indefinite term, until his or her successor is duly elected and qualified.

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)

Who We Are

This Privacy Notice describes the data protection practices of Guggenheim Investments. Guggenheim Investments as used herein refers to the affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Guggenheim Investment Advisors (Europe) Limited, Guggenheim Real Estate, LLC, GS Gamma Advisors, LLC, Guggenheim Partners India Management, LLC, Guggenheim Partners Europe Limited, as well as the funds in the Guggenheim Funds complex (the “Funds”) (“Guggenheim Investments,” “we,” “us,” or “our”).

Guggenheim Partners Investment Management Holdings, LLC, located at 330 Madison Avenue, New York, New York 10017 is the data controller for your information. The affiliates who are also controllers of certain of your information are: Guggenheim Investment Advisors (Europe) Limited, Guggenheim Partners Europe Limited, Guggenheim Partners, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC and Security Investors, LLC, as well as the Funds.

Our Commitment to You

Guggenheim Investments considers your privacy our utmost concern. When you become our client or investor, you entrust us with not only your hard-earned money but also with your personal and financial information. Because we have access to your private information, we hold ourselves to the highest standards in its safekeeping and use. We strictly limit how we share your information with others, whether you are a current or former Guggenheim Investments client or investor.

The Information We Collect About You

We collect certain nonpublic personal information about you from information you provide on applications, other forms, our website, and/or from third parties including investment advisors. This information includes Social Security or other tax identification number, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, bank account information, marital status, family relationships, information that we collect on our website through the use of “cookies,” and other personal information that you or others provide to us. We may also collect such information through your inquiries by mail, e-mail or telephone. We may also collect customer due diligence information, as required by applicable law and regulation, through third party service providers.

How We Handle Your Personal Information

The legal basis for using your information as set out in this Privacy Notice is as follows: (a) use of your personal data is necessary to perform our obligations under any contract with you (such as a contract for us to provide financial services to you); or (b) where use of your personal data is not necessary for performance of a contract, use of your personal data is necessary for our legitimate interests or the legitimate interests of others (for example, to enforce the legal terms governing our services, operate and market our website and other services we offer, ensure safe environments for our personnel and others, make and receive payments, prevent fraud and to know the customer to whom we are providing the services). Some processing is done to comply with applicable law.

In addition to the specific uses described above, we also use your information in the following manner:

● We use your information in connection with servicing your accounts.

● We use information to respond to your requests or questions. For example, we might use your information to respond to your customer feedback.

● We use information to improve our products and services. We may use your information to make our website and products better. We may use your information to customize your experience with us.

● We use information for security purposes. We may use your information to protect our company and our customers.

● We use information to communicate with you. For example, we will communicate with you about your account or our relationship. We may contact you about your feedback. We might also contact you about this Privacy Notice. We may also enroll you in our email newsletter.

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

● We use information as otherwise permitted by law, as we may notify you.

● Aggregate/Anonymous Data. We may aggregate and/or anonymize any information collected through the website so that such information can no longer be linked to you or your device (“Aggregate/Anonymous Information”). We may use Aggregate/Anonymous Information for any purpose, including without limitation for research and marketing purposes, and may also share such data with any third parties, including advertisers, promotional partners, and sponsors.

We do not sell information about current or former clients or their accounts to third parties. Nor do we share this information, except when necessary to complete transactions at your request, to make you aware of investment products and services that we or our affiliates offer, or as permitted or required by law.

We provide information about you to companies and individuals not affiliated with Guggenheim Investments to complete certain transactions or account changes, or to perform services for us related to your account. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we must provide certain information about you to that company to complete the transaction. We provide the third party with only the information necessary to carry out its responsibilities and only for that purpose. And we require these third parties to treat your private information with the same high degree of confidentiality that we do. To alert you to other Guggenheim Investments products and services, we share your information within our family of affiliated companies. You may limit our sharing with affiliated companies as set out below. We may also share information with any successor to all or part of our business, or in connection with steps leading up to a merger or acquisition. For example, if part of our business was sold we may give customer information as part of that transaction. We may also share information about you with your consent.

We will release information about you if you direct us to do so, if we are compelled by law to do so, or in other circumstances as permitted by law (for example, to protect your account from fraud).

If you close your account(s) or become an inactive client or investor, we will continue to adhere to the privacy policies and practices described in this notice.

Opt-Out Provisions and Your Data Choices

The law allows you to “opt out” of certain kinds of information sharing with third parties. We do not share personal information about you with any third parties that triggers this opt-out right. This means YOU ARE ALREADY OPTED OUT.

When you are no longer our client or investor, we continue to share your information as described in this notice, and you may contact us at any time to limit our sharing by sending an email to CorporateDataPrivacy@GuggenheimPartners.com.

European Union Data Subjects and certain others: In addition to the choices set forth above, residents of the European Union and certain other jurisdictions have certain rights to (1) request access to or rectification or deletion of information we collect about them, (2) request a restriction on the processing of their information, (3) object to the processing of their information, or (4) request the portability of certain information. To exercise these or other rights, please contact us using the contact information below. We will consider all requests and provide our response within the time period stated by applicable law. Please note, however, that certain information may be exempt from such requests in some circumstances, which may include if we need to keep processing your information for our legitimate interests or to comply with a legal obligation. We may request you provide us with information necessary to confirm your identity before responding to your request.

Residents of France and certain other jurisdictions may also provide us with instructions regarding the manner in which we may continue to store, erase and share your information after your death, and where applicable, the person you have designated to exercise these rights after your death.

How We Protect Privacy Online

We take steps to protect your privacy when you use our web site – www.guggenheiminvestments.com – by using secure forms of online communication, including encryption technology, Secure Socket Layer (SSL) protocol, firewalls and user names and passwords. These safeguards vary based on the sensitivity of the information that we collect and store. However, we cannot and do not guarantee that these measures will prevent every unauthorized attempt to access, use, or disclose your information since despite our efforts, no Internet and/or other

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(concluded)

electronic transmissions can be completely secure. Our web site uses “http cookies”—tiny pieces of information that we ask your browser to store. We use cookies for session management and security features on the Guggenheim Investments web site. We do not use them to pull data from your hard drive, to learn your e-mail address, or to view data in cookies created by other web sites. We will not share the information in our cookies or give others access to it. See the legal information area on our web site for more details about web site security and privacy features.

How We Safeguard Your Personal Information and Data Retention

We restrict access to nonpublic personal information about you to our employees and in some cases to third parties (for example, the service providers described above) as permitted by law. We maintain strict physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

We keep your information for no longer than necessary for the purposes for which it is processed. The length of time for which we retain information depends on the purposes for which we collected and use it and/or as required to comply with applicable laws. Information may persist in copies made for backup and business continuity purposes for additional time.

International Visitors

If you are not a resident of the United States, please be aware that your information may be transferred to, stored and processed in the United States where our servers are located and our databases are operated. The data protection and other laws of the United States and other countries might not be as comprehensive as those in your country.

In such cases, we ensure that a legal basis for such a transfer exists and that adequate protection is provided as required by applicable law, for example, by using standard contractual clauses or by transferring your data to a jurisdiction that has obtained an adequacy finding. Individuals whose data may be transferred on the basis of standard contractual clauses may contact us as described below.

We’ll Keep You Informed

If you have any questions or concerns about how we treat your personal data, we encourage you to consult with us first. You may also contact the relevant supervisory authority.

We reserve the right to modify this policy at any time and will inform you promptly of material changes. You may access our privacy policy from our web site at www.guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us by email at CorporateDataPrivacy@GuggenheimPartners.com.

184 | THE RYDEX FUNDS ANNUAL REPORT

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3.31.2020

Rydex Funds Annual Report

Domestic Equity Funds

Nova Fund

S&P 500^® Fund

Inverse S&P 500^® Strategy Fund

Monthly Rebalance NASDAQ-100^® 2x Strategy Fund

Inverse NASDAQ-100^® Strategy Fund

Mid-Cap 1.5x Strategy Fund

Inverse Mid-Cap Strategy Fund

Russell 2000^® 1.5x Strategy Fund

Russell 2000^® Fund

Inverse Russell 2000^® Strategy Fund

Dow Jones Industrial Average^® Fund

Fixed Income Funds

Government Long Bond 1.2x Strategy Fund

Inverse Government Long Bond Strategy Fund

High Yield Strategy Fund

Inverse High Yield Strategy Fund

Money Market Fund

U.S. Government Money Market Fund

Beginning on January 1, 2021, paper copies of the Funds’ annual and semi-annual shareholder reports may no longer be sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from a fund electronically by calling 800.820.0888, going to GuggenheimInvestments.com/myaccount, or by contacting your financial intermediary.

You may elect to receive all future shareholder reports in paper free of charge. If you hold shares of a fund directly, you can inform the Fund that you wish to receive paper copies of reports by calling 800.820.0888. If you hold shares of a fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper will apply to all Guggenheim Funds in which you are invested and may apply to all funds held with your financial intermediary.

GuggenheimInvestments.com RTB1-ANN-0320x0321

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	4
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	6
ABOUT SHAREHOLDERS’ FUND EXPENSES	7
NOVA FUND	12
S&P 500® FUND	27
INVERSE S&P 500® STRATEGY FUND	40
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND	49
INVERSE NASDAQ-100® STRATEGY FUND	59
MID-CAP 1.5x STRATEGY FUND	68
INVERSE MID-CAP STRATEGY FUND	80
RUSSELL 2000® 1.5x STRATEGY FUND	88
RUSSELL 2000® FUND	97
INVERSE RUSSELL 2000® STRATEGY FUND	105
DOW JONES INDUSTRIAL AVERAGE® FUND	113
GOVERNMENT LONG BOND 1.2x STRATEGY FUND	122
INVERSE GOVERNMENT LONG BOND STRATEGY FUND	132
HIGH YIELD STRATEGY FUND	144
INVERSE HIGH YIELD STRATEGY FUND	154
U.S. GOVERNMENT MONEY MARKET FUND	163
NOTES TO FINANCIAL STATEMENTS	169
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	190
OTHER INFORMATION	192
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	194
GUGGENHEIM INVESTMENTS PRIVACY NOTICE	199

THE RYDEX FUNDS ANNUAL REPORT | 1

March 31, 2020

Dear Shareholder:

The fiscal year ended March 31, 2020, concluded on a somber note. Even though markets performed well for most of the period, the emergence of a novel and highly contagious form of coronavirus in the last weeks of the period adversely impacted global commercial activity and contributed to significant volatility in certain markets, unseen since the great recession of 2008.

As it spread beyond Asia to virtually every country in the world, many governments and businesses instituted quarantines and closures, which has resulted in significant disruption in manufacturing, supply chains, consumer demand and economic activity. The U.S. Federal Reserve responded quickly to provide liquidity in order to ensure that the U.S. markets continued to function efficiently. The fiscal policy included a spending bill worth over $2 trillion to assist consumers, states, small businesses and certain industries. While these actions helped stabilize the market, volatile conditions continued into April.

As discussed in this annual shareholder report, these events have affected performance of many of our funds (the “Fund” or “Funds”). We encourage you to read the Economic and Market Overview section of the report, which follows this letter, and then the Performance Report and Fund Profile for each Fund.

Security Investors, LLC (the “Investment Adviser”), the Investment Adviser for the Funds, is part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC (“Guggenheim”), a global, diversified financial services firm. An affiliate of Guggenheim and the Investment Adviser, Guggenheim Funds Distributors, LLC, is the distributor of the Funds.

Together, we are committed to the safety and prosperity of our clients, our employees, and our shareholders. The resources of the firm are being made fully available not only to support our clients, but also to support our employees and their families.

Please practice the appropriate prudence for the protection not only of your health and that of your friends and loved ones but also for our neighbors and communities. Thank you for the trust you place in us.

Sincerely,

Security Investors, LLC

April 30, 2020

Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at guggenheiminvestments.com or call 800.820.0888.

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.

The global ongoing crisis caused by the outbreak of COVID-19 is causing materially reduced consumer demand and economic output, disrupting supply chains, resulting in market closures, travel restrictions and quarantines, and adversely impacting local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and health conditions all over the world, the Funds’ investments and a shareholder’s investment in the Funds are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational risks.

Inverse and leveraged Funds are not suitable for all investors. ● These Funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking daily leveraged investment results, (c) understand the risk of shorting, and (d) intend to actively monitor and manage their investments. ● The more a Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● Inverse Funds involve certain risks, which include increased volatility due to the Funds’ possible use of short sales of securities and derivatives, such as options and futures. ● The Funds’ use of derivatives, such as futures, options and swap agreements, may expose the Funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. ● Short-selling involves increased risks and costs. You risk paying more for a security than you received from its sale. ● Leveraged and inverse Funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. Because the Funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those Funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark.

2 | THE RYDEX FUNDS ANNUAL REPORT

March 31, 2020

Due to the compounding of daily returns, leveraged and inverse Funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. For those Funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. The Funds rebalance their portfolios on a daily basis, increasing exposure in response to that day’s gains or reducing exposure in response to that day’s losses. Daily rebalancing will impair a fund’s performance if the benchmark experiences volatility. Investors should monitor their leveraged and inverse Funds’ holdings consistent with their strategies, as frequently as daily. ● For more on these and other risks, please read the prospectus.

The Government Long Bond 1.2x Strategy and Inverse Government Long Bond Strategy funds are not suitable for all investors. ● These Funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking daily leveraged investment results, and (c) intend to actively monitor and manage their investments. ● The more a Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● The Funds’ use of derivatives, such as futures, options and swap agreements, may expose the Funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. ● Leveraged and inverse Funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. Because the Funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those Funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged Funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. For those Funds that consistently apply leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. The Funds rebalance their portfolios on a daily basis, increasing exposure in response to that day’s gains or reducing exposure in response to that day’s losses. Daily rebalancing will impair a fund’s performance if the benchmark experiences volatility. Investors should monitor their leveraged Funds’ holdings consistent with their strategies, as frequently as daily. ● In general, bond prices rise when interest rates fall, and vice versa. Moreover, while securities with longer maturities tend to produce higher yields, the price of longer maturity securities is also subject to greater fluctuations as a result of changes in interest rates. ● It is important to note that the Funds are not guaranteed by the U.S. government. ● There are no assurances that any Guggenheim fund will achieve its objective and/or strategy. These Funds are subject to active trading and tracking error risks, which may increase volatility, impact the Fund’s ability to achieve its investment objective, and may decrease the Fund’s performance. ● For more on these and other risks, please read the prospectus.

The High Yield Strategy Fund and Inverse High Yield Strategy Fund may not be suitable for all investors. ● The Fund’s use of derivatives such as futures, options, and swap agreements will expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. ● A highly liquid secondary market may not exist for the credit default swaps the Fund invests in, and there can be no assurance that a highly liquid secondary market will develop. ● The Fund’s market value will change in response to interest rate changes and market conditions among other factors. ● You may have a gain or loss when you sell your shares. ● In general, bond prices rise when interest rates fall, and vice versa. ● The Fund’s exposure to the high yield bond market may subject the Fund to greater volatility because (i) it will be affected by the ability of high yield security issuers’ ability to make principal and interest payments and (ii) the prices of derivatives linked to high yield bonds may fluctuate unpredictably and not necessarily in relation to interest rates. ● It is important to note that the Fund is not guaranteed by the U.S. government. ● The Fund is subject to active trading risks that may increase volatility and impact its ability to achieve its investment objective. ● For more on these and other risks, please read the prospectus.

Monthly leveraged funds are not suitable for all investors. ● These funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking monthly leveraged investment results, and (c) intend to actively monitor and manage their investments. ● The more a fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● The funds’ use of derivatives, such as futures, options, and swap agreements, may expose the funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. ● Monthly leveraged funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a monthly basis. Because monthly leveraged funds seek to track the performance of their benchmark on a monthly basis, mathematical compounding, especially with respect to those funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the quarterly, annual or other period performance of its benchmark. Due to the compounding of monthly returns, leveraged funds’ returns over periods other than one calendar month will likely differ in amount and possibly direction from the benchmark return for the same period. For those funds that consistently apply leverage, the value of the funds’ shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. Monthly leveraged funds rebalance their portfolios on a monthly basis on the last day of each calendar month, increasing exposure in response to that month’s gains or reducing exposure in response to that month’s losses. ● Throughout the month, the amount of leverage that a monthly leveraged fund provides is allowed to float. Purchasing monthly leveraged funds on any day other than the last day of each calendar month will likely mean that the monthly leveraged fund’s actual leverage is different from its monthly leverage target. Investors should monitor their monthly leveraged funds’ holdings consistent with their strategies, as frequently as daily. ● For more on these and other risks, please read the monthly leveraged funds’ prospectus.

The U.S. Government Money Market Fund may not be suitable for all investors. ● You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. ● For more on these and other risks, please read the prospectus.

THE RYDEX FUNDS ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) March 31, 2020

The 12-month period ended March 31, 2020, was a wild ride for markets. While the U.S. economy was generally in good shape in 2019, recessionary fears rose throughout the year, prompting the U.S. Federal Reserve (the “Fed”) to announce a rate cut on July 31, the first since 2008, amid growing downside risks to policymakers’ baseline growth and inflation forecasts. Key among those risks were slowing global growth, the threat of additional U.S.-China tariffs, and the possible ramifications surrounding Brexit. The Fed subsequently cut rates twice more in 2019, which caused markets to rally toward the end of the year and into early 2020. Stocks reached new highs and credit spreads tightened to historic levels. Since then, the global outbreak of the coronavirus, COVID-19, has been at the center of everything. As of this writing, COVID-19 has spread to 210 countries, resulted in over 2.5 million cases, and caused over 170,000 deaths. Thus far, the U.S. makes up more than 30% of global cases, and 25% of global deaths. States have required the labor force to work from home if possible, individuals to practice social distancing, and non-essential businesses to shut down.

Closures, quarantines, and social distancing efforts have impacted the travel, hospitality, restaurants, and retail industries, with activity down 100% in some areas of the country. Further exacerbating the decline in output will be reduced business investment, which was already stalling due to falling profits, trade conflicts, and political uncertainty. The coronavirus shock and collapse in oil prices will likely further depress capital expenditures.

In response to the crisis, the Federal Open Market Committee cut rates by a further 125 basis points in the first quarter of 2020 and passed a series of stimulus programs. Among these were the Primary and Secondary Market Corporate Credit Facilities, which are lending programs primarily targeting investment-grade corporate bond issuers, implemented in concert with the U.S. Treasury. It was only after the announcement of this program that corporate credit found some relief from the selloff, but we expect this relief may be temporary.

With an alphabet soup of monetary programs targeting relief from the coronavirus impact, fiscal policy has also stepped up to the plate with a spending bill worth over $2 trillion that aims to assist consumers, states, small businesses, and certain industries. There is no question that these programs will help ease the economic fallout from virus containment measures, but even $2 trillion may be too small given the magnitude of the economic shock that we are facing. Additionally, it is far from clear that fiscal measures are an adequate solution to the issue at hand: the physical impediment to consumer spending. Fiscal and monetary policy can do their part, but ultimately it is public health policy that will likely be the greatest determinant of the economic outlook.

For the 12 months ended March 31, 2020, the Standard & Poor’s 500^® (“S&P 500”) Index* returned -6.98%. The decline, while significant, represents something of a recovery in stocks. The S&P 500 peaked at 3,386.15 on February 19, 2020, before plummeting 33.9% to a low of 2,237.40 on March 23, 2020, then recovering some lost ground by the end of the month.

The consensus estimate for S&P 500 earnings per share in 2020 is still around $150. Our research shows S&P 500 earnings per share could fall below $100. Similarly, economists have no way to calibrate how bad the economic data could be based on history. The March U.S. non-farm payrolls report was evidence of this, as it showed a decline in payrolls of 700,000 jobs versus survey expectations of a decline of only 100,000 jobs. We currently expect that second quarter U.S. real gross domestic product (“GDP”) quarter-over-quarter growth could fall by 40% annualized and the unemployment rate could rise to at least 20%. Beyond that, the severity of the crisis depends on containment of the virus and the effectiveness of social distancing measures put in place, but expectations for a quick and sustained V-shaped recovery appear overly optimistic.

For the 12 months ended March 31, 2020, the MSCI Europe-Australasia-Far East (“EAFE”) Index* returned -13.92%. The return of the MSCI Emerging Markets Index* was -17.36%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted an 8.93% return for the 12-month period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned -6.94%. The return of the ICE Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 2.25% for the 12-month period.

The opinions and forecasts expressed may not actually come to pass. This information is subject to change at any time, based on market and other conditions, and should not be construed as a recommendation of any specific security or strategy.

4 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) March 31, 2020

*Index Definitions:

The following indices are referenced throughout this report. Indices are unmanaged and not available for direct investment. Index performance does not reflect transaction costs, fees, or expenses.

Bloomberg Barclays U.S. Long Treasury Index includes all publicly issued, U.S. Treasury securities that have a remaining maturity of 10 or more years, are rated investment grade, and have $250 million or more of outstanding face value. In addition, the securities must be denominated in U.S. dollars and must be fixed rate and nonconvertible. The U.S. Long Treasury Index is market capitalization weighted and the securities in the index are updated on the last business day of each month.

Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, mortgage-backed securities or “MBS” (agency fixed-rate and hybrid adjustable-rate mortgage, or “ARM”, pass-throughs), asset-backed securities (“ABS”), and commercial mortgage-backed securities (“CMBS”) (agency and non-agency).

Bloomberg Barclays U.S. Corporate High Yield Index measures the U.S. dollar-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB +/BB + or below.

Dow Jones Industrial Average^® is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq.

ICE BofA Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged market Index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income.

MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

MSCI Emerging Markets Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets.

NASDAQ-100^® Index includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain securities of financial companies including investment companies.

Russell 2000^® Index measures the performance of the small-cap segment of the U.S. equity universe.

S&P 500^® is a broad-based index, the performance of which is based on the performance of 500 widely held common stocks chosen for market size, liquidity, and industry group representation.

S&P MidCap 400^® Index provides investors with a benchmark for mid-sized companies. The index covers approximately 7% of the U.S. equity market, and seeks to remain an accurate measure of mid-sized companies, reflecting the risk and return characteristics of the broader mid-cap universe on an on-going basis.

THE RYDEX FUNDS ANNUAL REPORT | 5

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

Many of the Funds described in this report are benchmarked daily to leveraged and/or inverse leveraged versions of published indices. To properly evaluate the performance of these funds, it is essential to understand the effect of mathematical compounding on their respective returns.

Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in-line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period on a cumulative basis. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem to outperform its benchmark over longer periods.

An Example of Compounding

For example, consider a hypothetical fund that is designed to produce returns that correspond to 150% of an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a 6.0% gain and an expectation that the fund will rise by 9.0%. On the same day, the fund’s net asset value per share (“NAV”) increases from $10.00 to $10.90 for a gain of 9.0% — in line with its benchmark.

On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but for the two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking into account the daily compounding of returns, one would expect the fund to lose 1.5% and would see the fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the table below.

	Index Level	Index Performance	Fund Expectation	Fund NAV	Fund Performance	Assessment
Start	100			$10.00
Day 1	106	6.0%	9.0%	$10.90	9.0%	In line
Day 2	99	-6.6%	-9.9%	$ 9.82	-9.9%	In line
Cumulative		-1.0%	-1.5%		-1.8%	-0.3%

As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or judgments about fund performance given only the returns of the unleveraged index.

Because certain funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily. For those funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. For more on correlation, leverage and other risks, please read the prospectus.

In general, any change in direction in an index will produce compounding that seems to work against an investor. Were the index to move in the same direction (either up or down) for two or more periods in a row, the compounding of those returns would work in an investor’s favor, causing the fund to seemingly beat its benchmark.

As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less leverage will generally produce results that are more in line with expectations. In addition, periods of high volatility in an underlying index will also cause the effects of compounding to be more pronounced, while lower volatility will produce a more muted effect.

6 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses, and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, other distributions, and exchange fees, and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund’s gross income and reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning September 30, 2019 and ending March 31, 2020.

The following tables illustrate the Funds’ costs in two ways:

Table 1. Based on actual Fund return: This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fifth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return: This section is intended to help investors compare a fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments, and contingent deferred sales charges (“CDSC”) on redemptions, if any. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

More information about the Funds’ expenses, including annual expense ratios for periods up to five years (subject to the Fund’s inception date), can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

THE RYDEX FUNDS ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2019	Ending Account Value March 31, 2020	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Nova Fund
Investor Class	1.37%	(22.85%)	$ 1,000.00	$ 771.50	$ 6.07
A-Class	1.62%	(22.94%)	1,000.00	770.60	7.17
C-Class	2.37%	(23.24%)	1,000.00	767.60	10.47
H-Class	1.62%	(22.95%)	1,000.00	770.50	7.17
S&P 500® Fund
A-Class	1.69%	(13.15%)	1,000.00	868.50	7.89
C-Class	2.43%	(13.47%)	1,000.00	865.30	11.33
H-Class	1.69%	(13.14%)	1,000.00	868.60	7.89
Inverse S&P 500® Strategy Fund
Investor Class	1.52%	6.26%	1,000.00	1,062.60	7.84
A-Class	1.77%	6.14%	1,000.00	1,061.40	9.12
C-Class	2.52%	5.72%	1,000.00	1,057.20	12.96
H-Class	1.78%	6.14%	1,000.00	1,061.40	9.17
Monthly Rebalance NASDAQ-100® 2x Strategy Fund
A-Class	1.32%	(1.54%)	1,000.00	984.60	6.55
C-Class	2.06%	(1.91%)	1,000.00	980.90	10.20
H-Class	1.33%	(1.55%)	1,000.00	984.50	6.60
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.56%	(7.92%)	1,000.00	920.80	7.49
A-Class	1.78%	(8.03%)	1,000.00	919.70	8.54
C-Class	2.54%	(8.39%)	1,000.00	916.10	12.17
H-Class	1.80%	(8.05%)	1,000.00	919.50	8.64
Mid-Cap 1.5x Strategy Fund
A-Class	1.73%	(38.91%)	1,000.00	610.90	6.97
C-Class	2.48%	(39.14%)	1,000.00	608.60	9.97
H-Class	1.78%	(38.91%)	1,000.00	610.90	7.17
Inverse Mid-Cap Strategy Fund
A-Class	1.70%	21.01%	1,000.00	1,210.10	9.39
C-Class	2.63%	20.83%	1,000.00	1,208.30	14.52
H-Class	1.71%	21.05%	1,000.00	1,210.50	9.45
Russell 2000® 1.5x Strategy Fund
A-Class	1.77%	(36.94%)	1,000.00	630.60	7.22
C-Class	2.51%	(37.19%)	1,000.00	628.10	10.22
H-Class	1.82%	(36.94%)	1,000.00	630.60	7.42
Russell 2000® Fund
A-Class	1.73%	(24.46%)	1,000.00	755.40	7.59
C-Class	2.48%	(24.74%)	1,000.00	752.60	10.87
H-Class	1.74%	(24.45%)	1,000.00	755.50	7.64
Inverse Russell 2000® Strategy Fund
A-Class	1.79%	18.65%	1,000.00	1,186.50	9.78
C-Class	2.54%	18.29%	1,000.00	1,182.90	13.86
H-Class	1.80%	18.73%	1,000.00	1,187.30	9.84

8 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2019	Ending Account Value March 31, 2020	Expenses Paid During Period2
Dow Jones Industrial Average® Fund
A-Class	1.67%	(18.79%)	$ 1,000.00	$ 812.10	$ 7.57
C-Class	2.42%	(19.11%)	1,000.00	808.90	10.94
H-Class	1.67%	(18.81%)	1,000.00	811.90	7.56
Government Long Bond 1.2x Strategy Fund
Investor Class	1.06%	22.51%	1,000.00	1,225.10	5.90
A-Class	1.31%	22.35%	1,000.00	1,223.50	7.28
C-Class	2.06%	21.90%	1,000.00	1,219.00	11.43
H-Class	1.31%	22.36%	1,000.00	1,223.60	7.28
Inverse Government Long Bond Strategy Fund
Investor Class	2.93%	(19.80%)	1,000.00	802.00	13.20
A-Class	3.17%	(19.91%)	1,000.00	800.90	14.27
C-Class	3.91%	(20.19%)	1,000.00	798.10	17.58
H-Class	3.21%	(19.93%)	1,000.00	800.70	14.45
High Yield Strategy Fund
A-Class	1.62%	(9.91%)	1,000.00	900.90	7.70
C-Class	2.37%	(10.27%)	1,000.00	897.30	11.24
H-Class	1.62%	(9.92%)	1,000.00	900.80	7.70
Inverse High Yield Strategy Fund
A-Class	1.61%	6.69%	1,000.00	1,066.90	8.32
C-Class	2.34%	6.31%	1,000.00	1,063.10	12.07
H-Class	1.64%	6.84%	1,000.00	1,068.40	8.48
U.S. Government Money Market Fund
Money Market Class	1.01%	0.32%	1,000.00	1,003.20	5.06

THE RYDEX FUNDS ANNUAL REPORT | 9

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2019	Ending Account Value March 31, 2020	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Nova Fund
Investor Class	1.37%	5.00%	$ 1,000.00	$ 1,018.15	$ 6.91
A-Class	1.62%	5.00%	1,000.00	1,016.90	8.17
C-Class	2.37%	5.00%	1,000.00	1,013.15	11.93
H-Class	1.62%	5.00%	1,000.00	1,016.90	8.17
S&P 500® Fund
A-Class	1.69%	5.00%	1,000.00	1,016.55	8.52
C-Class	2.43%	5.00%	1,000.00	1,012.85	12.23
H-Class	1.69%	5.00%	1,000.00	1,016.55	8.52
Inverse S&P 500® Strategy Fund
Investor Class	1.52%	5.00%	1,000.00	1,017.40	7.67
A-Class	1.77%	5.00%	1,000.00	1,016.15	8.92
C-Class	2.52%	5.00%	1,000.00	1,012.40	12.68
H-Class	1.78%	5.00%	1,000.00	1,016.10	8.97
Monthly Rebalance NASDAQ-100® 2x Strategy Fund
A-Class	1.32%	5.00%	1,000.00	1,018.40	6.66
C-Class	2.06%	5.00%	1,000.00	1,014.70	10.38
H-Class	1.33%	5.00%	1,000.00	1,018.35	6.71
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.56%	5.00%	1,000.00	1,017.20	7.87
A-Class	1.78%	5.00%	1,000.00	1,016.10	8.97
C-Class	2.54%	5.00%	1,000.00	1,012.30	12.78
H-Class	1.80%	5.00%	1,000.00	1,016.00	9.07
Mid-Cap 1.5x Strategy Fund
A-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.78%	5.00%	1,000.00	1,016.10	8.97
Inverse Mid-Cap Strategy Fund
A-Class	1.70%	5.00%	1,000.00	1,016.50	8.57
C-Class	2.63%	5.00%	1,000.00	1,011.85	13.23
H-Class	1.71%	5.00%	1,000.00	1,016.45	8.62
Russell 2000® 1.5x Strategy Fund
A-Class	1.77%	5.00%	1,000.00	1,016.15	8.92
C-Class	2.51%	5.00%	1,000.00	1,012.45	12.63
H-Class	1.82%	5.00%	1,000.00	1,015.90	9.17
Russell 2000® Fund
A-Class	1.73%	5.00%	1,000.00	1,016.35	8.72
C-Class	2.48%	5.00%	1,000.00	1,012.60	12.48
H-Class	1.74%	5.00%	1,000.00	1,016.30	8.77
Inverse Russell 2000® Strategy Fund
A-Class	1.79%	5.00%	1,000.00	1,016.05	9.02
C-Class	2.54%	5.00%	1,000.00	1,012.30	12.78
H-Class	1.80%	5.00%	1,000.00	1,016.00	9.07

10 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2019	Ending Account Value March 31, 2020	Expenses Paid During Period2
Dow Jones Industrial Average® Fund
A-Class	1.67%	5.00%	$ 1,000.00	$ 1,016.65	$ 8.42
C-Class	2.42%	5.00%	1,000.00	1,012.90	12.18
H-Class	1.67%	5.00%	1,000.00	1,016.65	8.42
Government Long Bond 1.2x Strategy Fund
Investor Class	1.06%	5.00%	1,000.00	1,019.70	5.35
A-Class	1.31%	5.00%	1,000.00	1,018.45	6.61
C-Class	2.06%	5.00%	1,000.00	1,014.70	10.38
H-Class	1.31%	5.00%	1,000.00	1,018.45	6.61
Inverse Government Long Bond Strategy Fund
Investor Class	2.93%	5.00%	1,000.00	1,010.35	14.73
A-Class	3.17%	5.00%	1,000.00	1,009.15	15.92
C-Class	3.91%	5.00%	1,000.00	1,005.45	19.60
H-Class	3.21%	5.00%	1,000.00	1,008.95	16.12
High Yield Strategy Fund
A-Class	1.62%	5.00%	1,000.00	1,016.90	8.17
C-Class	2.37%	5.00%	1,000.00	1,013.15	11.93
H-Class	1.62%	5.00%	1,000.00	1,016.90	8.17
Inverse High Yield Strategy Fund
A-Class	1.61%	5.00%	1,000.00	1,016.95	8.12
C-Class	2.34%	5.00%	1,000.00	1,013.30	11.78
H-Class	1.64%	5.00%	1,000.00	1,016.80	8.27
U.S. Government Money Market Fund
Money Market Class	1.01%	5.00%	1,000.00	1,019.95	5.10

1	This ratio represents annualized Net Expense, which include interest expense related to securities sold short. Excluding short interest expense, the operating ratio of the Inverse Government Long Bond Strategy Fund would be 1.51%,1.76%, 2.51%, and 1.76% for Investor Class, A-Class, C-Class, and H-Class, respectively. Excludes expenses of the underlying funds in which the Funds invest, if any.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period September 30, 2019 to March 31, 2020.

THE RYDEX FUNDS ANNUAL REPORT | 11

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

NOVA FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 150% of the performance of the S&P 500^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2020, Nova Fund maintained a daily correlation of over 99% to its benchmark of 150% of the daily price movement of the S&P 500 Index.

Nova Fund Investor Class returned -17.19%, while the S&P 500 Index returned -6.98% over the same time period.

The only sector contributing to the return of the underlying index was Information Technology. The sectors detracting the most were Energy, Financials, and Industrials.

The holdings contributing the most to the return of the underlying index were Microsoft Corp., Apple, Inc., and Amazon.com, Inc. The holdings detracting the most were ExxonMobil Corp., Boeing Co., and Chevron Corp.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one-year period ended March 31, 2020, investment in the Short Term Investment Vehicles had a negligible impact on Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

12 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Inception Dates:
Investor Class	July 12, 1993
A-Class	March 31, 2004
C-Class	March 14, 2001
H-Class	September 18, 2014

Cumulative Fund Performance*

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	21.4%
Guggenheim Ultra Short Duration Fund — Institutional Class	14.7%
Guggenheim Strategy Fund III	3.2%
Microsoft Corp.	0.0%*
Apple, Inc.	0.0%*
Amazon.com, Inc.	0.0%*
Facebook, Inc. — Class A	0.0%*
Berkshire Hathaway, Inc. — Class B	0.0%*
Johnson & Johnson	0.0%*
Alphabet, Inc. — Class C	0.0%*
Top Ten Total	39.3%

* Security is less than 0.1%.

“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(17.19%)	5.89%	12.52%
A-Class Shares	(17.38%)	5.64%	12.25%
A-Class Shares with sales charge‡	(21.30%)	4.62%	11.71%
C-Class Shares	(18.02%)	4.86%	11.42%
C-Class Shares with CDSC§	(18.84%)	4.86%	11.42%
S&P 500 Index	(6.98%)	6.73%	10.53%

	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	(17.39%)	5.66%	5.96%
S&P 500 Index	(6.98%)	6.73%	6.80%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class shares and H-Class will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 13

SCHEDULE OF INVESTMENTS	March 31, 2020
NOVA FUND

	Shares		Value
COMMON STOCKS† - 0.4%
Consumer, Non-cyclical - 0.1%
Johnson & Johnson		28	$	3,672
Procter & Gamble Co.		27		2,970
UnitedHealth Group, Inc.		10		2,494
Merck & Company, Inc.		27		2,077
Pfizer, Inc.		59		1,926
Coca-Cola Co.		41		1,814
PepsiCo, Inc.		15		1,802
Abbott Laboratories		19		1,499
Bristol-Myers Squibb Co.		25		1,394
Medtronic plc		14		1,263
Eli Lilly & Co.		9		1,248
PayPal Holdings, Inc.*		13		1,245
Philip Morris International, Inc.		17		1,240
AbbVie, Inc.		16		1,219
Amgen, Inc.		6		1,216
Thermo Fisher Scientific, Inc.		4		1,134
Gilead Sciences, Inc.		14		1,047
Danaher Corp.		7		969
CVS Health Corp.		14		831
Altria Group, Inc.		20		774
Mondelez International, Inc. — Class A		15		751
S&P Global, Inc.		3		735
Vertex Pharmaceuticals, Inc.*		3		714
Cigna Corp.		4		709
Allergan plc		4		708
Becton Dickinson and Co.		3		689
Automatic Data Processing, Inc.		5		683
Anthem, Inc.		3		681
Biogen, Inc.*		2		633
Colgate-Palmolive Co.		9		597
Zoetis, Inc.		5		588
Illumina, Inc.*		2		546
Kimberly-Clark Corp.		4		511
Stryker Corp.		3		500
Intuitive Surgical, Inc.*		1		495
Boston Scientific Corp.*		15		489
Regeneron Pharmaceuticals, Inc.*		1		488
Global Payments, Inc.		3		433
Moody’s Corp.		2		423
Baxter International, Inc.		5		406
Edwards Lifesciences Corp.*		2		377
Centene Corp.*		6		357
Estee Lauder Companies, Inc. — Class A		2		319
General Mills, Inc.		6		317
Humana, Inc.		1		314
ResMed, Inc.		2		295
Constellation Brands, Inc. — Class A		2		287
Verisk Analytics, Inc. — Class A		2		279
Cooper Companies, Inc.		1		276
Kroger Co.		9		271
McKesson Corp.		2		271
HCA Healthcare, Inc.		3		270
Hershey Co.		2		265
IDEXX Laboratories, Inc.*		1		242
IHS Markit Ltd.		4		240
Sysco Corp.		5		228
Monster Beverage Corp.*		4		225
IQVIA Holdings, Inc.*		2		216
Archer-Daniels-Midland Co.		6		211
Zimmer Biomet Holdings, Inc.		2		202
Church & Dwight Company, Inc.		3		193
Corteva, Inc.		8		188
FleetCor Technologies, Inc.*		1		187
Kellogg Co.		3		180
Alexion Pharmaceuticals, Inc.*		2		180
AmerisourceBergen Corp. — Class A		2		177
Align Technology, Inc.*		1		174
Tyson Foods, Inc. — Class A		3		174
Clorox Co.		1		173
Cintas Corp.		1		173
Kraft Heinz Co.		7		173
Conagra Brands, Inc.		5		147
Incyte Corp.*		2		146
Cardinal Health, Inc.		3		144
McCormick & Company, Inc.		1		141
STERIS plc		1		140
Hormel Foods Corp.		3		140
Laboratory Corporation of America Holdings*		1		126
Equifax, Inc.		1		119
Lamb Weston Holdings, Inc.		2		114
Brown-Forman Corp. — Class B		2		111
JM Smucker Co.		1		111
Hologic, Inc.*		3		105
United Rentals, Inc.*		1		103
Varian Medical Systems, Inc.*		1		103
Avery Dennison Corp.		1		102
Henry Schein, Inc.*		2		101
Gartner, Inc.*		1		100
Universal Health Services, Inc. — Class B		1		99
Campbell Soup Co.		2		92
Mylan N.V.*		6		89
Quest Diagnostics, Inc.		1		80
Molson Coors Beverage Co. — Class B		2		78
Dentsply Sirona, Inc.		2		78
DaVita, Inc.*		1		76
Rollins, Inc.		2		72
Quanta Services, Inc.		2		63
Nielsen Holdings plc		4		50
Perrigo Company plc		1		48
Robert Half International, Inc.		1		38
H&R Block, Inc.		2		28
Coty, Inc. — Class A		3		15
Total Consumer, Non-cyclical				54,006
Technology - 0.1%
Microsoft Corp.		83		13,090
Apple, Inc.		45		11,443
Intel Corp.		47		2,544
NVIDIA Corp.		7		1,845
Adobe, Inc.*		5		1,591
salesforce.com, Inc.*		10		1,440
Accenture plc — Class A		7		1,143

14 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
NOVA FUND

	Shares		Value
Oracle Corp.		23	$	1,112
International Business Machines Corp.		10		1,109
Texas Instruments, Inc.		10		999
Broadcom, Inc.		4		948
Fidelity National Information Services, Inc.		7		851
QUALCOMM, Inc.		12		812
Intuit, Inc.		3		690
Advanced Micro Devices, Inc.*		13		591
ServiceNow, Inc.*		2		573
Fiserv, Inc.*		6		570
Micron Technology, Inc.*		12		505
Lam Research Corp.		2		480
Activision Blizzard, Inc.		8		476
Applied Materials, Inc.		10		458
Analog Devices, Inc.		4		359
Autodesk, Inc.*		2		312
Electronic Arts, Inc.*		3		300
MSCI, Inc. — Class A		1		289
KLA Corp.		2		287
Cognizant Technology Solutions Corp. — Class A		6		279
HP, Inc.		16		278
Synopsys, Inc.*		2		258
Xilinx, Inc.		3		234
ANSYS, Inc.*		1		232
Microchip Technology, Inc.		3		203
Fortinet, Inc.*		2		202
Paycom Software, Inc.*		1		202
Cadence Design Systems, Inc.*		3		198
Cerner Corp.		3		189
Paychex, Inc.		3		189
Zebra Technologies Corp. — Class A*		1		183
Akamai Technologies, Inc.*		2		183
Skyworks Solutions, Inc.		2		179
Jack Henry & Associates, Inc.		1		155
Maxim Integrated Products, Inc.		3		146
Citrix Systems, Inc.		1		142
Hewlett Packard Enterprise Co.		14		136
Western Digital Corp.		3		125
Take-Two Interactive Software, Inc.*		1		119
Seagate Technology plc		2		98
Broadridge Financial Solutions, Inc.		1		95
Leidos Holdings, Inc.		1		92
NetApp, Inc.		2		83
Qorvo, Inc.*		1		81
DXC Technology Co.		3		39
Xerox Holdings Corp.		2		38
Total Technology				49,175
Financial - 0.1%
Berkshire Hathaway, Inc. — Class B*		21		3,839
JPMorgan Chase & Co.		34		3,061
Visa, Inc. — Class A		18		2,900
Mastercard, Inc. — Class A		10		2,416
Bank of America Corp.		88		1,868
Wells Fargo & Co.		41		1,177
American Tower Corp. — Class A REIT		5		1,089
Citigroup, Inc.		23		969
CME Group, Inc. — Class A		4		692
Prologis, Inc. REIT		8		643
Equinix, Inc. REIT		1		625
American Express Co.		7		599
Crown Castle International Corp. REIT		4		578
Chubb Ltd.		5		558
U.S. Bancorp		15		517
Aon plc		3		495
Intercontinental Exchange, Inc.		6		485
PNC Financial Services Group, Inc.		5		479
Goldman Sachs Group, Inc.		3		464
Progressive Corp.		6		443
Morgan Stanley		13		442
BlackRock, Inc. — Class A		1		440
Marsh & McLennan Companies, Inc.		5		432
Truist Financial Corp.		14		432
Digital Realty Trust, Inc. REIT		3		417
Charles Schwab Corp.		12		403
Public Storage REIT		2		397
Bank of New York Mellon Corp.		9		303
Travelers Companies, Inc.		3		298
AvalonBay Communities, Inc. REIT		2		294
T. Rowe Price Group, Inc.		3		293
Allstate Corp.		3		275
Aflac, Inc.		8		274
SBA Communications Corp. REIT		1		270
Capital One Financial Corp.		5		252
Equity Residential REIT		4		247
MetLife, Inc.		8		245
Essex Property Trust, Inc. REIT		1		220
American International Group, Inc.		9		218
State Street Corp.		4		213
Prudential Financial, Inc.		4		209
Realty Income Corp. REIT		4		199
Boston Properties, Inc. REIT		2		184
Welltower, Inc. REIT		4		183
Willis Towers Watson plc		1		170
Simon Property Group, Inc. REIT		3		165
First Republic Bank		2		164
Arthur J Gallagher & Co.		2		163
SVB Financial Group*		1		151
Northern Trust Corp.		2		151
Cincinnati Financial Corp.		2		151
CBRE Group, Inc. — Class A*		4		151
Hartford Financial Services Group, Inc.		4		141
Alexandria Real Estate Equities, Inc. REIT		1		137
Weyerhaeuser Co. REIT		8		136
Duke Realty Corp. REIT		4		130
Healthpeak Properties, Inc. REIT		5		119
Fifth Third Bancorp		8		119
KeyCorp		11		114
UDR, Inc. REIT		3		110
Ventas, Inc. REIT		4		107
Discover Financial Services		3		107
Loews Corp.		3		105
WR Berkley Corp.		2		104
Assurant, Inc.		1		104

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 15

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
NOVA FUND

	Shares		Value
M&T Bank Corp.		1	$	103
Mid-America Apartment Communities, Inc. REIT		1		103
Ameriprise Financial, Inc.		1		102
Synchrony Financial		6		97
Extra Space Storage, Inc. REIT		1		96
Nasdaq, Inc.		1		95
Citizens Financial Group, Inc.		5		94
Principal Financial Group, Inc.		3		94
Western Union Co.		5		91
Huntington Bancshares, Inc.		11		90
Regions Financial Corp.		10		90
Cboe Global Markets, Inc.		1		89
Host Hotels & Resorts, Inc. REIT		8		88
Regency Centers Corp. REIT		2		77
Federal Realty Investment Trust REIT		1		75
Vornado Realty Trust REIT		2		72
Globe Life, Inc.		1		72
Iron Mountain, Inc. REIT		3		71
Apartment Investment & Management Co. — Class A REIT		2		70
E*TRADE Financial Corp.		2		69
Raymond James Financial, Inc.		1		63
Comerica, Inc.		2		59
People’s United Financial, Inc.		5		55
Zions Bancorp North America		2		53
Lincoln National Corp.		2		53
Franklin Resources, Inc.		3		50
Kimco Realty Corp. REIT		5		48
SL Green Realty Corp. REIT		1		43
Invesco Ltd.		4		36
Unum Group		2		30
Total Financial				36,064
Communications - 0.1%
Amazon.com, Inc.*		4		7,799
Facebook, Inc. — Class A*		26		4,337
Alphabet, Inc. — Class C*		3		3,488
Alphabet, Inc. — Class A*		3		3,486
Verizon Communications, Inc.		44		2,364
AT&T, Inc.		79		2,303
Netflix, Inc.*		5		1,877
Walt Disney Co.		19		1,835
Cisco Systems, Inc.		46		1,808
Comcast Corp. — Class A		49		1,685
Charter Communications, Inc. — Class A*		2		873
Motorola Solutions, Inc.		2		266
T-Mobile US, Inc.*		3		252
eBay, Inc.		8		240
Arista Networks, Inc.*		1		202
Twitter, Inc.*		8		196
CDW Corp.		2		187
VeriSign, Inc.*		1		180
Corning, Inc.		8		164
Expedia Group, Inc.		2		113
NortonLifeLock, Inc.		6		112
Omnicom Group, Inc.		2		110
F5 Networks, Inc.*		1		107
CenturyLink, Inc.		11		104
Fox Corp. — Class A		4		94
ViacomCBS, Inc. — Class B		6		84
Juniper Networks, Inc.		4		77
Discovery, Inc. — Class C*		4		70
Interpublic Group of Companies, Inc.		4		65
DISH Network Corp. — Class A*		3		60
Fox Corp. — Class B		2		46
Discovery, Inc. — Class A*		2		39
News Corp. — Class A		4		36
News Corp. — Class B		1		9
Total Communications				34,668
Industrial - 0.0%
Honeywell International, Inc.		8		1,070
Lockheed Martin Corp.		3		1,017
Union Pacific Corp.		7		987
Boeing Co.		6		895
United Technologies Corp.		9		849
3M Co.		6		819
General Electric Co.		95		754
United Parcel Service, Inc. — Class B		8		747
Caterpillar, Inc.		6		696
Northrop Grumman Corp.		2		605
CSX Corp.		8		459
Norfolk Southern Corp.		3		438
Illinois Tool Works, Inc.		3		426
Deere & Co.		3		415
General Dynamics Corp.		3		397
Raytheon Co.		3		394
Waste Management, Inc.		4		370
FedEx Corp.		3		364
L3Harris Technologies, Inc.		2		360
Emerson Electric Co.		7		333
TransDigm Group, Inc.		1		320
Roper Technologies, Inc.		1		312
Eaton Corporation plc		4		311
Ball Corp.		4		259
TE Connectivity Ltd.		4		252
Trane Technologies plc		3		248
Amphenol Corp. — Class A		3		219
Johnson Controls International plc		8		216
Agilent Technologies, Inc.		3		215
Stanley Black & Decker, Inc.		2		200
Old Dominion Freight Line, Inc.		2		197
Martin Marietta Materials, Inc.		1		189
Waters Corp.*		1		182
Dover Corp.		2		168
Keysight Technologies, Inc.*		2		167
Fortive Corp.		3		166
Rockwell Automation, Inc.		1		151
Republic Services, Inc. — Class A		2		150
Garmin Ltd.		2		150
AMETEK, Inc.		2		144
IDEX Corp.		1		138
Amcor plc		17		138
Expeditors International of Washington, Inc.		2		134

16 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
NOVA FUND

	Shares		Value
Xylem, Inc.		2	$	130
Parker-Hannifin Corp.		1		130
Kansas City Southern		1		127
Snap-on, Inc.		1		109
Vulcan Materials Co.		1		108
Masco Corp.		3		104
Ingersoll Rand, Inc.*		4		99
Westinghouse Air Brake Technologies Corp.		2		96
J.B. Hunt Transport Services, Inc.		1		92
Allegion plc		1		92
Packaging Corporation of America		1		87
Westrock Co.		3		85
Jacobs Engineering Group, Inc.		1		79
PerkinElmer, Inc.		1		75
CH Robinson Worldwide, Inc.		1		66
Arconic, Inc.		4		64
Pentair plc		2		60
Textron, Inc.		2		53
Sealed Air Corp.		2		49
Fortune Brands Home & Security, Inc.		1		43
AO Smith Corp.		1		38
FLIR Systems, Inc.		1		32
Flowserve Corp.		1		24
Total Industrial				18,863
Consumer, Cyclical - 0.0%
Home Depot, Inc.		12		2,240
Walmart, Inc.		15		1,704
Costco Wholesale Corp.		5		1,426
McDonald’s Corp.		8		1,323
NIKE, Inc. — Class B		13		1,076
Starbucks Corp.		13		855
Lowe’s Companies, Inc.		8		688
TJX Companies, Inc.		13		622
Target Corp.		5		465
Dollar General Corp.		3		453
Walgreens Boots Alliance, Inc.		8		366
Ross Stores, Inc.		4		348
O’Reilly Automotive, Inc.*		1		301
General Motors Co.		14		291
Cummins, Inc.		2		271
PACCAR, Inc.		4		244
Marriott International, Inc. — Class A		3		224
Dollar Tree, Inc.*		3		220
VF Corp.		4		216
Yum! Brands, Inc.		3		206
Hilton Worldwide Holdings, Inc.		3		205
Ford Motor Co.		42		203
Fastenal Co.		6		187
Southwest Airlines Co.		5		178
Ulta Beauty, Inc.*		1		176
Delta Air Lines, Inc.		6		171
Las Vegas Sands Corp.		4		170
Aptiv plc		3		147
Copart, Inc.*		2		137
DR Horton, Inc.		4		136
Genuine Parts Co.		2		135
Tiffany & Co.		1		129
Lennar Corp. — Class A		3		115
Best Buy Company, Inc.		2		114
CarMax, Inc.*		2		108
Advance Auto Parts, Inc.		1		93
Live Nation Entertainment, Inc.*		2		91
Whirlpool Corp.		1		86
Tractor Supply Co.		1		85
Mohawk Industries, Inc.*		1		76
Hasbro, Inc.		1		71
MGM Resorts International		6		71
PulteGroup, Inc.		3		67
Ralph Lauren Corp. — Class A		1		67
Royal Caribbean Cruises Ltd.		2		64
United Airlines Holdings, Inc.*,1		2		63
LKQ Corp.*		3		62
Wynn Resorts Ltd.		1		60
Darden Restaurants, Inc.		1		54
Newell Brands, Inc.		4		53
Carnival Corp.		4		53
American Airlines Group, Inc.1		4		49
BorgWarner, Inc.		2		49
Tapestry, Inc.		3		39
Harley-Davidson, Inc.		2		38
PVH Corp.		1		38
Hanesbrands, Inc.		4		31
Kohl’s Corp.		2		29
Alaska Air Group, Inc.		1		29
Leggett & Platt, Inc.		1		26
L Brands, Inc.		2		23
Norwegian Cruise Line Holdings Ltd.*		2		22
Capri Holdings Ltd.*		2		22
Under Armour, Inc. — Class A*		2		18
Under Armour, Inc. — Class C*		2		16
Nordstrom, Inc.		1		15
Macy’s, Inc.1		3		15
Gap, Inc.		2		14
Total Consumer, Cyclical				17,439
Utilities - 0.0%
NextEra Energy, Inc.		5		1,203
Dominion Energy, Inc.		9		650
Duke Energy Corp.		8		647
Southern Co.		11		596
American Electric Power Company, Inc.		5		400
Exelon Corp.		10		368
Xcel Energy, Inc.		6		362
Sempra Energy		3		339
Consolidated Edison, Inc.		4		312
WEC Energy Group, Inc.		3		264
FirstEnergy Corp.		6		240
American Water Works Company, Inc.		2		239
Eversource Energy		3		235
Public Service Enterprise Group, Inc.		5		225
Edison International		4		219
Ameren Corp.		3		219
PPL Corp.		8		197
DTE Energy Co.		2		190
Entergy Corp.		2		188

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 17

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
NOVA FUND

	Shares		Value
CMS Energy Corp.		3	$	176
Alliant Energy Corp.		3		145
Evergy, Inc.		2		110
NiSource, Inc.		4		100
Atmos Energy Corp.		1		99
AES Corp.		7		95
NRG Energy, Inc.		3		82
CenterPoint Energy, Inc.		5		77
Pinnacle West Capital Corp.		1		76
Total Utilities				8,053
Energy - 0.0%
Exxon Mobil Corp.		45		1,709
Chevron Corp.		20		1,449
ConocoPhillips		12		370
Kinder Morgan, Inc.		21		292
Phillips 66		5		268
EOG Resources, Inc.		6		215
Schlumberger Ltd.		15		202
Williams Companies, Inc.		13		184
Valero Energy Corp.		4		181
Marathon Petroleum Corp.		7		165
Pioneer Natural Resources Co.		2		140
Occidental Petroleum Corp.		10		116
Hess Corp.		3		100
ONEOK, Inc.		4		87
Concho Resources, Inc.		2		86
Baker Hughes Co.		7		74
Cabot Oil & Gas Corp. — Class A		4		69
Halliburton Co.		9		62
Diamondback Energy, Inc.		2		52
HollyFrontier Corp.		2		49
National Oilwell Varco, Inc.		4		39
TechnipFMC plc		5		34
Noble Energy, Inc.		5		30
Marathon Oil Corp.		9		30
Devon Energy Corp.		4		28
Apache Corp.		4		17
Helmerich & Payne, Inc.		1		16
Total Energy				6,064
Basic Materials - 0.0%
Linde plc		6		1,038
Ecolab, Inc.		3		467
Sherwin-Williams Co.		1		460
Newmont Corp.		9		407
Air Products & Chemicals, Inc.		2		399
DuPont de Nemours, Inc.		8		273
PPG Industries, Inc.		3		251
Dow, Inc.		8		234
LyondellBasell Industries N.V. — Class A		3		149
International Paper Co.		4		125
Nucor Corp.		3		108
Freeport-McMoRan, Inc.		16		108
International Flavors & Fragrances, Inc.		1		102
FMC Corp.		1		82
Celanese Corp. — Class A		1		73
Albemarle Corp.		1		56
CF Industries Holdings, Inc.		2		54
Eastman Chemical Co.		1		47
Mosaic Co.		4		43
Total Basic Materials				4,476
Total Common Stocks
(Cost $178,194)				228,808
MUTUAL FUNDS† - 39.3%
Guggenheim Strategy Fund II2		468,262		11,261,712
Guggenheim Ultra Short Duration Fund — Institutional Class2		793,141		7,748,990
Guggenheim Strategy Fund III2		70,834		1,704,973
Total Mutual Funds
(Cost $21,272,000)				20,715,675
	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 7.8%
Federal Home Loan Bank
0.05% due 04/01/203	$	4,109,000		4,109,000
Total Federal Agency Discount Notes
(Cost $4,109,000)				4,109,000
U.S. TREASURY BILLS†† - 1.8%
U.S. Treasury Bills
0.50% due 04/30/203,4		916,000		915,959
Total U.S. Treasury Bills
(Cost $915,625)				915,959
REPURCHASE AGREEMENTS††,5 - 24.8%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/206		9,455,551		9,455,551
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/206		3,636,751		3,636,751
Total Repurchase Agreements
(Cost $13,092,302)				13,092,302
	Shares
SECURITIES LENDING COLLATERAL†,7 - 0.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%8		80		80
Total Securities Lending Collateral
(Cost $80)				80
Total Investments - 74.1%
(Cost $39,567,201)			$	39,061,824
Other Assets & Liabilities, net - 25.9%				13,637,033
Total Net Assets - 100.0%			$	52,698,857

18 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
NOVA FUND

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Purchased†
S&P 500 Index Mini Futures Contracts		25		Jun 2020	$	3,215,625	$	5,787

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements††
BNP Paribas	S&P 500 Index	1.54% (1 Month USD LIBOR + 0.55%)	At Maturity		04/29/20		345	$	891,525	$	(15,687	)
Barclays Bank plc	S&P 500 Index	1.04% (1 Week USD LIBOR + 0.45%)	At Maturity		04/30/20		13,925		35,989,255		(585,667	)
Goldman Sachs International	S&P 500 Index	1.04% (1 Week USD LIBOR + 0.45%)	At Maturity		04/28/20		15,009		38,790,883		(650,970	)
								$	75,671,663	$	(1,252,324	)

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Affiliated issuer.
3	Rate indicated is the effective yield at the time of purchase.
4	All or a portion of this security is pledged as futures collateral at March 31, 2020.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as equity index swap collateral at March 31, 2020.
7	Securities lending collateral — See Note 7.
8	Rate indicated is the 7-day yield as of March 31, 2020.
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 19

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
NOVA FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	228,808	$	—	$	—	$	228,808
Mutual Funds		20,715,675		—		—		20,715,675
Federal Agency Discount Notes		—		4,109,000		—		4,109,000
U.S. Treasury Bills		—		915,959		—		915,959
Repurchase Agreements		—		13,092,302		—		13,092,302
Securities Lending Collateral		80		—		—		80
Equity Futures Contracts**		5,787		—		—		5,787
Total Assets	$	20,950,350	$	18,117,261	$	—	$	39,067,611

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	1,252,324	$	—	$	1,252,324

** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	15,241,850	$	1,400,001	$	(5,000,000	)	$	(60,844	)	$	(319,295	)	$	11,261,712		468,262	$	386,488
Guggenheim Strategy Fund III		6,937,830		—		(5,000,000	)		(228,442	)		(4,415	)		1,704,973		70,834		187,512
Guggenheim Ultra Short Duration Fund — Institutional Class		10,837,820		6,200,000		(9,000,000	)		(130,981	)		(157,849	)		7,748,990		793,141		293,396
	$	33,017,500	$	7,600,001	$	(19,000,000	)	$	(420,267	)	$	(481,559	)	$	20,715,675			$	867,396

20 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

NOVA FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value - including $78 of securities loaned (cost $5,202,899)	$	5,253,847
Investments in affiliated issuers, at value (cost $21,272,000)		20,715,675
Repurchase agreements, at value (cost $13,092,302)		13,092,302
Cash		5,607,861
Segregated cash with broker		9,773,076
Receivables:
Fund shares sold		714,052
Dividends		78,815
Variation margin on futures contracts		5,787
Interest		3
Securities lending income		2
Total assets		55,241,420
Liabilities:
Unrealized depreciation on OTC swap agreements		1,252,324
Payable for:
Fund shares redeemed		893,304
Swap settlement		141,418
Management fees		51,319
Transfer agent and administrative fees		31,367
Portfolio accounting fees		7,208
Distribution and service fees		7,084
Trustees’ fees		2,285
Return of securities lending collateral		80
Miscellaneous		156,174
Total liabilities		2,542,563
Commitments and contingent liabilities (Note 12)		—
Net assets	$	52,698,857
Net assets consist of:
Paid in capital	$	89,081,688
Total distributable earnings (loss)		(36,382,831	)
Net assets	$	52,698,857
Investor Class:
Net assets	$	37,874,256
Capital shares outstanding		595,274
Net asset value per share	$	63.62
A-Class:
Net assets	$	7,434,726
Capital shares outstanding		126,246
Net asset value per share	$	58.89
Maximum offering price per share (Net asset value divided by 95.25%)	$	61.83
C-Class:
Net assets	$	3,333,339
Capital shares outstanding		64,387
Net asset value per share	$	51.77
H-Class:
Net assets	$	4,056,536
Capital shares outstanding		68,827
Net asset value per share	$	58.94

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 21

NOVA FUND

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $3)	$	4,374,714
Dividends from securities of affiliated issuers		867,396
Interest		852,546
Income from securities lending, net		1,637
Total investment income		6,096,293
Expenses:
Management fees		2,197,594
Distribution and service fees:
A-Class		53,586
C-Class		41,906
H-Class		103,821
Transfer agent and administrative fees		745,879
Portfolio accounting fees		275,241
Registration fees		249,295
Professional fees		126,079
Printing fees		69,117
Trustees’ fees*		63,958
Pricing fees		63,256
Custodian fees		41,816
Line of credit fees		1,677
Miscellaneous		190,701
Total expenses		4,223,926
Less:
Expenses waived by Adviser	$	(31,034	)
Net expenses		4,192,892
Net investment income		1,903,401
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		13,460,339
Investments in affiliated issuers		(420,267	)
Swap agreements		(17,155,385	)
Futures contracts		684,381
Net realized loss		(3,430,932	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(19,515,504	)
Investments in affiliated issuers		(481,559	)
Swap agreements		(2,583,813	)
Futures contracts		(2,973,895	)
Net change in unrealized appreciation (depreciation)		(25,554,771	)
Net realized and unrealized loss		(28,985,703	)
Net decrease in net assets resulting from operations	$	(27,082,302	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

22 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

NOVA FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,903,401		$	2,138,897
Net realized gain (loss) on investments		(3,430,932	)		7,243,373
Net change in unrealized appreciation (depreciation) on investments		(25,554,771	)		31,370,800
Net increase (decrease) in net assets resulting from operations		(27,082,302	)		40,753,070
Capital share transactions:
Proceeds from sale of shares
Investor Class		1,884,601,216			3,267,814,139
A-Class		134,948,538			284,034,909
C-Class		1,007,068			17,370,012
H-Class		389,155,191			512,367,614
Cost of shares redeemed
Investor Class		(2,067,340,105	)		(3,509,187,067	)
A-Class		(150,323,713	)		(296,190,807	)
C-Class		(1,175,937	)		(23,997,212	)
H-Class		(433,198,924	)		(496,652,060	)
Net decrease from capital share transactions		(242,326,666	)		(244,440,472	)
Net decrease in net assets		(269,408,968	)		(203,687,402	)
Net assets:
Beginning of year		322,107,825			525,795,227
End of year	$	52,698,857		$	322,107,825
Capital share activity:
Shares sold
Investor Class		22,279,494			44,886,045
A-Class		1,760,253			4,152,405
C-Class		16,542			281,514
H-Class		4,984,254			7,575,202
Shares redeemed
Investor Class		(24,844,947	)		(48,213,160	)
A-Class		(1,999,067	)		(4,329,588	)
C-Class		(18,108	)		(387,815	)
H-Class		(5,603,433	)		(7,334,463	)
Net decrease in shares		(3,425,012	)		(3,369,860	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 23

NOVA FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	76.83		$	69.63		$	60.14		$	49.18		$	49.42
Income (loss) from investment operations:
Net investment income (loss)a		.61			.48			.40			.08			.07
Net gain (loss) on investments (realized and unrealized)		(13.82	)		6.72			10.50			11.56			(.25	)
Total from investment operations		(13.21	)		7.20			10.90			11.64			(.18	)
Less distributions from:
Net investment income		—			—			(.02	)		(.02	)		(.06	)
Net realized gains		—			—			(1.39	)		(.66	)		—
Total distributions		—			—			(1.41	)		(.68	)		(.06	)
Net asset value, end of period	$	63.62		$	76.83		$	69.63		$	60.14		$	49.18
Total Return		(17.19	%)		10.34	%		18.09	%		23.84	%		(0.36	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	37,874		$	242,831		$	451,764		$	78,531		$	164,820
Ratios to average net assets:
Net investment income (loss)		0.71	%		0.65	%		0.58	%		0.15	%		0.14	%
Total expensesb		1.37	%		1.35	%		1.26	%		1.28	%		1.25	%
Net expensesc		1.36	%		1.35	%		1.26	%		1.28	%		1.25	%
Portfolio turnover rate		690	%		1,078	%		2,067	%		1,288	%		619	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	71.28		$	64.72		$	56.18		$	46.08		$	46.40
Income (loss) from investment operations:
Net investment income (loss)a		.40			.28			.25			(.02	)		(.05	)
Net gain (loss) on investments (realized and unrealized)		(12.79	)		6.28			9.70			10.80			(.21	)
Total from investment operations		(12.39	)		6.56			9.95			10.78			(.26	)
Less distributions from:
Net investment income		—			—			(.02	)		(.02	)		(.06	)
Net realized gains		—			—			(1.39	)		(.66	)		—
Total distributions		—			—			(1.41	)		(.68	)		(.06	)
Net asset value, end of period	$	58.89		$	71.28		$	64.72		$	56.18		$	46.08
Total Returnd		(17.38	%)		10.14	%		17.68	%		23.57	%		(0.56	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,435		$	26,022		$	35,094		$	3,528		$	13,626
Ratios to average net assets:
Net investment income (loss)		0.52	%		0.41	%		0.39	%		(0.05	%)		(0.11	%)
Total expensesb		1.62	%		1.60	%		1.51	%		1.53	%		1.51	%
Net expensesc		1.61	%		1.60	%		1.51	%		1.53	%		1.51	%
Portfolio turnover rate		690	%		1,078	%		2,067	%		1,288	%		619	%

24 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

NOVA FUND

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	63.15		$	57.77		$	50.57		$	41.86		$	42.50
Income (loss) from investment operations:
Net investment income (loss)a		(.22	)		(.20	)		(.27	)		(.40	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		(11.16	)		5.58			8.88			9.79			(.24	)
Total from investment operations		(11.38	)		5.38			8.61			9.39			(.58	)
Less distributions from:
Net investment income		—			—			(.02	)		(.02	)		(.06	)
Net realized gains		—			—			(1.39	)		(.66	)		—
Total distributions		—			—			(1.41	)		(.68	)		(.06	)
Net asset value, end of period	$	51.77		$	63.15		$	57.77		$	50.57		$	41.86
Total Returnd		(18.02	%)		9.31	%		17.01	%		22.60	%		(1.36	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,333		$	4,165		$	9,952		$	9,676		$	11,090
Ratios to average net assets:
Net investment income (loss)		(.32	%)		(0.33	%)		(0.48	%)		(0.89	%)		(0.83	%)
Total expensesb		2.38	%		2.35	%		2.28	%		2.27	%		2.26	%
Net expensesc		2.37	%		2.35	%		2.28	%		2.27	%		2.26	%
Portfolio turnover rate		690	%		1,078	%		2,067	%		1,288	%		619	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 25

NOVA FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	71.35		$	64.80		$	56.15		$	46.06		$	46.40
Income (loss) from investment operations:
Net investment income (loss)a		.36			.30			.19			(.07	)		(.06	)
Net gain (loss) on investments (realized and unrealized)		(12.77	)		6.25			9.87			10.84			(.22	)
Total from investment operations		(12.41	)		6.55			10.06			10.77			(.28	)
Less distributions from:
Net investment income		—			—			(.02	)		(.02	)		(.06	)
Net realized gains		—			—			(1.39	)		(.66	)		—
Total distributions		—			—			(1.41	)		(.68	)		(.06	)
Net asset value, end of period	$	58.94		$	71.35		$	64.80		$	56.15		$	46.06
Total Return		(17.39	%)		10.11	%		17.88	%		23.56	%		(0.60	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,057		$	49,090		$	28,985		$	17,716		$	13,938
Ratios to average net assets:
Net investment income (loss)		0.46	%		0.44	%		0.30	%		(0.15	%)		(0.14	%)
Total expensesb		1.62	%		1.61	%		1.52	%		1.52	%		1.51	%
Net expensesc		1.61	%		1.61	%		1.52	%		1.52	%		1.51	%
Portfolio turnover rate		690	%		1,078	%		2,067	%		1,288	%		619	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Does not include expenses of the underlying funds in which the Fund invests.
c	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
d	Total return does not reflect the impact of any applicable sales charges.

26 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

S&P 500^® FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the S&P 500^® Index (the “underlying index”).

For the one-year period ended March 31, 2020, S&P 500^® Fund maintained a daily correlation of over 99% to its benchmark of the daily price movement of the S&P 500 Index.

S&P 500^® Fund H-Class returned -8.65%, while the S&P 500 Index returned -6.98%.

The only sector contributing to the return of the underlying index was Information Technology. The sectors detracting the most were Energy, Financials, and Industrials.

The holdings contributing the most to the return of the underlying index were Microsoft Corp., Apple, Inc., and Amazon.com, Inc. The holdings detracting the most were Exxon Mobil Corp., Boeing Co., and Chevron Corp.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the most efficient manner possible and not for hedging purposes. Derivatives performed as expected.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	May 31, 2006
C-Class	May 31, 2006
H-Class	May 31, 2006

Ten Largest Holdings (% of Total Net Assets)
Microsoft Corp.	3.4%
Apple, Inc.	3.0%
Amazon.com, Inc.	2.3%
Facebook, Inc. — Class A	1.1%
Berkshire Hathaway, Inc. — Class B	1.0%
Alphabet, Inc. — Class A	1.0%
Alphabet, Inc. — Class C	1.0%
Johnson & Johnson	1.0%
JPMorgan Chase & Co.	0.8%
Visa, Inc. — Class A	0.8%
Top Ten Total	15.4%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 27

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(8.67%)	4.90%	8.71%
A-Class Shares with sales charge‡	(13.01%)	3.89%	8.18%
C-Class Shares	(9.35%)	4.12%	7.87%
C-Class Shares with CDSC§	(10.24%)	4.12%	7.87%
H-Class Shares	(8.65%)	4.90%	8.71%
S&P 500 Index	(6.98%)	6.73%	10.53%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fees structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

28 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
S&P 500® FUND

	Shares		Value
COMMON STOCKS† - 60.7%
Consumer, Non-cyclical - 14.3%
Johnson & Johnson		10,038	$	1,316,283
Procter & Gamble Co.		9,512		1,046,320
UnitedHealth Group, Inc.		3,614		901,259
Merck & Company, Inc.		9,711		747,164
Pfizer, Inc.		21,108		688,965
Coca-Cola Co.		14,708		650,829
PepsiCo, Inc.		5,319		638,812
Abbott Laboratories		6,741		531,932
Bristol-Myers Squibb Co.		8,941		498,371
Medtronic plc		5,112		461,000
Amgen, Inc.		2,266		459,386
Eli Lilly & Co.		3,223		447,095
Thermo Fisher Scientific, Inc.		1,529		433,624
Philip Morris International, Inc.		5,934		432,945
AbbVie, Inc.		5,640		429,712
PayPal Holdings, Inc.*		4,479		428,819
Gilead Sciences, Inc.		4,825		360,717
Danaher Corp.		2,438		337,444
CVS Health Corp.		4,962		294,395
Altria Group, Inc.		7,125		275,524
Mondelez International, Inc. — Class A		5,492		275,039
Cigna Corp.		1,424		252,304
Becton Dickinson and Co.		1,032		237,123
Vertex Pharmaceuticals, Inc.*		981		233,429
S&P Global, Inc.		932		228,387
Automatic Data Processing, Inc.		1,650		225,522
Allergan plc		1,252		221,729
Anthem, Inc.		967		219,548
Intuitive Surgical, Inc.*		441		218,388
Biogen, Inc.*		688		217,669
Colgate-Palmolive Co.		3,269		216,931
Zoetis, Inc.		1,817		213,843
Stryker Corp.		1,228		204,450
Boston Scientific Corp.*		5,316		173,461
Kimberly-Clark Corp.		1,308		167,254
Global Payments, Inc.		1,146		165,288
Humana, Inc.		505		158,580
Baxter International, Inc.		1,947		158,077
Illumina, Inc.*		561		153,220
Edwards Lifesciences Corp.*		796		150,142
Regeneron Pharmaceuticals, Inc.*		305		148,928
Estee Lauder Companies, Inc. — Class A		849		135,280
Centene Corp.*		2,227		132,306
Moody’s Corp.		619		130,918
General Mills, Inc.		2,305		121,635
Kroger Co.		3,059		92,137
IHS Markit Ltd.		1,529		91,740
Constellation Brands, Inc. — Class A		639		91,607
HCA Healthcare, Inc.		1,009		90,659
Sysco Corp.		1,946		88,796
Verisk Analytics, Inc. — Class A		625		87,113
McKesson Corp.		616		83,320
Clorox Co.		479		82,987
Monster Beverage Corp.*		1,456		81,915
ResMed, Inc.		548		80,715
Zimmer Biomet Holdings, Inc.		785		79,348
IDEXX Laboratories, Inc.*		327		79,212
Alexion Pharmaceuticals, Inc.*		844		75,783
Hershey Co.		566		74,995
Archer-Daniels-Midland Co.		2,123		74,687
IQVIA Holdings, Inc.*		688		74,208
Corteva, Inc.		2,855		67,093
McCormick & Company, Inc.		471		66,510
Tyson Foods, Inc. — Class A		1,126		65,162
FleetCor Technologies, Inc.*		331		61,745
Church & Dwight Company, Inc.		936		60,072
Kraft Heinz Co.		2,375		58,757
Kellogg Co.		950		56,991
Cintas Corp.		320		55,430
Equifax, Inc.		462		55,186
Conagra Brands, Inc.		1,856		54,455
Cardinal Health, Inc.		1,116		53,501
Cooper Companies, Inc.		189		52,102
Teleflex, Inc.		177		51,836
AmerisourceBergen Corp. — Class A		573		50,710
Incyte Corp.*		682		49,943
Hormel Foods Corp.		1,061		49,485
JM Smucker Co.		435		48,285
MarketAxess Holdings, Inc.		145		48,223
Align Technology, Inc.*		274		47,662
Laboratory Corporation of America Holdings*		370		46,764
STERIS plc		323		45,210
Quest Diagnostics, Inc.		514		41,274
Brown-Forman Corp. — Class B		695		38,579
Hologic, Inc.*		1,023		35,907
Varian Medical Systems, Inc.*		347		35,623
Gartner, Inc.*		341		33,953
Dentsply Sirona, Inc.		848		32,928
Avery Dennison Corp.		318		32,395
Lamb Weston Holdings, Inc.		557		31,805
Universal Health Services, Inc. — Class B		306		30,318
Campbell Soup Co.		644		29,727
United Rentals, Inc.*		287		29,532
Mylan N.V.*		1,969		29,358
Henry Schein, Inc.*		560		28,291
Molson Coors Beverage Co. — Class B		717		27,970
DaVita, Inc.*		342		26,013
ABIOMED, Inc.*		172		24,968
Perrigo Company plc		519		24,959
Rollins, Inc.		537		19,407
Quanta Services, Inc.		543		17,229
Nielsen Holdings plc		1,357		17,017
Robert Half International, Inc.		448		16,912
H&R Block, Inc.		745		10,490
Coty, Inc. — Class A		1,127		5,815
Total Consumer, Non-cyclical				19,234,861
Technology - 12.8%
Microsoft Corp.		29,097		4,588,888
Apple, Inc.		15,930		4,050,840

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 29

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
S&P 500® FUND

	Shares		Value
Intel Corp.		16,592	$	897,959
NVIDIA Corp.		2,334		615,242
Adobe, Inc.*		1,846		587,471
salesforce.com, Inc.*		3,383		487,084
Oracle Corp.		8,263		399,351
Accenture plc — Class A		2,422		395,416
International Business Machines Corp.		3,378		374,721
Broadcom, Inc.		1,513		358,732
Texas Instruments, Inc.		3,565		356,250
QUALCOMM, Inc.		4,355		294,616
Fidelity National Information Services, Inc.		2,344		285,124
Intuit, Inc.		993		228,390
Fiserv, Inc.*		2,178		206,888
ServiceNow, Inc.*		719		206,051
Advanced Micro Devices, Inc.*		4,461		202,886
Micron Technology, Inc.*		4,222		177,577
Activision Blizzard, Inc.		2,930		174,276
Applied Materials, Inc.		3,523		161,424
Lam Research Corp.		553		132,720
Autodesk, Inc.*		839		130,968
Analog Devices, Inc.		1,405		125,958
Electronic Arts, Inc.*		1,114		111,589
HP, Inc.		5,652		98,119
Cognizant Technology Solutions Corp. — Class A		2,088		97,029
MSCI, Inc. — Class A		323		93,334
KLA Corp.		602		86,532
Paychex, Inc.		1,215		76,448
ANSYS, Inc.*		326		75,785
Cerner Corp.		1,198		75,462
Xilinx, Inc.		959		74,745
Synopsys, Inc.*		573		73,797
Cadence Design Systems, Inc.*		1,070		70,663
Citrix Systems, Inc.		439		62,140
Microchip Technology, Inc.		911		61,766
Skyworks Solutions, Inc.		650		58,097
Akamai Technologies, Inc.*		616		56,358
Fortinet, Inc.*		541		54,733
Take-Two Interactive Software, Inc.*		432		51,240
Maxim Integrated Products, Inc.		1,032		50,166
Hewlett Packard Enterprise Co.		4,936		47,929
Western Digital Corp.		1,134		47,197
Leidos Holdings, Inc.		508		46,558
Jack Henry & Associates, Inc.		293		45,485
Seagate Technology plc		882		43,042
Broadridge Financial Solutions, Inc.		437		41,441
Zebra Technologies Corp. — Class A*		206		37,822
Paycom Software, Inc.*		187		37,776
NetApp, Inc.		870		36,270
Qorvo, Inc.*		443		35,719
IPG Photonics Corp.*		136		14,998
Xerox Holdings Corp.		709		13,428
DXC Technology Co.		976		12,737
Total Technology				17,227,237
Communications - 9.6%
Amazon.com, Inc.*		1,588		3,096,155
Facebook, Inc. — Class A*		9,179		1,531,057
Alphabet, Inc. — Class A*		1,143		1,328,109
Alphabet, Inc. — Class C*		1,140		1,325,604
Verizon Communications, Inc.		15,774		847,537
AT&T, Inc.		27,862		812,177
Walt Disney Co.		6,875		664,125
Cisco Systems, Inc.		16,181		636,075
Netflix, Inc.*		1,672		627,836
Comcast Corp. — Class A		17,315		595,290
Charter Communications, Inc. — Class A*		598		260,913
Booking Holdings, Inc.*		160		215,251
T-Mobile US, Inc.*		1,207		101,267
eBay, Inc.		2,917		87,685
Motorola Solutions, Inc.		654		86,930
Twitter, Inc.*		2,961		72,722
VeriSign, Inc.*		394		70,956
Corning, Inc.		2,933		60,244
CDW Corp.		548		51,112
Omnicom Group, Inc.		830		45,567
Arista Networks, Inc.*		207		41,928
NortonLifeLock, Inc.		2,187		40,919
CenturyLink, Inc.		3,742		35,399
Fox Corp. — Class A		1,352		31,948
Expedia Group, Inc.		533		29,992
ViacomCBS, Inc. — Class B		2,061		28,875
F5 Networks, Inc.*		232		24,738
Juniper Networks, Inc.		1,277		24,442
Interpublic Group of Companies, Inc.		1,479		23,945
Discovery, Inc. — Class C*		1,279		22,434
DISH Network Corp. — Class A*		976		19,510
Fox Corp. — Class B		619		14,163
News Corp. — Class A		1,482		13,301
Discovery, Inc. — Class A*		603		11,722
News Corp. — Class B		464		4,171
Total Communications				12,884,099
Financial - 9.5%
Berkshire Hathaway, Inc. — Class B*		7,461		1,364,095
JPMorgan Chase & Co.		11,963		1,077,029
Visa, Inc. — Class A		6,529		1,051,952
Mastercard, Inc. — Class A		3,386		817,922
Bank of America Corp.		30,878		655,540
Wells Fargo & Co.		14,680		421,316
American Tower Corp. — Class A REIT		1,689		367,780
Citigroup, Inc.		8,327		350,733
CME Group, Inc. — Class A		1,367		236,368
Crown Castle International Corp. REIT		1,586		229,018
Prologis, Inc. REIT		2,816		226,322
American Express Co.		2,559		219,076
Equinix, Inc. REIT		325		202,985
BlackRock, Inc. — Class A		450		197,987
Chubb Ltd.		1,729		193,112
Goldman Sachs Group, Inc.		1,215		187,827
U.S. Bancorp		5,421		186,753
Intercontinental Exchange, Inc.		2,124		171,513
Marsh & McLennan Companies, Inc.		1,925		166,435
Progressive Corp.		2,230		164,663
PNC Financial Services Group, Inc.		1,671		159,948
Truist Financial Corp.		5,115		157,747

30 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
S&P 500® FUND

	Shares		Value
Morgan Stanley		4,442	$	151,028
Aon plc		893		147,381
Charles Schwab Corp.		4,361		146,617
Digital Realty Trust, Inc. REIT		1,003		139,327
SBA Communications Corp. REIT		429		115,817
Public Storage REIT		573		113,804
Allstate Corp.		1,236		113,378
Bank of New York Mellon Corp.		3,201		107,810
Travelers Companies, Inc.		984		97,760
Aflac, Inc.		2,800		95,872
MetLife, Inc.		2,981		91,129
Capital One Financial Corp.		1,776		89,546
T. Rowe Price Group, Inc.		891		87,006
Willis Towers Watson plc		490		83,226
Equity Residential REIT		1,331		82,136
American International Group, Inc.		3,318		80,461
Prudential Financial, Inc.		1,533		79,931
AvalonBay Communities, Inc. REIT		533		78,442
State Street Corp.		1,387		73,885
Welltower, Inc. REIT		1,548		70,867
Realty Income Corp. REIT		1,307		65,167
Simon Property Group, Inc. REIT		1,170		64,186
Alexandria Real Estate Equities, Inc. REIT		468		64,144
Northern Trust Corp.		808		60,972
Arthur J Gallagher & Co.		711		57,954
Essex Property Trust, Inc. REIT		252		55,500
First Republic Bank		643		52,906
M&T Bank Corp.		503		52,025
Boston Properties, Inc. REIT		548		50,542
Ameriprise Financial, Inc.		483		49,498
Hartford Financial Services Group, Inc.		1,375		48,455
Weyerhaeuser Co. REIT		2,842		48,172
CBRE Group, Inc. — Class A*		1,277		48,155
Extra Space Storage, Inc. REIT		494		47,305
Duke Realty Corp. REIT		1,402		45,397
Healthpeak Properties, Inc. REIT		1,888		45,029
Mid-America Apartment Communities, Inc. REIT		435		44,818
Cincinnati Financial Corp.		580		43,761
Discover Financial Services		1,196		42,661
Nasdaq, Inc.		438		41,588
UDR, Inc. REIT		1,118		40,852
Fifth Third Bancorp		2,707		40,199
KeyCorp		3,757		38,960
Ventas, Inc. REIT		1,422		38,110
Cboe Global Markets, Inc.		423		37,753
Synchrony Financial		2,153		34,642
Loews Corp.		976		33,994
Regions Financial Corp.		3,679		33,001
Huntington Bancshares, Inc.		3,939		32,339
Citizens Financial Group, Inc.		1,658		31,187
Principal Financial Group, Inc.		985		30,870
Host Hotels & Resorts, Inc. REIT		2,735		30,194
Everest Re Group Ltd.		156		30,018
Raymond James Financial, Inc.		471		29,767
SVB Financial Group*		197		29,763
E*TRADE Financial Corp.		862		29,584
Western Union Co.		1,599		28,990
WR Berkley Corp.		553		28,850
Globe Life, Inc.		380		27,349
Iron Mountain, Inc. REIT		1,095		26,061
Regency Centers Corp. REIT		639		24,557
Assurant, Inc.		231		24,045
Vornado Realty Trust REIT		604		21,871
Federal Realty Investment Trust REIT		268		19,995
Apartment Investment & Management Co. — Class A REIT		568		19,965
Lincoln National Corp.		756		19,898
People’s United Financial, Inc.		1,694		18,719
Franklin Resources, Inc.		1,064		17,758
Zions Bancorp North America		650		17,394
Comerica, Inc.		550		16,137
Kimco Realty Corp. REIT		1,610		15,569
SL Green Realty Corp. REIT		311		13,404
Invesco Ltd.		1,420		12,894
Unum Group		787		11,813
Alliance Data Systems Corp.		156		5,249
Total Financial				12,791,530
Industrial - 4.9%
Union Pacific Corp.		2,648		373,474
Honeywell International, Inc.		2,725		364,578
Lockheed Martin Corp.		947		320,986
Boeing Co.		2,039		304,096
3M Co.		2,193		299,366
United Technologies Corp.*		3,094		291,857
General Electric Co.		33,311		264,489
United Parcel Service, Inc. — Class B		2,673		249,712
Caterpillar, Inc.		2,108		244,612
Northrop Grumman Corp.		598		180,925
CSX Corp.		2,966		169,952
Deere & Co.		1,201		165,930
Illinois Tool Works, Inc.		1,116		158,606
L3Harris Technologies, Inc.		843		151,841
Norfolk Southern Corp.		995		145,270
Raytheon Co.		1,062		139,281
Waste Management, Inc.		1,489		137,822
Roper Technologies, Inc.		397		123,789
Eaton Corporation plc		1,577		122,517
General Dynamics Corp.		894		118,285
FedEx Corp.		916		111,074
Emerson Electric Co.		2,323		110,691
Agilent Technologies, Inc.		1,180		84,512
Amphenol Corp. — Class A		1,131		82,427
Ball Corp.		1,248		80,696
TE Connectivity Ltd.		1,276		80,362
Johnson Controls International plc		2,942		79,316
Trane Technologies plc		914		75,487
Rockwell Automation, Inc.		441		66,551
Mettler-Toledo International, Inc.*		93		64,217
Parker-Hannifin Corp.		490		63,568
AMETEK, Inc.		872		62,801
Fortive Corp.		1,127		62,199
TransDigm Group, Inc.		190		60,836
Republic Services, Inc. — Class A		803		60,273

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 31

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
S&P 500® FUND

	Shares		Value
Keysight Technologies, Inc.*		715	$	59,831
Stanley Black & Decker, Inc.		580		58,000
Vulcan Materials Co.		505		54,575
Amcor plc		6,179		50,173
Kansas City Southern		378		48,074
Old Dominion Freight Line, Inc.		365		47,910
Dover Corp.		554		46,503
Martin Marietta Materials, Inc.		238		45,037
Waters Corp.*		246		44,784
Xylem, Inc.		687		44,744
Expeditors International of Washington, Inc.		650		43,368
Garmin Ltd.		551		41,303
Jacobs Engineering Group, Inc.		517		40,983
IDEX Corp.		290		40,052
Masco Corp.		1,084		37,474
CH Robinson Worldwide, Inc.		516		34,159
Westinghouse Air Brake Technologies Corp.		695		33,451
Ingersoll Rand, Inc.*		1,320		32,736
Allegion plc		354		32,575
PerkinElmer, Inc.		424		31,919
Packaging Corporation of America		361		31,346
J.B. Hunt Transport Services, Inc.		325		29,975
Huntington Ingalls Industries, Inc.		156		28,425
Westrock Co.		984		27,808
Arconic, Inc.		1,477		23,721
Textron, Inc.		871		23,230
Fortune Brands Home & Security, Inc.		531		22,966
Snap-on, Inc.		209		22,743
AO Smith Corp.		523		19,775
Pentair plc		641		19,076
FLIR Systems, Inc.		512		16,328
Sealed Air Corp.		589		14,554
Flowserve Corp.		499		11,921
Total Industrial				6,631,917
Consumer, Cyclical - 4.7%
Home Depot, Inc.		4,161		776,900
Walmart, Inc.		5,411		614,798
Costco Wholesale Corp.		1,685		480,444
McDonald’s Corp.		2,872		474,885
NIKE, Inc. — Class B		4,753		393,263
Starbucks Corp.		4,505		296,159
Lowe’s Companies, Inc.		2,923		251,524
TJX Companies, Inc.		4,625		221,121
Target Corp.		1,933		179,711
Dollar General Corp.		971		146,631
Walgreens Boots Alliance, Inc.		2,860		130,845
Ross Stores, Inc.		1,380		120,019
General Motors Co.		4,796		99,661
O’Reilly Automotive, Inc.*		289		87,003
PACCAR, Inc.		1,319		80,630
Yum! Brands, Inc.		1,154		79,084
Cummins, Inc.		584		79,027
Marriott International, Inc. — Class A		1,035		77,429
AutoZone, Inc.*		91		76,986
Hilton Worldwide Holdings, Inc.		1,076		73,426
Ford Motor Co.		14,852		71,735
Fastenal Co.		2,188		68,375
VF Corp.		1,249		67,546
Dollar Tree, Inc.*		903		66,343
Southwest Airlines Co.		1,807		64,347
Chipotle Mexican Grill, Inc. — Class A*		98		64,131
Delta Air Lines, Inc.		2,195		62,623
Las Vegas Sands Corp.		1,289		54,744
Copart, Inc.*		780		53,446
Tiffany & Co.		412		53,354
Best Buy Company, Inc.		869		49,533
Aptiv plc		974		47,960
DR Horton, Inc.		1,279		43,486
WW Grainger, Inc.		166		41,251
Lennar Corp. — Class A		1,068		40,798
Ulta Beauty, Inc.*		218		38,303
Tractor Supply Co.		452		38,217
Genuine Parts Co.		554		37,301
Hasbro, Inc.		485		34,702
CarMax, Inc.*		627		33,751
NVR, Inc.*		13		33,398
United Airlines Holdings, Inc.*,1		830		26,187
Darden Restaurants, Inc.		468		25,487
Advance Auto Parts, Inc.		264		24,637
Live Nation Entertainment, Inc.*		537		24,412
LKQ Corp.*		1,169		23,976
MGM Resorts International		1,964		23,175
Wynn Resorts Ltd.		369		22,210
PulteGroup, Inc.		972		21,695
Royal Caribbean Cruises Ltd.		656		21,103
Whirlpool Corp.		241		20,678
Carnival Corp.		1,528		20,124
Newell Brands, Inc.		1,453		19,296
BorgWarner, Inc.		788		19,203
American Airlines Group, Inc.1		1,487		18,127
Mohawk Industries, Inc.*		227		17,306
Tapestry, Inc.		1,052		13,623
Leggett & Platt, Inc.		502		13,393
Alaska Air Group, Inc.		470		13,381
Ralph Lauren Corp. — Class A		190		12,698
Harley-Davidson, Inc.		588		11,131
Hanesbrands, Inc.		1,380		10,860
PVH Corp.		283		10,652
L Brands, Inc.		886		10,242
Norwegian Cruise Line Holdings Ltd.*		811		8,889
Kohl’s Corp.		597		8,710
Under Armour, Inc. — Class A*		718		6,613
Nordstrom, Inc.1		409		6,274
Capri Holdings Ltd.*		578		6,237
Under Armour, Inc. — Class C*		742		5,980
Macy’s, Inc.1		1,179		5,789
Gap, Inc.		812		5,717
Total Consumer, Cyclical				6,282,695
Utilities - 2.1%
NextEra Energy, Inc.		1,864		448,516
Dominion Energy, Inc.		3,139		226,605
Duke Energy Corp.		2,781		224,927
Southern Co.		4,000		216,560

32 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
S&P 500® FUND

	Shares		Value
American Electric Power Company, Inc.		1,884	$	150,682
Exelon Corp.		3,708		136,492
Sempra Energy		1,075		121,464
Xcel Energy, Inc.		2,000		120,600
WEC Energy Group, Inc.		1,203		106,020
Consolidated Edison, Inc.		1,268		98,904
Eversource Energy		1,235		96,589
Public Service Enterprise Group, Inc.		1,929		86,631
FirstEnergy Corp.		2,061		82,584
American Water Works Company, Inc.		690		82,496
Edison International		1,368		74,953
PPL Corp.		2,929		72,288
Entergy Corp.		759		71,323
DTE Energy Co.		733		69,613
Ameren Corp.		938		68,315
CMS Energy Corp.		1,083		63,626
Evergy, Inc.		869		47,839
Atmos Energy Corp.		455		45,150
Alliant Energy Corp.		917		44,282
NiSource, Inc.		1,425		35,582
AES Corp.		2,532		34,435
Pinnacle West Capital Corp.		429		32,514
CenterPoint Energy, Inc.		1,916		29,602
NRG Energy, Inc.		960		26,170
Total Utilities				2,914,762
Energy - 1.6%
Exxon Mobil Corp.		16,138		612,760
Chevron Corp.		7,212		522,581
ConocoPhillips		4,185		128,898
Kinder Morgan, Inc.		7,429		103,412
Phillips 66		1,695		90,937
EOG Resources, Inc.		2,219		79,706
Schlumberger Ltd.		5,280		71,227
Valero Energy Corp.		1,566		71,034
Williams Companies, Inc.		4,623		65,415
Marathon Petroleum Corp.		2,477		58,507
Pioneer Natural Resources Co.		632		44,335
Occidental Petroleum Corp.		3,407		39,453
ONEOK, Inc.		1,576		34,373
Hess Corp.		988		32,900
Concho Resources, Inc.		767		32,866
Cabot Oil & Gas Corp. — Class A		1,556		26,748
Baker Hughes Co.		2,479		26,029
Halliburton Co.		3,348		22,934
Diamondback Energy, Inc.		615		16,113
National Oilwell Varco, Inc.		1,472		14,470
HollyFrontier Corp.		566		13,873
Noble Energy, Inc.		1,824		11,017
TechnipFMC plc		1,603		10,804
Devon Energy Corp.		1,476		10,199
Marathon Oil Corp.		3,051		10,038
Helmerich & Payne, Inc.		414		6,479
Apache Corp.		1,434		5,994
Total Energy				2,163,102
Basic Materials - 1.2%
Linde plc		2,049		354,477
Air Products & Chemicals, Inc.		841		167,872
Ecolab, Inc.		956		148,973
Sherwin-Williams Co.		313		143,830
Newmont Corp.		3,127		141,591
DuPont de Nemours, Inc.		2,826		96,367
Dow, Inc.		2,828		82,691
PPG Industries, Inc.		902		75,407
LyondellBasell Industries N.V. — Class A		979		48,588
International Paper Co.		1,496		46,571
Nucor Corp.		1,157		41,675
International Flavors & Fragrances, Inc.1		407		41,546
FMC Corp.		494		40,355
Freeport-McMoRan, Inc.		5,534		37,354
Celanese Corp. — Class A		461		33,833
Eastman Chemical Co.		519		24,175
Albemarle Corp.		404		22,773
CF Industries Holdings, Inc.		829		22,549
Mosaic Co.		1,334		14,434
Total Basic Materials				1,585,061
Total Common Stocks
(Cost $72,195,554)				81,715,264
	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 4.8%
Federal Home Loan Bank
0.05% due 04/03/202	$	5,000,000		4,999,986
Freddie Mac
0.08% due 04/07/202		1,400,000		1,399,981
Total Federal Agency Discount Notes
(Cost $6,399,967)				6,399,967
REPURCHASE AGREEMENTS††,3 - 20.1%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/204		19,561,769		19,561,769
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/204		7,523,758		7,523,758
Total Repurchase Agreements
(Cost $27,085,527)				27,085,527

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 33

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
S&P 500® FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,5 - 0.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%6		41,327	$	41,327
Total Securities Lending Collateral
(Cost $41,327)				41,327
Total Investments - 85.6%
(Cost $105,722,375)			$	115,242,085
Other Assets & Liabilities, net - 14.4%				19,336,374
Total Net Assets - 100.0%			$	134,578,459

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Purchased†
S&P 500 Index Mini Futures Contracts		115		Jun 2020	$	14,791,875	$	794,086

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements††
Barclays Bank plc	S&P 500 Index	1.04% (1 Week USD LIBOR + 0.45%)	At Maturity		04/30/20		137	$	353,155	$	(5,747	)
BNP Paribas	S&P 500 Index	1.54% (1 Month USD LIBOR + 0.55%)	At Maturity		04/29/20		2,676		6,916,386		(121,706	)
Goldman Sachs International	S&P 500 Index	1.04% (1 Week USD LIBOR + 0.45%)	At Maturity		04/28/20		12,016		31,057,194		(511,754	)
								$	38,326,735	$	(639,207	)

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Rate indicated is the effective yield at the time of purchase.
3	Repurchase Agreements — See Note 6.
4	All or a portion of this security is pledged as equity index swap collateral at March 31, 2020.
5	Securities lending collateral — See Note 7.
6	Rate indicated is the 7-day yield as of March 31, 2020.
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

34 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
S&P 500® FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	81,715,264	$	—	$	—	$	81,715,264
Federal Agency Discount Notes		—		6,399,967		—		6,399,967
Repurchase Agreements		—		27,085,527		—		27,085,527
Securities Lending Collateral		41,327		—		—		41,327
Equity Futures Contracts**		794,086		—		—		794,086
Total Assets	$	82,550,677	$	33,485,494	$	—	$	116,036,171

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	639,207	$	—	$	639,207

** This derivative is reported as unrealized appreciation/depreciation at period end.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 35

S&P 500^® FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $39,302 of securities loaned (cost $78,636,848)	$	88,156,558
Repurchase agreements, at value (cost $27,085,527)		27,085,527
Cash		17,097,437
Segregated cash with broker		1,400,002
Receivables:
Fund shares sold		3,927,102
Dividends		71,769
Securities lending income		305
Interest		5
Total assets		137,738,705
Liabilities:
Unrealized depreciation on OTC swap agreements		639,207
Payable for:
Fund shares redeemed		1,938,839
Variation margin on futures contracts		168,363
Swap settlement		85,150
Management fees		65,462
Return of securities lending collateral		41,327
Transfer agent and administrative fees		28,274
Distribution and service fees		28,149
Portfolio accounting fees		13,093
Trustees’ fees		2,270
Miscellaneous		150,112
Total liabilities		3,160,246
Commitments and contingent liabilities (Note 12)		—
Net assets	$	134,578,459
Net assets consist of:
Paid in capital	$	124,348,281
Total distributable earnings (loss)		10,230,178
Net assets	$	134,578,459
A-Class:
Net assets	$	12,798,146
Capital shares outstanding		274,422
Net asset value per share	$	46.64
Maximum offering price per share (Net asset value divided by 95.25%)	$	48.97
C-Class:
Net assets	$	8,980,844
Capital shares outstanding		217,096
Net asset value per share	$	41.37
H-Class:
Net assets	$	112,799,469
Capital shares outstanding		2,418,752
Net asset value per share	$	46.64

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $1)	$	2,564,825
Interest		424,589
Income from securities lending, net		1,147
Total investment income		2,990,561
Expenses:
Management fees		1,145,919
Distribution and service fees:
A-Class		50,380
C-Class		160,875
H-Class		291,380
Transfer agent and administrative fees		388,428
Portfolio accounting fees		229,188
Professional fees		69,593
Trustees’ fees*		34,907
Custodian fees		21,887
Miscellaneous		294,091
Total expenses		2,686,648
Net investment income		303,913
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		17,511,620
Swap agreements		8,449,493
Futures contracts		2,570,395
Net realized gain		28,531,508
Net change in unrealized appreciation (depreciation) on:
Investments		(30,762,284	)
Swap agreements		(828,327	)
Futures contracts		793,965
Net change in unrealized appreciation (depreciation)		(30,796,646	)
Net realized and unrealized loss		(2,265,138	)
Net decrease in net assets resulting from operations	$	(1,961,225	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

36 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P 500^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	303,913		$	469,575
Net realized gain on investments		28,531,508			597,688
Net change in unrealized appreciation (depreciation) on investments		(30,796,646	)		1,645,818
Net increase (decrease) in net assets resulting from operations		(1,961,225	)		2,713,081
Distributions to shareholders:
A-Class		(170,248	)		(321,942	)
C-Class		(224,547	)		(227,483	)
H-Class		(1,236,817	)		(2,546,090	)
Total distributions to shareholders		(1,631,612	)		(3,095,515	)
Capital share transactions:
Proceeds from sale of shares
A-Class		87,906,591			93,539,104
C-Class		29,691,610			72,975,867
H-Class		769,142,083			981,240,477
Distributions reinvested
A-Class		161,590			291,602
C-Class		215,561			213,467
H-Class		1,225,304			2,531,231
Cost of shares redeemed
A-Class		(95,911,253	)		(94,083,958	)
C-Class		(34,726,021	)		(79,616,540	)
H-Class		(774,454,754	)		(1,041,846,099	)
Net decrease from capital share transactions		(16,749,289	)		(64,754,849	)
Net decrease in net assets		(20,342,126	)		(65,137,283	)
Net assets:
Beginning of year		154,920,585			220,057,868
End of year	$	134,578,459		$	154,920,585
Capital share activity:
Shares sold
A-Class		1,691,515			1,850,237
C-Class		615,341			1,601,634
H-Class		14,338,970			19,539,683
Shares issued from reinvestment of distributions
A-Class		2,804			6,304
C-Class		4,209			5,146
H-Class		21,273			54,729
Shares redeemed
A-Class		(1,813,839	)		(1,894,508	)
C-Class		(718,973	)		(1,755,858	)
H-Class		(14,269,930	)		(20,931,485	)
Net decrease in shares		(128,630	)		(1,524,118	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 37

S&P 500^® FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	51.55		$	48.72		$	45.52		$	39.85		$	41.40
Income (loss) from investment operations:
Net investment income (loss)a		.17			.15			.13			.06			.03
Net gain (loss) on investments (realized and unrealized)		(4.54	)		3.45			5.44			5.97			—
Total from investment operations		(4.37	)		3.60			5.57			6.03			.03
Less distributions from:
Net investment income		(.12	)		(.05	)		(.12	)		(.05	)		(.01	)
Net realized gains		(.42	)		(.72	)		(2.25	)		(.31	)		(1.57	)
Total distributions		(.54	)		(.77	)		(2.37	)		(.36	)		(1.58	)
Net asset value, end of period	$	46.64		$	51.55		$	48.72		$	45.52		$	39.85
Total Returnb		(8.67	%)		7.59	%		12.16	%		15.17	%		0.08	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,798		$	20,307		$	21,041		$	20,960		$	39,793
Ratios to average net assets:
Net investment income (loss)		0.31	%		0.30	%		0.27	%		0.14	%		0.02	%
Total expenses		1.68	%		1.67	%		1.58	%		1.57	%		1.55	%
Portfolio turnover rate		227	%		157	%		151	%		133	%		181	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	46.12		$	44.00		$	41.62		$	36.74		$	38.58
Income (loss) from investment operations:
Net investment income (loss)a		(.24	)		(.20	)		(.19	)		(.22	)		(.26	)
Net gain (loss) on investments (realized and unrealized)		(3.97	)		3.09			4.94			5.46			—
Total from investment operations		(4.21	)		2.89			4.75			5.24			(.26	)
Less distributions from:
Net investment income		(.12	)		(.05	)		(.12	)		(.05	)		(.01	)
Net realized gains		(.42	)		(.72	)		(2.25	)		(.31	)		(1.57	)
Total distributions		(.54	)		(.77	)		(2.37	)		(.36	)		(1.58	)
Net asset value, end of period	$	41.37		$	46.12		$	44.00		$	41.62		$	36.74
Total Returnb		(9.35	%)		6.78	%		11.29	%		14.33	%		(0.67	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,981		$	14,599		$	20,484		$	20,931		$	15,667
Ratios to average net assets:
Net investment income (loss)		(0.50	%)		(0.45	%)		(0.44	%)		(0.57	%)		(0.70	%)
Total expenses		2.43	%		2.41	%		2.33	%		2.33	%		2.31	%
Portfolio turnover rate		227	%		157	%		151	%		133	%		181	%

38 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P 500^® FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	51.54		$	48.71		$	45.51		$	39.84		$	41.40
Income (loss) from investment operations:
Net investment income (loss)a		.15			.16			.15			.07			.03
Net gain (loss) on investments (realized and unrealized)		(4.51	)		3.44			5.42			5.96			(.01	)
Total from investment operations		(4.36	)		3.60			5.57			6.03			.02
Less distributions from:
Net investment income		(.12	)		(.05	)		(.12	)		(.05	)		(.01	)
Net realized gains		(.42	)		(.72	)		(2.25	)		(.31	)		(1.57	)
Total distributions		(.54	)		(.77	)		(2.37	)		(.36	)		(1.58	)
Net asset value, end of period	$	46.64		$	51.54		$	48.71		$	45.51		$	39.84
Total Return		(8.65	%)		7.59	%		12.14	%		15.20	%		0.06	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	112,799		$	120,014		$	178,533		$	226,744		$	229,420
Ratios to average net assets:
Net investment income (loss)		0.28	%		0.32	%		0.31	%		0.16	%		0.07	%
Total expenses		1.68	%		1.66	%		1.58	%		1.58	%		1.55	%
Portfolio turnover rate		227	%		157	%		151	%		133	%		181	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 39

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

INVERSE S&P 500^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the S&P 500^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2020, Inverse S&P 500^® Strategy Fund maintained a daily correlation of over 99% to its benchmark of -100% of the daily price movement of the S&P 500 Index.

Inverse S&P 500^® Strategy Fund Investor Class returned 1.10%, while the S&P 500 Index returned -6.98% over the same time period.

The only sector contributing to the return of the underlying index was Information Technology. The sectors detracting the most were Energy, Financials, and Industrials.

The holdings contributing the most to the return of the underlying index were Microsoft Corp., Apple, Inc., and Amazon.com, Inc. The holdings detracting the most were ExxonMobil Corp., Boeing Co., and Chevron Corp.

Derivatives in the Fund were used to help provide inverse exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one-year period ended March 31, 2020, investment in the Short Term Investment Vehicles benefited Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

40 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Inception Dates:
Investor Class	January 7, 1994
A-Class	March 31, 2004
C-Class	March 15, 2001
H-Class	September 18, 2014

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Cumulative Fund Performance*

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	6.3%
Guggenheim Ultra Short Duration Fund — Institutional Class	4.0%
Total	10.3%
“ Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	1.10%	(8.10%)	(12.01%)
A-Class Shares	0.85%	(8.32%)	(12.23%)
A-Class Shares with sales charge‡	(3.94%)	(9.21%)	(12.65%)
C-Class Shares	0.09%	(9.03%)	(12.89%)
C-Class Shares with CDSC§	(0.90%)	(9.03%)	(12.89%)
S&P 500 Index	(6.98%)	6.73%	10.53%

	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	0.85%	(8.33%)	(8.46%)
S&P 500 Index	(6.98%)	6.73%	6.80%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class shares and H-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 41

SCHEDULE OF INVESTMENTS	March 31, 2020
INVERSE S&P 500® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 10.3%
Guggenheim Strategy Fund II1		282,633	$	6,797,326
Guggenheim Ultra Short Duration Fund — Institutional Class1		445,810		4,355,562
Total Mutual Funds
(Cost $11,430,892)				11,152,888
	Face Amount
FEDERAL AGENCY NOTES†† - 33.7%
Federal Farm Credit Bank
1.53% (3 Month USD LIBOR - 0.21%, Rate Floor: 0.00%) due 08/10/202	$	5,000,000		4,997,587
0.38% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/222		5,000,000		4,991,819
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222		4,500,000		4,509,920
0.44% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/222		3,040,000		3,046,604
Fannie Mae
0.09% (U.S. Secured Overnight Financing Rate + 0.08%, Rate Floor: 0.00%) due 09/16/202		5,000,000		4,999,534
0.23% (U.S. Secured Overnight Financing Rate + 0.22%, Rate Floor: 0.00%) due 03/16/222		5,000,000		4,990,095
1.88% due 12/28/20		2,500,000		2,527,021
Freddie Mac
0.01% (U.S. Secured Overnight Financing Rate, Rate Floor: 0.00%) due 04/13/202		5,000,000		4,999,882
Federal Home Loan Bank
1.38% due 09/28/20		1,600,000		1,608,670
Total Federal Agency Notes
(Cost $36,675,490)				36,671,132

FEDERAL AGENCY DISCOUNT NOTES†† - 29.7%
Federal Home Loan Bank
0.40% due 05/08/203	9,000,000		8,996,300
0.30% due 05/29/203	5,400,000		5,399,391
0.51% due 08/03/203	5,000,000		4,998,106
0.40% due 05/20/203	1,000,000		999,904
0.05% due 04/08/203	5,000,000		4,999,951
0.30% due 05/04/203	1,950,000		1,949,464
0.05% due 04/01/203	1,235,000		1,235,000
0.30% due 05/01/203	680,000		679,830
Fannie Mae
0.05% due 04/13/203	3,000,000		2,999,950
Total Federal Agency Discount Notes
(Cost $32,248,385)			32,257,896
U.S. TREASURY BILLS†† - 0.1%
U.S. Treasury Bills
0.50% due 04/30/203,4	135,000		134,994
Total U.S. Treasury Bills
(Cost $134,945)			134,994
REPURCHASE AGREEMENTS††,5 - 12.6%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/206	9,866,912		9,866,912
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/206	3,794,966		3,794,966
Total Repurchase Agreements
(Cost $13,661,878)			13,661,878
Total Investments - 86.4%
(Cost $94,151,590)		$	93,878,788
Other Assets & Liabilities, net - 13.6%			14,801,056
Total Net Assets - 100.0%		$	108,679,844

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Equity Futures Contracts Sold Short†
S&P 500 Index Mini Futures Contracts		87		Jun 2020	$	11,190,375	$	(879,553	)

42 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS	March 31, 2020
INVERSE S&P 500® STRATEGY FUND

Total Return Swap Agreements
Counterparty	Index	Financing Rate Receive	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Equity Index Swap Agreements Sold Short††
BNP Paribas	S&P 500 Index	(1.04)% (1 Month USD LIBOR + 0.05%)	At Maturity		04/29/20		25,324	$	65,450,987	$	1,046,820
Barclays Bank plc	S&P 500 Index	(0.89)% (1 Week USD LIBOR + 0.30%)	At Maturity		04/30/20		7,526		19,450,431		316,524
Goldman Sachs International	S&P 500 Index	(0.94)% (1 Week USD LIBOR + 0.35%)	At Maturity		04/28/20		3,378		8,729,591		5,607
								$	93,631,009	$	1,368,951

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at March 31, 2020. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	Rate indicated is the effective yield at the time of purchase.
4	All or a portion of this security is pledged as futures collateral at March 31, 2020.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as equity index swap collateral at March 31, 2020.
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	11,152,888	$	—	$	—	$	11,152,888
Federal Agency Notes		—		36,671,132		—		36,671,132
Federal Agency Discount Notes		—		32,257,896		—		32,257,896
U.S. Treasury Bills		—		134,994		—		134,994
Repurchase Agreements		—		13,661,878		—		13,661,878
Equity Index Swap Agreements**		—		1,368,951		—		1,368,951
Total Assets	$	11,152,888	$	84,094,851	$	—	$	95,247,739

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts**	$	879,553	$	—	$	—	$	879,553

** This derivative is reported as unrealized appreciation/depreciation at period end.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 43

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
INVERSE S&P 500® STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	7,512,127	$	—	$	(500,001	)	$	202	$	(215,002	)	$	6,797,326		282,633	$	196,500
Guggenheim Ultra Short Duration Fund — Institutional Class		5,195,477		—		(750,000	)		2,888		(92,803	)		4,355,562		445,810		118,901
	$	12,707,604		—	$	(1,250,001	)	$	3,090	$	(307,805	)	$	11,152,888			$	315,401

44 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE S&P 500^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value (cost $69,058,820)	$	69,064,022
Investments in affiliated issuers, at value (cost $11,430,892)		11,152,888
Repurchase agreements, at value (cost $13,661,878)		13,661,878
Cash		7,754,064
Segregated cash with broker		1,829,680
Unrealized appreciation on OTC swap agreements		1,368,951
Receivables:
Fund shares sold		4,386,310
Variation margin on futures contracts		168,345
Interest		60,103
Dividends		21,018
Total assets		109,467,259
Liabilities:
Payable for:
Fund shares redeemed		517,001
Management fees		69,632
Swap settlement		29,546
Transfer agent and administrative fees		22,608
Portfolio accounting fees		7,837
Distribution and service fees		7,052
Trustees’ fees		2,033
Miscellaneous		131,706
Total liabilities		787,415
Commitments and contingent liabilities (Note 12)		—
Net assets	$	108,679,844
Net assets consist of:
Paid in capital	$	317,798,500
Total distributable earnings (loss)		(209,118,656	)
Net assets	$	108,679,844
Investor Class:
Net assets	$	85,838,939
Capital shares outstanding		1,507,970
Net asset value per share	$	56.92
A-Class:
Net assets	$	7,574,827
Capital shares outstanding		144,752
Net asset value per share	$	52.33
Maximum offering price per share (Net asset value divided by 95.25%)	$	54.94
C-Class:
Net assets	$	6,376,098
Capital shares outstanding		137,158
Net asset value per share	$	46.49
H-Class:
Net assets	$	8,889,980
Capital shares outstanding		169,904
Net asset value per share	$	52.32

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of affiliated issuers	$	315,401
Interest		962,227
Total investment income		1,277,628
Expenses:
Management fees		548,219
Distribution and service fees:
A-Class		15,668
C-Class		26,932
H-Class		14,964
Transfer agent and administrative fees		155,299
Portfolio accounting fees		60,913
Registration fees		57,687
Professional fees		34,040
Trustees’ fees*		15,275
Custodian fees		8,719
Prime broker interest expense		48
Line of credit fees		4
Miscellaneous		51,391
Total expenses		989,159
Less:
Expenses waived by Adviser		(12,139	)
Net expenses		977,020
Net investment income		300,608
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		36,088
Investments in affiliated issuers		3,090
Swap agreements		(3,203,897	)
Futures contracts		(1,057,030	)
Net realized loss		(4,221,749	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(311	)
Investments in affiliated issuers		(307,805	)
Swap agreements		1,957,709
Futures contracts		(862,410	)
Net change in unrealized appreciation (depreciation)		787,183
Net realized and unrealized loss		(3,434,566	)
Net decrease in net assets resulting from operations	$	(3,133,958	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 45

INVERSE S&P 500^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	300,608		$	481,630
Net realized loss on investments		(4,221,749	)		(7,446,581	)
Net change in unrealized appreciation (depreciation) on investments		787,183			(225,606	)
Net decrease in net assets resulting from operations		(3,133,958	)		(7,190,557	)
Distributions to shareholders:
Investor Class		(404,392	)		—
A-Class		(30,961	)		—
C-Class		(17,735	)		—
H-Class		(31,456	)		—
Total distributions to shareholders		(484,544	)		—
Capital share transactions:
Proceeds from sale of shares
Investor Class		191,676,284			208,817,447
A-Class		32,213,820			9,058,886
C-Class		14,599,836			35,343,563
H-Class		55,422,179			70,374,514
Distributions reinvested
Investor Class		392,366			—
A-Class		30,236			—
C-Class		17,213			—
H-Class		30,608			—
Cost of shares redeemed
Investor Class		(150,547,290	)		(214,934,455	)
A-Class		(27,995,128	)		(10,101,675	)
C-Class		(10,836,227	)		(36,594,092	)
H-Class		(51,569,418	)		(66,764,405	)
Net increase (decrease) from capital share transactions		53,434,479			(4,800,217	)
Net increase (decrease) in net assets		49,815,977			(11,990,774	)
Net assets:
Beginning of year		58,863,867			70,854,641
End of year	$	108,679,844		$	58,863,867
Capital share activity:
Shares sold
Investor Class		3,369,987			3,461,135
A-Class		638,191			164,505
C-Class		327,353			716,652
H-Class		1,099,080			1,250,985
Shares issued from reinvestment of distributions
Investor Class		7,737			—
A-Class		648			—
C-Class		414			—
H-Class		656			—
Shares redeemed
Investor Class		(2,681,827	)		(3,577,537	)
A-Class		(557,215	)		(182,576	)
C-Class		(247,750	)		(741,017	)
H-Class		(1,059,178	)		(1,203,450	)
Net increase (decrease) in shares		898,096			(111,303	)

46 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE S&P 500^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	56.77		$	61.76		$	70.35		$	83.09		$	87.54
Income (loss) from investment operations:
Net investment income (loss)a		.31			.46			(.07	)		(.55	)		(.78	)
Net gain (loss) on investments (realized and unrealized)		.26			(5.45	)		(8.52	)		(12.19	)		(3.67	)
Total from investment operations		.57			(4.99	)		(8.59	)		(12.74	)		(4.45	)
Less distributions from:
Net investment income		(.42	)		—			—			—			—
Total distributions		(.42	)		—			—			—			—
Net asset value, end of period	$	56.92		$	56.77		$	61.76		$	70.35		$	83.09
Total Return		1.10	%		(8.08	%)		(12.21	%)		(15.34	%)		(5.07	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	85,839		$	46,105		$	57,342		$	76,404		$	153,544
Ratios to average net assets:
Net investment income (loss)		0.58	%		0.78	%		(0.10	%)		(0.70	%)		(0.91	%)
Total expensesb		1.53	%		1.52	%		1.43	%		1.42	%		1.41	%
Net expensesc		1.51	%		1.51	%		1.43	%		1.42	%		1.41	%
Portfolio turnover rate		—			—			56	%		114	%		63	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	52.36		$	57.11		$	65.22		$	77.21		$	81.54
Income (loss) from investment operations:
Net investment income (loss)a		.21			.27			(.22	)		(.70	)		(.96	)
Net gain (loss) on investments (realized and unrealized)		.18			(5.02	)		(7.89	)		(11.29	)		(3.37	)
Total from investment operations		.39			(4.75	)		(8.11	)		(11.99	)		(4.33	)
Less distributions from:
Net investment income		(.42	)		—			—			—			—
Total distributions		(.42	)		—			—			—			—
Net asset value, end of period	$	52.33		$	52.36		$	57.11		$	65.22		$	77.21
Total Returnd		0.85	%		(8.32	%)		(12.43	%)		(15.54	%)		(5.30	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,575		$	3,306		$	4,637		$	6,331		$	9,256
Ratios to average net assets:
Net investment income (loss)		0.43	%		0.50	%		(0.37	%)		(0.96	%)		(1.18	%)
Total expensesb		1.78	%		1.76	%		1.68	%		1.67	%		1.66	%
Net expensesc		1.76	%		1.76	%		1.68	%		1.67	%		1.66	%
Portfolio turnover rate		—			—			56	%		114	%		63	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 47

INVERSE S&P 500^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	46.92		$	51.56		$	59.34		$	70.79		$	75.34
Income (loss) from investment operations:
Net investment income (loss)a		(.22	)		(.13	)		(.63	)		(1.12	)		(1.44	)
Net gain (loss) on investments (realized and unrealized)		.21			(4.51	)		(7.15	)		(10.33	)		(3.11	)
Total from investment operations		(.01	)		(4.64	)		(7.78	)		(11.45	)		(4.55	)
Less distributions from:
Net investment income		(.42	)		—			—			—			—
Total distributions		(.42	)		—			—			—			—
Net asset value, end of period	$	46.49		$	46.92		$	51.56		$	59.34		$	70.79
Total Returnd		0.09	%		(9.00	%)		(13.11	%)		(16.20	%)		(6.05	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,376		$	2,681		$	4,203		$	6,760		$	9,244
Ratios to average net assets:
Net investment income (loss)		(0.51	%)		(0.27	%)		(1.14	%)		(1.69	%)		(1.93	%)
Total expensesb		2.53	%		2.51	%		2.43	%		2.42	%		2.41	%
Net expensesc		2.51	%		2.51	%		2.43	%		2.42	%		2.41	%
Portfolio turnover rate		—			—			56	%		114	%		63	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	52.35		$	57.11		$	65.22		$	77.17		$	81.54
Income (loss) from investment operations:
Net investment income (loss)a		.17			.29			(.27	)		(.70	)		(.90	)
Net gain (loss) on investments (realized and unrealized)		.22			(5.05	)		(7.84	)		(11.25	)		(3.47	)
Total from investment operations		.39			(4.76	)		(8.11	)		(11.95	)		(4.37	)
Less distributions from:
Net investment income		(.42	)		—			—			—			—
Total distributions		(.42	)		—			—			—			—
Net asset value, end of period	$	52.32		$	52.35		$	57.11		$	65.22		$	77.17
Total Return		0.85	%		(8.33	%)		(12.43	%)		(15.47	%)		(5.37	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,890		$	6,772		$	4,672		$	2,857		$	7,319
Ratios to average net assets:
Net investment income (loss)		0.34	%		0.52	%		(0.45	%)		(0.96	%)		(1.08	%)
Total expensesb		1.78	%		1.77	%		1.69	%		1.67	%		1.67	%
Net expensesc		1.76	%		1.76	%		1.69	%		1.67	%		1.67	%
Portfolio turnover rate		—			—			56	%		114	%		63	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Does not include expenses of the underlying funds in which the Fund invests.
c	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
d	Total return does not reflect the impact of any applicable sales charges.
e	Reverse share split — Per share amounts for the periods presented through March 31, 2017 have been restated to reflect 1:6 reverse share split effective October 28, 2016.

48 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a calendar month basis. The Fund’s current benchmark is 200% of the performance of the NASDAQ-100 Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time different than a full calendar month.

For the one-year period ended March 31, 2020, the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund H-Class returned 5.51%, while the NASDAQ-100 Index returned 7.03%.

The sectors contributing the most to the return of the underlying index were Information Technology, Consumer Discretionary, and Health Care. The sectors detracting the most were Industrials, Utilities, and Consumer Staples.

The holdings contributing the most to the return of the underlying index were Microsoft Corp., Apple, Inc., and Amazon.com, Inc. The holdings detracting the most were Cisco Systems, Inc., Comcast Corp. - Class A, and Baidu, Inc. ADR.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the most efficient manner possible and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to compounding, the Fund’s performance generally will not correlate to the performance of the benchmark over periods greater than a full calendar month. For example, the Fund’s compounded returns for periods greater than a full calendar month will be different than the performance of the benchmark over the same period. The effects of compounding on the performance of the Fund will be more pronounced when the underlying index experiences increased volatility, the greater the leverage employed in the Fund, and over longer holding periods. Investors in the Fund should actively monitor and manage their investments to ensure they are consistent with their strategies. The effects of compounding are discussed in more detail on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one-year period ended March 31, 2020, investment in the Short Term Investment Vehicles benefited Fund performance.

Performance displayed represents past performance which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

THE RYDEX FUNDS ANNUAL REPORT | 49

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Inception Dates:
A-Class	November 28, 2014
C-Class	November 28, 2014
H-Class	November 28, 2014

Cumulative Fund Performance*

Ten Largest Holdings (% of Total Net Assets)
Microsoft Corp.	6.6%
Apple, Inc.	6.2%
Amazon.com, Inc.	5.3%
Guggenheim Strategy Fund II	4.7%
Guggenheim Ultra Short Duration Fund — Institutional Class	4.5%
Facebook, Inc. — Class A	2.2%
Alphabet, Inc. — Class C	2.2%
Alphabet, Inc. — Class A	2.2%
Intel Corp.	1.6%
PepsiCo, Inc.	1.2%
Top Ten Total	36.7%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	Since Inception (11/28/14)
A-Class Shares	5.56%	22.41%	21.60%
A-Class Shares with sales charge‡	0.54%	21.22%	20.50%
C-Class Shares	4.77%	21.45%	20.66%
C-Class Shares with CDSC§	3.77%	21.45%	20.66%
H-Class Shares	5.51%	23.04%	22.14%
NASDAQ-100 Index	7.03%	13.81%	12.94%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

50 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 55.2%
Technology - 24.3%
Microsoft Corp.		10,696	$	1,686,866
Apple, Inc.		6,230		1,584,227
Intel Corp.		7,780		421,053
NVIDIA Corp.		1,095		288,642
Adobe, Inc.*		866		275,596
Broadcom, Inc.		709		168,104
Texas Instruments, Inc.		1,672		167,083
QUALCOMM, Inc.		2,042		138,141
Fiserv, Inc.*		1,216		115,508
Intuit, Inc.		466		107,180
Advanced Micro Devices, Inc.*		1,992		90,596
Micron Technology, Inc.*		1,980		83,279
Activision Blizzard, Inc.		1,374		81,726
Applied Materials, Inc.		1,652		75,695
Lam Research Corp.		259		62,160
Autodesk, Inc.*		393		61,347
Analog Devices, Inc.		659		59,079
Electronic Arts, Inc.*		522		52,289
Cognizant Technology Solutions Corp. — Class A		979		45,494
NetEase, Inc. ADR		130		41,725
NXP Semiconductor N.V.		500		41,465
KLA Corp.		282		40,535
Paychex, Inc.		640		40,269
Workday, Inc. — Class A*		293		38,154
Cerner Corp.		562		35,400
ANSYS, Inc.*		151		35,103
Xilinx, Inc.		450		35,073
Synopsys, Inc.*		269		34,645
ASML Holding N.V. — Class G		132		34,536
Splunk, Inc.*		271		34,208
Cadence Design Systems, Inc.*		502		33,152
Citrix Systems, Inc.		233		32,981
Microchip Technology, Inc.		427		28,951
Check Point Software Technologies Ltd.*		272		27,347
Skyworks Solutions, Inc.		305		27,261
Take-Two Interactive Software, Inc.*		203		24,078
Maxim Integrated Products, Inc.		484		23,527
Western Digital Corp.		532		22,142
NetApp, Inc.		408		17,009
Total Technology				6,211,626
Communications - 18.3%
Amazon.com, Inc.*		695		1,355,055
Facebook, Inc. — Class A*		3,374		562,783
Alphabet, Inc. — Class C*		482		560,475
Alphabet, Inc. — Class A*		482		560,060
Cisco Systems, Inc.		7,587		298,245
Netflix, Inc.*		784		294,392
Comcast Corp. — Class A		8,119		279,131
Charter Communications, Inc. — Class A*		384		167,543
T-Mobile US, Inc.*		1,530		128,367
Booking Holdings, Inc.*		75		100,899
JD.com, Inc. ADR*		1,658		67,149
Baidu, Inc. ADR*		494		49,790
eBay, Inc.		1,455		43,737
MercadoLibre, Inc.*		89		43,484
Sirius XM Holdings, Inc.		7,912		39,085
VeriSign, Inc.*		210		37,819
CDW Corp.		257		23,970
Trip.com Group Ltd. ADR*		935		21,926
Fox Corp. — Class A		634		14,982
Expedia Group, Inc.		249		14,011
Liberty Global plc — Class C*		785		12,332
Fox Corp. — Class B		476		10,891
Liberty Global plc — Class A*		325		5,366
Total Communications				4,691,492
Consumer, Non-cyclical - 7.8%
PepsiCo, Inc.		2,494		299,530
Amgen, Inc.		1,063		215,502
PayPal Holdings, Inc.*		2,100		201,054
Gilead Sciences, Inc.		2,263		169,182
Mondelez International, Inc. — Class A		2,575		128,956
Vertex Pharmaceuticals, Inc.*		460		109,457
Automatic Data Processing, Inc.		774		105,790
Intuitive Surgical, Inc.*		207		102,508
Biogen, Inc.*		323		102,191
Regeneron Pharmaceuticals, Inc.*		193		94,240
Illumina, Inc.*		263		71,831
Monster Beverage Corp.*		962		54,122
Kraft Heinz Co.		2,184		54,032
Verisk Analytics, Inc. — Class A		293		40,838
CoStar Group, Inc.*		66		38,756
IDEXX Laboratories, Inc.*		153		37,063
Alexion Pharmaceuticals, Inc.*		396		35,557
Seattle Genetics, Inc.*		307		35,422
Cintas Corp.		185		32,046
Incyte Corp.*		385		28,193
BioMarin Pharmaceutical, Inc.*		321		27,124
Align Technology, Inc.*		141		24,527
Total Consumer, Non-cyclical				2,007,921
Consumer, Cyclical - 3.8%
Costco Wholesale Corp.		790		225,253
Tesla, Inc.*		322		168,728
Starbucks Corp.		2,112		138,843
Walgreens Boots Alliance, Inc.		1,596		73,017
Ross Stores, Inc.		647		56,269
Marriott International, Inc. — Class A		585		43,764
Lululemon Athletica, Inc.*		220		41,701
O’Reilly Automotive, Inc.*		135		40,642
PACCAR, Inc.		619		37,839
Fastenal Co.		1,026		32,063
Dollar Tree, Inc.*		423		31,078
Copart, Inc.*		416		28,504
Ulta Beauty, Inc.*		105		18,448
United Airlines Holdings, Inc.*,1		453		14,292
American Airlines Group, Inc.1		783		9,545
Total Consumer, Cyclical				959,986

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 51

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

	Shares		Value
Utilities - 0.5%
Exelon Corp.		1,739	$	64,012
Xcel Energy, Inc.		959		57,828
Total Utilities				121,840
Industrial - 0.3%
CSX Corp.		1,399		80,163
Financial - 0.2%
Willis Towers Watson plc		230		39,066
Total Common Stocks
(Cost $13,865,932)				14,112,094
MUTUAL FUNDS† - 9.2%
Guggenheim Strategy Fund II2		50,291		1,209,488
Guggenheim Ultra Short Duration Fund — Institutional Class2		117,062		1,143,698
Total Mutual Funds
(Cost $2,393,996)				2,353,186
	Face Amount
U.S. TREASURY BILLS†† - 7.8%
U.S. Treasury Bills
0.50% due 04/30/203,4	$	1,996,000		1,995,911
Total U.S. Treasury Bills
(Cost $1,995,184)				1,995,911
REPURCHASE AGREEMENTS††,5 - 20.8%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/206		3,841,239		3,841,239
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/206		1,477,400		1,477,400
Total Repurchase Agreements
(Cost $5,318,639)				5,318,639
SECURITIES LENDING COLLATERAL†,7 - 0.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%8		5,275		5,275
Total Securities Lending Collateral
(Cost $5,275)				5,275
Total Investments - 93.0%
(Cost $23,579,026)			$	23,785,105
Other Assets & Liabilities, net - 7.0%				1,787,389
Total Net Assets - 100.0%			$	25,572,494

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Purchased†
NASDAQ-100 Index Mini Futures Contracts		29		Jun 2020	$	4,522,550	$	345,252

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements††
Goldman Sachs International	NASDAQ-100 Index	1.14% (1 Week USD LIBOR + 0.55%)	At Maturity		04/28/20		789	$	6,166,892	$	(66,005	)
BNP Paribas	NASDAQ-100 Index	1.64% (1 Month USD LIBOR + 0.65%)	At Maturity		04/29/20		1,357		10,599,854		(113,453	)
Barclays Bank plc	NASDAQ-100 Index	1.09% (1 Week USD LIBOR + 0.50%)	At Maturity		04/30/20		2,025		15,822,039		(152,900	)
								$	32,588,785	$	(332,358	)

52 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 6.
2	Affiliated issuer.
3	All or a portion of this security is pledged as futures collateral at March 31, 2020.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as equity index swap collateral at March 31, 2020.
7	Securities lending collateral — See Note 7.
8	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	14,112,094	$	—	$	—	$	14,112,094
Mutual Funds		2,353,186		—		—		2,353,186
U.S. Treasury Bills		—		1,995,911		—		1,995,911
Repurchase Agreements		—		5,318,639		—		5,318,639
Securities Lending Collateral		5,275		—		—		5,275
Equity Futures Contracts**		345,252		—		—		345,252
Total Assets	$	16,815,807	$	7,314,550	$	—	$	24,130,357

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	332,358	$	—	$	332,358

** This derivative is reported as unrealized appreciation/depreciation at period end.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 53

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	6,369,514	$	9,400,000	$	(14,500,000	)	$	(68,338	)	$	8,312		$	1,209,488		50,291	$	203,782
Guggenheim Ultra Short Duration Fund — Institutional Class		6,371,937		10,900,000		(16,100,000	)		(23,231	)		(5,008	)		1,143,698		117,062		176,084
	$	12,741,451	$	20,300,000	$	(30,600,000	)	$	(91,569	)	$	3,304		$	2,353,186			$	379,866

54 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value - including $5,275 of securities loaned (cost $15,866,391)	$	16,113,280
Investments in affiliated issuers, at value (cost $2,393,996)		2,353,186
Repurchase agreements, at value (cost $5,318,639)		5,318,639
Cash		3,045,415
Receivables:
Fund shares sold		1,382,965
Investment Adviser		31,622
Dividends		15,405
Securities lending income		13
Interest		1
Total assets		28,260,526
Liabilities:
Unrealized depreciation on OTC swap agreements		332,358
Payable for:
Fund shares redeemed		2,012,049
Management fees		59,118
Variation margin on futures contracts		45,297
Swap settlement		36,690
Professional fees		31,349
Printing fees		30,182
Transfer agent and administrative fees		21,787
Distribution and service fees		16,904
Portfolio accounting fees		6,629
Return of securities lending collateral		5,275
Trustees’ fees*		2,136
Miscellaneous		88,258
Total liabilities		2,688,032
Commitments and contingent liabilities (Note 12)		—
Net assets	$	25,572,494
Net assets consist of:
Paid in capital	$	89,040,785
Total distributable earnings (loss)		(63,468,291	)
Net assets	$	25,572,494
A-Class:
Net assets	$	2,434,410
Capital shares outstanding		17,161
Net asset value per share	$	141.86
Maximum offering price per share (Net asset value divided by 95.25%)	$	148.93
C-Class:
Net assets	$	551,869
Capital shares outstanding		4,056
Net asset value per share	$	136.06
H-Class:
Net assets	$	22,586,215
Capital shares outstanding		155,515
Net asset value per share	$	145.23

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $1,004)	$	985,603
Dividends from securities of affiliated issuers		379,866
Interest		523,221
Income from securities lending, net		494
Total investment income		1,889,184
Expenses:
Management fees		1,194,408
Distribution and service fees:
A-Class		7,283
C-Class		6,727
H-Class		322,814
Transfer agent and administrative fees		336,993
Portfolio accounting fees		132,711
Professional fees		72,430
Licensing fees		53,201
Printing fees		46,592
Trustees’ fees*		29,467
Pricing fees		28,764
Custodian fees		19,341
Line of credit fees		2,658
Miscellaneous		170,321
Total expenses		2,423,710
Less:
Expenses waived by Adviser		(635,407	)
Net expenses		1,788,303
Net investment income		100,881
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(3,643,050	)
Investments in affiliated issuers		(91,569	)
Swap agreements		(4,854,663	)
Futures contracts		3,029,992
Net realized loss		(5,559,290	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(6,501,223	)
Investments in affiliated issuers		3,304
Swap agreements		(1,536,335	)
Futures contracts		(489,712	)
Net change in unrealized appreciation (depreciation)		(8,523,966	)
Net realized and unrealized loss		(14,083,256	)
Net decrease in net assets resulting from operations	$	(13,982,375	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 55

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	100,881		$	122,242
Net realized gain (loss) on investments		(5,559,290	)		29,388,114
Net change in unrealized appreciation (depreciation) on investments		(8,523,966	)		4,693,945
Net increase (decrease) in net assets resulting from operations		(13,982,375	)		34,204,301
Distributions to shareholders:
A-Class		(3,735	)		—
C-Class		(832	)		—
H-Class		(203,974	)		—
Total distributions to shareholders		(208,541	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		14,654,383			5,870,473
C-Class		737,827			870,336
H-Class		1,626,392,692			475,352,789
Distributions reinvested
A-Class		2,826			—
C-Class		735			—
H-Class		202,106			—
Cost of shares redeemed
A-Class		(14,843,489	)		(5,265,587	)
C-Class		(746,073	)		(570,711	)
H-Class		(1,718,544,874	)		(406,018,040	)
Net increase (decrease) from capital share transactions		(92,143,867	)		70,239,260
Net increase (decrease) in net assets		(106,334,783	)		104,443,561
Net assets:
Beginning of year		131,907,277			27,463,716
End of year	$	25,572,494		$	131,907,277
Capital share activity:
Shares sold
A-Class		92,924			45,931
C-Class		5,051			7,067
H-Class		9,985,485			3,856,374
Shares issued from reinvestment of distributions
A-Class		17			—
C-Class		5			—
H-Class		1,173			—
Shares redeemed
A-Class		(98,653	)		(40,617	)
C-Class		(4,660	)		(4,951	)
H-Class		(10,762,621	)		(3,142,899	)
Net increase (decrease) in shares		(781,279	)		720,905

56 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	134.54		$	113.31		$	79.32		$	54.45		$	51.68
Income (loss) from investment operations:
Net investment income (loss)a		.23			.25			(.23	)		(.18	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		7.28			20.98			34.22			25.05			3.04
Total from investment operations		7.51			21.23			33.99			24.87			2.77
Less distributions from:
Net investment income		(.19	)		—			—			—			—
Total distributions		(.19	)		—			—			—			—
Net asset value, end of period	$	141.86		$	134.54		$	113.31		$	79.32		$	54.45
Total Returnb		5.56	%		18.74	%		42.85	%		45.65	%		5.38	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,434		$	3,077		$	1,990		$	1,010		$	246
Ratios to average net assets:
Net investment income (loss)		0.15	%		0.19	%		(0.23	%)		(0.28	%)		(0.48	%)
Total expensesc		1.83	%		1.81	%		1.71	%		1.72	%		1.70	%
Net expensesd,e		1.34	%		1.35	%		1.35	%		1.35	%		1.37	%
Portfolio turnover rate		990	%		467	%		385	%		259	%		551	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	130.01		$	110.32		$	77.79		$	53.80		$	51.55
Income (loss) from investment operations:
Net investment income (loss)a		(.83	)		(.64	)		(1.00	)		(.73	)		(.56	)
Net gain (loss) on investments (realized and unrealized)		7.07			20.33			33.53			24.72			2.81
Total from investment operations		6.24			19.69			32.53			23.99			2.25
Less distributions from:
Net investment income		(.19	)		—			—			—			—
Total distributions		(.19	)		—			—			—			—
Net asset value, end of period	$	136.06		$	130.01		$	110.32		$	77.79		$	53.80
Total Returnb		4.77	%		17.85	%		41.82	%		44.52	%		4.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	552		$	476		$	170		$	89		$	23
Ratios to average net assets:
Net investment income (loss)		(0.55	%)		(0.52	%)		(1.02	%)		(1.10	%)		(1.04	%)
Total expensesc		2.58	%		2.57	%		2.46	%		2.47	%		2.51	%
Net expensesd,e		2.09	%		2.11	%		2.10	%		2.10	%		2.17	%
Portfolio turnover rate		990	%		467	%		385	%		259	%		551	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 57

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	137.80		$	116.07		$	81.25		$	55.79		$	51.57
Income (loss) from investment operations:
Net investment income (loss)a		.12			.19			(.25	)		(.23	)		(.17	)
Net gain (loss) on investments (realized and unrealized)		7.50			21.54			35.07			25.69			4.39
Total from investment operations		7.62			21.73			34.82			25.46			4.22
Less distributions from:
Net investment income		(.19	)		—			—			—			—
Total distributions		(.19	)		—			—			—			—
Net asset value, end of period	$	145.23		$	137.80		$	116.07		$	81.25		$	55.79
Total Return		5.51	%		18.72	%		42.86	%		45.64	%		8.18	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22,586		$	128,354		$	25,304		$	28,573		$	4,220
Ratios to average net assets:
Net investment income (loss)		0.08	%		0.15	%		(0.24	%)		(0.35	%)		(0.30	%)
Total expensesc		1.82	%		1.81	%		1.71	%		1.72	%		1.67	%
Net expensesd,e		1.34	%		1.35	%		1.35	%		1.35	%		1.35	%
Portfolio turnover rate		990	%		467	%		385	%		259	%		551	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Net expenses may include expenses that are excluded from the expense limitation agreement. Excluding these expenses, the net expense ratios for the years ended would be:

	03/31/20	03/31/19	03/29/18	03/31/17	03/31/16
A-Class	1.33%	1.35%	1.35%	1.35%	1.35%
C-Class	2.08%	2.10%	2.10%	2.10%	2.10%
H-Class	1.34%	1.35%	1.35%	1.35%	1.35%

58 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

INVERSE NASDAQ-100^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the NASDAQ-100^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2020, Inverse NASDAQ-100^® Strategy Fund maintained a daily correlation of over 99% to its benchmark of -100% of the daily price movement of the NASDAQ-100 Index.

Inverse NASDAQ-100^® Strategy Fund Investor Class returned -12.32%, while the NASDAQ-100 Index returned 7.03%.

The sectors contributing the most to the return of the underlying index were Information Technology, Consumer Discretionary, and Health Care. The sectors detracting the most were Industrials, Utilities, and Consumer Staples.

The holdings contributing the most to the return of the underlying index were Microsoft Corp., Apple, Inc., and Amazon.com, Inc. The holdings detracting the most were Cisco Systems, Inc., Comcast Corp. Class A, and Baidu, Inc. ADR.

Derivatives in the Fund were used to help provide inverse exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one-year period ended March 31, 2020, investment in the Short Term Investment Vehicles benefited Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

THE RYDEX FUNDS ANNUAL REPORT | 59

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Inception Dates:
Investor Class	September 3, 1998
A-Class	March 31, 2004
C-Class	March 7, 2001
H-Class	September 18, 2014

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Cumulative Fund Performance*

Largest Holdings (% of Total Net Assets)
Guggenheim Ultra Short Duration Fund — Institutional Class	4.6%
Guggenheim Strategy Fund II	2.6%
Total	7.2%
“ Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(12.32%)	(14.58%)	(16.79%)
A-Class Shares	(12.53%)	(14.55%)	(16.91%)
A-Class Shares with sales charge‡	(16.68%)	(15.37%)	(17.31%)
C-Class Shares	(13.19%)	(15.42%)	(17.65%)
C-Class Shares with CDSC§	(14.05%)	(15.42%)	(17.65%)
NASDAQ-100 Index	7.03%	13.81%	16.17%

	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	(12.54%)	(14.80%)	(14.69%)
NASDAQ-100 Index	7.03%	13.81%	13.65%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class shares and H-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

60 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
INVERSE NASDAQ-100® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 7.2%
Guggenheim Ultra Short Duration Fund — Institutional Class1		284,712	$	2,781,641
Guggenheim Strategy Fund II1		67,419		1,621,432
Total Mutual Funds
(Cost $4,463,191)				4,403,073
	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 50.2%
Federal Home Loan Bank
0.05% due 04/08/202	$	10,000,000		9,999,903
0.30% due 04/29/202		5,300,000		5,298,763
0.40% due 05/08/202		9,000,000		8,996,300
0.51% due 08/03/202		5,000,000		4,998,106
0.30% due 04/13/202		1,130,000		1,129,887
Total Federal Agency Discount Notes
(Cost $30,415,898)				30,422,959
FEDERAL AGENCY NOTES†† - 6.1%
Freddie Mac
0.01% (U.S. Secured Overnight Financing Rate, Rate Floor: 0.00%) due 04/13/203		2,000,000		1,999,953
Federal Farm Credit Bank
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/223		750,000		751,653
0.44% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/223		240,000		240,521
Federal Home Loan Bank
0.75% (3 Month USD LIBOR - 0.14%, Rate Floor: 0.00%) due 12/18/203		700,000		700,148
Total Federal Agency Notes
(Cost $3,689,567)				3,692,275

U.S. TREASURY BILLS†† - 0.8%
U.S. Treasury Bills
0.50% due 04/30/202,4	493,000		492,978
Total U.S. Treasury Bills
(Cost $492,798)			492,978
REPURCHASE AGREEMENTS††,5 - 19.1%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/206	8,364,126		8,364,126
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/206	3,216,971		3,216,971
Total Repurchase Agreements
(Cost $11,581,097)			11,581,097
Total Investments - 83.4%
(Cost $50,642,551)		$	50,592,382
Other Assets & Liabilities, net - 16.6%			10,067,484
Total Net Assets - 100.0%		$	60,659,866

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Equity Futures Contracts Sold Short†
NASDAQ-100 Index Mini Futures Contracts		30		Jun 2020	$	4,678,500	$	(357,235	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Receive	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Equity Index Swap Agreements Sold Short††
Goldman Sachs International	NASDAQ-100 Index	(0.84)% (1 Week USD LIBOR + 0.25%)	At Maturity		04/28/20		3,671	$	28,684,252	$	279,093
Barclays Bank plc	NASDAQ-100 Index	(0.94)% (1 Week USD LIBOR + 0.35%)	At Maturity		04/30/20		3,318		25,928,293		250,563
BNP Paribas	NASDAQ-100 Index	(1.14)% (1 Month USD LIBOR + 0.15%)	At Maturity		04/29/20		178		1,392,187		14,899
								$	56,004,732	$	544,555

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 61

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
INVERSE NASDAQ-100® STRATEGY FUND

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Rate indicated is the effective yield at the time of purchase.
3	Variable rate security. Rate indicated is the rate effective at March 31, 2020. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
4	All or a portion of this security is pledged as futures collateral at March 31, 2020.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as equity index swap collateral at March 31, 2020.
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	4,403,073	$	—	$	—	$	4,403,073
Federal Agency Discount Notes		—		30,422,959		—		30,422,959
Federal Agency Notes		—		3,692,275		—		3,692,275
U.S. Treasury Bills		—		492,978		—		492,978
Repurchase Agreements		—		11,581,097		—		11,581,097
Equity Index Swap Agreements**		—		544,555		—		544,555
Total Assets	$	4,403,073	$	46,733,864	$	—	$	51,136,937

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts**	$	357,235	$	—	$	—	$	357,235

** This derivative is reported as unrealized appreciation/depreciation at period end.

62 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
INVERSE NASDAQ-100® STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	3,007,586	$	300,000	$	(1,650,000	)	$	(1,673	)	$	(34,481	)	$	1,621,432		67,419	$	42,956
Guggenheim Ultra Short Duration Fund — Institutional Class		2,311,807		999,999		(500,000	)		501			(30,666	)		2,781,641		284,712		44,689
	$	5,319,393	$	1,299,999	$	(2,150,000	)	$	(1,172	)	$	(65,147	)	$	4,403,073			$	87,645

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 63

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value (cost $34,598,263)	$	34,608,212
Investments in affiliated issuers, at value (cost $4,463,191)		4,403,073
Repurchase agreements, at value (cost $11,581,097)		11,581,097
Cash		6,203,002
Segregated cash with broker		1,910,000
Unrealized appreciation on OTC swap agreements		544,555
Receivables:
Fund shares sold		3,791,809
Swap settlement		93,795
Variation margin on futures contracts		34,350
Interest		6,134
Dividends		6,029
Total assets		63,182,056
Liabilities:
Payable for:
Fund shares redeemed		2,387,349
Management fees		40,424
Transfer agent and administrative fees		12,465
Portfolio accounting fees		4,533
Trustees’ fees		1,142
Distribution and service fees		1,081
Miscellaneous		75,196
Total liabilities		2,522,190
Commitments and contingent liabilities (Note12)		—
Net assets	$	60,659,866
Net assets consist of:
Paid in capital	$	97,672,097
Total distributable earnings (loss)		(37,012,231	)
Net assets	$	60,659,866
Investor Class:
Net assets	$	59,320,935
Capital shares outstanding		1,244,936
Net asset value per share	$	47.65
A-Class:
Net assets	$	522,518
Capital shares outstanding		11,349
Net asset value per share	$	46.04
Maximum offering price per share (Net asset value divided by 95.25%)	$	48.34
C-Class:
Net assets	$	233,611
Capital shares outstanding		6,027
Net asset value per share	$	38.76
H-Class:
Net assets	$	582,802
Capital shares outstanding		12,849
Net asset value per share	$	45.36

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of affiliated issuers	$	87,645
Interest		171,255
Total investment income		258,900
Expenses:
Management fees		134,261
Distribution and service fees:
A-Class		1,554
C-Class		1,435
H-Class		2,403
Transfer agent and administrative fees		38,426
Portfolio accounting fees		14,918
Registration fees		12,612
Professional fees		8,206
Trustees’ fees*		3,170
Custodian fees		2,062
Line of credit fees		55
Miscellaneous		20,532
Total expenses		239,634
Less:
Expenses waived by Adviser		(4,613	)
Net expenses		235,021
Net investment income		23,879
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		4,368
Investments in affiliated issuers		(1,172	)
Swap agreements		(4,192,889	)
Futures contracts		429,332
Net realized loss		(3,760,361	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		10,827
Investments in affiliated issuers		(65,147	)
Swap agreements		615,912
Futures contracts		(343,318	)
Net change in unrealized appreciation (depreciation)		218,274
Net realized and unrealized loss		(3,542,087	)
Net decrease in net assets resulting from operations	$	(3,518,208	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

64 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	23,879		$	125,954
Net realized loss on investments		(3,760,361	)		(2,817,806	)
Net change in unrealized appreciation (depreciation) on investments		218,274			(288,761	)
Net decrease in net assets resulting from operations		(3,518,208	)		(2,980,613	)
Distributions to shareholders:
Investor Class		(110,169	)		—
A-Class		(5,386	)		—
C-Class		(975	)		—
H-Class		(3,185	)		—
Total distributions to shareholders		(119,715	)		—
Capital share transactions:
Proceeds from sale of shares
Investor Class		178,666,654			176,343,541
A-Class		2,499,290			4,974,401
C-Class		232,896			9,340,131
H-Class		22,452,898			71,221,514
Distributions reinvested
Investor Class		110,048			—
A-Class		5,386			—
C-Class		940			—
H-Class		3,185			—
Cost of shares redeemed
Investor Class		(122,161,471	)		(173,569,949	)
A-Class		(2,798,481	)		(4,992,757	)
C-Class		(106,531	)		(9,969,595	)
H-Class		(22,382,916	)		(72,385,819	)
Net increase from capital share transactions		56,521,898			961,467
Net increase (decrease) in net assets		52,883,975			(2,019,146	)
Net assets:
Beginning of year		7,775,891			9,795,037
End of year	$	60,659,866		$	7,775,891
Capital share activity:
Shares sold
Investor Class		3,532,372			2,892,671
A-Class		52,824			83,715
C-Class		5,698			191,511
H-Class		484,862			1,239,869
Shares issued from reinvestment of distributions
Investor Class		2,293			—
A-Class		116			—
C-Class		24			—
H-Class		70			—
Shares redeemed
Investor Class		(2,408,027	)		(2,861,185	)
A-Class		(57,338	)		(84,906	)
C-Class		(2,529	)		(205,483	)
H-Class		(478,602	)		(1,273,160	)
Net increase (decrease) in shares		1,131,763			(16,968	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 65

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	54.72		$	63.05		$	77.68		$	96.42		$	105.47
Income (loss) from investment operations:
Net investment income (loss)a		.09			.56			.11			(.51	)		(1.08	)
Net gain (loss) on investments (realized and unrealized)		(6.83	)		(8.89	)		(14.74	)		(18.23	)		(7.97	)
Total from investment operations		(6.74	)		(8.33	)		(14.63	)		(18.74	)		(9.05	)
Less distributions from:
Net investment income		(.33	)		—			—			—			—
Total distributions		(.33	)		—			—			—			—
Net asset value, end of period	$	47.65		$	54.72		$	63.05		$	77.68		$	96.42
Total Return		(12.32	%)		(13.21	%)		(18.83	%)		(19.42	%)		(8.61	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	59,321		$	6,473		$	5,474		$	6,286		$	11,857
Ratios to average net assets:
Net investment income (loss)		0.17	%		0.93	%		0.16	%		(0.57	%)		(1.04	%)
Total expensesb		1.57	%		1.56	%		1.46	%		1.46	%		1.44	%
Net expensesc		1.54	%		1.54	%		1.46	%		1.46	%		1.44	%
Portfolio turnover rate		37	%		38	%		—			486	%		1,674	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	53.01		$	61.24		$	75.63		$	94.01		$	101.76
Income (loss) from investment operations:
Net investment income (loss)a		.19			.41			(.08	)		(1.00	)		(1.32	)
Net gain (loss) on investments (realized and unrealized)		(6.83	)		(8.64	)		(14.31	)		(17.38	)		(6.43	)
Total from investment operations		(6.64	)		(8.23	)		(14.39	)		(18.38	)		(7.75	)
Less distributions from:
Net investment income		(.33	)		—			—			—			—
Total distributions		(.33	)		—			—			—			—
Net asset value, end of period	$	46.04		$	53.01		$	61.24		$	75.63		$	94.01
Total Returnd		(12.53	%)		(13.44	%)		(19.03	%)		(19.54	%)		(7.63	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	523		$	835		$	1,037		$	2,626		$	54,948
Ratios to average net assets:
Net investment income (loss)		0.39	%		0.72	%		(0.12	%)		(1.08	%)		(1.36	%)
Total expensesb		1.81	%		1.81	%		1.72	%		1.70	%		1.69	%
Net expensesc		1.76	%		1.79	%		1.72	%		1.70	%		1.69	%
Portfolio turnover rate		37	%		38	%		—			486	%		1,674	%

66 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	45.03		$	52.43		$	65.23		$	81.79		$	90.32
Income (loss) from investment operations:
Net investment income (loss)a		(.17	)		(.06	)		(.48	)		(1.14	)		(1.80	)
Net gain (loss) on investments (realized and unrealized)		(5.77	)		(7.34	)		(12.32	)		(15.42	)		(6.73	)
Total from investment operations		(5.94	)		(7.40	)		(12.80	)		(16.56	)		(8.53	)
Less distributions from:
Net investment income		(.33	)		—			—			—			—
Total distributions		(.33	)		—			—			—			—
Net asset value, end of period	$	38.76		$	45.03		$	52.43		$	65.23		$	81.79
Total Returnd		(13.19	%)		(14.11	%)		(19.62	%)		(20.26	%)		(9.43	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	234		$	128		$	881		$	1,247		$	1,457
Ratios to average net assets:
Net investment income (loss)		(0.41	%)		(0.13	%)		(0.84	%)		(1.51	%)		(2.09	%)
Total expensesb		2.57	%		2.53	%		2.46	%		2.46	%		2.44	%
Net expensesc		2.53	%		2.53	%		2.46	%		2.46	%		2.44	%
Portfolio turnover rate		37	%		38	%		—			486	%		1,674	%

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	52.24		$	60.37		$	74.56		$	92.82		$	101.76
Income (loss) from investment operations:
Net investment income (loss)a		(.02	)		.37			.07			(.86	)		(1.16	)
Net gain (loss) on investments (realized and unrealized)		(6.53	)		(8.50	)		(14.26	)		(17.40	)		(7.78	)
Total from investment operations		(6.55	)		(8.13	)		(14.19	)		(18.26	)		(8.94	)
Less distributions from:
Net investment income		(.33	)		—			—			—			—
Total distributions		(.33	)		—			—			—			—
Net asset value, end of period	$	45.36		$	52.24		$	60.37		$	74.56		$	92.82
Total Return		(12.54	%)		(13.47	%)		(19.03	%)		(19.65	%)		(8.80	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	583		$	341		$	2,403		$	460		$	252
Ratios to average net assets:
Net investment income (loss)		(0.05	%)		0.63	%		0.11	%		(0.95	%)		(1.18	%)
Total expensesb		1.82	%		1.81	%		1.71	%		1.70	%		1.70	%
Net expensesc		1.79	%		1.79	%		1.71	%		1.70	%		1.70	%
Portfolio turnover rate		37	%		38	%		—			486	%		1,674	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Does not include expenses of the underlying funds in which the Fund invests.
c	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
d	Total return does not reflect the impact of any applicable sales charges.
e	Reverse share split — Per share amounts for the periods presented through March 31, 2017, have been restated to reflect a 1:4 reverse share split effective November 4, 2016.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 67

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

MID-CAP 1.5x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark for midcap securities on a daily basis. The Fund’s current benchmark is 150% of the performance of the S&P MidCap 400^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2020, Mid-Cap 1.5x Strategy Fund had a correlation of more than 99% to its benchmark of 150% of the daily price movement of the S&P MidCap 400 Index.

Mid-Cap 1.5x Strategy Fund H-Class returned -37.52%, while the S&P MidCap 400 Index returned -22.51% over the same period.

No sector contributed to the return of the underlying index for the year. The sectors detracting the most were Consumer Discretionary, Financials, and Real Estate.

The holdings contributing the most to the return of the underlying index were Cypress Semiconductor Corp., Cable One, Inc., and Tyler Technologies, Inc. The holdings detracting the most were UGI Corp., National Retail Properties, Inc., and WEX, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one-year period ended March 31, 2020, investment in the Short Term Investment Vehicles benefited Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

68 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Inception Dates:
A-Class	March 31, 2004
C-Class	August 20, 2001
H-Class	August 16, 2001

Cumulative Fund Performance*

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Ultra Short Duration Fund — Institutional Class	6.4%
Guggenheim Strategy Fund II	6.2%
Domino’s Pizza, Inc.	0.1%
Teledyne Technologies, Inc.	0.1%
Tyler Technologies, Inc.	0.1%
West Pharmaceutical Services, Inc.	0.1%
Cable One, Inc.	0.1%
FactSet Research Systems, Inc.	0.1%
Teradyne, Inc.	0.1%
Medical Properties Trust, Inc.	0.1%
Top Ten Total	13.4%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(37.52%)	(3.21%)	7.87%
A-Class Shares with sales charge‡	(40.49%)	(4.15%)	7.35%
C-Class Shares	(37.98%)	(3.93%)	7.08%
C-Class Shares with CDSC§	(38.60%)	(3.93%)	7.08%
H-Class Shares	(37.52%)	(3.17%)	7.91%
S&P MidCap 400 Index	(22.51%)	0.56%	7.88%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 69

SCHEDULE OF INVESTMENTS	March 31, 2020
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 2.4%
Financial - 0.6%
Medical Properties Trust, Inc. REIT		75	$	1,297
Brown & Brown, Inc.		34		1,231
Camden Property Trust REIT		14		1,109
Alleghany Corp.		2		1,105
RenaissanceRe Holdings Ltd.		7		1,045
CyrusOne, Inc. REIT		16		988
Kilroy Realty Corp. REIT		14		892
SEI Investments Co.		18		834
Omega Healthcare Investors, Inc. REIT		31		823
Jones Lang LaSalle, Inc.		8		808
National Retail Properties, Inc. REIT		25		805
American Financial Group, Inc.		11		771
Reinsurance Group of America, Inc. — Class A		9		757
Commerce Bancshares, Inc.		15		755
Douglas Emmett, Inc. REIT		24		732
First American Financial Corp.		16		679
Prosperity Bancshares, Inc.		14		675
Kemper Corp.		9		669
Life Storage, Inc. REIT		7		662
Signature Bank		8		643
First Industrial Realty Trust, Inc. REIT		19		631
New York Community Bancorp, Inc.		67		629
EastGroup Properties, Inc. REIT		6		627
Old Republic International Corp.		41		625
Lamar Advertising Co. — Class A REIT		12		615
Cousins Properties, Inc. REIT		21		615
Legg Mason, Inc.		12		586
CoreSite Realty Corp. REIT		5		580
American Campus Communities, Inc. REIT		20		555
Hanover Insurance Group, Inc.		6		543
JBG SMITH Properties REIT		17		541
East West Bancorp, Inc.		21		541
First Financial Bankshares, Inc.		20		537
Highwoods Properties, Inc. REIT		15		531
Primerica, Inc.		6		531
Healthcare Realty Trust, Inc. REIT		19		531
RLI Corp.		6		528
Eaton Vance Corp.		16		516
TCF Financial Corp.		22		498
Interactive Brokers Group, Inc. — Class A		11		475
Jefferies Financial Group, Inc.		34		465
Rayonier, Inc. REIT		19		447
Selective Insurance Group, Inc.		9		447
Cullen/Frost Bankers, Inc.		8		446
SLM Corp.		61		439
Affiliated Managers Group, Inc.		7		414
Stifel Financial Corp.		10		413
Valley National Bancorp		56		409
Brixmor Property Group, Inc. REIT		43		408
PS Business Parks, Inc. REIT		3		407
Brighthouse Financial, Inc.*		16		387
Taubman Centers, Inc. REIT1		9		377
Pinnacle Financial Partners, Inc.		10		375
Synovus Financial Corp.		21		369
Spirit Realty Capital, Inc. REIT		14		366
First Horizon National Corp.		45		363
Corporate Office Properties Trust REIT		16		354
Umpqua Holdings Corp.		32		349
FNB Corp.		47		346
United Bankshares, Inc.		15		346
Janus Henderson Group plc		22		337
Bank of Hawaii Corp.		6		331
UMB Financial Corp.		7		325
Sabra Health Care REIT, Inc.		29		317
PotlatchDeltic Corp. REIT		10		314
PacWest Bancorp		17		305
Sterling Bancorp		29		303
Webster Financial Corp.		13		298
Associated Banc-Corp.		23		294
Washington Federal, Inc.		11		286
Bank OZK		17		284
Evercore, Inc. — Class A		6		276
Fulton Financial Corp.		24		276
CNO Financial Group, Inc.		22		273
Park Hotels & Resorts, Inc. REIT		34		269
Federated Hermes, Inc. — Class B		14		267
EPR Properties REIT		11		266
BancorpSouth Bank		14		265
Home BancShares, Inc.		22		264
Wintrust Financial Corp.		8		263
Hancock Whitney Corp.		13		254
Cathay General Bancorp		11		252
Weingarten Realty Investors REIT		17		245
CIT Group, Inc.		14		242
Genworth Financial, Inc. — Class A*		72		239
International Bancshares Corp.		8		215
Trustmark Corp.		9		210
Pebblebrook Hotel Trust REIT		19		207
GEO Group, Inc. REIT		17		207
CoreCivic, Inc. REIT		18		201
Mack-Cali Realty Corp. REIT		13		198
LendingTree, Inc.*		1		183
Navient Corp.		24		182
Texas Capital Bancshares, Inc.*		8		177
Mercury General Corp.		4		163
Urban Edge Properties REIT		17		150
Service Properties Trust REIT		24		130
Diversified Healthcare Trust REIT		34		123
Macerich Co. REIT		16		90
Total Financial				45,923
Industrial - 0.5%
Teledyne Technologies, Inc.*		6		1,783
Graco, Inc.		24		1,170
Trimble, Inc.*		36		1,146
Lennox International, Inc.		6		1,091
Nordson Corp.		8		1,081
Cognex Corp.		25		1,055
Carlisle Companies, Inc.		8		1,002
Universal Display Corp.		7		922
Hubbell, Inc.		8		918
AptarGroup, Inc.		9		896

70 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Generac Holdings, Inc.*		9	$	839
Gentex Corp.		36		798
Tech Data Corp.*		6		785
Donaldson Company, Inc.		19		734
Trex Company, Inc.*		9		721
AECOM*		23		686
Sonoco Products Co.		14		649
Curtiss-Wright Corp.		7		647
Oshkosh Corp.		10		643
Axon Enterprise, Inc.*		9		637
XPO Logistics, Inc.*		13		634
Stericycle, Inc.*		13		631
MDU Resources Group, Inc.		29		623
Arrow Electronics, Inc.*		12		622
Lincoln Electric Holdings, Inc.		9		621
Owens Corning		16		621
MSA Safety, Inc.		6		607
Knight-Swift Transportation Holdings, Inc.		18		590
ITT, Inc.		13		590
Landstar System, Inc.		6		575
Mercury Systems, Inc.*		8		571
Tetra Tech, Inc.		8		565
National Instruments Corp.		17		562
Acuity Brands, Inc.		6		514
Jabil, Inc.		20		492
EMCOR Group, Inc.		8		491
Woodward, Inc.		8		476
SYNNEX Corp.		6		439
AGCO Corp.		9		425
KBR, Inc.		20		414
Clean Harbors, Inc.*		8		411
Littelfuse, Inc.		3		400
Crane Co.		8		393
Kirby Corp.*		9		391
Regal Beloit Corp.		6		378
GATX Corp.		6		375
nVent Electric plc		22		371
II-VI, Inc.*		13		370
Avnet, Inc.		14		351
Eagle Materials, Inc.		6		351
EnerSys		7		347
Timken Co.		10		323
Coherent, Inc.*		3		319
Silgan Holdings, Inc.		11		319
Valmont Industries, Inc.		3		318
MasTec, Inc.*		9		295
Louisiana-Pacific Corp.		17		292
Vishay Intertechnology, Inc.		19		274
Energizer Holdings, Inc.		9		272
Werner Enterprises, Inc.		7		254
Colfax Corp.*		12		238
Trinity Industries, Inc.		14		225
Kennametal, Inc.		12		223
Belden, Inc.		6		217
Ryder System, Inc.		8		212
Worthington Industries, Inc.		6		158
O-I Glass, Inc.		22		157
Fluor Corp.		20		138
Terex Corp.		9		129
Dycom Industries, Inc.*		5		128
Greif, Inc. — Class A		4		124
Total Industrial				38,019
Consumer, Non-cyclical - 0.4%
West Pharmaceutical Services, Inc.		11		1,675
Molina Healthcare, Inc.*		9		1,257
Masimo Corp.*		7		1,240
Catalent, Inc.*		22		1,143
Service Corporation International		27		1,056
Bio-Rad Laboratories, Inc. — Class A*		3		1,052
Hill-Rom Holdings, Inc.		10		1,006
Bio-Techne Corp.		5		948
Amedisys, Inc.*		5		918
Encompass Health Corp.		14		896
Charles River Laboratories International, Inc.*		7		883
Chemed Corp.		2		866
Post Holdings, Inc.*		10		830
Penumbra, Inc.*		5		807
Haemonetics Corp.*		8		797
Exelixis, Inc.*		44		757
Ingredion, Inc.		10		755
PRA Health Sciences, Inc.*		9		747
WEX, Inc.*		7		732
Repligen Corp.*		7		676
United Therapeutics Corp.*		7		664
ICU Medical, Inc.*		3		605
FTI Consulting, Inc.*		5		599
Helen of Troy Ltd.*		4		576
Flowers Foods, Inc.		28		574
Grand Canyon Education, Inc.*		7		534
HealthEquity, Inc.*		10		506
ManpowerGroup, Inc.		9		477
Globus Medical, Inc. — Class A*		11		468
Nektar Therapeutics*		26		464
Integra LifeSciences Holdings Corp.*		10		447
Darling Ingredients, Inc.*		23		441
Lancaster Colony Corp.		3		434
NuVasive, Inc.*		8		405
Arrowhead Pharmaceuticals, Inc.*		14		403
Sanderson Farms, Inc.		3		370
Boston Beer Company, Inc. — Class A*		1		368
Brink’s Co.		7		364
Syneos Health, Inc.*		9		355
TreeHouse Foods, Inc.*		8		353
Graham Holdings Co. — Class B		1		341
CoreLogic, Inc.		11		336
LiveRamp Holdings, Inc.*		10		329
LivaNova plc*		7		317
Sprouts Farmers Market, Inc.*		17		316
Hain Celestial Group, Inc.*		12		312
Prestige Consumer Healthcare, Inc.*		8		294
ASGN, Inc.*		8		283
Acadia Healthcare Company, Inc.*		13		239
Sabre Corp.		39		231

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 71

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Aaron’s, Inc.		10	$	228
Tenet Healthcare Corp.*		15		216
Adtalem Global Education, Inc.*		8		214
Edgewell Personal Care Co.*		8		193
Avanos Medical, Inc.*		7		189
Insperity, Inc.		5		187
Patterson Companies, Inc.		12		183
Cantel Medical Corp.		5		179
Deluxe Corp.		6		156
Ligand Pharmaceuticals, Inc. — Class B*		2		145
Pilgrim’s Pride Corp.*		8		145
MEDNAX, Inc.*		12		140
WW International, Inc.*		7		118
Avis Budget Group, Inc.*		8		111
Tootsie Roll Industries, Inc.1		2		89
Total Consumer, Non-cyclical				33,939
Consumer, Cyclical - 0.3%
Domino’s Pizza, Inc.		6		1,944
Pool Corp.		6		1,181
Toro Co.		16		1,042
Casey’s General Stores, Inc.		6		795
Watsco, Inc.		5		790
Lear Corp.		8		650
Dunkin’ Brands Group, Inc.		12		637
Churchill Downs, Inc.		6		618
Scotts Miracle-Gro Co. — Class A		6		614
Five Below, Inc.*		8		563
Caesars Entertainment Corp.*		80		541
Deckers Outdoor Corp.*		4		536
FirstCash, Inc.		7		502
Williams-Sonoma, Inc.		11		468
Carter’s, Inc.		7		460
BJ’s Wholesale Club Holdings, Inc.*		18		458
Skechers U.S.A., Inc. — Class A*		19		451
Wyndham Hotels & Resorts, Inc.		14		441
Mattel, Inc.*		50		441
Brunswick Corp.		12		425
Wendy’s Co.		27		402
Polaris, Inc.		8		385
MSC Industrial Direct Company, Inc. — Class A		7		385
Texas Roadhouse, Inc. — Class A		9		372
Ollie’s Bargain Outlet Holdings, Inc.*		8		371
JetBlue Airways Corp.*		41		367
Foot Locker, Inc.		16		353
Thor Industries, Inc.		8		338
Toll Brothers, Inc.		17		327
Choice Hotels International, Inc.		5		306
Tempur Sealy International, Inc.*		7		306
Wyndham Destinations, Inc.		13		282
Columbia Sportswear Co.		4		279
Marriott Vacations Worldwide Corp.		5		278
Healthcare Services Group, Inc.		11		263
AutoNation, Inc.*		9		253
Cracker Barrel Old Country Store, Inc.1		3		250
World Fuel Services Corp.		9		227
KB Home		12		217
KAR Auction Services, Inc.		18		216
Taylor Morrison Home Corp. — Class A*		19		209
Penn National Gaming, Inc.*		16		202
RH*		2		201
Herman Miller, Inc.		9		200
Goodyear Tire & Rubber Co.		33		192
Visteon Corp.*		4		192
Dick’s Sporting Goods, Inc.		9		191
American Eagle Outfitters, Inc.		23		183
HNI Corp.		7		176
TRI Pointe Group, Inc.*		20		175
Nu Skin Enterprises, Inc. — Class A		8		175
Dana, Inc.		21		164
Cinemark Holdings, Inc.		16		163
Papa John’s International, Inc.		3		160
Boyd Gaming Corp.		11		159
Urban Outfitters, Inc.*		10		142
Six Flags Entertainment Corp.		11		138
Sally Beauty Holdings, Inc.*		17		137
Eldorado Resorts, Inc.*		9		129
Adient plc*		12		109
Jack in the Box, Inc.		3		105
Cheesecake Factory, Inc.		6		102
Delphi Technologies plc*		12		96
Resideo Technologies, Inc.*		18		87
Bed Bath & Beyond, Inc.		19		80
Scientific Games Corp. — Class A*		8		78
Brinker International, Inc.		5		60
Dillard’s, Inc. — Class A		1		37
Total Consumer, Cyclical				23,776
Technology - 0.2%
Tyler Technologies, Inc.*		6		1,779
Teradyne, Inc.		24		1,300
Cypress Semiconductor Corp.		53		1,236
Fair Isaac Corp.*		4		1,231
Monolithic Power Systems, Inc.		6		1,005
PTC, Inc.*		15		918
CACI International, Inc. — Class A*		4		845
Lumentum Holdings, Inc.*		11		811
Ceridian HCM Holding, Inc.*		14		701
MKS Instruments, Inc.		8		652
Silicon Laboratories, Inc.*		7		598
Cree, Inc.*		16		567
CDK Global, Inc.		17		558
Cirrus Logic, Inc.*		8		525
j2 Global, Inc.		7		524
MAXIMUS, Inc.		9		524
Science Applications International Corp.		7		522
Cabot Microelectronics Corp.		4		456
Manhattan Associates, Inc.*		9		448
ACI Worldwide, Inc.*		17		411
Blackbaud, Inc.		7		389
Semtech Corp.*		10		375
Perspecta, Inc.		20		365
NCR Corp.*		19		336
Teradata Corp.*		16		328
Synaptics, Inc.*		5		289

72 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
CommVault Systems, Inc.*		6	$	243
NetScout Systems, Inc.*		9		213
Allscripts Healthcare Solutions, Inc.*		23		162
Total Technology				18,311
Utilities - 0.1%
Essential Utilities, Inc.		31		1,262
OGE Energy Corp.		29		891
UGI Corp.		30		800
IDACORP, Inc.		8		702
Hawaiian Electric Industries, Inc.		16		689
ONE Gas, Inc.		8		669
Spire, Inc.		8		596
Black Hills Corp.		9		576
Southwest Gas Holdings, Inc.		8		556
ALLETE, Inc.		8		486
NorthWestern Corp.		8		479
New Jersey Resources Corp.		14		476
National Fuel Gas Co.		12		447
PNM Resources, Inc.		11		418
Total Utilities				9,047
Communications - 0.1%
Cable One, Inc.		1		1,644
FactSet Research Systems, Inc.		5		1,303
Ciena Corp.*		22		876
Etsy, Inc.*		18		692
New York Times Co. — Class A		21		645
LogMeIn, Inc.		7		583
GrubHub, Inc.*		13		530
TEGNA, Inc.		31		337
ViaSat, Inc.*		8		287
John Wiley & Sons, Inc. — Class A		7		262
TripAdvisor, Inc.		15		261
World Wrestling Entertainment, Inc. — Class A		7		238
Telephone & Data Systems, Inc.		14		235
InterDigital, Inc.		4		178
AMC Networks, Inc. — Class A*		7		170
Yelp, Inc. — Class A*		9		162
Meredith Corp.		6		73
Total Communications				8,476
Basic Materials - 0.1%
RPM International, Inc.		19		1,130
Reliance Steel & Aluminum Co.		10		876
Royal Gold, Inc.		9		789
Steel Dynamics, Inc.		31		699
Ashland Global Holdings, Inc.		9		451
NewMarket Corp.		1		383
Valvoline, Inc.		27		353
Sensient Technologies Corp.		7		305
Commercial Metals Co.		18		284
Olin Corp.		23		268
PolyOne Corp.		13		247
Minerals Technologies, Inc.		6		218
Ingevity Corp.*		6		211
Cabot Corp.		8		209
Chemours Co.		23		204
Compass Minerals International, Inc.		5		192
Domtar Corp.		8		173
Allegheny Technologies, Inc.*		18		153
United States Steel Corp.1		24		151
Carpenter Technology Corp.		7		137
Total Basic Materials				7,433
Energy - 0.1%
SolarEdge Technologies, Inc.*		7		573
First Solar, Inc.*		11		397
Murphy USA, Inc.*		4		337
Equities Corp.		37		262
Cimarex Energy Co.		15		252
WPX Energy, Inc.*		60		183
Equitrans Midstream Corp.		29		146
CNX Resources Corp.*		27		144
Murphy Oil Corp.1		21		129
PBF Energy, Inc. — Class A		15		106
Transocean Ltd.*		83		96
Antero Midstream Corp.		43		90
NOW, Inc.*		16		83
Core Laboratories N.V.		7		72
Patterson-UTI Energy, Inc.		28		66
Apergy Corp.*,1		11		63
Matador Resources Co.*		16		40
Total Energy				3,039
Total Common Stocks
(Cost $219,854)				187,963
MUTUAL FUNDS† - 12.6%
Guggenheim Ultra Short Duration Fund — Institutional Class2		52,195		509,945
Guggenheim Strategy Fund II2		20,459		492,048
Total Mutual Funds
(Cost $1,027,050)				1,001,993
	Face Amount
U.S. TREASURY BILLS†† - 2.5%
U.S. Treasury Bills
0.50% due 04/30/203,4	$	201,000		200,991
Total U.S. Treasury Bills
(Cost $200,918)				200,991

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 73

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
MID-CAP 1.5x STRATEGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,5 - 44.9%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/206	$	2,571,173	$	2,571,173
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/206		988,913		988,913
Total Repurchase Agreements
(Cost $3,560,086)				3,560,086

	Shares
SECURITIES LENDING COLLATERAL†,7 - 0.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%8		642		642
Total Securities Lending Collateral
(Cost $642)				642
Total Investments - 62.4%
(Cost $5,008,550)			$	4,951,675
Other Assets & Liabilities, net - 37.6%				2,984,658
Total Net Assets - 100.0%			$	7,936,333

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Purchased†
S&P MidCap 400 Index Mini Futures Contracts		25		Jun 2020	$	3,600,000	$	104,598

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation (Depreciation)
OTC Equity Index Swap Agreements††
Barclays Bank plc	S&P MidCap 400 Index	0.94% (1 Week USD LIBOR + 0.35%)	At Maturity		04/30/20		3,134	$	4,523,131	$	170,910
BNP Paribas	S&P MidCap 400 Index	1.44% (1 Month USD LIBOR + 0.45%)	At Maturity		04/29/20		198		285,776		(5,569	)
Goldman Sachs International	S&P MidCap 400 Index	0.99% (1 Week USD LIBOR + 0.40%)	At Maturity		04/28/20		2,299		3,317,821		(60,568	)
								$	8,126,728	$	104,773

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Affiliated issuer.
3	All or a portion of this security is pledged as futures collateral at March 31, 2020.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as equity index swap collateral at March 31, 2020.
7	Securities lending collateral — See Note 7.
8	Rate indicated is the 7-day yield as of March 31, 2020.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

74 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
MID-CAP 1.5x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	187,963	$	—	$	—	$	187,963
Mutual Funds		1,001,993		—		—		1,001,993
U.S. Treasury Bills		—		200,991		—		200,991
Repurchase Agreements		—		3,560,086		—		3,560,086
Securities Lending Collateral		642		—		—		642
Equity Futures Contracts**		104,598		—		—		104,598
Equity Index Swap Agreements**		—		170,910		—		170,910
Total Assets	$	1,295,196	$	3,931,987	$	—	$	5,227,183

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	66,137	$	—	$	66,137

** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	4,772,674	$	2,500,000	$	(6,700,000	)	$	(84,964	)	$	4,338	$	492,048		20,459	$	135,817
Guggenheim Ultra Short Duration Fund — Institutional Class		4,057,739		3,000,000		(6,500,000	)		(47,821	)		27		509,945		52,195		103,464
	$	8,830,413	$	5,500,000	$	(13,200,000	)	$	(132,785	)	$	4,365	$	1,001,993			$	239,281

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 75

MID-CAP 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value - including $623 of securities loaned (cost $421,414)	$	389,596
Investments in affiliated issuers, at value (cost $1,027,050)		1,001,993
Repurchase agreements, at value (cost $3,560,086)		3,560,086
Cash		2,375,924
Segregated cash with broker		406,083
Unrealized appreciation on OTC swap agreements		170,910
Receivables:
Fund shares sold		161,000
Dividends		9,115
Securities lending income		1
Interest		1
Total assets		8,074,709
Liabilities:
Unrealized depreciation on OTC swap agreements		66,137
Payable for:
Variation margin on futures contracts		33,500
Management fees		6,232
Swap settlement		5,557
Distribution and service fees		3,258
Fund shares redeemed		2,845
Transfer agent and administrative fees		2,606
Portfolio accounting fees		748
Return of securities lending collateral		642
Trustees’ fees		223
Miscellaneous		16,628
Total liabilities		138,376
Commitments and contingent liabilities (Note 12)		—
Net assets	$	7,936,333
Net assets consist of:
Paid in capital	$	16,002,561
Total distributable earnings (loss)		(8,066,228	)
Net assets	$	7,936,333
A-Class:
Net assets	$	1,949,949
Capital shares outstanding		34,806
Net asset value per share	$	56.02
Maximum offering price per share (Net asset value divided by 95.25%)	$	58.81
C-Class:
Net assets	$	1,932,599
Capital shares outstanding		40,108
Net asset value per share	$	48.18
H-Class:
Net assets	$	4,053,785
Capital shares outstanding		72,075
Net asset value per share	$	56.24

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $9)	$	380,642
Dividends from securities of affiliated issuers		239,281
Interest		173,835
Income from securities lending, net		1,495
Total investment income		795,253
Expenses:
Management fees		346,715
Distribution and service fees:
A-Class		7,301
C-Class		35,137
H-Class		80,224
Transfer agent and administrative fees		97,045
Registration fees		40,892
Portfolio accounting fees		38,524
Professional fees		13,900
Pricing fees		9,054
Printing fees		6,786
Trustees’ fees*		6,614
Custodian fees		5,480
Miscellaneous		28,725
Total expenses		716,397
Less:
Expenses waived by Adviser		(10,857	)
Net expenses		705,540
Net investment income		89,713
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		4,170,674
Investments in affiliated issuers		(132,785	)
Swap agreements		(1,584,528	)
Futures contracts		338,010
Net realized gain		2,791,371
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(31,434	)
Investments in affiliated issuers		4,365
Swap agreements		(206,604	)
Futures contracts		68,475
Net change in unrealized appreciation (depreciation)		(165,198	)
Net realized and unrealized gain		2,626,173
Net increase in net assets resulting from operations	$	2,715,886

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

76 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

MID-CAP 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	89,713		$	221,832
Net realized gain (loss) on investments		2,791,371			(11,469,654	)
Net change in unrealized appreciation (depreciation) on investments		(165,198	)		543,840
Net increase (decrease) in net assets resulting from operations		2,715,886			(10,703,982	)
Distributions to shareholders:
A-Class		(6,471	)		(17,300	)
C-Class		(7,932	)		(20,379	)
H-Class		(209,346	)		(714,618	)
Total distributions to shareholders		(223,749	)		(752,297	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,361,417			2,971,226
C-Class		75,744			141,109
H-Class		326,944,951			475,373,044
Distributions reinvested
A-Class		6,428			17,188
C-Class		7,890			20,268
H-Class		84,839			206,077
Cost of shares redeemed
A-Class		(1,750,513	)		(1,816,063	)
C-Class		(639,883	)		(2,380,353	)
H-Class		(341,855,663	)		(464,080,804	)
Net increase (decrease) from capital share transactions		(15,764,790	)		10,451,692
Net decrease in net assets		(13,272,653	)		(1,004,587	)
Net assets:
Beginning of year		21,208,986			22,213,573
End of year	$	7,936,333		$	21,208,986
Capital share activity:
Shares sold
A-Class		16,057			31,646
C-Class		951			1,782
H-Class		3,423,458			5,641,695
Shares issued from reinvestment of distributions
A-Class		66			210
C-Class		94			285
H-Class		869			2,500
Shares redeemed
A-Class		(19,942	)		(19,592	)
C-Class		(8,742	)		(28,644	)
H-Class		(3,507,691	)		(5,642,422	)
Net decrease in shares		(94,880	)		(12,540	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 77

MID-CAP 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	89.82		$	90.38		$	79.90		$	61.64		$	67.32
Income (loss) from investment operations:
Net investment income (loss)a		.37			.58			.15			(.09	)		(.47	)
Net gain (loss) on investments (realized and unrealized)		(33.98	)		(.73	)		10.83			18.50			(4.81	)
Total from investment operations		(33.61	)		(.15	)		10.98			18.41			(5.28	)
Less distributions from:
Net investment income		(.19	)		(.11	)		—			—			—
Net realized gains		—			(.30	)		(.50	)		(.15	)		(.40	)
Total distributions		(.19	)		(.41	)		(.50	)		(.15	)		(.40	)
Net asset value, end of period	$	56.02		$	89.82		$	90.38		$	79.90		$	61.64
Total Returnb		(37.52	%)		(0.11	%)		13.74	%		29.88	%		(7.86	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,950		$	3,469		$	2,382		$	1,935		$	1,879
Ratios to average net assets:
Net investment income (loss)		0.40	%		0.64	%		0.17	%		(0.13	%)		(0.75	%)
Total expensesc		1.77	%		1.77	%		1.67	%		1.68	%		1.65	%
Net expensesd		1.72	%		1.75	%		1.67	%		1.68	%		1.65	%
Portfolio turnover rate		617	%		721	%		722	%		1,216	%		1,506	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	77.86		$	78.99		$	70.42		$	54.73		$	60.27
Income (loss) from investment operations:
Net investment income (loss)a		(.27	)		(.09	)		(.51	)		(.65	)		(.78	)
Net gain (loss) on investments (realized and unrealized)		(29.22	)		(.63	)		9.58			16.49			(4.36	)
Total from investment operations		(29.49	)		(.72	)		9.07			15.84			(5.14	)
Less distributions from:
Net investment income		(.19	)		(.11	)		—			—			—
Net realized gains		—			(.30	)		(.50	)		(.15	)		(.40	)
Total distributions		(.19	)		(.41	)		(.50	)		(.15	)		(.40	)
Net asset value, end of period	$	48.18		$	77.86		$	78.99		$	70.42		$	54.73
Total Returnb		(37.98	%)		(0.86	%)		12.89	%		28.94	%		(8.55	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,933		$	3,722		$	5,875		$	7,720		$	4,794
Ratios to average net assets:
Net investment income (loss)		(0.34	%)		(0.12	%)		(0.68	%)		(1.05	%)		(1.41	%)
Total expensesc		2.52	%		2.51	%		2.43	%		2.42	%		2.40	%
Net expensesd		2.47	%		2.50	%		2.43	%		2.42	%		2.40	%
Portfolio turnover rate		617	%		721	%		722	%		1,216	%		1,506	%

78 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

MID-CAP 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	90.18		$	90.82		$	80.23		$	61.85		$	67.45
Income (loss) from investment operations:
Net investment income (loss)a		.27			.42			.35			(.37	)		(.57	)
Net gain (loss) on investments (realized and unrealized)		(34.02	)		(.65	)		10.74			18.90			(4.63	)
Total from investment operations		(33.75	)		(.23	)		11.09			18.53			(5.20	)
Less distributions from:
Net investment income		(.19	)		(.11	)		—			—			—
Net realized gains		—			(.30	)		(.50	)		(.15	)		(.40	)
Total distributions		(.19	)		(.41	)		(.50	)		(.15	)		(.40	)
Net asset value, end of period	$	56.24		$	90.18		$	90.82		$	80.23		$	61.85
Total Return		(37.52	%)		(0.21	%)		13.82	%		29.97	%		(7.73	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,054		$	14,017		$	13,956		$	20,071		$	13,611
Ratios to average net assets:
Net investment income (loss)		0.28	%		0.49	%		0.39	%		(0.50	%)		(0.93	%)
Total expensesc		1.79	%		1.78	%		1.66	%		1.68	%		1.66	%
Net expensesd		1.77	%		1.77	%		1.66	%		1.68	%		1.66	%
Portfolio turnover rate		617	%		721	%		722	%		1,216	%		1,506	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 79

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

INVERSE MID-CAP STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the S&P MidCap 400^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the year ended March 31, 2020, Inverse Mid-Cap Strategy Fund achieved a daily correlation of more than 99% to its benchmark of -100% of the daily price movement of the S&P MidCap 400 Index.

Inverse Mid-Cap Strategy Fund H-Class returned 18.11%, while the S&P MidCap 400 Index returned -22.51% over the same period.

No sector contributed to the return of the underlying index for the year. The sectors detracting the most were Consumer Discretionary, Financials, and Real Estate.

The holdings contributing the most to the return of the underlying index were Cypress Semiconductor Corp., Cable One, Inc., and Tyler Technologies, Inc. The holdings detracting the most were UGI Corp., National Retail Properties, Inc., and WEX, Inc.

Derivatives in the Fund were used to help provide inverse exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one-year period ended March 31, 2020, investment in the Short Term Investment Vehicles benefited Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

80 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Inception Dates:
A-Class	March 31, 2004
C-Class	February 20, 2004
H-Class	February 20, 2004

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Cumulative Fund Performance*

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	6.8%
Guggenheim Ultra Short Duration Fund — Institutional Class	6.7%
Total	13.5%
“Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	18.13%	(3.47%)	(10.94%)
A-Class Shares with sales charge‡	12.51%	(4.41%)	(11.37%)
C-Class Shares	16.78%	(4.26%)	(11.64%)
C-Class Shares with CDSC§	15.78%	(4.26%)	(11.64%)
H-Class Shares	18.11%	(3.43%)	(10.93%)
S&P MidCap 400 Index	(22.51%)	0.56%	7.88%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 81

SCHEDULE OF INVESTMENTS	March 31, 2020
INVERSE MID-CAP STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 13.5%
Guggenheim Strategy Fund II1		4,401	$	105,850
Guggenheim Ultra Short Duration Fund — Institutional Class1		10,603		103,595
Total Mutual Funds
(Cost $214,490)				209,445

	Face Amount
REPURCHASE AGREEMENTS††,2 - 48.2%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/203	$	538,659		538,659
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/203		207,177		207,177
Total Repurchase Agreements
(Cost $745,836)				745,836
Total Investments - 61.7%
(Cost $960,326)			$	955,281
Other Assets & Liabilities, net - 38.3%				592,321
Total Net Assets - 100.0%			$	1,547,602

Total Return Swap Agreements
Counterparty	Index	Financing Rate Receive	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Equity Index Swap Agreements Sold Short††
BNP Paribas	S&P MidCap 400 Index	(0.94)% (1 Month USD LIBOR - 0.05%)	At Maturity		04/29/20		411	$	593,089	$	11,558
Goldman Sachs International	S&P MidCap 400 Index	(0.69)% (1 Week USD LIBOR + 0.10%)	At Maturity		04/28/20		487		703,574		6,956
Barclays Bank plc	S&P MidCap 400 Index	(0.79)% (1 Week USD LIBOR + 0.20%)	At Maturity		04/30/20		165		238,304		2,600
								$	1,534,967	$	21,114

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Repurchase Agreements — See Note 6.
3	All or a portion of this security is pledged as equity index swap collateral at March 31, 2020.
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	209,445	$	—	$	—	$	209,445
Repurchase Agreements		—		745,836		—		745,836
Equity Index Swap Agreements**		—		21,114		—		21,114
Total Assets	$	209,445	$	766,950	$	—	$	976,395

** This derivative is reported as unrealized appreciation/depreciation at period end.

82 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
INVERSE MID-CAP STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	304,618	$	—	$	(195,000	)	$	(422	)	$	(3,346	)	$	105,850		4,401	$	6,999
Guggenheim Ultra Short Duration Fund — Institutional Class		306,048		—		(199,981	)		(151	)		(2,321	)		103,595		10,603		6,111
	$	610,666	$	—	$	(394,981	)	$	(573	)	$	(5,667	)	$	209,445			$	13,110

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 83

INVERSE MID-CAP STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in affiliated issuers, at value (cost $214,490)	$	209,445
Repurchase agreements, at value (cost $745,836)		745,836
Cash		509,757
Segregated cash with broker		17,000
Unrealized appreciation on OTC swap agreements		21,114
Receivables:
Fund shares sold		86,534
Variation margin on futures contracts		1,968
Dividends		395
Total assets		1,592,049
Liabilities:
Payable for:
Fund shares redeemed		38,504
Swap settlement		3,481
Management fees		694
Transfer agent and administrative fees		225
Distribution and service fees		199
Portfolio accounting fees		79
Trustees’ fees*		19
Miscellaneous		1,246
Total liabilities		44,447
Commitments and contingent liabilities (Note 12)		—
Net assets	$	1,547,602
Net assets consist of:
Paid in capital	$	6,419,565
Total distributable earnings (loss)		(4,871,963	)
Net assets	$	1,547,602
A-Class:
Net assets	$	59,693
Capital shares outstanding		2,334
Net asset value per share	$	25.58
Maximum offering price per share (Net asset value divided by 95.25%)	$	26.86
C-Class:
Net assets	$	22
Capital shares outstanding		1
Net asset value per share	$	22.46
H-Class:
Net assets	$	1,487,887
Capital shares outstanding		58,122
Net asset value per share	$	25.60

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of affiliated issuers	$	13,110
Interest		6,457
Total investment income		19,567
Expenses:
Management fees		7,467
Distribution and service fees:
A-Class		269
H-Class		1,805
Transfer agent and administrative fees		2,100
Registration fees		886
Portfolio accounting fees		830
Professional fees		487
Trustees’ fees*		244
Custodian fees		121
Miscellaneous		531
Total expenses		14,740
Less:
Expenses waived by Adviser		(609	)
Net expenses		14,131
Net investment income		5,436
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(573	)
Swap agreements		(45,075	)
Futures contracts		(1,894	)
Net realized loss		(47,542	)
Net change in unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(5,667	)
Swap agreements		31,158
Net change in unrealized appreciation (depreciation)		25,491
Net realized and unrealized loss		(22,051	)
Net decrease in net assets resulting from operations	$	(16,615	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

84 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE MID-CAP STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	5,436		$	6,613
Net realized loss on investments		(47,542	)		(129,549	)
Net change in unrealized appreciation (depreciation) on investments		25,491			(7,137	)
Net decrease in net assets resulting from operations		(16,615	)		(130,073	)
Distributions to shareholders:
A-Class		(688	)		—
H-Class		(4,900	)		—
Total distributions to shareholders		(5,588	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		79,204			1,548,797
C-Class		—			81,736
H-Class		9,983,986			19,268,674
Distributions reinvested
A-Class		688			—
H-Class		4,841			—
Cost of shares redeemed
A-Class		(170,994	)		(1,515,031	)
C-Class		(107	)		(82,834	)
H-Class		(9,229,767	)		(18,935,916	)
Net increase from capital share transactions		667,851			365,426
Net increase in net assets		645,648			235,353
Net assets:
Beginning of year		901,954			666,601
End of year	$	1,547,602		$	901,954
Capital share activity:
Shares sold
A-Class		3,110			65,707
C-Class		—			4,272
H-Class		451,736			863,821
Shares issued from reinvestment of distributions
A-Class		34			—
H-Class		238			—
Shares redeemed
A-Class		(6,901	)		(66,605	)
C-Class		(5	)		(4,361	)
H-Class		(429,060	)		(851,436	)
Net increase in shares		19,152			11,398

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 85

INVERSE MID-CAP STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	21.82		$	22.31		$	24.92		$	30.70		$	30.76
Income (loss) from investment operations:
Net investment income (loss)a		.15			.13			(.11	)		(.28	)		(.38	)
Net gain (loss) on investments (realized and unrealized)		3.77	e		(.62	)		(2.50	)		(5.50	)		.32
Total from investment operations		3.92			(.49	)		(2.61	)		(5.78	)		(.06	)
Less distributions from:
Net investment income		(.16	)		—			—			—			—
Total distributions		(.16	)		—			—			—			—
Net asset value, end of period	$	25.58		$	21.82		$	22.31		$	24.92		$	30.70
Total Returnb		18.13	%		(2.20	%)		(10.47	%)		(18.89	%)		(0.16	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	60		$	133		$	156		$	226		$	111
Ratios to average net assets:
Net investment income (loss)		0.68	%		0.60	%		(0.49	%)		(1.02	%)		(1.18	%)
Total expensesc		1.77	%		1.77	%		1.68	%		1.68	%		1.65	%
Net expensesd		1.70	%		1.75	%		1.68	%		1.68	%		1.65	%
Portfolio turnover rate		—			48	%		37	%		120	%		199	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	19.40		$	19.94		$	22.46		$	27.89		$	28.16
Income (loss) from investment operations:
Net investment income (loss)a		—	f		(.06	)		(.28	)		(.48	)		(.59	)
Net gain (loss) on investments (realized and unrealized)		3.22	e		(.48	)		(2.24	)		(4.95	)		.32
Total from investment operations		3.22			(.54	)		(2.52	)		(5.43	)		(.27	)
Less distributions from:
Net investment income		(.16	)		—			—			—			—
Total distributions		(.16	)		—			—			—			—
Net asset value, end of period	$	22.46		$	19.40		$	19.94		$	22.46		$	27.89
Total Returnb		16.78	%		(2.71	%)		(11.22	%)		(19.51	%)		(0.96	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	—	g	$	—	g	$	2		$	36		$	273
Ratios to average net assets:
Net investment income (loss)		0.00	%h		(0.33	%)		(1.30	%)		(1.85	%)		(2.00	%)
Total expensesc		2.63	%		2.47	%		2.44	%		2.42	%		2.41	%
Net expenses		2.63	%		2.47	%		2.44	%		2.42	%		2.41	%
Portfolio turnover rate		—			48	%		37	%		120	%		199	%

86 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE MID-CAP STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	21.84		$	22.29		$	24.90		$	30.69		$	30.70
Income (loss) from investment operations:
Net investment income (loss)a		.14			.13			(.09	)		(.31	)		(.42	)
Net gain (loss) on investments (realized and unrealized)		3.78	e		(.58	)		(2.52	)		(5.48	)		.41
Total from investment operations		3.92			(.45	)		(2.61	)		(5.79	)		(.01	)
Less distributions from:
Net investment income		(.16	)		—			—			—			—
Total distributions		(.16	)		—			—			—			—
Net asset value, end of period	$	25.60		$	21.84		$	22.29		$	24.90		$	30.69
Total Return		18.11	%		(2.02	%)		(10.48	%)		(18.87	%)		(0.07	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,488		$	769		$	509		$	606		$	2,680
Ratios to average net assets:
Net investment income (loss)		0.65	%		0.61	%		(0.39	%)		(1.10	%)		(1.32	%)
Total expensesc		1.78	%		1.77	%		1.68	%		1.67	%		1.65	%
Net expensesd		1.70	%		1.75	%		1.68	%		1.67	%		1.65	%
Portfolio turnover rate		—			48	%		37	%		120	%		199	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.
f	Less than $0.01 per share.
g	Less than $1,000 in Net Assets.
h	Less than 0.01%.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 87

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

RUSSELL 2000^® 1.5x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark for small-cap securities on a daily basis. The Fund’s current benchmark is 150% of the Russell 2000^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2020, Russell 2000^® 1.5x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 150% of the daily price movement of the Russell 2000 Index.

Russell 2000^® 1.5x Strategy Fund H-Class returned -38.46%, while the Russell 2000 Index returned -23.99% over the same time period.

No sector contributed to the return of the underlying index for the period. The sectors detracting the most were Financials, Consumer Discretionary, and Industrials.

The holdings in the Fund contributing the most to return of the underlying index were Teladoc Health, Inc., Array BioPharma, Inc., and Medicines Co. The holdings detracting the most were Green Dot Corp. Class A, Investor Mortgage Capital, Inc., and Blackstone Mortgage Trust, Inc. Class A.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one-year period ended March 31, 2020, investment in the Short Term Investment Vehicles benefited Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

88 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Inception Dates:
A-Class	March 31, 2004
C-Class	January 23, 2001
H-Class	November 1, 2000

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Cumulative Fund Performance*

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	4.8%
Guggenheim Ultra Short Duration Fund — Institutional Class	4.7%
Total	9.5%
“Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(38.45%)	(4.28%)	6.38%
A-Class Shares with sales charge‡	(41.37%)	(5.20%)	5.86%
C-Class Shares	(38.93%)	(4.99%)	5.58%
C-Class Shares with CDSC§	(39.54%)	(4.99%)	5.58%
H-Class Shares	(38.46%)	(4.31%)	6.35%
Russell 2000 Index	(23.99%)	1.55%	8.55%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 89

SCHEDULE OF INVESTMENTS	March 31, 2020
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
RIGHTS†††,1 - 0.0%
Consumer, Non-cyclical - 0.0%
Tobira Therapeutics, Inc.*		14	$	—
Omthera Pharmaceuticals, Inc.*		57		—
Total Consumer, Non-cyclical				—
Communications - 0.0%
Nexstar Media Group, Inc.*		85		—
Basic Materials - 0.0%
A Schulman, Inc.*		44		—
Total Rights
(Cost $—)				—
MUTUAL FUNDS† - 9.5%
Guggenheim Strategy Fund II2		8,525		205,017
Guggenheim Ultra Short Duration Fund — Institutional Class2		20,957		204,752
Total Mutual Funds
(Cost $410,781)				409,769
	Face Amount
FEDERAL AGENCY NOTES†† - 43.5%
Federal Farm Credit Bank
0.40% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/223	$	1,000,000		1,003,419
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/223		250,000		250,551
0.32% (U.S. Prime Rate - 2.94%, Rate Floor: 0.00%) due 10/30/203		100,000		100,042
Federal Home Loan Bank
1.77% (3 Month USD LIBOR - 0.14%, Rate Floor: 0.00%) due 01/04/213		525,000		524,804
Total Federal Agency Notes
(Cost $1,874,661)				1,878,816

U.S. TREASURY BILLS†† - 1.0%
U.S. Treasury Bills
0.50% due 04/30/204,5	44,000		43,998
Total U.S. Treasury Bills
(Cost $43,982)			43,998
REPURCHASE AGREEMENTS††,6 - 22.0%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/207	685,200		685,200
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/207	263,538		263,538
Total Repurchase Agreements
(Cost $948,738)			948,738
Total Investments - 76.0%
(Cost $3,278,162)		$	3,281,321
Other Assets & Liabilities, net - 24.0%			1,034,818
Total Net Assets - 100.0%		$	4,316,139

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Purchased†
Russell 2000 Index Mini Futures Contracts		40		Jun 2020	$	2,298,400	$	80,238

90 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
RUSSELL 2000® 1.5x STRATEGY FUND

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation (Depreciation)
OTC Equity Index Swap Agreements††
Barclays Bank plc	Russell 2000 Index	0.59% (1 Week USD LIBOR)	At Maturity		04/30/20		2,857	$	3,294,103	$	122,150
BNP Paribas	Russell 2000 Index	1.09% (1 Month USD LIBOR + 0.10%)	At Maturity		04/29/20		291		336,110		(7,932	)
Goldman Sachs International	Russell 2000 Index	0.84% (1 Week USD LIBOR + 0.25%)	At Maturity		04/28/20		529		609,952		(11,563	)
								$	4,240,165	$	102,655

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	Security was fair valued by the Valuation Committee at March 31, 2020. The total market value of fair valued securities amounts to $0, (cost $0) or 0.0% of total net assets.
2	Affiliated issuer.
3	Variable rate security. Rate indicated is the rate effective at March 31, 2020. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
4	All or a portion of this security is pledged as futures collateral at March 31, 2020.
5	Rate indicated is the effective yield at the time of purchase.
6	Repurchase Agreements — See Note 6.
7	All or a portion of this security is pledged as equity index swap collateral at March 31, 2020.
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	See Sector Classification in Other Information section.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 91

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
RUSSELL 2000® 1.5x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs			Total
Rights	$	—	$	—	$	—	*	$	—
Mutual Funds		409,769		—		—			409,769
Federal Agency Notes		—		1,878,816		—			1,878,816
U.S. Treasury Bills		—		43,998		—			43,998
Repurchase Agreements		—		948,738		—			948,738
Equity Futures Contracts**		80,238		—		—			80,238
Equity Index Swap Agreements**		—		122,150		—			122,150
Total Assets	$	490,007	$	2,993,702	$	—		$	3,483,709

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	19,495	$	—	$	19,495

*	Includes securities with a market value of $0.
**	This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	2,489,544	$	2,975,000	$	(5,250,000	)	$	(24,604	)	$	15,077	$	205,017		8,525	$	57,427
Guggenheim Ultra Short Duration Fund — Institutional Class		2,498,319		1,315,000		(3,600,000	)		(16,818	)		8,251		204,752		20,957		56,396
	$	4,987,863	$	4,290,000	$	(8,850,000	)	$	(41,422	)	$	23,328	$	409,769			$	113,823

92 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value (cost $1,918,643)	$	1,922,814
Investments in affiliated issuers, at value (cost $410,781)		409,769
Repurchase agreements, at value (cost $948,738)		948,738
Cash		647,225
Segregated cash with broker		262,956
Unrealized appreciation on OTC swap agreements		122,150
Receivables:
Swap settlement		35,760
Interest		3,473
Dividends		2,939
Total assets		4,355,824
Liabilities:
Unrealized depreciation on OTC swap agreements		19,495
Payable for:
Management fees		3,543
Fund shares redeemed		2,653
Licensing fees		2,340
Transfer agent and administrative fees		1,429
Variation margin on futures contracts		1,368
Distribution and service fees		1,059
Portfolio accounting fees		417
Trustees’ fees*		105
Miscellaneous		7,276
Total liabilities		39,685
Commitments and contingent liabilities (Note 12)		—
Net assets	$	4,316,139
Net assets consist of:
Paid in capital	$	4,244,980
Total distributable earnings (loss)		71,159
Net assets	$	4,316,139
A-Class:
Net assets	$	947,500
Capital shares outstanding		24,196
Net asset value per share	$	39.16
Maximum offering price per share (Net asset value divided by 95.25%)	$	41.11
C-Class:
Net assets	$	21,762
Capital shares outstanding		660
Net asset value per share	$	32.98
H-Class:
Net assets	$	3,346,877
Capital shares outstanding		85,815
Net asset value per share	$	39.00

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of unaffiliated issuers	$	889
Dividends from securities of affiliated issuers		113,823
Interest		158,717
Income from securities lending, net		28
Total investment income		273,457
Expenses:
Management fees		124,215
Distribution and service fees:
A-Class		4,729
C-Class		523
H-Class		29,644
Transfer agent and administrative fees		34,890
Portfolio accounting fees		13,802
Registration fees		11,372
Licensing fees		6,917
Professional fees		6,044
Printing fees		3,183
Trustees’ fees*		2,773
Custodian fees		2,323
Prime broker interest expense		160
Line of credit fees		42
Miscellaneous		13,079
Total expenses		253,696
Less:
Expenses waived by Adviser		(5,939	)
Net expenses		247,757
Net investment income		25,700
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		179,906
Investments in affiliated issuers		(41,422	)
Swap agreements		(366,992	)
Futures contracts		128,719
Net realized loss		(99,789	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(175,961	)
Investments in affiliated issuers		23,328
Swap agreements		(7,443	)
Futures contracts		80,238
Net change in unrealized appreciation (depreciation)		(79,838	)
Net realized and unrealized loss		(179,627	)
Net decrease in net assets resulting from operations	$	(153,927	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 93

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	25,700		$	69,654
Net realized gain (loss) on investments		(99,789	)		3,050,875
Net change in unrealized appreciation (depreciation) on investments		(79,838	)		4,139
Net increase (decrease) in net assets resulting from operations		(153,927	)		3,124,668
Capital share transactions:
Proceeds from sale of shares
A-Class		193,205			1,275,564
C-Class		11,734			4,788,055
H-Class		212,569,841			262,178,295
Cost of shares redeemed
A-Class		(674,399	)		(454,972	)
C-Class		(54,294	)		(5,865,534	)
H-Class		(216,394,438	)		(265,822,852	)
Net decrease from capital share transactions		(4,348,351	)		(3,901,444	)
Net decrease in net assets		(4,502,278	)		(776,776	)
Net assets:
Beginning of year		8,818,417			9,595,193
End of year	$	4,316,139		$	8,818,417
Capital share activity:
Shares sold
A-Class		3,369			17,655
C-Class		210			77,413
H-Class		3,198,054			4,300,372
Shares redeemed
A-Class		(11,618	)		(6,912	)
C-Class		(995	)		(94,418	)
H-Class		(3,217,593	)		(4,306,790	)
Net decrease in shares		(28,573	)		(12,680	)

94 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

RUSSELL 2000^® 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	63.62		$	64.49		$	55.99		$	44.78		$	58.05
Income (loss) from investment operations:
Net investment income (loss)a		.32			.34			.02			(.32	)		(.43	)
Net gain (loss) on investments (realized and unrealized)		(24.78	)		(1.21	)e		8.48			16.87			(9.03	)
Total from investment operations		(24.46	)		(.87	)		8.50			16.55			(9.46	)
Less distributions from:
Net realized gains		—			—			—			(5.34	)		(3.81	)
Total distributions		—			—			—			(5.34	)		(3.81	)
Net asset value, end of period	$	39.16		$	63.62		$	64.49		$	55.99		$	44.78
Total Returnb		(38.45	%)		(1.35	%)		15.18	%		38.01	%		(16.75	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	948		$	2,064		$	1,400		$	1,172		$	497
Ratios to average net assets:
Net investment income (loss)		0.50	%		0.52	%		0.03	%		(0.62	%)		(0.85	%)
Total expensesc		1.82	%		1.80	%		1.72	%		1.73	%		1.70	%
Net expensesd		1.76	%		1.78	%		1.72	%		1.73	%		1.70	%
Portfolio turnover rate		93	%		258	%		580	%		1,315	%		971	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	54.00		$	55.14		$	48.24		$	39.44		$	52.01
Income (loss) from investment operations:
Net investment income (loss)a		(.12	)		(.30	)		(.40	)		(.63	)		(.73	)
Net gain (loss) on investments (realized and unrealized)		(20.90	)		(.84	)e		7.30			14.77			(8.03	)
Total from investment operations		(21.02	)		(1.14	)		6.90			14.14			(8.76	)
Less distributions from:
Net realized gains		—			—			—			(5.34	)		(3.81	)
Total distributions		—			—			—			(5.34	)		(3.81	)
Net asset value, end of period	$	32.98		$	54.00		$	55.14		$	48.24		$	39.44
Total Returnb		(38.93	%)		(2.07	%)		14.30	%		36.98	%		(17.36	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22		$	78		$	1,017		$	1,494		$	1,322
Ratios to average net assets:
Net investment income (loss)		(0.22	%)		(0.50	%)		(0.78	%)		(1.41	%)		(1.62	%)
Total expensesc		2.57	%		2.54	%		2.48	%		2.47	%		2.45	%
Net expensesd		2.51	%		2.53	%		2.48	%		2.47	%		2.45	%
Portfolio turnover rate		93	%		258	%		580	%		1,315	%		971	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 95

RUSSELL 2000^® 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	63.37		$	64.22		$	55.86		$	44.75		$	57.94
Income (loss) from investment operations:
Net investment income (loss)a		.09			.29			(.11	)		(.51	)		(.51	)
Net gain (loss) on investments (realized and unrealized)		(24.46	)		(1.14	)e		8.47			16.96			(8.87	)
Total from investment operations		(24.37	)		(.85	)		8.36			16.45			(9.38	)
Less distributions from:
Net realized gains		—			—			—			(5.34	)		(3.81	)
Total distributions		—			—			—			(5.34	)		(3.81	)
Net asset value, end of period	$	39.00		$	63.37		$	64.22		$	55.86		$	44.75
Total Return		(38.46	%)		(1.32	%)		14.97	%		37.80	%		(16.63	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,347		$	6,676		$	7,178		$	8,447		$	8,049
Ratios to average net assets:
Net investment income (loss)		0.14	%		0.46	%		(0.18	%)		(0.98	%)		(1.01	%)
Total expensesc		1.84	%		1.81	%		1.72	%		1.73	%		1.70	%
Net expensesd		1.80	%		1.80	%		1.72	%		1.73	%		1.70	%
Portfolio turnover rate		93	%		258	%		580	%		1,315	%		971	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	The amount shown for a share outstanding throughout the period does not accord with the aggregate net gains on investments for the year because of the sales and repurchases of Fund shares in relation to fluctuating market value of the investments of the Fund.

96 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

RUSSELL 2000^® FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the Russell 2000^® Index (the “underlying index”).

For the one-year period ended March 31, 2020, Russell 2000^® Fund maintained a daily correlation of over 99% to its benchmark of the daily price movement of the Russell 2000 Index.

Russell 2000^® Fund H-Class returned -25.30%, while the Russell 2000 Index returned -23.99% over the same time period.

No sector contributed to the return of the underlying index for the period. The sectors detracting the most were Financials, Consumer Discretionary, and Industrials.

The holdings in the Fund contributing the most to return of the underlying index were Teladoc Health, Inc., Array BioPharma, Inc., and Medicines Co. The holdings detracting the most were Green Dot Corp. Class A, Investor Mortgage Capital, Inc., and Blackstone Mortgage Trust, Inc. Class A.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the most efficient manner possible and not for hedging purposes. Derivatives performed as expected.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

Inception Dates:
A-Class	May 31, 2006
C-Class	May 31, 2006
H-Class	May 31, 2006

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

THE RYDEX FUNDS ANNUAL REPORT | 97

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(25.32%)	(1.98%)	5.21%
A-Class Shares with sales charge‡	(28.86%)	(2.93%)	4.71%
C-Class Shares	(25.88%)	(2.70%)	4.39%
C-Class Shares with CDSC§	(26.61%)	(2.70%)	4.39%
H-Class Shares	(25.30%)	(1.97%)	5.20%
Russell 2000 Index	(23.99%)	1.55%	8.55%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

98 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
RUSSELL 2000® FUND

	Shares		Value
RIGHTS†††,1 - 0.0%
Consumer, Non-cyclical - 0.0%
Elanco Animal Health, Inc.*		505	$	—
Tobira Therapeutics, Inc.*		141		—
Omthera Pharmaceuticals, Inc.*		86		—
Oncternal Therapeutics, Inc.*		7		—
Total Consumer, Non-cyclical				—
Communications - 0.0%
Nexstar Media Group, Inc.*		2,530		—
Basic Materials - 0.0%
A Schulman, Inc.*		408		—
Total Rights
(Cost $104)				—
	Face Amount
FEDERAL AGENCY NOTES†† - 59.3%
Federal Farm Credit Bank
0.38% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/222	$	4,300,000		4,292,964
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222		4,000,000		4,008,818
0.40% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/222		1,000,000		1,003,419
Freddie Mac
0.14% (U.S. Secured Overnight Financing Rate + 0.13%, Rate Floor: 0.00%) due 08/05/222		2,000,000		1,987,230
Total Federal Agency Notes
(Cost $11,300,000)				11,292,431

U.S. TREASURY BILLS†† - 1.2%
U.S. Treasury Bills
0.50% due 04/30/203,4	225,000		224,990
Total U.S. Treasury Bills
(Cost $224,908)			224,990
REPURCHASE AGREEMENTS††,5 - 22.1%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/206	3,035,047		3,035,047
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/206	1,167,326		1,167,326
Total Repurchase Agreements
(Cost $4,202,373)			4,202,373
Total Investments - 82.6%
(Cost $15,727,385)		$	15,719,794
Other Assets & Liabilities, net - 17.4%			3,313,812
Total Net Assets - 100.0%		$	19,033,606

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Purchased†
Russell 2000 Index Mini Futures Contracts		100		Jun 2020	$	5,746,000	$	164,076

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation (Depreciation)
OTC Equity Index Swap Agreements††
Barclays Bank plc	Russell 2000 Index	0.59% (1 Week USD LIBOR)	At Maturity		04/30/20		10,200	$	11,761,573	$	436,135
Goldman Sachs International	Russell 2000 Index	0.84% (1 Week USD LIBOR + 0.25%)	At Maturity		04/28/20		732		844,099		(9,508	)
BNP Paribas	Russell 2000 Index	1.09% (I Month USD LIBOR + 0.10%)	At Maturity		04/29/20		910		1,049,718		(18,899	)
								$	13,655,390	$	407,728

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 99

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
RUSSELL 2000® FUND

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	Security was fair valued by the Valuation Committee at March 31, 2020. The total market value of fair valued securities amounts to $0, (cost $104) or 0.0% of total net assets.
2	Variable rate security. Rate indicated is the rate effective at March 31, 2020. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures collateral at March 31, 2020.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as equity index swap collateral at March 31, 2020.
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs			Total
Rights	$	—	$	—	$	—	*	$	—
Federal Agency Notes		—		11,292,431		—			11,292,431
U.S. Treasury Bills		—		224,990		—			224,990
Repurchase Agreements		—		4,202,373		—			4,202,373
Equity Futures Contracts**		164,076		—		—			164,076
Equity Index Swap Agreements**		—		436,135		—			436,135
Total Assets	$	164,076	$	16,155,929	$	—		$	16,320,005

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	28,407	$	—	$	28,407

*	Includes securities with a market value of $0.
**	This derivative is reported as unrealized appreciation/depreciation at period end.

100 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

RUSSELL 2000^® FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value (cost $11,525,012)	$	11,517,421
Repurchase agreements, at value (cost $4,202,373)		4,202,373
Cash		2,753,872
Segregated cash with broker		794,780
Unrealized appreciation on OTC swap agreements		436,135
Receivables:
Fund shares sold		81,245
Interest		19,824
Total assets		19,805,650
Liabilities:
Unrealized depreciation on OTC swap agreements		28,407
Payable for:
Fund shares redeemed		585,817
Swap settlement		81,665
Management fees		14,839
Transfer agent and administrative fees		6,293
Distribution and service fees		6,079
Variation margin on futures contracts		5,679
Portfolio accounting fees		2,968
Trustees’ fess*		558
Miscellaneous		39,739
Total liabilities		772,044
Commitments and contingent liabilities (Note 12)		—
Net assets	$	19,033,606
Net assets consist of:
Paid in capital	$	26,821,954
Total distributable earnings (loss)		(7,788,348	)
Net assets	$	19,033,606
A-Class:
Net assets	$	10,712,315
Capital shares outstanding		332,230
Net asset value per share	$	32.24
Maximum offering price per share (Net asset value divided by 95.25%)	$	33.85
C-Class:
Net assets	$	1,590,210
Capital shares outstanding		55,789
Net asset value per share	$	28.50
H-Class:
Net assets	$	6,731,081
Capital shares outstanding		209,216
Net asset value per share	$	32.17

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $31)	$	105,483
Interest		503,630
Income from securities lending, net		3,791
Total investment income		612,904
Expenses:
Management fees		265,158
Distribution and service fees:
A-Class		42,919
C-Class		27,435
H-Class		38,613
Transfer agent and administrative fees		89,735
Portfolio accounting fees		53,034
Registration fees		33,245
Professional fees		16,182
Trustees’ fees*		8,734
Custodian fees		5,250
Line of credit fees		62
Miscellaneous		50,403
Total expenses		630,770
Net investment income		(17,866	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,051,561
Swap agreements		(6,401,286	)
Futures contracts		(1,873,212	)
Net realized loss		(4,222,937	)
Net change in unrealized appreciation (depreciation) on:
Investments		(4,306,894	)
Swap agreements		250,797
Futures contracts		162,079
Net change in unrealized appreciation (depreciation)		(3,894,018	)
Net realized and unrealized loss		(8,116,955	)
Net decrease in net assets resulting from operations	$	(8,134,821	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 101

RUSSELL 2000^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(17,866	)	$	(98,815	)
Net realized loss on investments		(4,222,937	)		(652,459	)
Net change in unrealized appreciation (depreciation) on investments		(3,894,018	)		(455,050	)
Net decrease in net assets resulting from operations		(8,134,821	)		(1,206,324	)
Distributions to shareholders:
A-Class		(245,858	)		—
C-Class		(43,126	)		—
H-Class		(276,721	)		—
Total distributions to shareholders		(565,705	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		3,057,098			148,474,143
C-Class		815,695			10,124,276
H-Class		178,802,664			128,775,760
Distributions reinvested
A-Class		241,990			—
C-Class		36,271			—
H-Class		274,144			—
Cost of shares redeemed
A-Class		(7,262,452	)		(145,526,441	)
C-Class		(1,845,375	)		(12,203,764	)
H-Class		(187,602,791	)		(134,374,234	)
Net decrease from capital share transactions		(13,482,756	)		(4,730,260	)
Net decrease in net assets		(22,183,282	)		(5,936,584	)
Net assets:
Beginning of year		41,216,888			47,153,472
End of year	$	19,033,606		$	41,216,888
Capital share activity:
Shares sold
A-Class		73,128			3,091,191
C-Class		21,433			255,282
H-Class		4,120,156			2,863,744
Shares issued from reinvestment of distributions
A-Class		5,216			—
C-Class		883			—
H-Class		5,922			—
Shares redeemed
A-Class		(169,984	)		(3,060,305	)
C-Class		(50,018	)		(306,208	)
H-Class		(4,360,424	)		(2,987,447	)
Net decrease in shares		(353,688	)		(143,743	)

102 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

RUSSELL 2000^® FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	43.81		$	43.67		$	41.61		$	33.56		$	38.88
Income (loss) from investment operations:
Net investment income (loss)a		.00			(.05	)		(.17	)		(.21	)		(.29	)
Net gain (loss) on investments (realized and unrealized)		(10.89	)		.19	c		4.34			8.26			(4.12	)
Total from investment operations		(10.89	)		.14			4.17			8.05			(4.41	)
Less distributions from:
Net investment income		(.01	)		—			—			—			—
Net realized gains		(.67	)		—			(2.11	)		—			(.91	)
Total distributions		(.68	)		—			(2.11	)		—			(.91	)
Net asset value, end of period	$	32.24		$	43.81		$	43.67		$	41.61		$	33.56
Total Returnb		(25.32	%)		0.32	%		10.03	%		23.96	%		(11.43	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,712		$	18,569		$	17,163		$	14,650		$	11,993
Ratios to average net assets:
Net investment income (loss)		0.00	%		(0.11	%)		(0.40	%)		(0.54	%)		(0.83	%)
Total expenses		1.73	%		1.71	%		1.63	%		1.62	%		1.59	%
Portfolio turnover rate		35	%		112	%		167	%		203	%		442	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	39.09		$	39.26		$	37.87		$	30.78		$	36.00
Income (loss) from investment operations:
Net investment income (loss)a		(.29	)		(.37	)		(.45	)		(.44	)		(.51	)
Net gain (loss) on investments (realized and unrealized)		(9.62	)		.20	c		3.95			7.53			(3.80	)
Total from investment operations		(9.91	)		(.17	)		3.50			7.09			(4.31	)
Less distributions from:
Net investment income		(.01	)		—			—			—			—
Net realized gains		(.67	)		—			(2.11	)		—			(.91	)
Total distributions		(.68	)		—			(2.11	)		—			(.91	)
Net asset value, end of period	$	28.50		$	39.09		$	39.26		$	37.87		$	30.78
Total Returnb		(25.88	%)		(0.43	%)		9.21	%		23.03	%		(12.07	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,590		$	3,264		$	5,277		$	5,841		$	2,760
Ratios to average net assets:
Net investment income (loss)		(0.74	%)		(0.91	%)		(1.16	%)		(1.27	%)		(1.56	%)
Total expenses		2.48	%		2.46	%		2.38	%		2.38	%		2.35	%
Portfolio turnover rate		35	%		112	%		167	%		203	%		442	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 103

RUSSELL 2000^® FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	43.70		$	43.57		$	41.51		$	33.48		$	38.79
Income (loss) from investment operations:
Net investment income (loss)a		.01			(.06	)		(.19	)		(.21	)		(.35	)
Net gain (loss) on investments (realized and unrealized)		(10.86	)		.19	c		4.36			8.24			(4.05	)
Total from investment operations		(10.85	)		.13			4.17			8.03			(4.40	)
Less distributions from:
Net investment income		(.01	)		—			—			—			—
Net realized gains		(.67	)		—			(2.11	)		—			(.91	)
Total distributions		(.68	)		—			(2.11	)		—			(.91	)
Net asset value, end of period	$	32.17		$	43.70		$	43.57		$	41.51		$	33.48
Total Return		(25.30	%)		0.30	%		10.03	%		23.95	%		(11.43	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,731		$	19,384		$	24,713		$	29,466		$	46,251
Ratios to average net assets:
Net investment income (loss)		0.01	%		(0.14	%)		(0.43	%)		(0.54	%)		(0.97	%)
Total expenses		1.73	%		1.71	%		1.63	%		1.63	%		1.60	%
Portfolio turnover rate		35	%		112	%		167	%		203	%		442	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	The amount shown for a share outstanding throughout the periods does not accord with the aggregate net losses on investments for the year because of the sales and repurchases of Fund shares in relation to fluctuating market value of the investments of the Fund.

104 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

INVERSE RUSSELL 2000^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the Russell 2000^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2020, Inverse Russell 2000^® Strategy Fund maintained a daily correlation of over 99% to its benchmark of -100% of the daily price movement of the Russell 2000 Index.

Inverse Russell 2000^® Strategy Fund H-Class returned 19.08%, while the Russell 2000 Index returned -23.99% over the same time period.

No sector contributed to the return of the underlying index for the period. The sectors detracting the most were Financials, Consumer Discretionary, and Industrials.

The holdings in the Fund contributing the most to return of the underlying index were Teladoc Health, Inc., Array BioPharma, Inc., and Medicines Co. The holdings detracting the most were Green Dot Corp. Class A, Investor Mortgage Capital, Inc., and Blackstone Mortgage Trust, Inc. Class A.

Derivatives in the Fund were used to help provide inverse exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one-year period ended March 31, 2020, investment in the Short Term Investment Vehicles benefited Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

THE RYDEX FUNDS ANNUAL REPORT | 105

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Inception Dates:
A-Class	March 31, 2004
C-Class	February 20, 2004
H-Class	February 20, 2004

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Cumulative Fund Performance*

Largest Holdings (% of Total Net Assets)
Guggenheim Ultra Short Duration Fund — Institutional Class	4.7%
Guggenheim Strategy Fund II	3.7%
Total	8.4%
“Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	19.00%	(3.62%)	(11.34%)
A-Class Shares with sales charge‡	13.33%	(4.56%)	(11.78%)
C-Class Shares	18.22%	(4.33%)	(11.99%)
C-Class Shares with CDSC§	17.22%	(4.33%)	(11.99%)
H-Class Shares	19.08%	(3.59%)	(11.31%)
Russell 2000 Index	(23.99%)	1.55%	8.55%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

106 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
INVERSE RUSSELL 2000® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 8.4%
Guggenheim Ultra Short Duration Fund — Institutional Class1		109,410	$	1,068,939
Guggenheim Strategy Fund II1		34,379		826,823
Total Mutual Funds
(Cost $1,936,333)				1,895,762
	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 48.4%
Federal Home Loan Bank
0.05% due 04/08/202	$	5,000,000		4,999,951
0.51% due 08/03/202		5,000,000		4,998,106
0.40% due 05/08/202		1,000,000		999,589
Total Federal Agency Discount Notes
(Cost $10,990,585)				10,997,646
FEDERAL AGENCY NOTES†† - 2.3%
Federal Home Loan Bank
0.75% (3 Month USD LIBOR - 0.14%, Rate Floor: 0.00%) due 12/18/203		400,000		400,084
Federal Farm Credit Bank
0.44% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/223		120,000		120,261
Total Federal Agency Notes
(Cost $519,848)				520,345

U.S. TREASURY BILLS†† - 0.0%
U.S. Treasury Bills
0.50% due 04/30/202	5,000		5,000
Total U.S. Treasury Bills
(Cost $4,998)			5,000
REPURCHASE AGREEMENTS††,4 - 24.9%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/205	4,091,107		4,091,107
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/205	1,573,503		1,573,503
Total Repurchase Agreements
(Cost $5,664,610)			5,664,610
Total Investments - 84.0%
(Cost $19,116,374)		$	19,083,363
Other Assets & Liabilities, net - 16.0%			3,630,737
Total Net Assets - 100.0%		$	22,714,100

Total Return Swap Agreements
Counterparty	Index	Financing Rate Receive	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Equity Index Swap Agreements Sold Short††
Goldman Sachs International	Russell 2000 Index	(0.54)% (1 Week USD LIBOR - 0.05%)	At Maturity		04/28/20		10,866	$	12,530,100	$	287,918
BNP Paribas	Russell 2000 Index	(0.59)% (1 Month USD LIBOR - 0.40%)	At Maturity		04/29/20		6,096		7,029,779		142,224
Barclays Bank plc	Russell 2000 Index	(0.09)% (1 Week USD LIBOR - 0.50%)	At Maturity		04/30/20		2,713		3,128,456		14,147
								$	22,688,335	$	444,289

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Rate indicated is the effective yield at the time of purchase.
3	Variable rate security. Rate indicated is the rate effective at March 31, 2020. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
4	Repurchase Agreements — See Note 6.
5	All or a portion of this security is pledged as equity index swap collateral at March 31, 2020.
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	See Sector Classification in Other Information section.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 107

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
INVERSE RUSSELL 2000® STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	1,895,762	$	—	$	—	$	1,895,762
Federal Agency Discount Notes		—		10,997,646		—		10,997,646
Federal Agency Notes		—		520,345		—		520,345
U.S. Treasury Bills		—		5,000		—		5,000
Repurchase Agreements		—		5,664,610		—		5,664,610
Equity Index Swap Agreements**		—		444,289		—		444,289
Total Assets	$	1,895,762	$	17,631,890	$	—	$	19,527,652

** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	1,252,629	$	—	$	(400,000	)	$	(11	)	$	(25,795	)	$	826,823		34,379	$	25,386
Guggenheim Ultra Short Duration Fund — Institutional Class		1,347,072		140,000		(400,000	)		(493	)		(17,640	)		1,068,939		109,410		24,759
	$	2,599,701	$	140,000	$	(800,000	)	$	(504	)	$	(43,435	)	$	1,895,762			$	50,145

108 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value (cost $11,515,431)	$	11,522,991
Investments in affiliated issuers, at value (cost $1,936,333)		1,895,762
Repurchase agreements, at value (cost $5,664,610)		5,664,610
Cash		3,042,186
Unrealized appreciation on OTC swap agreements		444,289
Receivables:
Fund shares sold		315,278
Dividends		3,322
Interest		289
Total assets		22,888,727
Liabilities:
Payable for:
Fund shares redeemed		81,608
Swap settlement		44,885
Management fees		13,243
Transfer agent and administrative fees		4,227
Distribution and service fees		3,884
Portfolio accounting fees		1,493
Trustees’ fees*		369
Miscellaneous		24,918
Total liabilities		174,627
Commitments and contingent liabilities (Note 12)		—
Net assets	$	22,714,100
Net assets consist of:
Paid in capital	$	50,269,472
Total distributable earnings (loss)		(27,555,372	)
Net assets	$	22,714,100
A-Class:
Net assets	$	206,514
Capital shares outstanding		8,562
Net asset value per share	$	24.12
Maximum offering price per share (Net asset value divided by 95.25%)	$	25.32
C-Class:
Net assets	$	93,642
Capital shares outstanding		4,387
Net asset value per share	$	21.35
H-Class:
Net assets	$	22,413,944
Capital shares outstanding		925,542
Net asset value per share	$	24.22

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of affiliated issuers	$	50,145
Interest		99,996
Total investment income		150,141
Expenses:
Management fees		70,910
Distribution and service fees:
A-Class		1,058
C-Class		3,787
H-Class		17,692
Transfer agent and administrative fees		20,193
Registration fees		8,238
Portfolio accounting fees		7,879
Professional fees		4,904
Trustees’ fees*		2,063
Custodian fees		1,125
Prime broker interest expense		6
Miscellaneous		8,684
Total expenses		146,539
Less:
Expenses waived by Adviser		(2,538	)
Net expenses		144,001
Net investment income		6,140
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		2,081
Investments in affiliated issuers		(504	)
Swap agreements		(1,589,611	)
Futures contracts		(253,463	)
Net realized loss		(1,841,497	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		7,560
Investments in affiliated issuers		(43,435	)
Swap agreements		555,378
Futures contracts		13,457
Net change in unrealized appreciation (depreciation)		532,960
Net realized and unrealized loss		(1,308,537	)
Net decrease in net assets resulting from operations	$	(1,302,397	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 109

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	6,140		$	52,324
Net realized loss on investments		(1,841,497	)		(42,797	)
Net change in unrealized appreciation (depreciation) on investments		532,960			(174,046	)
Net decrease in net assets resulting from operations		(1,302,397	)		(164,519	)
Distributions to shareholders:
A-Class		(1,975	)		—
C-Class		(2,914	)		—
H-Class		(47,851	)		—
Total distributions to shareholders		(52,740	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		504,699			5,160,677
C-Class		42,769			5,873,034
H-Class		83,248,259			97,798,195
Distributions reinvested
A-Class		1,705			—
C-Class		2,557			—
H-Class		47,493			—
Cost of shares redeemed
A-Class		(1,102,154	)		(4,494,155	)
C-Class		(512,240	)		(5,988,495	)
H-Class		(68,762,044	)		(91,998,591	)
Net increase from capital share transactions		13,471,044			6,350,665
Net increase in net assets		12,115,907			6,186,146
Net assets:
Beginning of year		10,598,193			4,412,047
End of year	$	22,714,100		$	10,598,193
Capital share activity:
Shares sold
A-Class		24,623			230,007
C-Class		2,041			326,224
H-Class		3,778,954			4,711,124
Shares issued from reinvestment of distributions
A-Class		90			—
C-Class		152			—
H-Class		2,500			—
Shares redeemed
A-Class		(52,699	)		(205,975	)
C-Class		(23,048	)		(333,306	)
H-Class		(3,314,364	)		(4,421,740	)
Net increase in shares		418,249			306,334

110 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE RUSSELL 2000^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	20.42		$	20.90		$	23.62		$	30.76		$	29.22
Income (loss) from investment operations:
Net investment income (loss)a		.10			.14			(.18	)		(.31	)		(.39	)
Net gain (loss) on investments (realized and unrealized)		3.74	e		(.62	)		(2.54	)		(6.83	)		1.93
Total from investment operations		3.84			(.48	)		(2.72	)		(7.14	)		1.54
Less distributions from:
Net investment income		(.14	)		—			—			—			—
Total distributions		(.14	)		—			—			—			—
Net asset value, end of period	$	24.12		$	20.42		$	20.90		$	23.62		$	30.76
Total Returnb		19.00	%		(2.30	%)		(11.52	%)		(23.21	%)		5.27	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	207		$	746		$	262		$	8,645		$	2,795
Ratios to average net assets:
Net investment income (loss)		0.51	%		0.65	%		(0.76	%)		(1.11	%)		(1.23	%)
Total expensesc		1.82	%		1.83	%		1.74	%		1.71	%		1.70	%
Net expensesd		1.78	%		1.81	%		1.74	%		1.71	%		1.70	%
Portfolio turnover rate		7	%		40	%		—			58	%		584	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	18.21		$	18.79		$	21.41		$	28.07		$	26.86
Income (loss) from investment operations:
Net investment income (loss)a		(.06	)		(.05	)		(.25	)		(.45	)		(.58	)
Net gain (loss) on investments (realized and unrealized)		3.34	e		(.53	)		(2.37	)		(6.21	)		1.79
Total from investment operations		3.28			(.58	)		(2.62	)		(6.66	)		1.21
Less distributions from:
Net investment income		(.14	)		—			—			—			—
Total distributions		(.14	)		—			—			—			—
Net asset value, end of period	$	21.35		$	18.21		$	18.79		$	21.41		$	28.07
Total Returnb		18.22	%		(3.09	%)		(12.24	%)		(23.73	%)		4.50	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	94		$	460		$	607		$	1,028		$	1,729
Ratios to average net assets:
Net investment income (loss)		(0.34	%)		(0.26	%)		(1.22	%)		1.83	%		(2.08	%)
Total expensesc		2.57	%		2.56	%		2.48	%		2.47	%		2.45	%
Net expensesd		2.53	%		2.55	%		2.48	%		2.47	%		2.45	%
Portfolio turnover rate		7	%		40	%		—			58	%		584	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 111

INVERSE RUSSELL 2000^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	20.49		$	20.96		$	23.69		$	30.83		$	29.30
Income (loss) from investment operations:
Net investment income (loss)a		.02			.11			(.09	)		(.32	)		(.41	)
Net gain (loss) on investments (realized and unrealized)		3.85	e		(.58	)		(2.64	)		(6.82	)		1.94
Total from investment operations		3.87			(.47	)		(2.73	)		(7.14	)		1.53
Less distributions from:
Net investment income		(.14	)		—			—			—			—
Total distributions		(.14	)		—			—			—			—
Net asset value, end of period	$	24.22		$	20.49		$	20.96		$	23.69		$	30.83
Total Return		19.08	%		(2.24	%)		(11.52	%)		(23.16	%)		5.22	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22,414		$	9,392		$	3,543		$	5,777		$	36,713
Ratios to average net assets:
Net investment income (loss)		0.07	%		0.53	%		(0.39	%)		(1.14	%)		(1.28	%)
Total expensesc		1.82	%		1.82	%		1.72	%		1.72	%		1.70	%
Net expensesd		1.79	%		1.81	%		1.72	%		1.72	%		1.70	%
Portfolio turnover rate		7	%		40	%		—			58	%		584	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

112 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

DOW JONES INDUSTRIAL AVERAGE^® FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the Dow Jones Industrials Average^® (the “underlying index”).

For the one-year period ended March 31, 2020, Dow Jones Industrial Average^® Fund maintained a daily correlation of over 99% to its benchmark of 100% of the daily price movement of the Dow Jones Industrial Average Index.

Dow Jones Industrial Average^® Fund H-Class returned -15.40%, while the Dow Jones Industrial Average Index returned -13.38% over the same time period.

The only sector contributing to the return of the underlying index was Information Technology. The sectors detracting the most were Industrials, Financials, and Energy.

The holdings contributing the most to the return of the underlying index were Apple, Inc., Microsoft Corp., and Walmart, Inc. The holdings detracting the most were Boeing Co., 3M Co., and Chevron Corp.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the most efficient manner possible and not for hedging purposes. Derivatives performed as expected.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one-year period ended March 31, 2020, investment in the Short Term Investment Vehicles benefited Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

THE RYDEX FUNDS ANNUAL REPORT | 113

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Inception Dates:
A-Class	December 1, 2015
C-Class	December 1, 2015
H-Class	December 1, 2015

Cumulative Fund Performance*

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	6.2%
Guggenheim Ultra Short Duration Fund — Institutional Class	5.2%
Apple, Inc.	3.8%
UnitedHealth Group, Inc.	3.7%
Home Depot, Inc.	2.8%
McDonald’s Corp.	2.4%
Visa, Inc. — Class A	2.4%
Microsoft Corp.	2.3%
Goldman Sachs Group, Inc.	2.3%
Boeing Co.	2.2%
Top Ten Total	33.3%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	Since Inception (12/01/15)
A-Class Shares	(15.38%)	5.49%
A-Class Shares with sales charge‡	(19.40%)	4.31%
C-Class Shares	(16.03%)	4.70%
C-Class Shares with CDSC§	(16.83%)	4.70%
H-Class Shares	(15.40%)	5.50%
Dow Jones Industrial Average Index	(13.38%)	7.37%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Dow Jones Industrial Average Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

114 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
DOW JONES INDUSTRIAL AVERAGE® FUND

	Shares		Value
COMMON STOCKS† - 47.7%
Consumer, Non-cyclical - 9.5%
UnitedHealth Group, Inc.		4,225	$	1,053,631
Johnson & Johnson		4,225		554,024
Procter & Gamble Co.		4,225		464,750
Merck & Company, Inc.		4,225		325,072
Coca-Cola Co.		4,225		186,956
Pfizer, Inc.		4,225		137,904
Total Consumer, Non-cyclical				2,722,337
Consumer, Cyclical - 8.8%
Home Depot, Inc.		4,225		788,850
McDonald’s Corp.		4,225		698,604
Walmart, Inc.		4,225		480,044
NIKE, Inc. — Class B		4,225		349,576
Walgreens Boots Alliance, Inc.		4,225		193,294
Total Consumer, Cyclical				2,510,368
Financial - 8.7%
Visa, Inc. — Class A		4,225		680,732
Goldman Sachs Group, Inc.		4,225		653,142
Travelers Companies, Inc.		4,225		419,754
JPMorgan Chase & Co.		4,225		380,377
American Express Co.		4,225		361,702
Total Financial				2,495,707
Technology - 8.5%
Apple, Inc.		4,225		1,074,375
Microsoft Corp.		4,225		666,325
International Business Machines Corp.		4,225		468,679
Intel Corp.		4,225		228,657
Total Technology				2,438,036
Industrial - 7.3%
Boeing Co.		4,225		630,117
3M Co.		4,225		576,755
Caterpillar, Inc.		4,225		490,269
United Technologies Corp.*		4,225		398,544
Total Industrial				2,095,685
Communications - 2.8%
Walt Disney Co.		4,225		408,135
Verizon Communications, Inc.		4,225		227,009
Cisco Systems, Inc.		4,225		166,085
Total Communications				801,229
Energy - 1.6%
Chevron Corp.		4,225		306,144
Exxon Mobil Corp.		4,225		160,423
Total Energy				466,567
Basic Materials - 0.5%
Dow, Inc.		4,225		123,539
Total Common Stocks
(Cost $12,812,470)				13,653,468
MUTUAL FUNDS† - 11.4%
Guggenheim Strategy Fund II1		73,498		1,767,616
Guggenheim Ultra Short Duration Fund — Institutional Class1		152,829		1,493,141
Total Mutual Funds
(Cost $3,339,992)				3,260,757
	Face Amount
U.S. TREASURY BILLS†† - 0.2%
U.S. Treasury Bills
0.50% due 04/30/202,3	$	61,000		60,997
Total U.S. Treasury Bills
(Cost $60,975)				60,997
REPURCHASE AGREEMENTS††,4 - 22.4%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/205		4,626,627		4,626,627
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/205		1,779,472		1,779,472
Total Repurchase Agreements
(Cost $6,406,099)				6,406,099
Total Investments - 81.7%
(Cost $22,619,536)			$	23,381,321
Other Assets & Liabilities, net - 18.3%				5,238,233
Total Net Assets - 100.0%			$	28,619,554

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Purchased†
Dow Jones Industrial Average Index Mini Futures Contracts		21		Jun 2020	$	2,286,795	$	177,057

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 115

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
DOW JONES INDUSTRIAL AVERAGE® FUND

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements††
BNP Paribas	Dow Jones Industrial Average Index	1.49% (1 Month USD LIBOR + 0.50%)	At Maturity		04/29/20		131	$	2,865,599	$	(83,026	)
Barclays Bank plc	Dow Jones Industrial Average Index	1.09% (1 Week USD LIBOR + 0.50%)	At Maturity		04/30/20		449		9,843,601		(184,289	)
								$	12,709,200	$	(267,315	)

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	All or a portion of this security is pledged as futures collateral at March 31, 2020.
3	Rate indicated is the effective yield at the time of purchase.
4	Repurchase Agreements — See Note 6.
5	All or a portion of this security is pledged as equity index swap collateral at March 31, 2020.
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	13,653,468	$	—	$	—	$	13,653,468
Mutual Funds		3,260,757		—		—		3,260,757
U.S. Treasury Bills		—		60,997		—		60,997
Repurchase Agreements		—		6,406,099		—		6,406,099
Equity Futures Contracts**		177,057		—		—		177,057
Total Assets	$	17,091,282	$	6,467,096	$	—	$	23,558,378

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	267,315	$	—	$	267,315

** This derivative is reported as unrealized appreciation/depreciation at period end.

116 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
DOW JONES INDUSTRIAL AVERAGE® FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	3,422,469	$	—	$	(1,600,000	)	$	(5,028	)	$	(49,825	)	$	1,767,616		73,498	$	74,422
Guggenheim Ultra Short Duration Fund — Institutional Class		3,423,509		—		(1,900,000	)		2,103			(32,471	)		1,493,141		152,829		68,431
	$	6,845,978	$	—	$	(3,500,000	)	$	(2,925	)	$	(82,296	)	$	3,260,757			$	142,853

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 117

DOW JONES INDUSTRIAL AVERAGE^® FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value (cost $12,873,445)	$	13,714,465
Investments in affiliated issuers, at value (cost $3,339,992)		3,260,757
Repurchase agreements, at value (cost $6,406,099)		6,406,099
Cash		4,911,369
Segregated cash with broker		1,351,395
Receivables:
Fund shares sold		91,014
Dividends		13,920
Interest		2
Total assets		29,749,021
Liabilities:
Segregated cash due to broker		337,086
Unrealized depreciation on OTC swap agreements		267,315
Payable for:
Fund shares redeemed		425,908
Variation margin on futures contracts		40,740
Management fees		12,171
Swap settlement		5,545
Distribution and service fees		5,270
Transfer agent and administrative fees		5,113
Portfolio accounting fees		1,668
Trustees’ fees*		428
Miscellaneous		28,223
Total liabilities		1,129,467
Commitments and contingent liabilities (Note 12)		—
Net assets	$	28,619,554
Net assets consist of:
Paid in capital	$	30,000,586
Total distributable earnings (loss)		(1,381,032	)
Net assets	$	28,619,554
A-Class:
Net assets	$	2,651,761
Capital shares outstanding		46,254
Net asset value per share	$	57.33
Maximum offering price per share (Net asset value divided by 95.25%)	$	60.19
C-Class:
Net assets	$	1,636,542
Capital shares outstanding		29,554
Net asset value per share	$	55.37
H-Class:
Net assets	$	24,331,251
Capital shares outstanding		424,173
Net asset value per share	$	57.36

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of unaffiliated issuers	$	540,106
Dividends from securities of affiliated issuers		142,853
Interest		48,511
Total investment income		731,470
Expenses:
Management fees		235,233
Distribution and service fees:
A-Class		14,166
C-Class		21,558
H-Class		58,856
Transfer agent and administrative fees		79,354
Registration fees		35,126
Portfolio accounting fees		31,364
Professional fees		15,667
Trustees’ fees*		9,175
Custodian fees		4,600
Miscellaneous		31,993
Total expenses		537,092
Less:
Expenses waived by Adviser		(6,814	)
Net expenses		530,278
Net investment income		201,192
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		5,323,674
Investments in affiliated issuers		(2,925	)
Swap agreements		25,921
Futures contracts		(279,514	)
Net realized gain		5,067,156
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(6,841,606	)
Investments in affiliated issuers		(82,296	)
Swap agreements		(400,302	)
Futures contracts		177,355
Net change in unrealized appreciation (depreciation)		(7,146,849	)
Net realized and unrealized loss		(2,079,693	)
Net decrease in net assets resulting from operations	$	(1,878,501	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

118 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

DOW JONES INDUSTRIAL AVERAGE^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	201,192		$	422,699
Net realized gain on investments		5,067,156			8,709,934
Net change in unrealized appreciation (depreciation) on investments		(7,146,849	)		(4,608,320	)
Net increase (decrease) in net assets resulting from operations		(1,878,501	)		4,524,313
Distributions to shareholders:
A-Class		(159,709	)		(104,984	)
C-Class		(98,345	)		(22,489	)
H-Class		(892,516	)		(463,766	)
Total distributions to shareholders		(1,150,570	)		(591,239	)
Capital share transactions:
Proceeds from sale of shares
A-Class		16,273,565			78,585,897
C-Class		2,489,125			1,582,226
H-Class		141,553,466			462,514,750
Distributions reinvested
A-Class		127,980			76,561
C-Class		93,396			21,083
H-Class		889,793			463,042
Cost of shares redeemed
A-Class		(32,450,685	)		(81,898,564	)
C-Class		(2,248,063	)		(3,347,159	)
H-Class		(156,450,347	)		(493,573,657	)
Net decrease from capital share transactions		(29,721,770	)		(35,575,821	)
Net decrease in net assets		(32,750,841	)		(31,642,747	)
Net assets:
Beginning of year		61,370,395			93,013,142
End of year	$	28,619,554		$	61,370,395
Capital share activity:
Shares sold
A-Class		272,947			1,150,595
C-Class		35,697			23,845
H-Class		2,026,607			6,744,613
Shares issued from reinvestment of distributions
A-Class		1,746			1,155
C-Class		1,316			326
H-Class		12,134			6,984
Shares redeemed
A-Class		(498,107	)		(1,199,548	)
C-Class		(32,647	)		(49,811	)
H-Class		(2,189,993	)		(7,217,481	)
Net decrease in shares		(370,300	)		(539,322	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 119

DOW JONES INDUSTRIAL AVERAGE^® FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Period Ended March 31, 2016a
Per Share Data
Net asset value, beginning of period	$	70.54		$	66.00		$	58.25		$	49.60		$	50.00
Income (loss) from investment operations:
Net investment income (loss)b		.47			.55			.34			.23			(.03	)
Net gain (loss) on investments (realized and unrealized)		(10.67	)		4.78			9.91			8.73			(.37	)
Total from investment operations		(10.20	)		5.33			10.25			8.96			(.40	)
Less distributions from:
Net investment income		(.31	)		(.64	)		(.35	)		(.02	)		—
Net realized gains		(2.70	)		(.15	)		(2.15	)		(.29	)		—
Total distributions		(3.01	)		(.79	)		(2.50	)		(.31	)		—
Net asset value, end of period	$	57.33		$	70.54		$	66.00		$	58.25		$	49.60
Total Returnc		(15.38	%)		8.15	%		17.55	%		18.10	%		(0.80	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,652		$	19,022		$	20,953		$	19,523		$	44,351
Ratios to average net assets:
Net investment income (loss)		0.65	%		0.80	%		0.54	%		0.44	%		(0.21	%)
Total expensesd		1.66	%		1.61	%		1.56	%		1.56	%		1.55	%
Net expensese		1.64	%		1.61	%		1.56	%		1.56	%		1.55	%
Portfolio turnover rate		186	%		465	%		168	%		668	%		98	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Period Ended March 31, 2016a
Per Share Data
Net asset value, beginning of period	$	68.74		$	64.81		$	57.66		$	49.47		$	50.00
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		.03			(.09	)		(.11	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		(10.34	)		4.69			9.74			8.61			(.46	)
Total from investment operations		(10.36	)		4.72			9.65			8.50			(.53	)
Less distributions from:
Net investment income		(.31	)		(.64	)		(.35	)		(.02	)		—
Net realized gains		(2.70	)		(.15	)		(2.15	)		(.29	)		—
Total distributions		(3.01	)		(.79	)		(2.50	)		(.31	)		—
Net asset value, end of period	$	55.37		$	68.74		$	64.81		$	57.66		$	49.47
Total Returnc		(16.03	%)		7.37	%		16.66	%		17.21	%		(1.06	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,637		$	1,731		$	3,294		$	2,144		$	732
Ratios to average net assets:
Net investment income (loss)		(0.03	%)		0.04	%		(0.14	%)		(0.21	%)		(0.43	%)
Total expensesd		2.42	%		2.36	%		2.30	%		2.32	%		2.30	%
Net expensese		2.40	%		2.36	%		2.36	%		2.32	%		2.30	%
Portfolio turnover rate		186	%		465	%		168	%		668	%		98	%

120 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

DOW JONES INDUSTRIAL AVERAGE^® FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Period Ended March 31, 2016a
Per Share Data
Net asset value, beginning of period	$	70.59		$	66.04		$	58.28		$	49.59		$	50.00
Income (loss) from investment operations:
Net investment income (loss)b		.51			.55			.39			.28			(.03	)
Net gain (loss) on investments (realized and unrealized)		(10.73	)		4.79			9.87			8.72			(.38	)
Total from investment operations		(10.22	)		5.34			10.26			9.00			(.41	)
Less distributions from:
Net investment income		(.31	)		(.64	)		(.35	)		(.02	)		—
Net realized gains		(2.70	)		(.15	)		(2.15	)		(.29	)		—
Total distributions		(3.01	)		(.79	)		(2.50	)		(.31	)		—
Net asset value, end of period	$	57.36		$	70.59		$	66.04		$	58.28		$	49.59
Total Return		(15.40	%)		8.16	%		17.54	%		18.20	%		(0.82	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	24,331		$	40,617		$	68,766		$	42,495		$	18,923
Ratios to average net assets:
Net investment income (loss)		0.70	%		0.80	%		0.61	%		0.52	%		(0.17	%)
Total expensesd		1.66	%		1.62	%		1.55	%		1.57	%		1.55	%
Net expensese		1.64	%		1.62	%		1.55	%		1.57	%		1.55	%
Portfolio turnover rate		186	%		465	%		168	%		668	%		98	%

a	Since commencement of operations: December 1, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 121

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correspond, before fees and expenses, to a benchmark for U.S. Government securities on a daily basis. The Fund’s current benchmark is 120% of the daily price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is currently 30 years. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2020, the Government Long Bond 1.2x Strategy Fund Investor Class returned 45.84%.

The Price Movement of Long Treasury Bond was 36.56% for the period.

The return of a comparison index, the Bloomberg Barclays U.S. Long Treasury Index was 32.64%.

As prices of long-term Treasury bonds rose over the period, their yield fell 54%, from 2.81% to 1.32%. Early in the period, robust institutional buying was driven by improving economic fundamentals, yield-starved foreign demand, and the secular decline in inflation. The buying led to an inversion of the 2-year/10-year yield curve in August, which was accompanied by the rate on the 30-year U.S. Treasury Bond sinking to an all-time low, at 1.90%.

Beginning in the mid-first quarter of 2020, fearful of global economic fallout from the coronavirus outbreak and oil price instability stemming from continued output by Russia and Saudi Arabia at unreduced levels, investors rushed into safe havens and sent prices of U.S. Treasuries skyrocketing. In early March, for the first time ever, the entire yield curve briefly slipped below 1%, and the yield on the 30-year Treasury yield fell below 1%.

Derivatives in the Fund are used to provide additional exposure to composition of the benchmark in the most efficient manner possible and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amounts and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one-year period ended March 31, 2020, investment in the Short Term Investment Vehicles had a negligible impact on Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

122 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2020

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

Inception Dates:
Investor Class	January 3, 1994
A-Class	March 31, 2004
C-Class	May 2, 2001
H-Class	September 18, 2014

The Fund invests principally in U.S. Government securities and in derivative investments such as futures contracts.

Largest Holdings (% of Total Net Assets)
U.S. Treasury Bond	71.3%
Guggenheim Ultra Short Duration Fund — Institutional Class	8.7%
Guggenheim Strategy Fund II	8.7%
Total	88.7%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 123

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	45.84%	7.90%	11.22%
A-Class Shares	45.48%	7.66%	11.03%
A-Class Shares with sales charge‡	38.59%	6.62%	10.49%
C-Class Shares	44.41%	6.86%	10.16%
C-Class Shares with CDSC§	43.41%	6.86%	10.16%
Bloomberg Barclays U.S. Long Treasury Index	32.64%	7.33%	8.96%
Price Movement of Long Treasury Bond**	36.56%	4.88%	6.26%

	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	45.55%	7.69%	10.88%
Bloomberg Barclays U.S. Long Treasury Index	32.64%	7.33%	9.46%
Price Movement of Long Treasury Bond**	36.56%	4.88%	7.49%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Bloomberg Barclays U.S. Long Treasury Index and the Price Movement of Long Treasury Bond are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class shares and H-Class shares will vary due to differences in fee structures.
**	Does not reflect any interest.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

124 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
GOVERNMENT LONG BOND 1.2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 17.4%
Guggenheim Ultra Short Duration Fund — Institutional Class1		1,075,874	$	10,511,293
Guggenheim Strategy Fund II1		433,141		10,417,042
Total Mutual Funds
(Cost $21,481,550)				20,928,335
	Face Amount
U.S. GOVERNMENT SECURITIES†† - 71.3%
U.S. Treasury Bonds
2.00% due 02/15/50	$	73,700,000		85,584,125
Total U.S. Government Securities
(Cost $74,100,497)				85,584,125
U.S. TREASURY BILLS†† - 2.0%
U.S. Treasury Bills
0.50% due 04/30/202,3		2,372,000		2,371,894
Total U.S. Treasury Bills
(Cost $2,371,030)				2,371,894

REPURCHASE AGREEMENTS††,4 - 6.2%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	5,386,663		5,386,663
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20	2,071,794		2,071,794
Total Repurchase Agreements
(Cost $7,458,457)			7,458,457
Total Investments - 96.9%
(Cost $105,411,534)		$	116,342,811
Other Assets & Liabilities, net - 3.1%			3,670,103
Total Net Assets - 100.0%		$	120,012,914

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Interest Rate Futures Contracts Purchased†
U.S. Treasury Ultra Long Bond Futures Contracts		315		Jun 2020	$	70,028,438	$	7,474,465

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	All or a portion of this security is pledged as futures collateral at March 31, 2020.
3	Rate indicated is the effective yield at the time of purchase.
4	Repurchase Agreements — See Note 6.
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	20,928,335	$	—	$	—	$	20,928,335
U.S. Government Securities		—		85,584,125		—		85,584,125
U.S. Treasury Bills		—		2,371,894		—		2,371,894
Repurchase Agreements		—		7,458,457		—		7,458,457
Interest Rate Futures Contracts**		7,474,465		—		—		7,474,465
Total Assets	$	28,402,800	$	95,414,476	$	—	$	123,817,276

** This derivative is reported as unrealized appreciation/depreciation at period end.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 125

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
GOVERNMENT LONG BOND 1.2x STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	10,298,989	$	7,550,000	$	(7,085,000	)	$	(60,717	)	$	(286,230	)	$	10,417,042		433,141	$	290,561
Guggenheim Ultra Short Duration Fund — Institutional Class		9,520,254		6,750,000		(5,535,000	)		(31,447	)		(192,514	)		10,511,293		1,075,874		254,656
	$	19,819,243	$	14,300,000	$	(12,620,000	)	$	(92,164	)	$	(478,744	)	$	20,928,335			$	545,217

126 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value (cost $76,471,527)	$	87,956,019
Investments in affiliated issuers, at value (cost $21,481,550)		20,928,335
Repurchase agreements, at value (cost $7,458,457)		7,458,457
Cash		5,979,537
Segregated cash with broker		2,497,955
Receivables:
Securities sold		8,477,125
Interest		223,311
Fund shares sold		44,140
Dividends		38,487
Investment Adviser		889
Total assets		133,604,255
Liabilities:
Payable for:
Fund shares redeemed		12,191,624
Variation margin on futures contracts		976,295
Management fees		68,328
Transfer agent and administrative fees		34,397
Distribution and service fees		19,585
Portfolio accounting fees		14,091
Distributions to shareholders		4,720
Trustees’ fees*		4,059
Miscellaneous		278,242
Total liabilities		13,591,341
Commitments and contingent liabilities (Note 12)		—
Net assets	$	120,012,914
Net assets consist of:
Paid in capital	$	96,544,853
Total distributable earnings (loss)		23,468,061
Net assets	$	120,012,914
Investor Class:
Net assets	$	37,918,863
Capital shares outstanding		511,640
Net asset value per share	$	74.11
A-Class:
Net assets	$	2,775,353
Capital shares outstanding		37,152
Net asset value per share	$	74.70
Maximum offering price per share (Net asset value divided by 95.25%)	$	78.43
C-Class:
Net assets	$	1,248,607
Capital shares outstanding		16,840
Net asset value per share	$	74.15
H-Class:
Net assets	$	78,070,091
Capital shares outstanding		1,044,353
Net asset value per share	$	74.75

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of affiliated issuers	$	545,217
Interest		2,766,899
Total investment income		3,312,116
Expenses:
Management fees		704,883
Distribution and service fees:
A-Class		35,771
C-Class		9,323
H-Class		152,065
Transfer agent and administrative fees		288,170
Portfolio accounting fees		140,941
Registration fees		134,824
Professional fees		84,107
Trustees’ fees*		37,457
Custodian fees		20,251
Line of credit fees		55
Miscellaneous		100,114
Total expenses		1,707,961
Less:
Expenses waived by Adviser		(26,231	)
Net expenses		1,681,730
Net investment income		1,630,386
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		28,514,450
Investments in affiliated issuers		(92,164	)
Futures contracts		13,924,630
Net realized gain		42,346,916
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		6,707,335
Investments in affiliated issuers		(478,744	)
Futures contracts		5,019,267
Net change in unrealized appreciation (depreciation)		11,247,858
Net realized and unrealized gain		53,594,774
Net increase in net assets resulting from operations	$	55,225,160

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 127

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,630,386		$	2,272,131
Net realized gain on investments		42,346,916			9,037,811
Net change in unrealized appreciation (depreciation) on investments		11,247,858			2,294,507
Net increase in net assets resulting from operations		55,225,160			13,604,449
Distributions to shareholders:
Investor Class		(2,108,783	)		(914,867	)
A-Class		(435,810	)		(163,323	)
C-Class		(21,938	)		(9,678	)
H-Class		(1,738,251	)		(1,184,263	)
Total distributions to shareholders		(4,304,782	)		(2,272,131	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		962,124,357			731,937,613
A-Class		4,581,047			24,971,881
C-Class		7,550,985			17,049,193
H-Class		790,950,225			782,907,060
Distributions reinvested
Investor Class		1,970,914			826,982
A-Class		423,677			159,458
C-Class		20,877			9,081
H-Class		1,736,665			1,180,471
Cost of shares redeemed
Investor Class		(1,014,887,608	)		(709,185,722	)
A-Class		(32,933,999	)		(8,255,917	)
C-Class		(7,268,837	)		(17,260,604	)
H-Class		(779,922,941	)		(821,319,993	)
Net increase (decrease) from capital share transactions		(65,654,638	)		3,019,503
Net increase (decrease) in net assets		(14,734,260	)		14,351,821
Net assets:
Beginning of year		134,747,174			120,395,353
End of year	$	120,012,914		$	134,747,174
Capital share activity:
Shares sold
Investor Class		16,000,438			14,900,624
A-Class		74,378			500,367
C-Class		126,059			340,165
H-Class		13,427,183			15,608,139
Shares issued from reinvestment of distributions
Investor Class		33,535			16,612
A-Class		7,261			3,118
C-Class		359			182
H-Class		29,371			23,521
Shares redeemed
Investor Class		(16,783,183	)		(14,388,567	)
A-Class		(503,938	)		(163,333	)
C-Class		(120,980	)		(343,065	)
H-Class		(13,202,385	)		(16,313,575	)
Net increase (decrease) in shares		(911,902	)		184,188

128 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	53.22		$	51.21		$	50.49		$	58.12		$	59.12
Income (loss) from investment operations:
Net investment income (loss)a		.77			.96			.80			.70			.76
Net gain (loss) on investments (realized and unrealized)		22.86			2.00			.72			(5.50	)		(.67	)
Total from investment operations		23.63			2.96			1.52			(4.80	)		.09
Less distributions from:
Net investment income		(.77	)		(.95	)		(.80	)		(.72	)		(1.09	)
Net realized gains		(1.97	)		—			—			(2.11	)		—
Total distributions		(2.74	)		(.95	)		(.80	)		(2.83	)		(1.09	)
Net asset value, end of period	$	74.11		$	53.22		$	51.21		$	50.49		$	58.12
Total Return		45.84	%		5.93	%		3.01	%		(8.39	%)		0.33	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	37,919		$	67,103		$	37,496		$	16,496		$	56,419
Ratios to average net assets:
Net investment income (loss)		1.28	%		1.94	%		1.52	%		1.21	%		1.39	%
Total expensesb		1.07	%		1.07	%		0.98	%		0.98	%		0.94	%
Net expensesc		1.05	%		1.06	%		0.98	%		0.98	%		0.94	%
Portfolio turnover rate		1,130	%		1,182	%		1,468	%		2,490	%		2,699	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	53.63		$	51.62		$	50.87		$	58.50		$	59.47
Income (loss) from investment operations:
Net investment income (loss)a		.72			.83			.69			.63			.64
Net gain (loss) on investments (realized and unrealized)		22.95			2.01			.74			(5.57	)		(.65	)
Total from investment operations		23.67			2.84			1.43			(4.94	)		(.01	)
Less distributions from:
Net investment income		(.63	)		(.83	)		(.68	)		(.58	)		(.96	)
Net realized gains		(1.97	)		—			—			(2.11	)		—
Total distributions		(2.60	)		(.83	)		(.68	)		(2.69	)		(.96	)
Net asset value, end of period	$	74.70		$	53.63		$	51.62		$	50.87		$	58.50
Total Returnd		45.48	%		5.63	%		2.78	%		(8.54	%)		0.12	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,775		$	24,639		$	6,158		$	15,827		$	9,438
Ratios to average net assets:
Net investment income (loss)		1.24	%		1.65	%		1.31	%		1.19	%		1.16	%
Total expensesb		1.32	%		1.33	%		1.23	%		1.24	%		1.20	%
Net expensesc		1.30	%		1.32	%		1.23	%		1.24	%		1.20	%
Portfolio turnover rate		1,130	%		1,182	%		1,468	%		2,490	%		2,699	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 129

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	53.27		$	51.24		$	50.52		$	58.13		$	59.09
Income (loss) from investment operations:
Net investment income (loss)a		.13			.45			.27			.13			.22
Net gain (loss) on investments (realized and unrealized)		22.92			2.04			.73			(5.47	)		(.64	)
Total from investment operations		23.05			2.49			1.00			(5.34	)		(.42	)
Less distributions from:
Net investment income		(.20	)		(.46	)		(.28	)		(.16	)		(.54	)
Net realized gains		(1.97	)		—			—			(2.11	)		—
Total distributions		(2.17	)		(.46	)		(.28	)		(2.27	)		(.54	)
Net asset value, end of period	$	74.15		$	53.27		$	51.24		$	50.52		$	58.13
Total Returnd		44.41	%		4.92	%		1.97	%		(9.24	%)		(0.62	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,249		$	607		$	724		$	1,770		$	3,276
Ratios to average net assets:
Net investment income (loss)		0.21	%		0.91	%		0.52	%		0.22	%		0.41	%
Total expensesb		2.08	%		2.07	%		1.98	%		1.97	%		1.95	%
Net expensesc		2.06	%		2.06	%		1.98	%		1.97	%		1.95	%
Portfolio turnover rate		1,130	%		1,182	%		1,468	%		2,490	%		2,699	%

130 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	53.65		$	51.64		$	50.91		$	58.55		$	59.44
Income (loss) from investment operations:
Net investment income (loss)a		.61			.84			.69			.58			.61
Net gain (loss) on investments (realized and unrealized)		23.09			2.01			.72			(5.53	)		(.54	)
Total from investment operations		23.70			2.85			1.41			(4.95	)		.07
Less distributions from:
Net investment income		(.63	)		(.84	)		(.68	)		(.58	)		(.96	)
Net realized gains		(1.97	)		—			—			(2.11	)		—
Total distributions		(2.60	)		(.84	)		(.68	)		(2.69	)		(.96	)
Net asset value, end of period	$	74.75		$	53.65		$	51.64		$	50.91		$	58.55
Total Return		45.55	%		5.63	%		2.74	%		(8.55	%)		0.26	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	78,070		$	42,397		$	76,018		$	12,077		$	49,639
Ratios to average net assets:
Net investment income (loss)		1.02	%		1.67	%		1.31	%		1.00	%		1.11	%
Total expensesb		1.32	%		1.32	%		1.23	%		1.22	%		1.20	%
Net expensesc		1.30	%		1.31	%		1.23	%		1.22	%		1.20	%
Portfolio turnover rate		1,130	%		1,182	%		1,468	%		2,490	%		2,699	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Does not include expenses of the underlying funds in which the Fund invests.
c	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
d	Total return does not reflect the impact of any applicable sales charges.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 131

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

OBJECTIVE: Seeks to provide total returns that inversely correlate, before fees and expenses, to the price movements of a benchmark for U.S. Treasury debt instruments or futures contract on a specified debt instrument on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the daily price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is currently 30 years. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2020, the Inverse Government Long Bond Strategy Fund Investor Class returned -30.73%.

The Price Movement of Long Treasury Bond was 36.56% for the period.

The return of a comparison index, the Bloomberg Barclays U.S. Long Treasury Index was 32.64%.

As prices of long-term Treasury bonds rose over the period, their yields fell 54%, from 2.81% to 1.32%. Early in the period, robust institutional buying was driven by improving economic fundamentals, yield-starved foreign demand, and the secular decline in inflation. The buying led to an inversion of the 2-year/10-year yield curve in August, which was accompanied by the rate on the 30-year U.S. Treasury Bond sinking to an all-time low, at 1.90%.

Beginning in the mid-first quarter of 2020, fearful of global economic fallout from the coronavirus outbreak and oil price instability stemming from continued output by Russia and Saudi Arabia at unreduced levels. investors rushed into safe havens and sent prices of U.S. Treasuries skyrocketing. In early March, for the first time ever, the entire yield curve briefly slipped below 1%, and the yield on the 30-year Treasury yield fell below 1%.

Derivatives in the Fund are used to provide inverse exposure to composition of the benchmark in the most efficient manner possible and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amounts and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one-year period ended March 31, 2020, investment in the Short Term Investment Vehicles had a negligible impact on Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

132 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2020

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

Inception Dates:
Investor Class	March 3, 1995
A-Class	March 31, 2004
C-Class	March 28, 2001
H-Class	September 18, 2014

The Fund invests principally in short sales and derivative investments such as futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	11.2%
Guggenheim Ultra Short Duration Fund — Institutional Class	9.9%
Total	21.1%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 133

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	(30.73%)	(8.52%)	(10.97%)
A-Class Shares	(30.90%)	(8.76%)	(11.19%)
A-Class Shares with sales charge‡	(34.17%)	(9.64%)	(11.62%)
C-Class Shares	(31.41%)	(9.43%)	(11.85%)
C-Class Shares with CDSC§	(32.10%)	(9.43%)	(11.85%)
Bloomberg Barclays U.S. Long Treasury Index	32.64%	7.33%	8.96%
Price Movement of Long Treasury Bond**	36.56%	4.88%	6.26%

	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	(30.93%)	(8.72%)	(11.00%)
Bloomberg Barclays U.S. Long Treasury Index	32.64%	7.33%	9.46%
Price Movement of Long Treasury Bond**	36.56%	4.88%	7.49%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Barclays Long Treasury Bond Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The Bloomberg Barclays U.S. Long Treasury Index and the Price Movement of Long Treasury Bond are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class shares and H-Class shares will vary due to differences in fee structures.
**	Does not reflect any interest.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

134 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 21.1%
Guggenheim Strategy Fund II1		158,543	$	3,812,960
Guggenheim Ultra Short Duration Fund — Institutional Class1		347,920		3,399,177
Total Mutual Funds
(Cost $7,370,928)				7,212,137
	Face Amount
FEDERAL AGENCY NOTES†† - 57.4%
Federal Farm Credit Bank
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222	$	6,800,000		6,814,990
0.40% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/222		3,000,000		3,010,257
0.44% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/222		2,220,000		2,224,822
0.34% (U.S. Prime Rate - 2.91%, Rate Floor: 0.00%) due 01/25/212		1,000,000		1,000,890
Federal Home Loan Bank
0.13% (U.S. Secured Overnight Financing Rate + 0.10%, Rate Floor: 0.00%) due 07/29/202		1,500,000		1,499,578
0.06% (U.S. Secured Overnight Financing Rate + 0.03%, Rate Floor: 0.00%) due 07/17/202		1,200,000		1,199,946
0.75% (3 Month USD LIBOR - 0.14%, Rate Floor: 0.00%) due 12/18/202		865,000		865,183
Freddie Mac
0.01% (U.S. Secured Overnight Financing Rate, Rate Floor: 0.00%) due 04/13/202		3,000,000		2,999,929
Total Federal Agency Notes
(Cost $19,583,964)				19,615,595
U.S. TREASURY BILLS†† - 1.0%
U.S. Treasury Bills
0.50% due 04/30/203,4		326,000		325,985
Total U.S. Treasury Bills
(Cost $325,867)				325,985

REPURCHASE AGREEMENTS†† - 76.3%
Individual Repurchase Agreements6
Mizuho Financial Group, Inc. issued 03/31/20 at (0.35)% due 04/01/20 (secured by a U.S. Treasury Bond, at a rate of 2.00% and maturing 02/15/50 as collateral, with a value of $12,517,034) to be repurchased at $12,271,483	12,271,602		12,271,602
Barclays Capital issued 03/31/20 at (0.50)% due 04/01/20 (secured by a U.S. Treasury Bond, at a rate of 2.00% and maturing 02/15/50 as collateral, with a value of $11,086,125) to be repurchased at $10,868,599	10,868,750		10,868,750
Joint Repurchase Agreements5
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	2,106,497		2,106,497
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20	810,191		810,191
Total Repurchase Agreements
(Cost $26,057,040)			26,057,040
Total Investments - 155.8%
(Cost $53,337,799)		$	53,210,757
U.S. Government Securities Sold Short†† - (73.8)%
U.S. Treasury Bonds
2.00% due 02/15/50	21,700,000		(25,199,125	)
Total U.S. Government Securities Sold Short
(Proceeds $23,623,022)			(25,199,125	)
Other Assets & Liabilities, net - 18.0%			6,156,169
Total Net Assets - 100.0%		$	34,167,801

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Interest Rate Futures Contracts Sold Short†
U.S. Treasury Ultra Long Bond Futures Contracts		48		Jun 2020	$	10,671,000	$	(1,081,548	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 135

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at March 31, 2020. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures collateral at March 31, 2020.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as short security collateral at March 31, 2020.
	LIBOR — London Interbank Offered Rate
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	7,212,137	$	—	$	—	$	7,212,137
Federal Agency Notes		—		19,615,595		—		19,615,595
U.S. Treasury Bills		—		325,985		—		325,985
Repurchase Agreements		—		26,057,040		—		26,057,040
Total Assets	$	7,212,137	$	45,998,620	$	—	$	53,210,757

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
U.S. Government Securities	$	—	$	25,199,125	$	—	$	25,199,125
Interest Rate Futures Contracts**		1,081,548		—		—		1,081,548
Total Liabilities	$	1,081,548	$	25,199,125	$	—	$	26,280,673

** This derivative is reported as unrealized appreciation/depreciation at period end.

136 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	10,028,908	$	—	$	(6,100,000	)	$	(486	)	$	(115,462	)	$	3,812,960		158,543	$	232,782
Guggenheim Ultra Short Duration Fund — Institutional Class		4,778,021		3,000,000		(4,300,000	)		(811	)		(78,033	)		3,399,177		347,920		124,510
	$	14,806,929	$	3,000,000	$	(10,400,000	)	$	(1,297	)	$	(193,495	)	$	7,212,137			$	357,292

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 137

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value (cost $19,909,831)	$	19,941,580
Investments in affiliated issuers, at value (cost $7,370,928)		7,212,137
Repurchase agreements, at value (cost $26,057,040)		26,057,040
Cash		2,338,345
Segregated cash with broker		347,643
Receivables:
Securities sold		1,858,000
Fund shares sold		1,706,963
Variation margin on futures contracts		135,000
Interest		28,979
Dividends		15,170
Total assets		59,640,857
Liabilities:
Securities sold short, at value (proceeds $23,623,022)		25,199,125
Payable for:
Fund shares redeemed		136,523
Interest payable on short sales		54,846
Management fees		22,410
Transfer agent and administrative fees		8,208
Distribution and service fees		3,851
Portfolio accounting fees		2,572
Trustees” fees*		694
Miscellaneous		44,827
Total liabilities		25,473,056
Commitments and contingent liabilities (Note 12)		—
Net assets	$	34,167,801
Net assets consist of:
Paid in capital	$	303,031,014
Total distributable earnings (loss)		(268,863,213	)
Net assets	$	34,167,801
Investor Class:
Net assets	$	20,982,566
Capital shares outstanding		915,601
Net asset value per share	$	22.92
A-Class:
Net assets	$	4,831,991
Capital shares outstanding		220,425
Net asset value per share	$	21.92
Maximum offering price per share (Net asset value divided by 95.25%)	$	23.01
C-Class:
Net assets	$	2,472,480
Capital shares outstanding		130,630
Net asset value per share	$	18.93
H-Class:
Net assets	$	5,880,764
Capital shares outstanding		267,662
Net asset value per share	$	21.97

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

138 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of affiliated issuers	$	357,292
Interest		1,470,573
Total investment income		1,827,865
Expenses:
Management fees		496,667
Distribution and service fees:
A-Class		20,660
C-Class		44,796
H-Class		18,570
Transfer agent and administrative fees		139,742
Short interest expense		779,083
Portfolio accounting fees		55,185
Professional fees		24,354
Trustees’ fees*		14,907
Custodian fees		7,993
Line of credit fees		146
Miscellaneous		101,776
Total expenses		1,703,879
Less:
Expenses waived by Adviser		(12,351	)
Net expenses		1,691,528
Net investment income		136,337
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	25,744
Investments in affiliated issuers		(1,297	)
Investments sold short		(8,844,128	)
Futures contracts		(5,344,875	)
Net realized loss		(14,164,556	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		28,463
Investments in affiliated issuers		(193,495	)
Investments sold short		(267,904	)
Futures contracts		(570,556	)
Net change in unrealized appreciation (depreciation)		(1,003,492	)
Net realized and unrealized loss		(15,168,048	)
Net decrease in net assets resulting from operations	$	(15,031,711	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 139

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	136,337		$	(535,984	)
Net realized loss on investments		(14,164,556	)		(3,798,045	)
Net change in unrealized appreciation (depreciation) on investments		(1,003,492	)		1,543,150
Net decrease in net assets resulting from operations		(15,031,711	)		(2,790,879	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		196,858,764			165,520,097
A-Class		1,089,420			8,314,612
C-Class		286,088			17,671,085
H-Class		268,283,102			237,606,283
Cost of shares redeemed
Investor Class		(209,131,964	)		(199,019,343	)
A-Class		(5,068,402	)		(10,860,881	)
C-Class		(3,361,315	)		(28,733,779	)
H-Class		(270,810,021	)		(232,371,577	)
Net decrease from capital share transactions		(21,854,328	)		(41,873,503	)
Net decrease in net assets		(36,886,039	)		(44,664,382	)
Net assets:
Beginning of year		71,053,840			115,718,222
End of year	$	34,167,801		$	71,053,840
Capital share activity:
Shares sold
Investor Class		6,318,846			4,681,218
A-Class		38,209			248,177
C-Class		12,449			597,564
H-Class		8,807,536			7,029,926
Shares redeemed
Investor Class		(6,707,268	)		(5,632,166	)
A-Class		(177,343	)		(322,713	)
C-Class		(133,163	)		(973,066	)
H-Class		(8,840,423	)		(6,874,901	)
Net decrease in shares		(681,157	)		(1,245,961	)

140 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	33.09		$	34.64		$	36.02		$	34.27		$	35.78
Income (loss) from investment operations:
Net investment income (loss)a		.12			(.13	)		(.56	)		(.88	)		(1.15	)
Net gain (loss) on investments (realized and unrealized)		(10.29	)		(1.42	)		(.82	)		2.63			(.36	)
Total from investment operations		(10.17	)		(1.55	)		(1.38	)		1.75			(1.51	)
Net asset value, end of period	$	22.92		$	33.09		$	34.64		$	36.02		$	34.27
Total Return		(30.73	%)		(4.47	%)		(3.83	%)		5.08	%		(4.22	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	20,983		$	43,149		$	78,110		$	84,123		$	89,071
Ratios to average net assets:
Net investment income (loss)		0.40	%		(0.37	%)		(1.63	%)		(2.59	%)		(3.07	%)
Total expensesb		2.91	%		4.12	%		3.71	%		3.38	%		3.48	%
Net expensesc,f		2.89	%		4.12	%		3.71	%		3.38	%		3.48	%
Portfolio turnover rate		864	%		603	%		908	%		1,436	%		838	%

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	31.72		$	33.30		$	34.71		$	33.11		$	34.66
Income (loss) from investment operations:
Net investment income (loss)a		.04			(.19	)		(.63	)		(.94	)		(1.20	)
Net gain (loss) on investments (realized and unrealized)		(9.84	)		(1.39	)		(.78	)		2.54			(.35	)
Total from investment operations		(9.80	)		(1.58	)		(1.41	)		1.60			(1.55	)
Net asset value, end of period	$	21.92		$	31.72		$	33.30		$	34.71		$	33.11
Total Returnd		(30.90	%)		(4.74	%)		(4.06	%)		4.83	%		(4.47	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,832		$	11,407		$	14,455		$	18,678		$	17,676
Ratios to average net assets:
Net investment income (loss)		0.15	%		(0.57	%)		(1.90	%)		(2.85	%)		(3.32	%)
Total expensesb		3.17	%		4.38	%		3.97	%		3.67	%		3.75	%
Net expensesc,f		3.15	%		4.37	%		3.97	%		3.67	%		3.75	%
Portfolio turnover rate		864	%		603	%		908	%		1,436	%		838	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 141

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	27.60		$	29.19		$	30.65		$	29.46		$	31.07
Income (loss) from investment operations:
Net investment income (loss)a		(.15	)		(.43	)		(.77	)		(1.05	)		(1.31	)
Net gain (loss) on investments (realized and unrealized)		(8.52	)		(1.16	)		(.69	)		2.24			(.30	)
Total from investment operations		(8.67	)		(1.59	)		(1.46	)		1.19			(1.61	)
Net asset value, end of period	$	18.93		$	27.60		$	29.19		$	30.65		$	29.46
Total Returnd		(31.41	%)		(5.45	%)		(4.76	%)		4.04	%		(5.18	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,472		$	6,937		$	18,296		$	23,343		$	27,899
Ratios to average net assets:
Net investment income (loss)		(0.59	%)		(1.44	%)		(2.63	%)		(3.59	%)		(4.08	%)
Total expensesb		3.93	%		5.14	%		4.71	%		4.41	%		4.50	%
Net expensesc,f		3.91	%		5.13	%		4.71	%		4.41	%		4.50	%
Portfolio turnover rate		864	%		603	%		908	%		1,436	%		838	%

142 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	31.81		$	33.38		$	34.83		$	33.12		$	34.67
Income (loss) from investment operations:
Net investment income (loss)a		.05			(.20	)		(.65	)		(.92	)		(1.15	)
Net gain (loss) on investments (realized and unrealized)		(9.89	)		(1.37	)		(.80	)		2.63			(.40	)
Total from investment operations		(9.84	)		(1.57	)		(1.45	)		1.71			(1.55	)
Net asset value, end of period	$	21.97		$	31.81		$	33.38		$	34.83		$	33.12
Total Return		(30.93	%)		(4.70	%)		(4.16	%)		5.13	%		(4.47	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,881		$	9,561		$	4,858		$	43,784		$	72,833
Ratios to average net assets:
Net investment income (loss)		0.16	%		(0.58	%)		(1.94	%)		(2.80	%)		(3.17	%)
Total expensesb		3.30	%		4.37	%		4.00	%		3.60	%		3.61	%
Net expensesc,f		3.28	%		4.36	%		4.00	%		3.60	%		3.61	%
Portfolio turnover rate		872	%		603	%		908	%		1,436	%		838	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Does not include expenses of the underlying funds in which the Fund invests.
c	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
d	Total return does not reflect the impact of any applicable sales charges.
e	Total expenses may include interest expense related to short sales. Excluding interest expense, the operating expense ratios for the years presented were as follows:

	03/31/2020	03/31/2019	03/29/2018	03/31/2017	03/31/2016
Investor class	1.50%	1.50%	1.43%	1.43%	1.40%
A-Class	1.75%	1.75%	1.68%	1.63%	1.65%
C-Class	2.50%	2.50%	2.43%	2.43%	2.40%
H-Class	1.75%	1.75%	1.68%	1.68%	1.65%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 143

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

HIGH YIELD STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of the high yield bond market.

For the one-year period ended March 31, 2020, High Yield Strategy Fund H-Class returned -5.73%. For comparison, the Bloomberg Barclays U.S. Corporate High Yield Index returned -6.94% for the same period.

The Fund primarily invests in credit default swaps to gain exposure similar to the high yield bond market. Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. When holding a credit default swap, the Fund is either buying or selling credit protection. A buyer of credit protection is seeking to mitigate risk and a seller of credit protection is assuming credit risk. The Fund will normally be a seller of credit protection (assuming credit risk) as it seeks to gain exposure to the high yield bond market. In addition, the Fund may invest in bond futures for the purpose of managing duration risk. For cash management purposes, the Fund may invest in other fixed income securities and money market instruments.

The high yield market performed well for the first nine months of the period, supported by the phase one trade deal with China, and decreased fears of an economic slowdown following a series of rate cuts from the Federal Reserve. The coronavirus outbreak in 2020 reversed the trend, as first quarter returns in the high yield market were the weakest since the Financial Crisis. The Fed cut rates by 125 basis points in the first quarter and implemented a series of liquidity programs to support commercial loans, mortgages, corporations, and municipalities. On April 9, 2020, subsequent to period end, the Fed also agreed to buy bonds from recent fallen angels, adding a strong technical tailwind to the market.

By spread measures, corporate bonds now appear cheap. Current credit spreads have only been wider 10-15% of the time. We are in a value zone not seen since 2009, with a greater probability for spreads to tighten from here. But in the current scenario, with little visibility on the full earnings impact of the economic shutdown from COVID-19, there is risk for additional downside. High yield corporate bonds entered this downturn with weaker earnings growth and a higher leverage ratio than in September 2008. The U.S. speculative-grade default rate could peak between 15 percent and 20 percent in this cycle; higher than the peaks during the 1990, 2002, and 2009 recessions.

Derivatives in the Fund are used to help provide exposure to the composition of the benchmark in the most efficient manner possible and not for hedging purposes. Derivatives performed as expected.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one-year period ended March 31, 2020, investment in the Short Term Investment Vehicles benefited Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

144 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2020

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

Inception Dates:
A-Class	April 16, 2007
C-Class	April 16, 2007
H-Class	April 16, 2007

The Fund invests principally in derivative investments such as high yield credit default swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund III	9.7%
Guggenheim Ultra Short Duration Fund — Institutional Class	6.8%
Guggenheim Strategy Fund II	2.5%
Total	19.0%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 145

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(5.76%)	2.56%	5.85%
A-Class Shares with sales charge‡	(10.23%)	1.56%	5.33%
C-Class Shares	(6.45%)	1.75%	5.05%
C-Class Shares with CDSC§	(7.34%)	1.75%	5.05%
H-Class Shares	(5.73%)	2.48%	5.85%

Bloomberg Barclays U.S. Corporate High Yield Index (6.94%) 2.78% 5.64%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Bloomberg Barclays U.S. Corporate High Yield Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

146 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
HIGH YIELD STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 19.0%
Guggenheim Strategy Fund III1		112,348	$	2,704,221
Guggenheim Ultra Short Duration Fund — Institutional Class1		195,255		1,907,641
Guggenheim Strategy Fund II1		28,786		692,308
Total Mutual Funds
(Cost $5,431,930)				5,304,170
	Face Amount
FEDERAL AGENCY NOTES†† - 26.8%
Farmer Mac
0.24% (Fed Funds Effective Rate + 0.15%, Rate Floor: 0.00%) due 09/23/202	$	5,000,000		4,999,522
Federal Farm Credit Bank
0.38% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/222		2,500,000		2,495,910
Total Federal Agency Notes
(Cost $7,500,000)				7,495,432
U.S. TREASURY BILLS†† - 4.0%
U.S. Treasury Bills
0.50% due 04/30/203,4		1,117,000		1,116,950
Total U.S. Treasury Bills
(Cost $1,116,543)				1,116,950

REPURCHASE AGREEMENTS††,5 - 27.1%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/206	5,455,768		5,455,768
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/206	2,098,372		2,098,372
Total Repurchase Agreements
(Cost $7,554,140)			7,554,140
Total Investments - 76.9%
(Cost $21,602,613)		$	21,470,692
Other Assets & Liabilities, net - 23.1%			6,453,558
Total Net Assets - 100.0%		$	27,924,250

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Interest Rate Futures Contracts Purchased†
U.S. Treasury 5 Year Note Futures Contracts		132		Jun 2020	$	16,555,688	$	301,972

Centrally Cleared Credit Default Swap Agreements Protection Sold††
Counterparty	Exchange	Index	Protection Premium Rate			Payment Frequency		Maturity Date	Notional Amount		Value			Upfront Premiums Received			Unrealized Depreciation**
Barclays Bank plc	ICE	CDX.NA.HY.34		5.00	%	Quarterly	06/20/25		$	9,750,000	$	(643,013	)	$	(465,457	)	$	(177,556	)
Goldman Sachs International	ICE	CDX.NA.HY.34		5.00	%	Quarterly	06/20/25			14,800,000		(976,060	)		(672,049	)		(304,011	)
											$	(1,619,073	)	$	(1,137,506	)	$	(481,567	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 147

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
HIGH YIELD STRATEGY FUND

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Credit Index Swap Agreements††
Goldman Sachs International	iShares iBoxx $ High Yield Corporate Bond ETF	1.03% (1 Week USD LIBOR + 0.35%)	At Maturity		04/29/20		15,944	$	1,228,804	$	89,446
BNP Paribas	iShares iBoxx $ High Yield Corporate Bond ETF	0.79% (1 Month USD LIBOR - 0.20%)	At Maturity		04/29/20		45,287		3,490,291		7,299
								$	4,719,095	$	96,745

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at March 31, 2020. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures and credit default swap collateral at March 31, 2020.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as credit index swap collateral at March 31, 2020.
	CDX.NA.HY.34 Index — Credit Default Swap North American High Yield Series 34 Index
	ICE — Intercontinental Exchange
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	5,304,170	$	—	$	—	$	5,304,170
Federal Agency Notes		—		7,495,432		—		7,495,432
U.S. Treasury Bills		—		1,116,950		—		1,116,950
Repurchase Agreements		—		7,554,140		—		7,554,140
Interest Rate Futures Contracts**		301,972		—		—		301,972
Credit Index Swap Agreements**		—		96,745		—		96,745
Total Assets	$	5,606,142	$	16,263,267	$	—	$	21,869,409

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Credit Default Swap Agreements**	$	—	$	481,567	$	—	$	481,567

** This derivative is reported as unrealized appreciation/depreciation at period end.

148 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
HIGH YIELD STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	9,083,393	$	—	$	(8,380,001	)	$	36,050		$	(47,134	)	$	692,308		28,786	$	238,645
Guggenheim Strategy Fund III		7,280,075		—		(4,500,001	)		(13,920	)		(61,933	)		2,704,221		112,348		193,896
Guggenheim Ultra Short Duration Fund — Institutional Class		7,059,670		—		(5,100,000	)		(25,135	)		(26,894	)		1,907,641		195,255		150,925
	$	23,423,138	$	—	$	(17,980,002	)	$	(3,005	)	$	(135,961	)	$	5,304,170			$	583,466

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 149

HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value (cost $8,616,543)	$	8,612,382
Investments in affiliated issuers, at value (cost $5,431,930)		5,304,170
Repurchase agreements, at value (cost $7,554,140)		7,554,140
Cash		5,825,639
Segregated cash with broker		2,310,805
Unrealized appreciation on OTC swap agreements		96,745
Receivables:
Fund shares sold		36,000
Dividends		20,619
Protection fees on credit default swap agreements		41,417
Interest		8,420
Variation margin on futures contracts		2,148
Total assets		29,812,485
Liabilities:
Unamortized upfront premiums received on credit default swap agreements		1,137,506
Payable for:
Variation margin on credit default swap agreements		435,331
Fund shares redeemed		221,088
Securities purchased		19,214
Management fees		15,467
Transfer agent and administrative fees		8,454
Distribution and service fees		6,034
Portfolio accounting fees		2,174
Trustees’ fees*		625
Swap settlement		493
Miscellaneous		41,849
Total liabilities		1,888,235
Commitments and contingent liabilities (Note 12)		—
Net assets	$	27,924,250
Net assets consist of:
Paid in capital	$	38,624,265
Total distributable earnings (loss)		(10,700,015	)
Net assets	$	27,924,250
A-Class:
Net assets	$	3,932,994
Capital shares outstanding		180,950
Net asset value per share	$	21.74
Maximum offering price per share (Net asset value divided by 95.25%)	$	22.82
C-Class:
Net assets	$	865,923
Capital shares outstanding		46,079
Net asset value per share	$	18.79
H-Class:
Net assets	$	23,125,333
Capital shares outstanding		1,065,338
Net asset value per share	$	21.71

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of affiliated issuers	$	583,466
Interest		1,299,295
Total investment income		1,882,761
Expenses:
Management fees		643,679
Distribution and service fees:
A-Class		14,085
C-Class		11,727
H-Class		197,543
Transfer agent and administrative fees		217,579
Portfolio accounting fees		85,823
Registration fees		77,110
Professional fees		22,193
Trustees’ fees*		19,062
Custodian fees		12,298
Line of credit fees		1,019
Miscellaneous		102,487
Total expenses		1,404,605
Less:
Expenses waived by Adviser
Total waived expenses		(15,558	)
Net expenses		1,389,047
Net investment income		493,714
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		83,475
Investments in affiliated issuers		(3,005	)
Swap agreements		(2,538,854	)
Futures contracts		3,976,983
Net realized gain		1,518,599
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		10,513
Investments in affiliated issuers		(135,961	)
Swap agreements		(1,085,704	)
Futures contracts		(587,391	)
Net change in unrealized appreciation (depreciation)		(1,798,543	)
Net realized and unrealized loss		(279,944	)
Net increase in net assets resulting from operations	$	213,770

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

150 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	493,714		$	898,884
Net realized gain on investments		1,518,599			2,382,426
Net change in unrealized appreciation (depreciation) on investments		(1,798,543	)		1,275,885
Net increase in net assets resulting from operations		213,770			4,557,195
Distributions to shareholders:
A-Class		(196,039	)		(200,150	)
C-Class		(45,921	)		(81,621	)
H-Class		(3,642,315	)		(6,085,861	)
Total distributions to shareholders		(3,884,275	)		(6,367,632	)
Capital share transactions:
Proceeds from sale of shares
A-Class		6,892,359			33,024,074
C-Class		1,043,362			3,722,190
H-Class		285,721,192			701,551,211
Distributions reinvested
A-Class		182,416			192,319
C-Class		40,065			71,233
H-Class		3,613,386			6,071,177
Cost of shares redeemed
A-Class		(10,370,325	)		(34,350,620	)
C-Class		(1,586,654	)		(6,368,793	)
H-Class		(364,232,406	)		(628,092,339	)
Net increase (decrease) from capital share transactions		(78,696,605	)		75,820,452
Net increase (decrease) in net assets		(82,367,110	)		74,010,015
Net assets:
Beginning of year		110,291,360			36,281,345
End of year	$	27,924,250		$	110,291,360
Capital share activity:
Shares sold
A-Class		280,707			1,392,434
C-Class		48,337			179,332
H-Class		11,575,525			29,879,785
Shares issued from reinvestment of distributions
A-Class		7,479			8,472
C-Class		1,895			3,572
H-Class		148,333			267,807
Shares redeemed
A-Class		(423,937	)		(1,446,445	)
C-Class		(74,217	)		(306,384	)
H-Class		(14,863,288	)		(26,969,778	)
Net increase (decrease) in shares		(3,299,166	)		3,008,795

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 151

HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	24.10		$	23.26		$	24.74		$	23.32		$	23.84
Income (loss) from investment operations:
Net investment income (loss)a		.14			.14			(.08	)		(.20	)		(.09	)
Net gain (loss) on investments (realized and unrealized)		(1.41	)		1.49			.62			2.09			.46
Total from investment operations		(1.27	)		1.63			.54			1.89			.37
Less distributions from:
Net investment income		(1.09	)		(.79	)		(1.66	)		(.47	)		(.89	)
Net realized gains		—			—			(.36	)		—			—
Total distributions		(1.09	)		(.79	)		(2.02	)		(.47	)		(.89	)
Net asset value, end of period	$	21.74		$	24.10		$	23.26		$	24.74		$	23.32
Total Returnb		(5.76	%)		7.18	%		2.08	%		8.24	%		1.66	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,933		$	7,631		$	8,427		$	20,290		$	11,787
Ratios to average net assets:
Net investment income (loss)		0.58	%		0.59	%		(0.31	%)		(0.85	%)		(0.40	%)
Total expensesc		1.63	%		1.61	%		1.52	%		1.51	%		1.49	%
Net expensesd		1.61	%		1.60	%		1.52	%		1.51	%		1.49	%
Portfolio turnover rate		—			21	%		422	%		97	%		521	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	21.12		$	20.63		$	22.33		$	21.25		$	22.01
Income (loss) from investment operations:
Net investment income (loss)a		(.04	)		(.04	)		(.22	)		(.36	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		(1.20	)		1.32			.54			1.91			.32
Total from investment operations		(1.24	)		1.28			.32			1.55			.13
Less distributions from:
Net investment income		(1.09	)		(.79	)		(1.66	)		(.47	)		(.89	)
Net realized gains		—			—			(.36	)		—			—
Total distributions		(1.09	)		(.79	)		(2.02	)		(.47	)		(.89	)
Net asset value, end of period	$	18.79		$	21.12		$	20.63		$	22.33		$	21.25
Total Returnb		(6.45	%)		6.39	%		1.35	%		7.38	%		0.70	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	866		$	1,480		$	3,994		$	4,533		$	2,020
Ratios to average net assets:
Net investment income (loss)		(0.20	%)		(0.21	%)		(1.00	%)		(1.65	%)		(0.88	%)
Total expensesc		2.38	%		2.35	%		2.27	%		2.26	%		2.24	%
Net expensesd		2.36	%		2.35	%		2.27	%		2.26	%		2.24	%
Portfolio turnover rate		—			21	%		422	%		97	%		521	%

152 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	24.06		$	23.23		$	24.72		$	23.31		$	23.90
Income (loss) from investment operations:
Net investment income (loss)a		.15			.12			(.10	)		(.18	)		(.15	)
Net gain (loss) on investments (realized and unrealized)		(1.41	)		1.50			.63			2.06			.45
Total from investment operations		(1.26	)		1.62			.53			1.88			.30
Less distributions from:
Net investment income		(1.09	)		(.79	)		(1.66	)		(.47	)		(.89	)
Net realized gains		—			—			(.36	)		—			—
Total distributions		(1.09	)		(.79	)		(2.02	)		(.47	)		(.89	)
Net asset value, end of period	$	21.71		$	24.06		$	23.23		$	24.72		$	23.31
Total Return		(5.73	%)		7.15	%		2.08	%		8.15	%		1.36	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	23,125		$	101,180		$	23,860		$	435,334		$	783,018
Ratios to average net assets:
Net investment income (loss)		0.59	%		0.49	%		(0.41	%)		(0.74	%)		(0.64	%)
Total expensesc		1.63	%		1.60	%		1.52	%		1.51	%		1.49	%
Net expensesd		1.61	%		1.60	%		1.52	%		1.51	%		1.49	%
Portfolio turnover rate		—			21	%		422	%		97	%		521	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 153

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

INVERSE HIGH YIELD STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that inversely correlate, before fees and expenses, to the performance of the high yield bond market.

For the one-year period ended March 31, 2020, Inverse High Yield Strategy Fund H-Class returned 2.39%. For comparison, the Bloomberg Barclays U.S. Corporate High Yield Index returned -6.94% for the same period.

The high yield market performed well for the first nine months of the period, supported by the phase one trade deal with China, and decreased fears of an economic slowdown following a series of rate cuts from the Federal Reserve. The coronavirus outbreak in 2020 reversed the trend, as first quarter returns in the high yield market were the weakest since the Financial Crisis. The Fed cut rates by 125 basis points in the first quarter and implemented a series of liquidity programs to support commercial loans, mortgages, corporations, and municipalities. On April 9, 2020, subsequent to period end, the Fed also agreed to buy bonds from recent fallen angels, adding a strong technical tailwind to the market.

By spread measures, corporate bonds now appear cheap. Current credit spreads have only been wider 10-15% of the time. We are in a value zone not seen since 2009, with a greater probability for spreads to tighten from here. But in the current scenario, with little visibility on the full earnings impact of the economic shutdown from COVID-19, there is risk for additional downside. High yield corporate bonds entered this downturn with weaker earnings growth and a higher leverage ratio than in September 2008. The U.S. speculative-grade default rate could peak between 15 percent and 20 percent in this cycle; higher than the peaks during the 1990, 2002, and 2009 recessions.

Derivatives in the Fund are used to help provide inverse exposure to the composition of the benchmark in the most efficient manner possible and not for hedging purposes. Derivatives performed as expected.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one-year period ended March 31, 2020, investment in the Short Term Investment Vehicles detracted from Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

154 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Inception Dates:
A-Class	April 16, 2007
C-Class	April 16, 2007
H-Class	April 16, 2007

The Fund invests principally in derivative investments such as high yield credit default swap agreements and futures contracts.

Cumulative Fund Performance*

Largest Holdings (% of Total Net Assets)
Guggenheim Ultra Short Duration Fund — Institutional Class	11.0%
Guggenheim Strategy Fund II	10.9%
Total	21.9%
“Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	2.56%	(4.22%)	(8.70%)
A-Class Shares with sales charge‡	(2.31%)	(5.15%)	(9.14%)
C-Class Shares	1.54%	(5.02%)	(9.35%)
C-Class Shares with CDSC§	0.54%	(5.02%)	(9.35%)
H-Class Shares	2.39%	(4.03%)	(8.51%)
Bloomberg Barclays U.S. Corporate High Yield Index	(6.94%)	2.78%	5.64%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Bloomberg Barclays U.S. Corporate High Yield Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 155

SCHEDULE OF INVESTMENTS	March 31, 2020
INVERSE HIGH YIELD STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 21.9%
Guggenheim Ultra Short Duration Fund — Institutional Class1		158,743	$	1,550,914
Guggenheim Strategy Fund II1		63,948		1,537,959
Total Mutual Funds
(Cost $3,169,213)				3,088,873
	Face Amount
FEDERAL AGENCY NOTES†† - 3.2%
Federal Farm Credit Bank
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222	$	250,000		250,551
0.38% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/222		200,000		199,673
Total Federal Agency Notes
(Cost $450,000)				450,224
U.S. TREASURY BILLS†† - 0.6%
U.S. Treasury Bills
0.50% due 04/30/203,4		83,000		82,997
Total U.S. Treasury Bills
(Cost $82,966)				82,997

REPURCHASE AGREEMENTS††,5 - 17.0%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	1,730,193		1,730,193
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20	665,459		665,459
Total Repurchase Agreements
(Cost $2,395,652)			2,395,652
Total Investments - 42.7%
(Cost $6,097,831)		$	6,017,746
Other Assets & Liabilities, net - 57.3%			8,079,475
Total Net Assets - 100.0%		$	14,097,221

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Interest Rate Futures Contracts Sold Short†
U.S. Treasury 5 Year Note Futures Contracts		81		Jun 2020	$	10,159,172	$	(35,612	)

Centrally Cleared Credit Default Swap Agreements Protection Purchased††

Counterparty

Exchange

Index

Protection Premium Rate

Payment Frequency

Maturity Date

Notional Amount

Value

Upfront Premiums Paid

Unrealized Appreciation**

Barclays Bank plc

ICE

CDX.NA.HY.34

5.00

%

Quarterly

06/20/25

$

15,050,000

$

992,548

$

837,053

$

155,495

156 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
INVERSE HIGH YIELD STRATEGY FUND

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at March 31, 2020. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures collateral at March 31, 2020.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
	CDX.NA.HY.34 — Credit Default Swap North American High Yield Series 34 Index
	ICE — Intercontinental Exchange
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	3,088,873	$	—	$	—	$	3,088,873
Federal Agency Notes		—		450,224		—		450,224
U.S. Treasury Bills		—		82,997		—		82,997
Repurchase Agreements		—		2,395,652		—		2,395,652
Credit Default Swap Agreements**		—		155,495		—		155,495
Total Assets	$	3,088,873	$	3,084,368	$	—	$	6,173,241

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Interest Rate Futures Contracts**	$	35,612	$	—	$	—	$	35,612

** This derivative is reported as unrealized appreciation/depreciation at period end.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 157

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
INVERSE HIGH YIELD STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	953,049	$	1,580,000	$	(945,000	)	$	351	$	(50,441	)	$	1,537,959		63,948	$	15,210
Guggenheim Ultra Short Duration Fund — Institutional Class		958,824		2,050,017		(1,425,000	)		1,526		(34,453	)		1,550,914		158,743		7,965
	$	1,911,873	$	3,630,017	$	(2,370,000	)	$	1,877	$	(84,894	)	$	3,088,873			$	23,175

158 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value (cost $532,966)	$	533,221
Investments in affiliated issuers, at value (cost $3,169,213)		3,088,873
Repurchase agreements, at value (cost $2,395,652)		2,395,652
Cash		1,920,624
Segregated cash with broker		118,825
Unamortized upfront premiums paid on credit default swap agreements		837,053
Receivables:
Fund shares sold		5,507,170
Variation margin on credit default swap agreements		159,126
Dividends		4,425
Interest		725
Total assets		14,565,694
Liabilities:
Payable for:
Swap settlement		398,062
Protection fees on credit default swap agreements		25,083
Management fees		9,937
Transfer agent and administrative fees		3,719
Distribution and service fees		3,605
Portfolio accounting fees		1,356
Variation margin on futures contracts		888
Trustees’ fees*		399
Miscellaneous		25,424
Total liabilities		468,473
Commitments and contingent liabilities (Note 12)		—
Net assets	$	14,097,221
Net assets consist of:
Paid in capital	$	23,400,421
Total distributable earnings (loss)		(9,303,200	)
Net assets	$	14,097,221
A-Class:
Net assets	$	256,304
Capital shares outstanding		4,133
Net asset value per share	$	62.01
Maximum offering price per share (Net asset value divided by 95.25%)	$	65.10
C-Class:
Net assets	$	361,534
Capital shares outstanding		6,385
Net asset value per share	$	56.62
H-Class:
Net assets	$	13,479,383
Capital shares outstanding		212,450
Net asset value per share	$	63.45

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of affiliated issuers	$	23,175
Interest		59,703
Total investment income		82,878
Expenses:
Management fees		33,906
Distribution and service fees:
A-Class		2,529
C-Class		4,588
H-Class		7,626
Transfer agent and administrative fees		11,632
Portfolio accounting fees		4,521
Registration fees		3,959
Professional fees		1,949
Trustees’ fees*		1,072
Custodian fees		643
Miscellaneous		4,364
Total expenses		76,789
Less:
Expenses waived by Adviser		(812	)
Net expenses		75,977
Net investment income		6,901
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(24	)
Investments in affiliated issuers		1,877
Swap agreements		995,167
Futures contracts		(533,698	)
Net realized gain		463,322
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		528
Investments in affiliated issuers		(84,894	)
Swap agreements		183,741
Futures contracts		18,663
Net change in unrealized appreciation (depreciation)		118,038
Net realized and unrealized gain		581,360
Net increase in net assets resulting from operations	$	588,261

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 159

INVERSE HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	6,901		$	39,322
Net realized gain (loss) on investments		463,322			(439,576	)
Net change in unrealized appreciation (depreciation) on investments		118,038			(31,984	)
Net increase (decrease) in net assets resulting from operations		588,261			(432,238	)
Capital share transactions:
Proceeds from sale of shares
A-Class		43,047,779			22,769,190
C-Class		40,360			1,045,645
H-Class		120,594,884			67,200,629
Cost of shares redeemed
A-Class		(43,306,242	)		(31,262,861	)
C-Class		(411,911	)		(1,031,000	)
H-Class		(112,151,071	)		(70,863,890	)
Net increase (decrease) from capital share transactions		7,813,799			(12,142,287	)
Net increase (decrease) in net assets		8,402,060			(12,574,525	)
Net assets:
Beginning of year		5,695,161			18,269,686
End of year	$	14,097,221		$	5,695,161
Capital share activity:
Shares sold
A-Class		731,426			358,058
C-Class		724			17,880
H-Class		1,978,712			1,026,778
Shares redeemed
A-Class		(731,958	)		(489,454	)
C-Class		(7,581	)		(17,510	)
H-Class		(1,841,697	)		(1,084,207	)
Net increase (decrease) in shares		129,626			(188,455	)

160 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	60.47		$	64.28		$	65.78		$	71.69		$	76.94
Income (loss) from investment operations:
Net investment income (loss)a		.24			.42			(.07	)		(.51	)		(.80	)
Net gain (loss) on investments (realized and unrealized)		1.30			(4.23	)		(1.43	)		(5.40	)		(4.45	)
Total from investment operations		1.54			(3.81	)		(1.50	)		(5.91	)		(5.25	)
Net asset value, end of period	$	62.01		$	60.47		$	64.28		$	65.78		$	71.69
Total Returnb		2.56	%		(5.93	%)		(2.28	%)		(8.26	%)		(6.81	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	256		$	282		$	8,746		$	915		$	2,642
Ratios to average net assets:
Net investment income (loss)		0.40	%		0.66	%		(0.12	%)		(0.74	%)		(1.07	%)
Total expensesc		1.62	%		1.60	%		1.52	%		1.52	%		1.50	%
Net expensesd		1.61	%		1.60	%		1.52	%		1.52	%		1.50	%
Portfolio turnover rate		254	%		—			41	%		480	%		1,722	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	55.76		$	59.73		$	61.63		$	67.67		$	73.24
Income (loss) from investment operations:
Net investment income (loss)a		(.05	)		.01			(.39	)		(.85	)		(1.16	)
Net gain (loss) on investments (realized and unrealized)		.91			(3.98	)		(1.51	)		(5.19	)		(4.41	)
Total from investment operations		.86			(3.97	)		(1.90	)		(6.04	)		(5.57	)
Net asset value, end of period	$	56.62		$	55.76		$	59.73		$	61.63		$	67.67
Total Returnb		1.54	%		(6.65	%)		(3.08	%)		(8.97	%)		(7.59	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	362		$	738		$	769		$	1,042		$	1,653
Ratios to average net assets:
Net investment income (loss)		(0.09	%)		0.02	%		(0.65	%)		(1.32	%)		(1.60	%)
Total expensesc		2.37	%		2.36	%		2.27	%		2.27	%		2.25	%
Net expensesd		2.34	%		2.35	%		2.27	%		2.27	%		2.25	%
Portfolio turnover rate		254	%		—			41	%		480	%		1,722	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 161

INVERSE HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	61.97		$	65.89		$	67.70		$	72.70		$	77.91
Income (loss) from investment operations:
Net investment income (loss)a		.06			.41			(.12	)		(.74	)		(.64	)
Net gain (loss) on investments (realized and unrealized)		1.42			(4.33	)		(1.69	)		(4.26	)		(4.57	)
Total from investment operations		1.48			(3.92	)		(1.81	)		(5.00	)		(5.21	)
Net asset value, end of period	$	63.45		$	61.97		$	65.89		$	67.70		$	72.70
Total Return		2.39	%		(5.95	%)		(2.67	%)		(6.90	%)		(6.67	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,479		$	4,675		$	8,755		$	14,855		$	2,513
Ratios to average net assets:
Net investment income (loss)		0.09	%		0.63	%		(0.18	%)		(1.06	%)		(0.84	%)
Total expensesc		1.64	%		1.61	%		1.52	%		1.52	%		1.50	%
Net expensesd		1.62	%		1.59	%		1.52	%		1.52	%		1.50	%
Portfolio turnover rate		254	%		—			41	%		480	%		1,722	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Reverse share split — Per share amounts for the years presented through March 31, 2017 have been restated to reflect a 1:4 share split effective November 4, 2016.

162 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

U.S. GOVERNMENT MONEY MARKET FUND

OBJECTIVE: Seeks to provide security of principal, high current income, and liquidity.

For the year ended March 31, 2020, U.S. Government Money Market Fund returned 0.99%.

The fiscal year started with the Federal Funds target rate between 2.25% and 2.50%. Starting in July 2019, the U.S. Federal Reserve (“Fed”) orchestrated three successive interest rate cuts totaling 0.75%, which reduced the target rate to 1.50% to 1.75% by the end of October 2019. The three successive rate cuts were described as a mid-cycle adjustment to help keep the economy expanding. In March of 2020, the Fed made two intra-meeting cuts, which dropped the target rate to 0.00% to 0.25% due to the anticipation of a slowdown cause by the Coronavirus. Due to the drop in interest rates, the Fund’s yield declined throughout the period.

The U.S. economy had remained strong throughout 2019 and early 2020, although some signs of weakness began to appear in the manufacturing sector. Personal consumption remained strong. The full impacts of the Coronavirus have yet to appear in the economic data. However, there was a record increase in jobless claims once several states put in shelter-in-place orders. It is unclear at this time how much of the economic impact will be temporary or permanent. Interest rates will likely remain very low for quite some time until more information about the longer-term impacts from the Coronavirus is known.

Performance displayed represents past performance, which is no guarantee of future results.

You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

FADN – Federal Agency Discount Note
FAN – Federal Agency Note

Inception Date: June 18, 2012

The Fund invests principally in money market instruments issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities and enters into repurchase agreements fully collateralized by U.S. government securities.

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	Since Inception (06/18/12)
U.S. Government Money Market Fund	0.99%	0.46%	0.30%

* The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes.

THE RYDEX FUNDS ANNUAL REPORT | 163

SCHEDULE OF INVESTMENTS	March 31, 2020
U.S. GOVERNMENT MONEY MARKET FUND

	Face Amount		Value
FEDERAL AGENCY NOTES†† - 51.9%
Farmer Mac
0.24% (Fed Funds Effective Rate + 0.15%, Rate Floor: 0.00%) due 09/23/201	$	20,000,000	$	20,000,000
0.23% (U.S. Prime Rate - 3.02%, Rate Floor: 0.00%) due 01/04/211		18,000,000		18,000,000
0.23% (U.S. Prime Rate - 3.02%, Rate Floor: 0.00%) due 07/01/201		17,300,000		17,300,000
1.65% (3 Month USD LIBOR - 0.16%, Rate Floor: 0.00%) due 10/23/201		10,000,000		10,001,105
Federal Home Loan Bank
0.10% (U.S. Secured Overnight Financing Rate + 0.09%, Rate Floor: 0.00%) due 09/11/201		18,200,000		18,200,000
0.04% (U.S. Secured Overnight Financing Rate + 0.03%, Rate Floor: 0.00%) due 09/04/201		12,000,000		11,996,896
0.15% (U.S. Secured Overnight Financing Rate + 0.14%, Rate Floor: 0.00%) due 03/10/211		7,500,000		7,500,000
1.61% (3 Month USD LIBOR - 0.24%, Rate Floor: 0.00%) due 04/13/201		5,990,000		5,989,763
0.04% (U.S. Secured Overnight Financing Rate + 0.03%, Rate Floor: 0.00%) due 08/05/201		5,000,000		4,999,122
2.63% due 05/28/20		2,530,000		2,532,963
0.76% (1 Month USD LIBOR - 0.04%, Rate Floor: 0.00%) due 04/17/201		2,400,000		2,399,907
0.13% (U.S. Secured Overnight Financing Rate + 0.12%, Rate Floor: 0.00%) due 10/07/201		2,000,000		1,999,754
2.32% due 04/13/20		1,950,000		1,950,132
0.14% (U.S. Secured Overnight Financing Rate + 0.13%, Rate Floor: 0.00%) due 10/16/201		1,400,000		1,399,997
0.80% (1 Month USD LIBOR - 0.06%, Rate Floor: 0.00%) due 06/10/201		1,000,000		1,000,079
1.70% due 05/15/20		1,000,000		999,726
1.75% due 06/12/20		790,000		790,070
1.65% due 07/03/20		550,000		551,516
1.38% due 06/12/20		430,000		429,579
3.38% due 06/12/20		400,000		401,022
Fannie Mae
0.05% (U.S. Secured Overnight Financing Rate + 0.04%, Rate Floor: 0.00%) due 06/05/201		20,000,000		20,000,000
0.09% (U.S. Secured Overnight Financing Rate + 0.08%, Rate Floor: 0.00%) due 10/30/201		17,500,000		17,500,465
0.09% (U.S. Secured Overnight Financing Rate + 0.08%, Rate Floor: 0.00%) due 09/16/201		8,000,000		8,000,000
1.38% due 02/26/21		117,000		117,855
Federal Farm Credit Bank
0.32% (U.S. Prime Rate - 2.93%, Rate Floor: 0.00%) due 09/24/201		13,000,000		13,007,052
2.70% due 02/23/21		750,000		764,263
1.55% due 04/13/20		500,000		499,975
1.42% due 05/13/20		300,000		299,836
1.75% due 06/10/20		275,000		275,619
Freddie Mac
0.05% (U.S. Secured Overnight Financing Rate + 0.04%, Rate Floor: 0.00%) due 04/03/201		12,430,000		12,429,986
1.38% due 05/01/20		1,327,000		1,326,388
1.55% due 07/30/20		250,000		250,812
Total Federal Agency Notes
(Cost $202,913,882)				202,913,882
FEDERAL AGENCY DISCOUNT NOTES†† - 30.6%
Federal Home Loan Bank
0.01% due 04/16/202		30,300,000		30,299,874
0.05% due 04/01/202		22,623,000		22,623,000
0.00% due 04/08/202		16,000,000		15,999,985
0.02% due 05/04/202		10,800,000		10,799,802
0.60% due 04/29/202		2,300,000		2,298,927
0.25% due 04/01/202		2,200,000		2,200,000
0.15% due 05/01/202		2,000,000		1,999,750
0.02% due 04/06/202		1,985,000		1,984,989
0.02% due 04/01/202		1,200,000		1,200,000
0.01% due 04/01/202		1,050,000		1,050,000
0.00% due 04/01/202		1,000,000		1,000,000
0.08% due 04/06/202		1,000,000		999,995
0.01% due 04/09/202		800,000		799,998
0.00% due 04/08/202		700,000		699,999
0.03% due 05/06/202		400,000		399,988
0.15% due 05/06/202		300,000		299,956
0.10% due 04/01/202		100,000		100,000
Farmer Mac
0.01% due 04/01/202		24,000,000		24,000,000
Federal Farm Credit Bank
0.58% due 05/19/202		500,000		499,613
Total Federal Agency Discount Notes
(Cost $119,255,876)				119,255,876
REPURCHASE AGREEMENTS††,3 - 8.0%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20		22,657,743		22,657,743
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		8,714,516		8,714,516
Total Repurchase Agreements
(Cost $31,372,259)				31,372,259
Total Investments - 90.5%
(Cost $353,542,017)			$	353,542,017
Other Assets & Liabilities, net - 9.5%				37,249,440
Total Net Assets - 100.0%			$	390,791,457

164 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
U.S. GOVERNMENT MONEY MARKET FUND

††	Value determined based on Level 2 inputs — See Note 4.
1	Variable rate security. Rate indicated is the rate effective at March 31, 2020. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
2	Rate indicated is the effective yield at the time of purchase.
3	Repurchase Agreements — See Note 6.
	LIBOR— London Interbank Offered Rate
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Federal Agency Notes	$	—	$	202,913,882	$	—	$	202,913,882
Federal Agency Discount Notes		—		119,255,876		—		119,255,876
Repurchase Agreements		—		31,372,259		—		31,372,259
Total Assets	$	—	$	353,542,017	$	—	$	353,542,017

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 165

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value (cost $322,169,758)	$	322,169,758
Repurchase agreements, at value (cost $31,372,259)		31,372,259
Cash		25,515,732
Receivables:
Fund shares sold		25,907,922
Interest		353,315
Total assets		405,318,986
Liabilities:
Payable for:
Fund shares redeemed		13,888,697
Management fees		72,102
Transfer agent and administrative fees		47,733
Portfolio accounting fees		15,973
Trustees’ fees*		7,869
Distributions to shareholders		73
Miscellaneous		495,082
Total liabilities		14,527,529
Commitments and contingent liabilities (Note 12)		—
Net assets	$	390,791,457
Net assets consist of:
Paid in capital	$	390,640,565
Total distributable earnings (loss)		150,892
Net assets	$	390,791,457
Capital shares outstanding		390,619,678
Net asset value per share	$	1.00

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Interest	$	8,286,794
Total investment income		8,286,794
Expenses:
Management fees		2,023,129
Transfer agent and administrative fees		826,070
Registration fees		382,570
Portfolio accounting fees		365,751
Professional fees		211,756
Trustees’ fees*		101,665
Custodian fees		57,874
Miscellaneous		339,315
Total expenses		4,308,130
Less:
Expenses reimbursed by Adviser		(39,375	)
Expenses waived by Adviser		(85,748	)
Total waived/reimbursed expenses		(125,123	)
Net expenses		4,183,007
Net investment income		4,103,787
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		55,390
Net realized gain		55,390
Net increase in net assets resulting from operations	$	4,159,177

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

166 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	4,103,787		$	5,349,868
Net realized gain on investments		55,390			23,456
Net change in unrealized appreciation (depreciation) on investments		—			—
Net increase in net assets resulting from operations		4,159,177			5,373,324
Distributions to shareholders		(4,103,774	)		(5,349,868	)
Capital share transactions:
Proceeds from sale of shares		5,994,438,512			6,239,411,232
Distributions reinvested		4,076,467			5,296,314
Cost of shares redeemed		(6,020,978,588	)		(6,376,058,992	)
Net decrease from capital share transactions		(22,463,609	)		(131,351,446	)
Net decrease in net assets		(22,408,206	)		(131,327,990	)
Net assets:
Beginning of year		413,199,663			544,527,653
End of year	$	390,791,457		$	413,199,663
Capital share activity:
Shares sold		5,994,438,513			6,239,411,231
Shares issued from reinvestment of distributions		4,076,837			5,293,026
Shares redeemed		(6,020,978,588	)		(6,376,058,978	)
Net decrease in shares		(22,463,238	)		(131,354,721	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 167

U.S. GOVERNMENT MONEY MARKET FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income (loss) from investment operations:
Net investment income (loss)a		.01			.01			—	b		—	b		—	b
Net gain (loss) on investments (realized and unrealized)		—	b		—	b		—	b		—	b		—	b
Total from investment operations		.01			.01			—	b		—	b		—	b
Less distributions from:
Net investment income		(.01	)		(.01	)		(—	)b		(—	)b		(—	)b
Net realized gains		—			—			—			(—	)b		—
Total distributions		(.01	)		(.01	)		(—	)b		(—	)b		(—	)b
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return		0.99	%		1.10	%		0.22	%		0.01	%		0.00	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	390,791		$	413,200		$	544,528		$	627,514		$	643,872
Ratios to average net assets:
Net investment income (loss)		1.01	%		1.10	%		0.22	%		0.00	%c		0.00	%c
Total expenses		1.06	%		1.05	%		0.96	%		0.95	%		0.91	%
Net expensesd		1.03	%		1.05	%		0.94	%		0.47	%		0.22	%
Portfolio turnover rate		—			—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Less than $0.01 per share.
c	Less than 0.01%.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

168 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

NOTES TO FINANCIAL STATEMENTS

Note 1 – Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory trust, is registered with the SEC under the Investment Company Act of 1940 (”1940 Act”), as an open-ended investment company of the series type. Each series, in effect, is representing a separate fund (each, a “Fund”). The Trust is authorized to issue an unlimited number of no par value shares. The Trust accounts for the assets of each Fund separately.

The Trust offers a combination of seven separate classes of shares: Investor Class shares, A-Class shares, C-Class shares, H-Class shares, P-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share (“NAV”), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. C-Class shares of each Fund automatically convert to A-Class shares of the same Fund on or about the 10th day of the month following the 10-year anniversary of the purchase of the C-Class shares. This conversion will be executed without any sales charge, fee or other charge. After the conversion is completed, the shares will be subject to all features and expenses of A-Class shares. Institutional Class shares are offered primarily for direct investment by institutions such as pension and profit sharing plans, endowments, foundations and corporations. Institutional Class shares require a minimum initial investment of $2 million and a minimum account balance of $1 million. At March 31, 2020, the Trust consisted of fifty-two funds.

This report covers the following funds (collectively, the “Funds”):

Fund Name	Investment Company Type
Nova Fund		Non-diversified
S&P 500® Fund		Non-diversified
Inverse S&P 500® Strategy Fund		Non-diversified
Monthly Rebalance NASDAQ -100® 2x Strategy Fund		Non-diversified
Inverse NASDAQ-100® Strategy Fund		Non-diversified
Mid-Cap 1.5x Strategy Fund		Non-diversified
Inverse Mid-Cap Strategy Fund		Non-diversified
Russell 2000® 1.5x Strategy Fund		Non-diversified
Russell 2000® Fund		Non-diversified
Inverse Russell 2000® Strategy Fund		Non-diversified
Dow Jones Industrial Average® Fund		Non-diversified
Government Long Bond 1.2x Strategy Fund		Diversified
Inverse Government Long Bond Strategy Fund		Diversified
High Yield Strategy Fund		Non-diversified
Inverse High Yield Strategy Fund		Non-diversified
U.S. Government Money Market Fund		Diversified

At March 31, 2020, Investor Class, A-Class, C-Class, H-Class and Money Market Class shares have been issued by the Funds.

The Funds are designed and operated to accommodate frequent trading by shareholders and, unlike most mutual funds, offer unlimited exchange privileges with no minimum holding periods or transactions fees, which may cause the Funds to experience high portfolio turnover.

Security Investors, LLC, which operates under the name Guggenheim Investments (“GI”), provides advisory services. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities.

Significant Accounting Policies

The Funds operate as investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

THE RYDEX FUNDS ANNUAL REPORT | 169

NOTES TO FINANCIAL STATEMENTS (continued)

The NAV of each Class of a fund is calculated by dividing the market value of a fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

The Trust calculates a NAV twice each business day; at 10:45 a.m. and at the close of the New York Stock Exchange (“NYSE”), usually 4:00 p.m. for the Russell 2000^® Fund and the S&P 500^® Fund. All other Funds in this report will price at the afternoon NAV. The NAV is calculated using the current market value of each Fund’s total assets as of the respective time of calculation. These financial statements are based on the March 31, 2020, afternoon NAV.

(a) Valuation of Investments

The Board of Trustees of the Funds (the “Board”) has adopted policies and procedures for the valuation of the Funds’ investments (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Board has delegated to a valuation committee, consisting of representatives from Guggenheim’s investment management, fund administration, legal and compliance departments (the “Valuation Committee”), the day-to-day responsibility for implementing the Valuation Procedures, including, under most circumstances, the responsibility for determining the fair value of the Funds’ securities and/or other assets.

Valuations of the Funds’ securities and other assets are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Valuation Committee convenes monthly, or more frequently as needed, to review the valuation of all assets which have been fair valued for reasonableness. The Funds’ officers, through the Valuation Committee and consistent with the monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used and valuations provided by the pricing services.

If the pricing service cannot or does not provide a valuation for a particular investment or such valuation is deemed unreliable, such investment is fair valued by the Valuation Committee.

Equity securities listed or traded on a recognized U.S. securities exchange or the National Association of Securities Dealers Automated Quotations (“NASDAQ”) National Market System shall generally be valued on the basis of the last sale price on the primary U.S. exchange or market on which the security is listed or traded; provided, however, that securities listed on NASDAQ will be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. If there is no sale on the valuation date, exchange-traded U.S. equity securities will be valued on the basis of the last bid price.

Open-end investment companies are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds are valued at the last quoted sale price.

The U.S. Government Money Market Fund values debt securities at amortized cost pursuant to Rule 2a-7 of the 1940 Act, which approximates market value.

With the exception of the U.S. Government Money Market Fund, U.S. government securities are valued by independent pricing services, the last traded fill price, or at the reported bid price at the close of business.

Debt securities with a maturity of greater than 60 days at acquisition are valued at prices that reflect broker-dealer supplied valuations or are obtained from independent pricing services, which may consider the trade activity, treasury spreads, yields or price of bonds of comparable quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities. Short-term debt securities with a maturity of 60 days or less at acquisition are valued at amortized cost, provided such amount approximates market value.

Repurchase agreements are generally valued at amortized cost, provided such amounts approximate market value.

The value of futures contracts is accounted for using the unrealized appreciation or depreciation on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the official settlement price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The values of swap agreements entered into by a fund are accounted for using the unrealized appreciation or depreciation on the agreements that are determined by marking the agreements to the last quoted value of the index or other underlying position that the swaps pertain to at the close of the NYSE.

Investments for which market quotations are not readily available are fair-valued as determined in good faith by GI subject to review and approval by the Valuation Committee, pursuant to methods established or ratified by the Board. Valuations in accordance with these methods are intended to reflect each security’s (or asset’s or liability’s) “fair value”. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to market prices; sale prices; broker quotes; and models which derive prices based on inputs such as

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prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over U.S. Treasury securities, and other information analysis. In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

(b) U.S. Government and Agency Obligations

Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

(c) Short Sales

When a Fund engages in a short sale of a security, an amount equal to the proceeds is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Fund maintains a segregated account of cash and/or securities as collateral for short sales.

Fees, if any, paid to brokers to borrow securities in connection with short sales are recorded as interest expense. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the obligation to the lender and record this as an expense. Short dividend or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Fund may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.

(d) Futures Contracts

Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

(e) Swap Agreements

Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized appreciation or depreciation. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

Upon entering into certain centrally-cleared swap transactions, a Fund is required to deposit with its clearing broker an amount of cash or securities as an initial margin. Subsequent variation margin receipts or payments are received or made by the Fund depending on fluctuations in the fair value of the reference entity and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Upfront payments received or made by a Fund on credit default swap agreements are amortized over the expected life of the agreement. Periodic payments received or paid by a Fund are recorded as realized gains or losses. Payments received or made as a result of a credit event or termination of the contract are recognized, net of a proportional amount of the upfront payment, as realized gains or losses.

(f) Foreign Taxes

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in their Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of March 31, 2020, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.

(g) Security Transactions

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries, if any. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued

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on a daily basis. Dividend income from Real Estate Investment Trusts (“REITs”) is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

(h) Distributions

Dividends from net investment income are declared daily in the Government Long Bond 1.2x Strategy Fund and the U.S. Government Money Market Fund. Dividends are reinvested in additional shares unless shareholders request payment in cash. Distributions of net investment income in the remaining Funds and distributions of net realized gains, if any, in all Funds are declared at least annually. Distributions are recorded on the ex-dividend date and are determined in accordance with U.S. federal income tax regulations which may differ from U.S. GAAP.

(i) Class Allocations

Interest and dividend income, most expenses, all realized gains and losses, and all unrealized appreciation and depreciation are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution and service fees are charged directly to specific classes. In addition, certain expenses have been allocated to the individual Funds in the Trust based on the respective net assets of each Fund included in the Trust.

(j) Cash

The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 0.08% at March 31, 2020.

(k) Indemnifications

Under the Funds’ organizational documents, the Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

Note 2 – Financial Instruments and Derivatives

As part of their investment strategy, the Funds utilize short sales and a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of amounts recognized in the Statements of Assets and Liabilities. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Financial Statements.

Short Sales

A short sale is a transaction in which a Fund sells a security it does not own. If the security sold short decreases in price between the time the Fund sells the security and closes its short position, the Fund will realize a gain on the transaction. Conversely, if the security increases in price during the period, the Fund will realize a loss on the transaction. The risk of such price increases is the principal risk of engaging in short sales.

Derivatives

Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund’s financial position and results of operations.

The Funds may utilize derivatives for the following purposes:

Duration: the use of an instrument to manage the interest rate risk of a portfolio.

Index Exposure: the use of an instrument to obtain exposure to a listed or other type of index.

Leverage: gaining total exposure to equities or other assets on the long and short sides at greater than 100% of invested capital.

Liquidity: the ability to buy or sell exposure with little price/market impact.

For any Fund whose investment strategy consistently involves applying leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase

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or decrease in the underlying index or other asset. In addition, because an investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. The Fund’s use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

Futures Contracts

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to a Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as segregated cash with broker on the Statements of Assets and Liabilities; securities held as collateral are noted on the Schedules of Investments.

The following table represents the Funds’ use and volume of futures on a monthly basis:

		Average Notional Amount
Fund	Use	Long		Short
Nova Fund	Index exposure, Leverage, Liquidity	$	47,098,868	$	—
S&P 500® Fund	Index exposure, Liquidity		9,643,594		—
Inverse S&P 500® Strategy Fund	Index exposure, Liquidity		52,367		2,542,440
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Index exposure, Leverage, Liquidity		38,804,085		—
Inverse NASDAQ-100® Strategy Fund	Index exposure, Liquidity		70,631		635,938
Mid-Cap 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		9,952,355		48,924
Inverse Mid-Cap Strategy Fund	Index exposure, Liquidity		—		—	*
Russell 2000® 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		2,900,515		—
Russell 2000® Fund	Index exposure, Liquidity		1,982,292		311,417
Inverse Russell 2000® Strategy Fund	Index exposure, Liquidity		31,606		664,605
Dow Jones Industrial Average® Fund	Index exposure, Liquidity		2,554,835		—
Government Long Bond 1.2x Strategy Fund	Duration, Index exposure, Leverage, Liquidity		74,033,154		—
Inverse Government Long Bond Strategy Fund	Duration, Index exposure, Liquidity		—		25,572,063
High Yield Strategy Fund	Duration, Index exposure, Liquidity		69,021,097		—
Inverse High Yield Strategy Fund	Duration, Index exposure, Liquidity		—		4,418,900

* Futures contracts were outstanding for 1 day during the year ended March 31, 2020. The daily average outstanding notional amount of equity futures contracts during the year was $145,190.

Swap Agreements

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. When utilizing over-the-counter (“OTC”) swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing and are executed on a multi-lateral or other trade facility platform, such as a registered exchange. There is limited counterparty credit risk with respect to centrally-cleared swaps as the transaction is facilitated through a central clearinghouse, much like exchange-traded futures contracts. For a fund utilizing centrally cleared swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. There is no guarantee that a fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Total return swaps involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset (such as an index) for a fixed or variable interest rate. Total return swaps will usually be computed based on the current value of the reference asset as of the close of regular trading on the NYSE or other exchange, with the swap value being adjusted to include dividends accrued,

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financing charges and/or interest associated with the swap agreement. When utilizing a total return swap, the Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying reference asset declines in value.

The following table represents the Funds’ use and volume of total return swaps on a monthly basis:

		Average Notional Amount
Fund	Use	Long		Short
Nova Fund	Index exposure, Leverage, Liquidity	$	179,610,101	$	—
S&P 500® Fund	Index exposure, Liquidity		14,653,490		—
Inverse S&P 500® Strategy Fund	Index exposure, Liquidity		—		60,076,116
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Index exposure, Leverage, Liquidity		171,145,772		—
Inverse NASDAQ-100® Strategy Fund	Index exposure, Liquidity		—		14,746,524
Mid-Cap 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		27,364,052		—
Inverse Mid-Cap Strategy Fund	Index exposure, Liquidity		—		833,354
Russell 2000® 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		23,862,719		—
Russell 2000® Fund	Index exposure, Liquidity		22,993,042		—
Inverse Russell 2000® Strategy Fund	Index exposure, Liquidity		—		7,446,169
Dow Jones Industrial Average® Fund	Index exposure, Liquidity		5,977,640		—
High Yield Strategy Fund	Duration, Index exposure, Liquidity		9,948,838		—

Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. A fund enters into credit default swaps as a “seller” or “buyer” of protection primarily to gain or reduce exposure to the investment grade and/or high yield bond market. A seller of credit default swaps is selling credit protection or assuming credit risk with respect to the underlying entity or entities. The buyer in a credit default swap is obligated to pay the seller a periodic stream of payments over the term of the contract provided that no event of default on an underlying reference obligation has occurred. If a credit event occurs, as defined under the terms of the swap agreement, the seller will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The notional amount reflects the maximum potential amount the seller of credit protection could be required to pay to the buyer if a credit event occurs. The seller of protection receives periodic premium payments from the buyer and may also receive or pay an upfront premium adjustment to the stated periodic payments. In the event a credit default occurs on a credit default swap referencing an index, a factor adjustment will take place and the buyer of protection will receive a payment reflecting the par less the default recovery rate of the defaulted index component based on its weighting in the index. If no default occurs, the counterparty will pay the stream of payments and have no further obligations to the fund selling the credit protection. For a fund utilizing centrally cleared credit default swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. For OTC credit default swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty, or in the case of a credit default swap in which a fund is selling credit protection, the default of a third party issuer.

The quoted market prices and resulting market values for credit default swap agreements on securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The following table represents the Funds’ use and volume of credit default swaps on a monthly basis:

		Average Notional Amount
Fund	Use	Protection Purchased		Protection Sold
High Yield Strategy Fund	Duration, Index exposure, Liquidity	$	—	$	69,877,292
Inverse High Yield Strategy Fund	Duration, Index exposure, Liquidity		5,043,417		—

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Derivative Investment Holdings Categorized by Risk Exposure

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of March 31, 2020:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Interest rate contracts	Variation margin on futures contracts	Variation margin on futures contracts
Equity/Credit contracts	Unrealized appreciation on OTC swap agreements	Unrealized depreciation on OTC swap agreements
Credit contracts	Variation margin on credit default swap agreements	Variation margin on credit default swap agreements
	Unamortized upfront premiums paid on credit default swap agreements	Unamortized upfront premiums received on credit default swap agreements

The following table sets forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at March 31 2020:

Asset Derivative Investments Value
Fund	Futures Equity Risk*		Swaps Equity Risk		Futures Interest Rate Risk*		Swaps Credit Risk*		Total Value at March 31, 2020
Nova Fund	$	5,787	$	—	$	—	$	—	$	5,787
S&P 500® Fund		794,086		—		—		—		794,086
Inverse S&P 500® Strategy Fund		—		1,368,951		—		—		1,368,951
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		345,252		—		—		—		345,252
Inverse NASDAQ-100® Strategy Fund		—		544,555		—		—		544,555
Mid-Cap 1.5x Strategy Fund		104,598		170,910		—		—		275,508
Inverse Mid-Cap Strategy Fund		—		21,114		—		—		21,114
Russell 2000® 1.5x Strategy Fund		80,238		122,150		—		—		202,388
Russell 2000® Fund		164,076		436,135		—		—		600,211
Inverse Russell 2000® Strategy Fund		—		444,289		—		—		444,289
Dow Jones Industrial Average® Fund		177,057		—		—		—		177,057
Government Long Bond 1.2x Strategy Fund		—		—		7,474,465		—		7,474,465
High Yield Strategy Fund		—		—		301,972		96,745		398,717
Inverse High Yield Strategy Fund		—		—		—		155,495		155,495

Liability Derivative Investments Value
Fund	Futures Equity Risk*		Swaps Equity Risk		Futures Interest Rate Risk*		Swaps Credit Risk*		Total Value at March 31, 2020
Nova Fund	$	—	$	1,252,324	$	—	$	—	$	1,252,324
S&P 500® Fund		—		639,207		—		—		639,207
Inverse S&P 500® Strategy Fund		879,553		—		—		—		879,553
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		—		332,358		—		—		332,358
Inverse NASDAQ-100® Strategy Fund		357,235		—		—		—		357,235
Mid-Cap 1.5x Strategy Fund		—		66,137		—		—		66,137
Russell 2000® 1.5x Strategy Fund		—		19,495		—		—		19,495
Russell 2000® Fund		—		28,407		—		—		28,407
Dow Jones Industrial Average® Fund		—		267,315		—		—		267,315
Inverse Government Long Bond Strategy Fund		—		—		1,081,548		—		1,081,548
High Yield Strategy Fund		—		—		—		481,567		481,567
Inverse High Yield Strategy Fund		—		—		35,612		—		35,612

* Includes cumulative appreciation (depreciation) of futures contracts and centrally cleared swaps as reported on the Schedules of Investments. Variation margin is reported within the Statements of Assets and Liabilities.

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NOTES TO FINANCIAL STATEMENTS (continued)

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the year ended March 31, 2020:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity/Interest Rate contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts
Equity/Credit contracts	Net realized gain (loss) on swap agreements
	Net change in unrealized appreciation (depreciation) on swap agreements

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the year ended March 31, 2020:

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk			Futures Interest Rate Risk			Swaps Credit Risk			Total
Nova Fund	$	684,381		$	(17,155,385	)	$	—		$	—		$	(16,471,004	)
S&P 500® Fund		2,570,395			8,449,493			—			—			11,019,888
Inverse S&P 500® Strategy Fund		(1,057,030	)		(3,203,897	)		—			—			(4,260,927	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		3,029,992			(4,854,663	)		—			—			(1,824,671	)
Inverse NASDAQ-100® Strategy Fund		429,332			(4,192,889	)		—			—			(3,763,557	)
Mid-Cap 1.5x Strategy Fund		338,010			(1,584,528	)		—			—			(1,246,518	)
Inverse Mid-Cap Strategy Fund		(1,894	)		(45,075	)		—			—			(46,969	)
Russell 2000® 1.5x Strategy Fund		128,719			(366,992	)		—			—			(238,273	)
Russell 2000® Fund		(1,873,212	)		(6,401,286	)		—			—			(8,274,498	)
Inverse Russell 2000® Strategy Fund		(253,463	)		(1,589,611	)		—			—			(1,843,074	)
Dow Jones Industrial Average® Fund		(279,514	)		25,921			—			—			(253,593	)
Government Long Bond 1.2x Strategy Fund		—			—			13,924,630			—			13,924,630
Inverse Government Long Bond Strategy Fund		—			—			(5,344,875	)		—			(5,344,875	)
High Yield Strategy Fund		—			—			3,976,983			(2,538,854	)		1,438,129
Inverse High Yield Strategy Fund		—			—			(533,698	)		995,167			461,469

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk			Futures Interest Rate Risk			Swaps Credit Risk			Total
Nova Fund	$	(2,973,895	)	$	(2,583,813	)	$	—		$	—		$	(5,557,708	)
S&P 500® Fund		793,965			(828,327	)		—			—			(34,362	)
Inverse S&P 500® Strategy Fund		(862,410	)		1,957,709			—			—			1,095,299
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		(489,712	)		(1,536,335	)		—			—			(2,026,047	)
Inverse NASDAQ-100® Strategy Fund		(343,318	)		615,912			—			—			272,594
Mid-Cap 1.5x Strategy Fund		68,475			(206,604	)		—			—			(138,129	)
Inverse Mid-Cap Strategy Fund		—			31,158			—			—			31,158
Russell 2000® 1.5x Strategy Fund		80,238			(7,443	)		—			—			72,795
Russell 2000® Fund		162,079			250,797			—			—			412,876
Inverse Russell 2000® Strategy Fund		13,457			555,378			—			—			568,835
Dow Jones Industrial Average® Fund		177,355			(400,302	)		—			—			(222,947	)
Government Long Bond 1.2x Strategy Fund		—			—			5,019,267			—			5,019,267
Inverse Government Long Bond Strategy Fund		—			—			(570,556	)		—			(570,556	)
High Yield Strategy Fund		—			—			(587,391	)		(1,085,704	)		(1,673,095	)
Inverse High Yield Strategy Fund		—			—			18,663			183,741			202,404

In conjunction with short sales and the use of derivative instruments, the Funds are required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Funds use margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Funds as collateral.

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The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

Note 3 – Offsetting

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, are reported separately on the Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Cash and/or securities pledged or received as collateral by the Funds in connection with an OTC derivative subject to an ISDA Master Agreement generally may not be invested, sold or rehypothecated by the counterparty or the Funds, as applicable, absent an event of default under such agreement, in which case such collateral generally may be applied towards obligations due to and payable by such counterparty or the Funds, as applicable. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

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NOTES TO FINANCIAL STATEMENTS (continued)

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements:

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset in the Statements of Assets and Liabilities		Net Amount of Assets Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Received		Net Amount
Inverse S&P 500® Strategy Fund	Swap equity contracts	$	1,368,951	$	—	$	1,368,951	$	—	$	—	$	1,368,951
Inverse NASDAQ-100® Strategy Fund	Swap equity contracts		544,555		—		544,555		—		—		544,555
Mid-Cap 1.5x Strategy Fund	Swap equity contracts		170,910		—		170,910		—		—		170,910
Inverse Mid-Cap Strategy Fund	Swap equity contracts		21,114		—		21,114		—		—		21,114
Russell 2000® 1.5x Strategy Fund	Swap equity contracts		122,150		—		122,150		—		—		122,150
Russell 2000® Fund	Swap equity contracts		436,135		—		436,135		—		—		436,135
Inverse Russell 2000® Strategy Fund	Swap equity contracts		444,289		—		444,289		—		—		444,289
High Yield Strategy Fund	Swap credit contracts		96,745		—		96,745		—		—		96,745

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Liabilities1		Gross Amounts Offset in the Statements of Assets and Liabilities		Net Amount of Liabilities Presented on the Statements of Assets and Liabilities		Financial Instruments			Cash Collateral Pledged			Net Amount
Nova Fund	Swap equity contracts	$	1,252,324	$	—	$	1,252,324	$	(666,657	)	$	(585,667	)	$	—
S&P 500® Fund	Swap equity contracts		639,207		—		639,207		(633,460	)		(5,747	)		—
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Swap equity contracts		332,358		—		332,358		(179,458	)		—			152,900
Mid-Cap 1.5x Strategy Fund	Swap equity contracts		66,137		—		66,137		(66,137	)		—			—
Russell 2000® 1.5x Strategy Fund	Swap equity contracts		19,495		—		19,495		(19,495	)		—			—
Russell 2000® Fund	Swap equity contracts		28,407		—		28,407		(28,407	)		—			—
Dow Jones Industrial Average® Fund	Swap equity contracts		267,315		—		267,315		(83,026	)		—			184,289

¹ Exchange-traded or centrally-cleared derivatives are excluded from these reported amounts.

178 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The Funds have the right to offset deposits against any related derivative liabilities outstanding with each counterparty with the exception of exchange-traded or centrally-cleared derivatives. The following table presents deposits held by others in connection with derivative investments as of March 31, 2020.

Fund	Counterparty	Asset Type	Cash Pledged		Cash Received
Nova Fund	Barclays Bank plc	Total return swap agreements	$	9,773,076	$	—
S&P 500® Fund	Barclays Bank plc	Total return swap agreements		320,002		—
	Goldman Sachs International	Futures contracts		1,080,000		—
S&P 500® Fund Total				1,400,002		—
Inverse S&P 500® Strategy Fund	Barclays Bank plc	Total return swap agreements		920,000		—
	Goldman Sachs International	Futures contracts		909,680		—
Inverse S&P 500® Strategy Fund Total				1,829,680		—
Inverse NASDAQ-100® Strategy Fund	Barclays Bank plc	Total return swap agreements		1,910,000		—
Mid-Cap 1.5x Strategy Fund	Barclays Bank plc	Total return swap agreements		181,070		—
	Goldman Sachs International	Futures contracts		225,013		—
Mid-Cap 1.5x Strategy Fund Total				406,083		—
Inverse Mid-Cap Strategy Fund	Goldman Sachs International	Futures contracts		17,000		—
Russell 2000® 1.5x Strategy Fund	Barclays Bank plc	Total return swap agreements		164,734		—
	Goldman Sachs International	Futures contracts		98,222		—
Russell 2000® 1.5x Strategy Fund Total				262,956		—
Russell 2000® Fund	Barclays Bank plc	Total return swap agreements		628,146		—
	Goldman Sachs International	Futures contracts		166,634		—
Russell 2000® Fund Total				794,780		—
Dow Jones Industrial Average® Fund	Barclays Bank plc	Total return swap agreements		1,160,088		337,086
	Goldman Sachs International	Futures contracts		191,307		—
Dow Jones Industrial Average® Fund Total				1,351,395		337,086
Government Long Bond 1.2x Strategy Fund	Goldman Sachs International	Futures contracts		2,497,955		—
Inverse Government Long Bond Strategy Fund	Goldman Sachs International	Futures contracts		347,643		—
High Yield Strategy Fund	Barclays Bank plc	Credit default swap agreements		1,387,007		—
	Goldman Sachs International	Credit default swap agreements		923,798		—
High Yield Strategy Fund Total				2,310,805		—
Inverse High Yield Strategy Fund	Barclays Bank plc	Credit default swap agreements		118,825		—

Note 4 – Fair Value Measurement

In accordance with U.S. GAAP, fair value is defined as the price that the Funds would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. U.S. GAAP establishes a three-tier fair value hierarchy based on the types of inputs used to value assets and liabilities and requires corresponding disclosure. The hierarchy and the corresponding inputs are summarized below:

Level 1 — quoted prices in active markets for identical assets or liabilities.

Level 2 — significant other observable inputs (for example quoted prices for securities that are similar based on characteristics such as interest rates, prepayment speeds, credit risk, etc.).

Level 3 — significant unobservable inputs based on the best information available under the circumstances, to the extent observable inputs are not available, which may include assumptions.

The types of inputs available depend on a variety of factors, such as the type of security and the characteristics of the markets in which it trades, if any. Fair valuation determinations that rely on fewer or no observable inputs require greater judgment. Accordingly, fair value determinations for Level 3 securities require the greatest amount of judgment.

THE RYDEX FUNDS ANNUAL REPORT | 179

NOTES TO FINANCIAL STATEMENTS (continued)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The suitability of the techniques and sources employed to determine fair valuation are regularly monitored and subject to change.

Note 5 – Investment Advisory Agreement and Other Agreements

Under the terms of an investment advisory contract, the Funds pay GI investment advisory fees calculated at the annualized rates below, based on the average daily net assets of the Funds:

Fund	Management Fees (as a % of Net Assets)
Nova Fund		0.75	%
S&P 500® Fund		0.75	%
Inverse S&P 500® Strategy Fund		0.90	%
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		0.90	%
Inverse NASDAQ-100® Strategy Fund		0.90	%
Mid-Cap 1.5x Strategy Fund		0.90	%
Inverse Mid-Cap Strategy Fund		0.90	%
Russell 2000® 1.5x Strategy Fund		0.90	%
Russell 2000® Fund		0.75	%
Inverse Russell 2000® Strategy Fund		0.90	%
Dow Jones Industrial Average® Fund		0.75	%
Government Long Bond 1.2x Strategy Fund		0.50	%
Inverse Government Long Bond Strategy Fund		0.90	%
High Yield Strategy Fund		0.75	%
Inverse High Yield Strategy Fund		0.75	%
U.S. Government Money Market Fund		0.50	%

When the aggregate assets of each series of the Trust (excluding the Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund) and each series of Rydex Dynamic Funds equal or exceed $10 billion, the advisory fee rate paid by each individual Fund will be reduced in accordance with the asset level and breakpoint schedule set forth below.

Fund Assets Under Management	Fund Asset-Based Breakpoint Reductions
$500 million - $1 billion		0.025	%
> $1 billion - $2 billion		0.050	%
> $2 billion		0.075	%

GI pays operating expenses on behalf of the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, among others, on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Board has adopted a Distribution Plan applicable to A-Class shares and H-Class shares for which GFD and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a Service Provider provides distribution services, the Funds will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services.

The Board has adopted a separate Distribution and Shareholder Services Plan applicable to C-Class shares that allows the Funds to pay annual distribution and service fees of 1.00% of the Funds’ C-Class shares average daily net assets. The annual 0.25% service fee compensates a shareholder’s financial adviser for providing ongoing services to the shareholder. The annual distribution fee of 0.75% reimburses GFD for paying the shareholder’s financial adviser an ongoing sales commission. GFD advances the first year’s service and distribution fees to the financial adviser. GFD retains the service and distribution fees on accounts with no authorized dealer of record.

For the year ended March 31, 2020, GFD retained sales charges of $122,345 relating to sales of A-Class shares of the Trust.

180 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

If a Fund invests in a fund that is advised by the same adviser or an affiliated adviser, the investing Fund’s adviser has agreed to waive fees at the investing fund level to the extent necessary to offset the proportionate share of any management fee paid by each Fund with respect to its investment in such affiliated fund. Fee waivers will be calculated at the investing Fund level without regard to any expense cap, if any, in effect for the investing Fund. Fees waived under this arrangement are not subject to reimbursement to GI. For the year ended March 31, 2020, the following Funds waived fees related to investments in affiliated funds:

Fund	Amount Waived
Nova Fund	$	31,034
Inverse S&P 500® Strategy Fund		12,139
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		18,655
Inverse NASDAQ-100® Strategy Fund		4,613
Mid-Cap 1.5x Strategy Fund		10,857
Inverse Mid-Cap Strategy Fund		609
Russell 2000® 1.5x Strategy Fund		5,939
Inverse Russell 2000® Strategy Fund		2,538
Dow Jones Industrial Average® Fund		6,814
Government Long Bond 1.2x Strategy Fund		26,231
Inverse Government Long Bond Strategy Fund		12,351
High Yield Strategy Fund		15,558
Inverse High Yield Strategy Fund		812

GI has contractually agreed through August 1, 2021, to reduce fees and/or reimburse expenses for the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund to the extent necessary to keep net operating expenses for A-Class, C-Class and H-Class shares (including Rule 12b-1 fees if any) (excluding brokerage, dividends on securities sold short, acquired fund fees and expenses, interest, taxes, litigation, indemnification, and extraordinary expenses) from exceeding 1.35%, 2.10% and 1.35% of the Fund’s A-Class, C-Class and H-Class shares average daily net assets, respectively. The Total Annual Fund Operating Expenses After Fee Waiver and /or Expense Reimbursement includes Excluded Expenses and, thus, from time to time may be higher than 1.35%, 2.10% and 1.35%, respectively. This agreement may be terminated only with the approval of the Fund’s Board.

GI and its affiliates have voluntarily agreed to waive their fees, including but not limited to accounting, shareholder investor services and investment advisory fees, in an attempt to maintain a positive net yield for the U.S. Government Money Market Fund. GI or its affiliates may terminate this voluntary waiver at any time upon notice to the Fund. When shareholder investor services fees are waived, dealer compensation will be reduced to the extent of such waiver.

Certain trustees and officers of the Trust are also officers of GI and/or GFD. The Trust does not compensate its officers or trustees who are officers, directors and/or employees of GI or GFD.

MUFG Investor Services (US), LLC (“MUIS”) acts as the Funds’ administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS maintains the books and records of the Funds’ securities and cash. U.S. Bank, N.A. (“U.S. Bank”) acts as the Funds’ custodian. As custodian, U.S. Bank is responsible for the custody of the Funds’ assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund’s average daily net assets and out of pocket expenses.

Note 6 – Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The joint account includes other Funds in the Guggenheim complex not covered in this report. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

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NOTES TO FINANCIAL STATEMENTS (continued)

At March 31, 2020, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
J.P. Morgan Securities LLC					U.S. Treasury Note
0.01%					2.00%
Due 04/01/20	$	129,371,353	$	129,371,389	11/30/22	$	125,405,900	$	131,958,818
BofA Securities, Inc.					U.S. Treasury Note
0.00%					2.13%
Due 04/01/20		49,758,213		49,758,213	08/15/21		49,322,100		50,753,381

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

Note 7 – Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds’ securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class Z. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

At March 31, 2020, the Funds participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

	Gross Amounts Not Offset in the Statements of Assets and Liabilities							Securities Lending Collateral
Fund	Value of Securities Loaned		Collateral Received(a)			Net Amount		Cash Collateral Invested		Cash Collateral Uninvested		Total Collateral
Nova Fund	$	78	$	(78	)	$	—	$	80	$	—	$	80
S&P 500® Fund		39,302		(39,302	)		—		41,327		—		41,327
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		5,275		(5,275	)		—		5,275		—		5,275
Mid-Cap 1.5x Strategy Fund		623		(623	)		—		642		—		642

^(a) Actual collateral received by the Fund is generally greater than the amount shown due to overcollateralization.

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers to evaluate potential risks.

182 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Note 8 – Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Funds from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax or federal excise tax is required.

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken, or to be taken, on U.S. federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Funds’ financial statements. The Funds’ U.S. federal income tax returns are subject to examination by the Internal Revenue Service (“IRS”) for a period of three years after they are filed.

The tax character of distributions paid during the year ended March 31, 2020 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
S&P 500® Fund	$	1,631,612	$	—	$	1,631,612
Inverse S&P 500® Strategy Fund		484,544		—		484,544
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		208,541		—		208,541
Inverse NASDAQ-100® Strategy Fund		119,715		—		119,715
Mid-Cap 1.5x Strategy Fund		223,749		—		223,749
Inverse Mid-Cap Strategy Fund		5,588		—		5,588
Russell 2000® Fund		120,988		444,717		565,705
Inverse Russell 2000® Strategy Fund		52,740		—		52,740
Dow Jones Industrial Average® Fund		1,150,570		—		1,150,570
Government Long Bond 1.2x Strategy Fund		2,384,007		1,920,775		4,304,782
High Yield Strategy Fund		3,884,275		—		3,884,275
U.S. Government Money Market Fund		4,103,774		—		4,103,774

The tax character of distributions paid during the year ended March 31, 2019 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
S&P 500® Fund	$	3,088,202	$	7,313	$	3,095,515
Mid-Cap 1.5x Strategy Fund		752,297		—		752,297
Dow Jones Industrial Average® Fund		591,239		—		591,239
Government Long Bond 1.2x Strategy Fund		2,272,131		—		2,272,131
High Yield Strategy Fund		6,367,632		—		6,367,632
U.S. Government Money Market Fund		5,349,868		—		5,349,868

Note: For U.S. federal income tax purposes, short-term capital gain distributions are treated as ordinary income distributions.

THE RYDEX FUNDS ANNUAL REPORT | 183

NOTES TO FINANCIAL STATEMENTS (continued)

The tax components of distributable earnings/(loss) as of March 31, 2020 were as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation (Depreciation)			Accumulated Capital and Other Losses			Total
Nova Fund	$	1,913,003	$	—	$	(5,571,323	)	$	(32,724,511	)	$	(36,382,831	)
S&P 500® Fund		11,038,973		10,400,477		(11,209,272	)		—			10,230,178
Inverse S&P 500® Strategy Fund		300,608		—		1,096,149			(210,515,413	)		(209,118,656	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		—		—		(20,753,350	)		(42,714,941	)		(63,468,291	)
Inverse NASDAQ-100® Strategy Fund		23,879		—		494,366			(37,530,476	)		(37,012,231	)
Mid-Cap 1.5x Strategy Fund		89,713		—		(132,027	)		(8,023,914	)		(8,066,228	)
Inverse Mid-Cap Strategy Fund		5,436		—		16,069			(4,893,468	)		(4,871,963	)
Russell 2000® 1.5x Strategy Fund		25,704		—		103,541			(58,086	)		71,159
Russell 2000® Fund		—		—		400,025			(8,188,373	)		(7,788,348	)
Inverse Russell 2000® Strategy Fund		6,140		—		411,278			(27,972,790	)		(27,555,372	)
Dow Jones Industrial Average® Fund		—		—		(1,381,032	)		—			(1,381,032	)
Government Long Bond 1.2x Strategy Fund		15,695,359		—		7,772,702			—			23,468,061
Inverse Government Long Bond Strategy Fund		122,836		—		(3,783,373	)		(265,202,676	)		(268,863,213	)
High Yield Strategy Fund		—		—		(533,459	)		(10,166,556	)		(10,700,015	)
Inverse High Yield Strategy Fund		—		—		75,172			(9,378,372	)		(9,303,200	)
U.S. Government Money Market Fund		146,241		4,651		—			—			150,892

For U.S. federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. Under the RIC Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital loss carryforwards will retain their character as either short-term or long-term capital losses. As of March 31, 2020, capital loss carryforwards for the Funds were as follows:

	Unlimited
Fund	Short-Term			Long-Term			Total Capital Loss Carryforward
Nova Fund	$	(14,170,429	)	$	(18,554,082	)	$	(32,724,511	)
Inverse S&P 500® Strategy Fund		(185,483,364	)		(25,032,049	)		(210,515,413	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		(39,599,124	)		(3,078,441	)		(42,677,565	)
Inverse NASDAQ-100® Strategy Fund		(34,785,456	)		(2,745,020	)		(37,530,476	)
Mid-Cap 1.5x Strategy Fund		(6,801,505	)		(1,222,409	)		(8,023,914	)
Inverse Mid-Cap Strategy Fund		(4,159,892	)		(733,576	)		(4,893,468	)
Russell 2000® 1.5x Strategy Fund		(58,086	)		—			(58,086	)
Inverse Russell 2000® Strategy Fund		(22,113,103	)		(5,859,687	)		(27,972,790	)
Inverse Government Long Bond Strategy Fund		(214,805,942	)		(50,396,734	)		(265,202,676	)
High Yield Strategy Fund		(8,766,669	)		—			(8,766,669	)
Inverse High Yield Strategy Fund		(7,213,340	)		(2,084,410	)		(9,297,750	)

For the year ended March 31, 2020, the following capital loss carryforward amounts were utilized:

Fund	Utilized
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	$	11,284,676
Mid-Cap 1.5x Strategy Fund		3,039,632
Inverse High Yield Strategy Fund		621,103

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to investments in real estate investment trusts, investments in swaps, losses deferred due to wash sales, distributions in connection with redemption of fund shares, distribution reclasses, return of capital distributions received, and the disposition of certain Passive Foreign Investment Companies (PFICs). Additional differences may result from the tax treatment of net

184 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

operating losses, bond premium/discount amortization, certain corporate actions, and the “mark-to-market” of certain derivatives. To the extent these differences are permanent and would require a reclassification between Paid in Capital and Total Distributable Earnings (Loss), such reclassifications are made in the period that the differences arise. These reclassifications have no effect on net assets or NAV per share.

The following adjustments were made on the Statements of Assets and Liabilities as of March 31, 2020 for permanent book/tax differences:

Fund	Paid In Capital			Total Distributable Earnings/(Loss)
Nova Fund	$	(13	)	$	13
S&P 500® Fund		13,658,389			(13,658,389	)
Russell 2000® 1.5x Strategy Fund		72			(72	)
Russell 2000® Fund		448,600			(448,600	)
Dow Jones Industrial Average® Fund		5,637,292			(5,637,292	)
Government Long Bond 1.2x Strategy Fund		34,011,172			(34,011,172	)
High Yield Strategy Fund		517,390			(517,390	)
Inverse High Yield Strategy Fund		(67,535	)		67,535

At March 31, 2020, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
Nova Fund	$	43,380,823	$	—	$	(5,571,323	)	$	(5,571,323	)
S&P 500® Fund		125,812,150		—		(11,209,272	)		(11,209,272	)
Inverse S&P 500® Strategy Fund		94,151,590		1,929,670		(833,521	)		1,096,149
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		44,206,097		—		(20,753,350	)		(20,753,350	)
Inverse NASDAQ-100® Strategy Fund		50,642,571		770,221		(275,855	)		494,366
Mid-Cap 1.5x Strategy Fund		5,188,475		176,600		(308,627	)		(132,027	)
Inverse Mid-Cap Strategy Fund		960,326		21,114		(5,045	)		16,069
Russell 2000® 1.5x Strategy Fund		3,280,435		131,540		(27,999	)		103,541
Russell 2000® Fund		15,727,497		455,824		(55,799	)		400,025
Inverse Russell 2000® Strategy Fund		19,116,374		451,850		(40,572	)		411,278
Dow Jones Industrial Average® Fund		24,495,038		361,103		(1,742,135	)		(1,381,032	)
Government Long Bond 1.2x Strategy Fund		108,570,109		8,471,076		(698,374	)		7,772,702
Inverse Government Long Bond Strategy Fund		31,795,005		—		(3,783,373	)		(3,783,373	)
High Yield Strategy Fund		21,619,329		262,298		(795,757	)		(533,459	)
Inverse High Yield Strategy Fund		6,098,069		185,051		(109,879	)		75,172
U.S. Government Money Market Fund		353,542,017		—		—			—

Pursuant to U.S. federal income tax regulations applicable to regulated investment companies, the Funds have elected to treat net capital losses and certain ordinary losses realized between November 1 and March 31 of each year as occurring on the first day of the following tax year. The Funds have also elected to treat certain ordinary losses realized between January 1 and March 31 of each year as occurring on the first day of the following tax year. For the year ended March 31, 2020, the following losses reflected in the accompanying financial statements were deferred for U.S. federal income tax purposes until April 1, 2020:

Fund	Ordinary			Capital
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	$	(37,376	)	$	—
Russell 2000® Fund		(21,541	)		(8,166,832	)
High Yield Strategy Fund		(1,399,887	)		—
Inverse High Yield Strategy Fund		(80,622	)		—

THE RYDEX FUNDS ANNUAL REPORT | 185

NOTES TO FINANCIAL STATEMENTS (continued)

Note 9 – Securities Transactions

For the year ended March 31, 2020, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Fund	Purchases		Sales
Nova Fund	$	1,662,994,076	$	1,885,292,345
S&P 500® Fund		299,637,010		333,811,580
Inverse S&P 500® Strategy Fund		—		1,250,000
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		1,257,547,340		1,333,112,420
Inverse NASDAQ-100® Strategy Fund		1,300,000		2,150,000
Mid-Cap 1.5x Strategy Fund		195,272,060		207,443,978
Inverse Mid-Cap Strategy Fund		—		394,981
Russell 2000® 1.5x Strategy Fund		4,290,538		9,501,828
Russell 2000® Fund		3,321,683		25,755,383
Inverse Russell 2000® Strategy Fund		140,000		800,000
Dow Jones Industrial Average® Fund		57,428,106		93,020,872
Government Long Bond 1.2x Strategy Fund		14,300,000		12,620,000
High Yield Strategy Fund		—		17,980,000
Inverse High Yield Strategy Fund		3,630,016		2,370,000
U.S. Government Money Market Fund		—		—

For the year ended March 31, 2020, the cost of purchases and proceeds from sales of government securities were as follows:

Fund	Purchases		Sales
Government Long Bond 1.2x Strategy Fund	$	1,533,284,266	$	1,592,989,297
Inverse Government Long Bond Strategy Fund		420,895,750		398,733,609

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the year ended March 31, 2020, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Fund	Purchases		Sales		Realized Gain (Loss)
Nova Fund	$	209,284,169	$	262,463,515	$	(2,360,106	)
S&P 500® Fund		139,145,863		127,662,807		7,243,655
Inverse S&P 500® Strategy Fund		4,999,125		—		—
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		142,006,043		150,509,963		(10,682,596	)
Inverse NASDAQ-100® Strategy Fund		1,999,650		—		—
Mid-Cap 1.5x Strategy Fund		965,492		2,116,448		34,360
Russell 2000® 1.5x Strategy Fund		—		645,308		169,995
Russell 2000® Fund		1,350,975		9,622,158		(133,186	)
Dow Jones Industrial Average® Fund		15,614,635		20,824,186		(97,594	)
Inverse Government Long Bond Strategy Fund		2,999,475		5,004,533		(825	)
High Yield Strategy Fund		—		3,403,083		(561	)
U.S. Government Money Market Fund		11,009,973		29,994,751		(5,194	)

186 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Note 10 – Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 8, 2020. On March 30, 2020, the Board approved increasing the line of credit from $75,000,000 to $150,000,000. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 3.02% for the year ended March 31, 2020. The Funds did not have any borrowings outstanding under this agreement at March 31, 2020.

The average daily balances borrowed for the year ended March 31, 2020, were as follows:

Fund	Average Daily Balance
Nova Fund	$	53,781
Inverse S&P 500® Strategy Fund		134
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		108,984
Inverse NASDAQ-100® Strategy Fund		1,557
Russell 2000® 1.5x Strategy Fund		2,967
Russell 2000® Fund		4,844
Government Long Bond 1.2x Strategy Fund		1,541
Inverse Government Long Bond Strategy Fund		5,809
High Yield Strategy Fund		70,869

Note 11 – Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (the “2017 ASU”) which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The 2017 ASU does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity.

As of April 1, 2019, the Funds have fully adopted the provisions of the 2017 ASU which were applied on a modified retrospective basis, as prescribed. The adoption did not result in a cumulative-effect adjustment as of the beginning of the period and had no impact on total distributable earnings, net assets, the current period results from operations, or any prior period information presented in the financial statements.

Note 12 – Legal Proceedings

Tribune Company

Rydex Series Funds has been named as a defendant and a putative member of the proposed defendant class of shareholders in the case entitled Kirschner v. FitzSimons, No. 12-2652 (S.D.N.Y.) (formerly Official Committee of Unsecured Creditors of Tribune Co. v. FitzSimons, Adv. Pro. No. 10-54010 (Bankr. D. Del.)) (the “FitzSimons action”), as a result of ownership by certain series of the Rydex Series Funds of shares in the Tribune Company (“Tribune”) in 2007, when Tribune effected a leveraged buyout transaction (“LBO”) by which Tribune converted to a privately-held company. In his complaint, the plaintiff has alleged that, in connection with the LBO, Tribune insiders and shareholders were overpaid for their Tribune stock using financing that the insiders knew would, and ultimately did, leave Tribune insolvent. The plaintiff has asserted claims against certain insiders, major shareholders, professional advisers, and others involved in the LBO. The plaintiff is also attempting to obtain from former Tribune shareholders, including the Rydex Series Funds, the proceeds they received in connection with the LBO.

In June 2011, a group of Tribune creditors filed multiple actions against former Tribune shareholders involving state law constructive fraudulent conveyance claims arising out of the 2007 LBO (the “SLCFC actions”). Rydex Series Funds has been named as a defendant in one or more of these suits. In those actions, the creditors seek to recover from Tribune’s former shareholders the proceeds received in connection with the 2007 LBO.

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2296 (S.D.N.Y.) (the “MDL Proceeding”).

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NOTES TO FINANCIAL STATEMENTS (continued)

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order.

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments.

On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. On April 3, 2018, Justice Kennedy and Justice Thomas issued a “Statement” related to the petition for certiorari suggesting that the Second Circuit and/or District Court may want to take steps to reexamine the application of the Section 546(e) safe harbor to the previously dismissed state law constructive fraudulent transfer claims based on the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. On April 10, 2018, Plaintiffs filed in the Second Circuit a motion for that court to recall its mandate, vacate its prior decision, and remand to the district court for further proceedings consistent with Merit Management. On April 20, 2018, the shareholder defendants filed an opposition to Plaintiffs’ motion to recall the mandate. On May 15, 2018, the Second Circuit issued an order recalling the mandate “in anticipation of further panel review.” On December 19, 2019, the Second Circuit issued an amended opinion that again affirmed the district court’s ruling on the basis that plaintiffs’ claims were preempted by Section 546(e) of the Bankruptcy Code. Plaintiffs filed a motion for rehearing and rehearing en banc on January 2, 2020. The Second Circuit denied the petition on February 6, 2020.

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. On January 6, 2017, the United States District Court for the Southern District of New York granted the shareholder defendants’ motion to dismiss the intentional fraudulent conveyance claim in the FitzSimons action. In dismissing the intentional fraudulent conveyance claim, the Court denied the plaintiff’s request to amend the complaint. The plaintiff requested that the Court direct entry of a final judgment in order to make the order immediately appealable. On February 23, 2017, the Court issued an order stating that it intended to permit an interlocutory appeal of the dismissal order, but would wait to do so until it has resolved outstanding motions to dismiss filed by other defendants.

On July 18, 2017, the plaintiff submitted a letter to the District Court seeking leave to amend its complaint to add a constructive fraudulent transfer claim. The shareholder defendants opposed that request. On August 24, 2017, the Court denied the plaintiff’s request without prejudice to renewal of the request in the event of an intervening change in the law. On March 8, 2018, the plaintiff renewed his request for leave to file a motion to amend the complaint to assert a constructive fraudulent transfer claim based on the Supreme Court’s ruling in Merit Management Group LP v. FTI Consulting, Inc. The shareholder defendants opposed that request. On June 18, 2018 the District Court ordered that the request would be stayed pending further action by the Second Circuit in the SLCFC actions.

On December 18, 2018, plaintiff filed a letter with the District Court requesting that the stay be dissolved in order to permit briefing on the motion to amend the complaint and indicating plaintiff’s intention to file another motion to amend the complaint to reinstate claims for intentional fraudulent transfer. The shareholder defendants opposed that request. On January 14, 2019, the court held a case management conference, during which the court stated that it would not lift the stay prior to further action from the Second Circuit in the SLCFC actions. The court further stated that it would allow the plaintiff to file a motion to amend to try to reinstate its intentional fraudulent transfer claim. On January 23, 2019, the court ordered the parties still facing pending claims to participate in a mediation, to commence on January 28, 2019. The mediation did not result in a settlement of the claims against the shareholder defendants.

On April 4, 2019, plaintiff filed a motion to amend the Fifth Amended Complaint to assert a federal constructive fraudulent transfer claim against certain shareholder defendants. On April 10, 2019, the shareholder defendants filed a brief in opposition to plaintiff’s motion to amend. On April 12, 2019, the plaintiff filed a reply brief. On April 23, 2019, the court denied the plaintiff’s motion to amend. On June 13, 2019, the court entered judgment pursuant to Rule 54(b). On July 12, 2019, the Plaintiff filed a notice of appeal with respect to the dismissal of his claims and the District Court’s denial of his motion for leave to amend. Plaintiff filed an appellate brief on January 7, 2020. The shareholder defendants’ brief was filed on April 27, 2020.

188 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (concluded)

None of these lawsuits alleges any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds held shares of Tribune and tendered these shares as part of Tribune’s LBO: Nova Fund, S&P 500^® Pure Value Fund, Multi-Cap Core Equity Fund, S&P 500^® Fund, Multi-Hedge Strategies Fund and Hedged Equity Fund (the “Funds”). The value of the proceeds received by the foregoing Funds was $28,220, $109,242, $9,860, $3,400, $1,181,160, and $10,880, respectively. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

Note 13 – COVID-19 and Recent Developments

The global ongoing crisis caused by the outbreak of COVID-19 is causing materially reduced consumer demand and economic output, disrupting supply chains, resulting in market closures, travel restrictions and quarantines, and adversely impacting local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and health conditions all over the world, the Funds’ investments and a shareholder’s investment in a Fund are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational risks.

Note 14 – Subsequent Events

Share Splits

On May 18, 2020, the Board approved reverse share splits as follows:

Fund	Effective Date	Split Type
Inverse Mid-Cap Strategy Fund	August 14, 2020	One-for-five Reverse Split
Inverse Russell 2000® Strategy Fund	August 14, 2020	One-for-five Reverse Split
Inverse Government Long Bond Strategy Fund	August 14, 2020	One-for-five Reverse Split
High Yield Strategy Fund	August 14, 2020	One-for-five Reverse Split

The Funds evaluated subsequent events through the date the financial statements were available for issue and determined there were no material events other than the one disclosed above, that would require adjustment to or disclosure in the Funds’ financial statements.

THE RYDEX FUNDS ANNUAL REPORT | 189

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of Nova Fund, S&P 500^® Fund, Inverse S&P 500^® Strategy Fund, Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000^® 1.5x Strategy Fund, Russell 2000^® Fund, Inverse Russell 2000^® Strategy Fund, Dow Jones Industrial Average^® Fund, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund, High Yield Strategy Fund, Inverse High Yield Strategy Fund and U.S. Government Money Market Fund and the Board of Trustees of Rydex Series Funds

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of Nova Fund, S&P 500^® Fund, Inverse S&P 500^® Strategy Fund, Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000^® 1.5x Strategy Fund, Russell 2000^® Fund, Inverse Russell 2000^® Strategy Fund, Dow Jones Industrial Average^® Fund, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund, High Yield Strategy Fund, Inverse High Yield Strategy Fund and U.S. Government Money Market Fund (collectively referred to as the “Funds”), (sixteen of the funds constituting Rydex Series Funds (the “Trust”)), including the schedules of investments, as of March 31, 2020, and the related statements of operations and changes in net assets, and the financial highlights for each of the periods indicated in the table below and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (sixteen of the funds constituting Rydex Series Funds) at March 31, 2020, and the results of their operations, changes in net assets and financial highlights for each of the periods indicated in the table below, in conformity with U.S. generally accepted accounting principles.

Individual Fund constituting the Rydex Series Funds	Statement of operations	Statements of changes in net assets	Financial highlights
Nova Fund S&P 500® Fund Inverse S&P 500® Strategy Fund Inverse NASDAQ-100® Strategy Fund Mid-Cap 1.5x Strategy Fund Inverse Mid-Cap Strategy Fund Russell 2000® 1.5x Strategy Fund Russell 2000® Fund Inverse Russell 2000® Strategy Fund Government Long Bond 1.2x Strategy Fund Inverse Government Long Bond Strategy Fund High Yield Strategy Fund Inverse High Yield Strategy Fund U.S. Government Money Market Fund Monthly Rebalance NASDAQ-100® 2x Strategy Fund	For the year ended March 31, 2020	For each of the two years in the period ended March 31, 2020	For each of the five years in the period ended March 31, 2020
Dow Jones Industrial Average® Fund	For the year ended March 31, 2020	For each of the two years in the period ended March 31, 2020	For each of the four years in the period ended March 31, 2020 and the period from December 1, 2015 (commencement of operations) through March 31, 2016

190 | THE RYDEX FUNDS ANNUAL REPORT

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (concluded)

Basis for Opinion

These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2020, by correspondence with the custodian, transfer agent, and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Guggenheim investment companies since 1979.

Tysons, Virginia
May 28, 2020

THE RYDEX FUNDS ANNUAL REPORT | 191

OTHER INFORMATION (Unaudited)

Federal Income Tax Information

This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

In January 2021, shareholders will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by shareholders in the calendar year 2020.

The Funds’ investment income (dividend income plus short-term capital gains, if any) qualifies as follows:

Of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2020, the following funds had the corresponding percentages qualify for the reduced tax rate pursuant to the Jobs and Growth Tax Relief and Reconciliation Act of 2003 or for the dividends received deduction for corporations. See the qualified dividend income and dividend received deduction columns, respectively, in the table below.

Additionally, of the taxable ordinary income distributions paid during the fiscal year ended March 31, 2020, the following funds had the corresponding percentages qualify as interest related dividends and qualified short-term capital gains as permitted by IRC Section 871(k)(1) and IRC Section 871(k)(2), respectively. See qualified interest income and qualified short-term capital gain columns, respectively, in the table below.

Fund	Qualified Dividend Income			Dividend Received Deduction			Qualified Interest Income			Qualified Short-Term Capital Gain
S&P 500® Fund		24.87	%		19.63	%		3.02	%		100.00	%
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		100.00	%		66.30	%		62.99	%		0.00	%
Mid-Cap 1.5x Strategy Fund		86.40	%		3.37	%		0.00	%		0.00	%
Russell 2000® Fund		79.83	%		74.20	%		0.00	%		100.00	%
Dow Jones Industrial Average® Fund		26.54	%		21.05	%		0.00	%		100.00	%
Government Long Bond 1.2x Strategy Fund		0.00	%		0.00	%		87.00	%		100.00	%
High Yield Strategy Fund		0.00	%		0.00	%		40.50	%		0.00	%
U.S. Government Money Market Fund		0.00	%		0.00	%		99.38	%		0.00	%

With respect to the taxable year ended March 31, 2020, the Funds hereby designate as capital gain dividends the amounts listed below, or, if subsequently determined to be different, the net capital gain of such year:

Fund	From long-term capital gain:		From long-term capital gain, using proceeds from shareholder redemptions:
S&P 500® Fund	$	—	$	13,658,296
Russell 2000® Fund		444,717		448,601
Dow Jones Industrial Average® Fund		—		4,659,114
Government Long Bond 1.2x Strategy Fund		1,920,775		11,284,291

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Information regarding how the Funds’ voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

192 | THE RYDEX FUNDS ANNUAL REPORT

OTHER INFORMATION (Unaudited)(concluded)

Sector Classification

Information in the Schedule of Investments is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds’ Forms N-PORT and N-Q are available on the SEC’s website at https://www.sec.gov. The Funds’ Forms N-PORT and N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

THE RYDEX FUNDS ANNUAL REPORT | 193

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by visiting guggenheiminvestments.com or by calling 800.820.0888.

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES
Randall C. Barnes (1951)	Trustee	Since 2019	Current: Private Investor (2001-present). Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).	157	Current: Purpose Investments Funds (2013-present). Former: Managed Duration Investment Grade Municipal Fund (2006-2016).
Angela Brock-Kyle (1959)	Trustee	Since 2016	Current: Founder and Chief Executive Officer, B.O.A.R.D.S. (2013-present). Former: Senior Leader, TIAA (1987-2012).	156	Current: Hunt Companies, Inc. (2019-present). Former: Infinity Property & Casualty Corp. (2014-2018).
Donald A. Chubb, Jr. (1946)	Trustee and Chair of the Valuation Oversight Committee	Since 2019	Current: Retired Former: Business broker and manager of commercial real estate, Griffith & Blair, Inc. (1997-2017).	156	Former: Midland Care, Inc. (2011-2016).
Jerry B. Farley (1946)	Trustee	Since 2019	Current: President, Washburn University (1997-present).	156	Current: CoreFirst Bank & Trust (2000-present). Former: Westar Energy, Inc. (2004-2018).
Roman Friedrich III (1946)	Trustee and Chair of the Contracts Review Committee	Since 2019	Current: Founder and Managing Partner, Roman Friedrich & Company (1998-present).	156	Former: Zincore Metals, Inc. (2009-2019).
Thomas F. Lydon, Jr. (1960)	Trustee and Vice Chair of the Contracts Review Committee	Since 2005 (Trustee) Since 2019 (Vice Chair of the Contracts Review Committee)	Current: President, Global Trends Investments (1996-present); Co-Chief Executive Officer, ETF Flows, LLC (2019-present); Chief Executive Officer, Lydon Media (2016-present).	156	Current: US Global Investors (GROW) (1995-present). Former: Harvest Volatility Edge Trust (3) (2017-2019).

194 | THE RYDEX FUNDS ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - concluded
Ronald A. Nyberg (1953)	Trustee and Chair of the Nominating and Governance Committee	Since 2019	Current: Partner, Momkus LLC (2016-present). Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).	157	Current: PPM Funds (9) (2018-present); Edward-Elmhurst Healthcare System (2012-present). Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-April 2020); Western Asset Inflation-Linked Income Fund (2003-April 2020); Managed Duration Investment Grade Municipal Fund (2003-2016).
Sandra G. Sponem (1958)	Trustee and Chair of the Audit Committee	Since 2016 (Trustee) Since 2019 (Chair of the Audit Committee)	Current: Retired. Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson-Companies, Inc. (2007-2017).	156	Current: SPDR Series Trust (78) (2018-present); SPDR Index Shares Funds (31) (2018-present); SSGA Active Trust (12) (2018-present); and SSGA Master Trust (1) (2018-present).
Ronald E. Toupin, Jr. (1958)	Trustee, Chair of the Board and Chair of the Executive Committee	Since 2019	Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999).	156	Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-April 2020); Western Asset Inflation-Linked Income Fund (2003-April 2020); Managed Duration Investment Grade Municipal Fund (2003-2016).

THE RYDEX FUNDS ANNUAL REPORT | 195

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INTERESTED TRUSTEE:
Amy J. Lee**** (1961)	Trustee, Vice President and Chief Legal Officer	Since 2018 (Trustee) Since 2019 (Vice President and Chief Legal Officer)	Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: President and Chief Executive Officer, certain other funds in the Fund Complex (2017-2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).	156	None.

*	The business address of each Trustee is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each Trustee serves an indefinite term, until his or her successor is elected and qualified. Time served includes time served in the respective position for the Predecessor Corporation.
***	Each Trustee also serves on the boards of trustees of Guggenheim Funds Trust, Guggenheim Variable Funds Trust, Guggenheim Strategy Funds Trust, Fiduciary/Claymore Energy Infrastructure Fund, Guggenheim Taxable Municipal Managed Duration Trust, Guggenheim Strategic Opportunities Fund, Guggenheim Enhanced Equity Income Fund, Guggenheim Energy & Income Fund, Guggenheim Credit Allocation Fund, Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Funds and Transparent Value Trust. Messrs. Barnes and Nyberg also serve on the board of trustees of Advent Convertible & Income Fund.
****	This Trustee is deemed to be an “interested person” of the Funds under the 1940 Act by reason of her position with the Funds’ Investment Manager and/or the parent of the Investment Manager.

196 | THE RYDEX FUNDS ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS
Brian E. Binder (1972)	President and Chief Executive Officer	Since 2019	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President, Chief Executive Officer and Chairman of the Board of Managers, Guggenheim Funds Investment Advisors, LLC (2018-present); President and Chief Executive Officer, Security Investors, LLC (2018-present); Board Member of Guggenheim Partners Fund Management (Europe) Limited (2018-present); Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-present). Former: Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Head of Business Management and Consulting, Invesco Ltd. (2010-2012).
James M. Howley (1972)	Assistant Treasurer	Since 2016	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Mark E. Mathiasen (1978)	Secretary	Since 2017	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer	Since 2016	Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present).
Michael P. Megaris (1984)	Assistant Secretary	Since 2018	Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2012-present).
Elisabeth Miller (1968)	Chief Compliance Officer	Since 2012	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).
Margaux Misantone (1978)	AML Officer	Since 2017	Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Managing Director, Guggenheim Investments (2015-present). Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018).
William Rehder (1967)	Assistant Vice President	Since 2018	Current: Managing Director, Guggenheim Investments (2002-present).

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(concluded)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS - concluded
Kimberly J. Scott (1974)	Assistant Treasurer	Since 2016	Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
Bryan Stone (1979)	Vice President	Since 2019	Current: Vice President, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2013-present). Former: Senior Vice President, Neuberger Berman Group LLC (2009-2013); Vice President, Morgan Stanley (2002-2009).
John L. Sullivan (1955)	Chief Financial Officer, Chief Accounting Officer and Treasurer	Since 2016	Current: Chief Financial Officer, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and Chief Compliance Officer, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); Chief Financial Officer and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer	Since 2017	Current: Vice President, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (2017); Senior Analyst of US Fund Administration, HGINA (2014–2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	The business address of each officer is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each officer serves an indefinite term, until his or her successor is duly elected and qualified.

198 | THE RYDEX FUNDS ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)

Who We Are

This Privacy Notice describes the data protection practices of Guggenheim Investments. Guggenheim Investments as used herein refers to the affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Guggenheim Investment Advisors (Europe) Limited, Guggenheim Real Estate, LLC, GS Gamma Advisors, LLC, Guggenheim Partners India Management, LLC, Guggenheim Partners Europe Limited, as well as the funds in the Guggenheim Funds complex (the “Funds”) (“Guggenheim Investments,” “we,” “us,” or “our”).

Guggenheim Partners Investment Management Holdings, LLC, located at 330 Madison Avenue, New York, New York 10017 is the data controller for your information. The affiliates who are also controllers of certain of your information are: Guggenheim Investment Advisors (Europe) Limited, Guggenheim Partners Europe Limited, Guggenheim Partners, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC and Security Investors, LLC, as well as the Funds.

Our Commitment to You

Guggenheim Investments considers your privacy our utmost concern. When you become our client or investor, you entrust us with not only your hard-earned money but also with your personal and financial information. Because we have access to your private information, we hold ourselves to the highest standards in its safekeeping and use. We strictly limit how we share your information with others, whether you are a current or former Guggenheim Investments client or investor.

The Information We Collect About You

We collect certain nonpublic personal information about you from information you provide on applications, other forms, our website, and/or from third parties including investment advisors. This information includes Social Security or other tax identification number, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, bank account information, marital status, family relationships, information that we collect on our website through the use of “cookies,” and other personal information that you or others provide to us. We may also collect such information through your inquiries by mail, e-mail or telephone. We may also collect customer due diligence information, as required by applicable law and regulation, through third party service providers.

How We Handle Your Personal Information

The legal basis for using your information as set out in this Privacy Notice is as follows: (a) use of your personal data is necessary to perform our obligations under any contract with you (such as a contract for us to provide financial services to you); or (b) where use of your personal data is not necessary for performance of a contract, use of your personal data is necessary for our legitimate interests or the legitimate interests of others (for example, to enforce the legal terms governing our services, operate and market our website and other services we offer, ensure safe environments for our personnel and others, make and receive payments, prevent fraud and to know the customer to whom we are providing the services). Some processing is done to comply with applicable law.

In addition to the specific uses described above, we also use your information in the following manner:

● We use your information in connection with servicing your accounts.

● We use information to respond to your requests or questions. For example, we might use your information to respond to your customer feedback.

● We use information to improve our products and services. We may use your information to make our website and products better. We may use your information to customize your experience with us.

● We use information for security purposes. We may use your information to protect our company and our customers.

● We use information to communicate with you. For example, we will communicate with you about your account or our relationship. We may contact you about your feedback. We might also contact you about this Privacy Notice. We may also enroll you in our email newsletter.

THE RYDEX FUNDS ANNUAL REPORT | 199

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

● We use information as otherwise permitted by law, as we may notify you.

● Aggregate/Anonymous Data. We may aggregate and/or anonymize any information collected through the website so that such information can no longer be linked to you or your device (“Aggregate/Anonymous Information”). We may use Aggregate/Anonymous Information for any purpose, including without limitation for research and marketing purposes, and may also share such data with any third parties, including advertisers, promotional partners, and sponsors.

We do not sell information about current or former clients or their accounts to third parties. Nor do we share this information, except when necessary to complete transactions at your request, to make you aware of investment products and services that we or our affiliates offer, or as permitted or required by law.

We provide information about you to companies and individuals not affiliated with Guggenheim Investments to complete certain transactions or account changes, or to perform services for us related to your account. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we must provide certain information about you to that company to complete the transaction. We provide the third party with only the information necessary to carry out its responsibilities and only for that purpose. And we require these third parties to treat your private information with the same high degree of confidentiality that we do. To alert you to other Guggenheim Investments products and services, we share your information within our family of affiliated companies. You may limit our sharing with affiliated companies as set out below. We may also share information with any successor to all or part of our business, or in connection with steps leading up to a merger or acquisition. For example, if part of our business was sold we may give customer information as part of that transaction. We may also share information about you with your consent.

We will release information about you if you direct us to do so, if we are compelled by law to do so, or in other circumstances as permitted by law (for example, to protect your account from fraud).

If you close your account(s) or become an inactive client or investor, we will continue to adhere to the privacy policies and practices described in this notice.

Opt-Out Provisions and Your Data Choices

The law allows you to “opt out” of certain kinds of information sharing with third parties. We do not share personal information about you with any third parties that triggers this opt-out right. This means YOU ARE ALREADY OPTED OUT.

When you are no longer our client or investor, we continue to share your information as described in this notice, and you may contact us at any time to limit our sharing by sending an email to CorporateDataPrivacy@GuggenheimPartners.com.

European Union Data Subjects and certain others: In addition to the choices set forth above, residents of the European Union and certain other jurisdictions have certain rights to (1) request access to or rectification or deletion of information we collect about them, (2) request a restriction on the processing of their information, (3) object to the processing of their information, or (4) request the portability of certain information. To exercise these or other rights, please contact us using the contact information below. We will consider all requests and provide our response within the time period stated by applicable law. Please note, however, that certain information may be exempt from such requests in some circumstances, which may include if we need to keep processing your information for our legitimate interests or to comply with a legal obligation. We may request you provide us with information necessary to confirm your identity before responding to your request.

Residents of France and certain other jurisdictions may also provide us with instructions regarding the manner in which we may continue to store, erase and share your information after your death, and where applicable, the person you have designated to exercise these rights after your death.

200 | THE RYDEX FUNDS ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(concluded)

How We Protect Privacy Online

We take steps to protect your privacy when you use our web site – www.guggenheiminvestments.com – by using secure forms of online communication, including encryption technology, Secure Socket Layer (SSL) protocol, firewalls and user names and passwords. These safeguards vary based on the sensitivity of the information that we collect and store. However, we cannot and do not guarantee that these measures will prevent every unauthorized attempt to access, use, or disclose your information since despite our efforts, no Internet and/or other electronic transmissions can be completely secure. Our web site uses “http cookies”—tiny pieces of information that we ask your browser to store. We use cookies for session management and security features on the Guggenheim Investments web site. We do not use them to pull data from your hard drive, to learn your e-mail address, or to view data in cookies created by other web sites. We will not share the information in our cookies or give others access to it. See the legal information area on our web site for more details about web site security and privacy features.

How We Safeguard Your Personal Information and Data Retention

We restrict access to nonpublic personal information about you to our employees and in some cases to third parties (for example, the service providers described above) as permitted by law. We maintain strict physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

We keep your information for no longer than necessary for the purposes for which it is processed. The length of time for which we retain information depends on the purposes for which we collected and use it and/or as required to comply with applicable laws. Information may persist in copies made for backup and business continuity purposes for additional time.

International Visitors

If you are not a resident of the United States, please be aware that your information may be transferred to, stored and processed in the United States where our servers are located and our databases are operated. The data protection and other laws of the United States and other countries might not be as comprehensive as those in your country.

In such cases, we ensure that a legal basis for such a transfer exists and that adequate protection is provided as required by applicable law, for example, by using standard contractual clauses or by transferring your data to a jurisdiction that has obtained an adequacy finding. Individuals whose data may be transferred on the basis of standard contractual clauses may contact us as described below.

We’ll Keep You Informed

If you have any questions or concerns about how we treat your personal data, we encourage you to consult with us first. You may also contact the relevant supervisory authority.

We reserve the right to modify this policy at any time and will inform you promptly of material changes. You may access our privacy policy from our web site at www.guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us by email at CorporateDataPrivacy@GuggenheimPartners.com.

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3.31.2020

Rydex Funds Annual Report

Domestic Equity Funds

S&P 500^® Pure Growth Fund

S&P 500^® Pure Value Fund

S&P MidCap 400^® Pure Growth Fund

S&P MidCap 400^® Pure Value Fund

S&P SmallCap 600^® Pure Growth Fund

S&P SmallCap 600^® Pure Value Fund

International Equity Funds

Europe 1.25x Strategy Fund

Japan 2x Strategy Fund

Specialty Funds

Strengthening Dollar 2x Strategy Fund

Weakening Dollar 2x Strategy Fund

Beginning on January 1, 2021, paper copies of the Funds’ annual and semi-annual shareholder reports may no longer be sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from a fund electronically by calling 800.820.0888, going to GuggenheimInvestments.com/myaccount, or by contacting your financial intermediary.

You may elect to receive all future shareholder reports in paper free of charge. If you hold shares of a fund directly, you can inform the Fund that you wish to receive paper copies of reports by calling 800.820.0888. If you hold shares of a fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper will apply to all Guggenheim Funds in which you are invested and may apply to all funds held with your financial intermediary.

GuggenheimInvestments.com RTB2-ANN-0320x0321

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	4
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	6
ABOUT SHAREHOLDERS’ FUND EXPENSES	7
S&P 500® PURE GROWTH FUND	10
S&P 500® PURE VALUE FUND	18
S&P MIDCAP 400® PURE GROWTH FUND	26
S&P MIDCAP 400® PURE VALUE FUND	34
S&P SMALLCAP 600® PURE GROWTH FUND	42
S&P SMALLCAP 600® PURE VALUE FUND	51
EUROPE 1.25x STRATEGY FUND	60
JAPAN 2x STRATEGY FUND	69
STRENGTHENING DOLLAR 2x STRATEGY FUND	77
WEAKENING DOLLAR 2x STRATEGY FUND	85
NOTES TO FINANCIAL STATEMENTS	93
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	109
OTHER INFORMATION	110
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	112
GUGGENHEIM INVESTMENTS PRIVACY NOTICE	117

THE RYDEX FUNDS ANNUAL REPORT | 1

March 31, 2020

Dear Shareholder:

The fiscal year ended March 31, 2020, concluded on a somber note. Even though markets performed well for most of the period, the emergence of a novel and highly contagious form of coronavirus in the last weeks of the period adversely impacted global commercial activity and contributed to significant volatility in certain markets, unseen since the great recession of 2008.

As it spread beyond Asia to virtually every country in the world, many governments and businesses instituted quarantines and closures, which has resulted in significant disruption in manufacturing, supply chains, consumer demand and economic activity. The U.S. Federal Reserve responded quickly to provide liquidity in order to ensure that the U.S. markets continued to function efficiently. The fiscal policy included a spending bill worth over $2 trillion to assist consumers, states, small businesses and certain industries. While these actions helped stabilize the market, volatile conditions continued into April.

As discussed in this annual shareholder report, these events have affected performance of many of our funds (the “Fund” or “Funds”). We encourage you to read the Economic and Market Overview section of the report, which follows this letter, and then the Performance Report and Fund Profile for each Fund.

Security Investors, LLC (the “Investment Adviser”), the Investment Adviser for the Funds, is part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC (“Guggenheim”), a global, diversified financial services firm. An affiliate of Guggenheim and the Investment Adviser, Guggenheim Funds Distributors, LLC, is the distributor of the Funds.

Together, we are committed to the safety and prosperity of our clients, our employees, and our shareholders. The resources of the firm are being made fully available not only to support our clients, but also to support our employees and their families.

Please practice the appropriate prudence for the protection not only of your health and that of your friends and loved ones but also for our neighbors and communities. Thank you for the trust you place in us.

Sincerely,

Security Investors, LLC

April 30, 2020

Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at guggenheiminvestments.com or call 800.820.0888.

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.

The global ongoing crisis caused by the outbreak of COVID-19 is causing materially reduced consumer demand and economic output, disrupting supply chains, resulting in market closures, travel restrictions and quarantines, and adversely impacting local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and health conditions all over the world, the Funds’ investments and a shareholder’s investment in a Fund are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational risks.

Inverse and leveraged Funds are not suitable for all investors. ● These Funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking daily leveraged investment results, (c) understand the risk of shorting, and (d) intend to actively monitor and manage their investments. ● The more a Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● Inverse Funds involve certain risks, which include increased volatility due to the Funds’ possible use of short sales of securities and derivatives, such as options and futures. ● The Funds’ use of derivatives, such as futures, options, and swap agreements, may expose the Funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. ● Short-selling involves increased risks and costs. You risk paying more for a security than you received from its sale. ● Leveraged and inverse Funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. Because the Funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those Funds that use leverage as part of their investment strategy, may prevent a Fund from correlating with the monthly, quarterly, annual, or other period performance of its benchmark.

2 | THE RYDEX FUNDS ANNUAL REPORT

March 31, 2020

Due to the compounding of daily returns, leveraged and inverse Funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. For those Funds that consistently apply leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. The Funds rebalance their portfolios on a daily basis, increasing exposure in response to that day’s gains or reducing exposure in response to that day’s losses. Daily rebalancing will impair a Fund’s performance if the benchmark experiences volatility. Investors should monitor their leveraged and inverse Funds’ holdings consistent with their strategies, as frequently as daily. ● For more on these and other risks, please read the prospectus.

Pure Style Funds may not be suitable for all investors. ● The Funds are subject to the risk that large, medium and small-capitalization stocks may under-perform other segments of the equity market or the equity market as a whole. ● Value stocks are subject to the risk that the intrinsic value of the stock may never be realized by the market or that the price goes down. Growth stocks typically invest a high portion of their earnings back into their business and may lack the dividend yield that could cushion their decline in a market downturn. Growth stocks may be more volatile than other stocks because they are more sensitive to investor perceptions regarding the growth potential of the issuing company. ● The Funds are subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Funds’ inability to buy or sell securities or other financial instruments on that day. In certain circumstances, it may be difficult for the Funds to purchase and sell particular investments within a reasonable time at a fair price. ● Unlike many investment companies, the Funds are not actively “managed.” This means that based on market and economic conditions, the Funds’ performance could be lower than other types of funds that may actively shift their portfolio assets to take advantage of market opportunities or to lessen the impact of a market decline ● The Funds are subject to active trading and tracking error risks, which may increase volatility, impact the Funds’ ability to achieve its investment objective and may decrease the Fund’s performance. ● These Funds are considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund. ● Securities are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. ● Please read the prospectus for more detailed information regarding these and other risks.

The Strengthening Dollar 2x Strategy Fund is subject to a number of risks and may not be suitable for all investors. ● The Fund’s use of derivatives such as futures and swap agreements may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. ● The Fund’s indirect exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. These risks may cause the Fund to experience higher losses and/or volatility than a Fund that does not invest in derivatives, use leverage or have exposure to foreign currencies. ● Also, the Fund is subject to active trading and tracking error risks that may increase volatility, decrease performance and impact the Fund’s ability to achieve its investment objective. This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund. ● For more on these and other risks, please read the prospectus.

The Weakening Dollar 2x Strategy Fund is subject to a number of risks and may not be suitable for all investors. ● The Fund’s use of derivatives such as futures and swap agreements may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. ● The Fund’s indirect exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. These risks may cause the Fund to experience higher losses and/or volatility than a fund that does not invest in derivatives, use leverage or have exposure to foreign currencies. ● Also, the Fund is subject to active trading and tracking error risks that may increase volatility, decrease performance and impact the Fund’s ability to achieve its investment objective. This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified fund. ● For more on these and other risks, please read the prospectus.

THE RYDEX FUNDS ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) March 31, 2020

The 12-month period ended March 31,2020, was a wild ride for markets. While the U.S. economy was generally in good shape in 2019, recessionary fears rose throughout the year, prompting the U.S. Federal Reserve (the “Fed”) to announce a rate cut on July 31, the first since 2008, amid growing downside risks to policymakers’ baseline growth and inflation forecasts. Key among those risks were slowing global growth, the threat of additional U.S.-China tariffs, and the possible ramifications surrounding Brexit. The Fed subsequently cut rates twice more in 2019, which caused markets to rally toward the end of the year and into early 2020. Stocks reached new highs and credit spreads tightened to historic levels. Since then, the global outbreak of the coronavirus, COVID-19, has been at the center of everything. As of this writing, COVID-19 has spread to 210 countries, resulted in over 2.5 million cases, and caused over 170,000 deaths. Thus far, the U.S. makes up more than 30% of global cases, and 25% of global deaths. States have required the labor force to work from home if possible, individuals to practice social distancing, and non-essential businesses to shut down.

Closures, quarantines, and social distancing efforts have impacted the travel, hospitality, restaurants, and retail industries, with activity down 100% in some areas of the country. Further exacerbating the decline in output will be reduced business investment, which was already stalling due to falling profits, trade conflicts, and political uncertainty. The coronavirus shock and collapse in oil prices will likely further depress capital expenditures.

In response to the crisis, the Federal Open Market Committee cut rates by a further 125 basis points in the first quarter of 2020 and passed a series of stimulus programs. Among these were the Primary and Secondary Market Corporate Credit Facilities, which are lending programs primarily targeting investment-grade corporate bond issuers, implemented in concert with the U.S. Treasury. It was only after the announcement of this program that corporate credit found some relief from the selloff, but we expect this relief may be temporary.

With an alphabet soup of monetary programs targeting relief from the coronavirus impact, fiscal policy has also stepped up to the plate with a spending bill worth over $2 trillion that aims to assist consumers, states, small businesses, and certain industries. There is no question that these programs will help ease the economic fallout from virus containment measures, but even $2 trillion may be too small given the magnitude of the economic shock that we are facing. Additionally, it is far from clear that fiscal measures are an adequate solution to the issue at hand: the physical impediment to consumer spending. Fiscal and monetary policy can do their part, but ultimately it is public health policy that will likely be the greatest determinant of the economic outlook.

For the 12 months ended March 31, 2020, the Standard & Poor’s 500^® (“S&P 500”) Index* returned -6.98%. The decline, while significant, represents something of a recovery in stocks. The S&P 500 peaked at 3386.15 on February 19, 2020, before plummeting 33.9% to a low of 2237.40 on March 23, 2020, then recovering some lost ground by the end of the month.

The consensus estimate for S&P 500 earnings per share in 2020 is still around $150. Our research shows S&P 500 earnings per share could fall below $100. Similarly, economists have no way to calibrate how bad the economic data could be based on history. The March U.S. non-farm payrolls report was evidence of this, as it showed a decline in payrolls of 700,000 jobs versus survey expectations of a decline of only 100,000 jobs. We currently expect that second quarter U.S. real gross domestic product (“GDP”) quarter-over-quarter growth could fall by 40% annualized and the unemployment rate could rise to at least 20%. Beyond that, the severity of the crisis depends on containment of the virus and the effectiveness of social distancing measures put in place, but expectations for a quick and sustained V-shaped recovery appear overly optimistic.

For the 12 months ended March 31, 2020, the MSCI Europe-Australasia-Far East (“EAFE”) Index* returned -13.92%. The return of the MSCI Emerging Markets Index* was -17.36%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted an 8.93% return for the 12-month period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned -6.94%. The return of the ICE Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 2.25% for the 12-month period.

The opinions and forecasts expressed may not actually come to pass. This information is subject to change at any time, based on market and other conditions, and should not be construed as a recommendation of any specific security or strategy.

4 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) March 31, 2020

*Index Definitions:

The following indices are referenced throughout this report. Indices are unmanaged and not available for direct investment. Index performance does not reflect transaction costs, fees, or expenses.

Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, mortgage-backed securities or “MBS” (agency fixed-rate and hybrid adjustable-rate mortgage, or “ARM”, pass-throughs), asset-backed securities (“ABS”), and commercial mortgage-backed securities (“CMBS”) (agency and non-agency).

Bloomberg Barclays U.S. Corporate High Yield Index measures the U.S. dollar-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB +/BB + or below.

ICE BofA Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged market Index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income.

MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

MSCI Emerging Markets Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets.

Nikkei-225 Stock Average Index is a price-weighted index comprised of Japan’s top 225 blue-chip companies on the Tokyo Stock Exchange.

S&P 500^® is a broad-based index, the performance of which is based on the performance of 500 widely held common stocks chosen for market size, liquidity, and industry group representation.

S&P 500^® Pure Growth Index is narrow in focus, containing only those S&P 500 Index companies with strong growth characteristics as selected by S&P. The S&P 500 Index is a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

S&P 500^® Pure Value Index is narrow in focus, containing only those S&P 500 Index companies with strong value characteristics as selected by S&P. The S&P 500 Index is a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

S&P MidCap 400^® Pure Growth Index is narrow in focus, containing only those S&P MidCap 400 Index companies with strong growth characteristics as selected by S&P. The S&P MidCap 400 Index measures the performance of the mid-capitalization sector of the U.S. equity market.

S&P MidCap 400^® Pure Value Index is narrow in focus, containing only those S&P MidCap 400 Index companies with strong value characteristics as selected by S&P. The S&P MidCap 400 Index measures the performance of the mid-capitalization sector of the U.S. equity market.

S&P SmallCap 600^® Pure Growth Index is narrow in focus, containing only those S&P SmallCap 600 Index companies with strong growth characteristics as selected by S&P. The S&P SmallCap 600 Index measures the performance of the small-capitalization sector of the U.S. equity market.

S&P SmallCap 600^® Pure Value Index is narrow in focus, containing only those S&P SmallCap 600 Index companies with strong value characteristics as selected by S&P. The S&P SmallCap 600 Index measures the performance of the small-capitalization sector of the U.S. equity market.

STOXX^® Europe 50 Index provides a blue-chip representation of supersector leaders in the eurozone. The index covers 50 stocks from 12 eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.

USD or U.S. Dollar Index^® (USDX) is an index that determines the relative value of the United States dollar to a basket of foreign currencies. This formulated “basket” of currencies comprises the weighting of six other currencies as follows: Euro (EUR), 57.6% + Japanese Yen (JPY), 13.6% + Pound Sterling (GBP), 11.9% + Canadian Dollar (CAD), 9.1% + Swedish Krona (SEK), 4.2% + Swiss Franc (CHF) 3.6%.

THE RYDEX FUNDS ANNUAL REPORT | 5

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

Many of the Funds described in this report are benchmarked daily to leveraged and/or inverse leveraged versions of published indices. To properly evaluate the performance of these funds, it is essential to understand the effect of mathematical compounding on their respective returns.

Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in-line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period on a cumulative basis. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem to outperform its benchmark over longer periods.

An Example of Compounding

For example, consider a hypothetical fund that is designed to produce returns that correspond to 150% of an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a 6.0% gain and an expectation that the fund will rise by 9.0%. On the same day, the fund’s net asset value per share (“NAV”) increases from $10.00 to $10.90 for a gain of 9.0% — in line with its benchmark.

On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but for the two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking into account the daily compounding of returns, one would expect the fund to lose 1.5% and would see the fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the table below.

	Index Level	Index Performance	Fund Expectation	Fund NAV	Fund Performance	Assessment
Start	100			$ 10.00
Day 1	106	6.0%	9.0%	$ 10.90	9.0%	In line
Day 2	99	-6.6%	-9.9%	$ 9.82	-9.9%	In line
Cumulative		-1.0%	-1.5%		-1.8%	-0.3%

As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or judgments about fund performance given only the returns of the unleveraged index.

Because certain funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily. For those funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. For more on correlation, leverage and other risks, please read the prospectus.

In general, any change in direction in an index will produce compounding that seems to work against an investor. Were the index to move in the same direction (either up or down) for two or more periods in a row, the compounding of those returns would work in an investor’s favor, causing the fund to seemingly beat its benchmark.

As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less leverage will generally produce results that are more in line with expectations. In addition, periods of high volatility in an underlying index will also cause the effects of compounding to be more pronounced, while lower volatility will produce a more muted effect.

6 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses, and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, other distributions, and exchange fees, and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund’s gross income and reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning September 30, 2019 and ending March 31, 2020.

The following tables illustrate the Funds’ costs in two ways:

Table 1. Based on actual Fund return: This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fifth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return: This section is intended to help investors compare a fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments, and contingent deferred sales charges (“CDSC”) on redemptions, if any. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

More information about the Funds’ expenses, including annual expense ratios for periods up to five years (subject to the Fund’s inception date), can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

THE RYDEX FUNDS ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2019	Ending Account Value March 31, 2020	Expenses Paid During Period2
Table 1. Based on actual Fund return3
S&P 500® Pure Growth Fund
A-Class	1.64%	(15.52%)	$ 1,000.00	$ 844.80	$ 7.56
C-Class	2.38%	(15.83%)	1,000.00	841.70	10.96
H-Class	1.64%	(15.53%)	1,000.00	844.70	7.56
S&P 500® Pure Value Fund
A-Class	1.64%	(37.57%)	1,000.00	624.30	6.66
C-Class	2.38%	(37.80%)	1,000.00	622.00	9.65
H-Class	1.64%	(37.57%)	1,000.00	624.30	6.66
S&P MidCap 400® Pure Growth Fund
A-Class	1.64%	(21.17%)	1,000.00	788.30	7.33
C-Class	2.38%	(21.47%)	1,000.00	785.30	10.62
H-Class	1.64%	(21.17%)	1,000.00	788.30	7.33
S&P MidCap 400® Pure Value Fund
A-Class	1.63%	(38.72%)	1,000.00	612.80	6.57
C-Class	2.38%	(38.97%)	1,000.00	610.30	9.58
H-Class	1.64%	(38.73%)	1,000.00	612.70	6.61
S&P SmallCap 600® Pure Growth Fund
A-Class	1.64%	(28.38%)	1,000.00	716.20	7.04
C-Class	2.39%	(28.66%)	1,000.00	713.40	10.24
H-Class	1.64%	(28.39%)	1,000.00	716.10	7.04
S&P SmallCap 600® Pure Value Fund
A-Class	1.63%	(46.36%)	1,000.00	536.40	6.26
C-Class	2.38%	(46.57%)	1,000.00	534.30	9.13
H-Class	1.65%	(46.39%)	1,000.00	536.10	6.34
Europe 1.25x Strategy Fund
A-Class	1.71%	(20.75%)	1,000.00	792.50	7.66
C-Class	2.44%	(20.96%)	1,000.00	790.40	10.92
H-Class	1.75%	(20.75%)	1,000.00	792.50	7.84
Japan 2x Strategy Fund
A-Class	1.59%	(26.83%)	1,000.00	731.70	6.88
C-Class	2.33%	(27.10%)	1,000.00	729.00	10.07
H-Class	1.59%	(26.83%)	1,000.00	731.70	6.88
Strengthening Dollar 2x Strategy Fund
A-Class	1.88%	(0.30%)	1,000.00	997.00	9.39
C-Class	2.62%	(0.67%)	1,000.00	993.30	13.06
H-Class	1.89%	(0.32%)	1,000.00	996.80	9.43
Weakening Dollar 2x Strategy Fund
A-Class	1.92%	(2.76%)	1,000.00	972.40	9.47
C-Class	2.66%	(3.15%)	1,000.00	968.50	13.09
H-Class	1.91%	(2.80%)	1,000.00	972.00	9.42

8 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2019	Ending Account Value March 31, 2020	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
S&P 500® Pure Growth Fund
A-Class	1.64%	5.00%	$ 1,000.00	$ 1,016.80	$ 8.27
C-Class	2.38%	5.00%	1,000.00	1,013.10	11.98
H-Class	1.64%	5.00%	1,000.00	1,016.80	8.27
S&P 500® Pure Value Fund
A-Class	1.64%	5.00%	1,000.00	1,016.80	8.27
C-Class	2.38%	5.00%	1,000.00	1,013.10	11.98
H-Class	1.64%	5.00%	1,000.00	1,016.80	8.27
S&P MidCap 400® Pure Growth Fund
A-Class	1.64%	5.00%	1,000.00	1,016.80	8.27
C-Class	2.38%	5.00%	1,000.00	1,013.10	11.98
H-Class	1.64%	5.00%	1,000.00	1,016.80	8.27
S&P MidCap 400® Pure Value Fund
A-Class	1.63%	5.00%	1,000.00	1,016.85	8.22
C-Class	2.38%	5.00%	1,000.00	1,013.10	11.98
H-Class	1.64%	5.00%	1,000.00	1,016.80	8.27
S&P SmallCap 600® Pure Growth Fund
A-Class	1.64%	5.00%	1,000.00	1,016.80	8.27
C-Class	2.39%	5.00%	1,000.00	1,013.05	12.03
H-Class	1.64%	5.00%	1,000.00	1,016.80	8.27
S&P SmallCap 600® Pure Value Fund
A-Class	1.63%	5.00%	1,000.00	1,016.85	8.22
C-Class	2.38%	5.00%	1,000.00	1,013.10	11.98
H-Class	1.65%	5.00%	1,000.00	1,016.75	8.32
Europe 1.25x Strategy Fund
A-Class	1.71%	5.00%	1,000.00	1,016.45	8.62
C-Class	2.44%	5.00%	1,000.00	1,012.80	12.28
H-Class	1.75%	5.00%	1,000.00	1,016.25	8.82
Japan 2x Strategy Fund
A-Class	1.59%	5.00%	1,000.00	1,017.05	8.02
C-Class	2.33%	5.00%	1,000.00	1,013.35	11.73
H-Class	1.59%	5.00%	1,000.00	1,017.05	8.02
Strengthening Dollar 2x Strategy Fund
A-Class	1.88%	5.00%	1,000.00	1,015.60	9.47
C-Class	2.62%	5.00%	1,000.00	1,011.90	13.18
H-Class	1.89%	5.00%	1,000.00	1,015.55	9.52
Weakening Dollar 2x Strategy Fund
A-Class	1.92%	5.00%	1,000.00	1,015.40	9.67
C-Class	2.66%	5.00%	1,000.00	1,011.70	13.38
H-Class	1.91%	5.00%	1,000.00	1,015.45	9.62

1	Annualized and excludes expenses of the underlying funds in which the Funds invest, if any.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period September 30, 2019 to March 31, 2020.

THE RYDEX FUNDS ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

S&P 500^® PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for large-cap growth securities on a daily basis. The Fund’s current benchmark is the S&P 500^® Pure Growth Index (the “underlying index”).

For the year ended March 31, 2020, S&P 500 Pure Growth Fund H-Class returned -13.77%, compared with a return of -12.32% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

The sectors contributing the most to the return of the underlying index were Health Care, Consumer Staples, and Communication Services. The sectors detracting the most from return were Consumer Discretionary, Information Technology, and Energy.

The holdings contributing the most to the return of the underlying index were Advanced Micro Devices, Inc., Vertex Pharmaceuticals, Inc., and Anadarko Petroleum Corp. The holdings detracting the most from return were PulteGroup, Inc., Synchrony Financial, and Paycom Software, Inc.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	September 1, 2004
C-Class	February 20, 2004
H-Class	February 20, 2004

Ten Largest Holdings (% of Total Net Assets)
ServiceNow, Inc.	2.3%
MSCI, Inc. — Class A	1.8%
Vertex Pharmaceuticals, Inc.	1.8%
Fortinet, Inc.	1.8%
Lam Research Corp.	1.7%
Paycom Software, Inc.	1.7%
Facebook, Inc. — Class A	1.7%
Micron Technology, Inc.	1.6%
Incyte Corp.	1.6%
Adobe, Inc.	1.6%
Top Ten Total	17.6%

“Ten Largest Holdings” excludes any temporary cash investments.

10 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(13.76%)	3.15%	9.80%
A-Class Shares with sales charge‡	(17.86%)	2.15%	9.27%
C-Class Shares	(14.40%)	2.38%	8.98%
C-Class Shares with CDSC§	(15.21%)	2.38%	8.98%
H-Class Shares	(13.77%)	3.15%	9.80%
S&P 500 Pure Growth Index	(12.32%)	4.87%	11.70%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Pure Growth Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 11

SCHEDULE OF INVESTMENTS	March 31, 2020
S&P 500® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.8%
Technology - 32.6%
ServiceNow, Inc.*		3,160	$	905,593
MSCI, Inc. — Class A		2,494		720,666
Fortinet, Inc.*		6,968		704,952
Lam Research Corp.		2,870		688,800
Paycom Software, Inc.*		3,350		676,734
Micron Technology, Inc.*		15,320		644,359
Adobe, Inc.*		2,010		639,662
ANSYS, Inc.*		2,476		575,596
KLA Corp.		3,815		548,368
Microsoft Corp.		3,410		537,791
Applied Materials, Inc.		11,470		525,556
Apple, Inc.		1,910		485,694
Synopsys, Inc.*		3,673		473,046
Cadence Design Systems, Inc.*		7,020		463,601
NVIDIA Corp.		1,720		453,392
Fiserv, Inc.*		4,300		408,457
salesforce.com, Inc.*		2,646		380,971
Broadcom, Inc.		1,590		376,989
Microchip Technology, Inc.		5,543		375,815
Xerox Holdings Corp.		17,780		336,753
Advanced Micro Devices, Inc.*		6,381		290,208
Take-Two Interactive Software, Inc.*		2,376		281,817
Autodesk, Inc.*		1,741		271,770
Qorvo, Inc.*		3,031		244,390
Intuit, Inc.		1,057		243,110
QUALCOMM, Inc.		3,560		240,834
Analog Devices, Inc.		2,580		231,297
Zebra Technologies Corp. — Class A*		1,120		205,632
Total Technology				12,931,853
Consumer, Non-cyclical - 15.8%
Vertex Pharmaceuticals, Inc.*		2,977		708,377
Incyte Corp.*		8,757		641,275
United Rentals, Inc.*		4,800		493,920
PayPal Holdings, Inc.*		4,999		478,604
Edwards Lifesciences Corp.*		2,395		451,745
MarketAxess Holdings, Inc.		1,256		417,708
FleetCor Technologies, Inc.*		2,200		410,388
Align Technology, Inc.*		2,111		367,208
Moody’s Corp.		1,694		358,281
ResMed, Inc.		2,260		332,875
Estee Lauder Companies, Inc. — Class A		1,840		293,186
Cintas Corp.		1,656		286,852
S&P Global, Inc.		1,169		286,464
Intuitive Surgical, Inc.*		537		265,928
IDEXX Laboratories, Inc.*		1,060		256,774
Thermo Fisher Scientific, Inc.		841		238,508
Total Consumer, Non-cyclical				6,288,093
Consumer, Cyclical - 14.2%
Copart, Inc.*		7,348		503,485
Hilton Worldwide Holdings, Inc.		7,247		494,535
PulteGroup, Inc.		20,980		468,274
Chipotle Mexican Grill, Inc. — Class A*		685		448,264
Dollar General Corp.		2,662		401,989
PACCAR, Inc.		6,280		383,897
NVR, Inc.*		140		359,675
DR Horton, Inc.		10,110		343,740
Yum! Brands, Inc.		4,900		335,797
Starbucks Corp.		4,460		293,200
CarMax, Inc.*		5,250		282,608
AutoZone, Inc.*		317		268,182
Tiffany & Co.		1,910		247,345
Ross Stores, Inc.		2,784		242,124
O’Reilly Automotive, Inc.*		801		241,141
TJX Companies, Inc.		3,846		183,877
Wynn Resorts Ltd.		2,290		137,835
Total Consumer, Cyclical				5,635,968
Industrial - 11.7%
Old Dominion Freight Line, Inc.		3,785		496,819
L3Harris Technologies, Inc.		2,440		439,493
Northrop Grumman Corp.		1,300		393,315
TransDigm Group, Inc.		1,204		385,509
Keysight Technologies, Inc.*		4,197		351,205
Kansas City Southern		2,620		333,212
Masco Corp.		9,080		313,896
Lockheed Martin Corp.		860		291,497
Garmin Ltd.		3,390		254,114
AMETEK, Inc.		3,472		250,053
Vulcan Materials Co.		2,300		248,561
Fortune Brands Home & Security, Inc.		5,530		239,172
Martin Marietta Materials, Inc.		1,200		227,076
Roper Technologies, Inc.		665		207,354
Allegion plc		2,110		194,162
Total Industrial				4,625,438
Communications - 10.3%
Facebook, Inc. — Class A*		4,043		674,372
Netflix, Inc.*		1,588		596,294
Charter Communications, Inc. — Class A*		1,140		497,393
Amazon.com, Inc.*		250		487,430
CDW Corp.		3,769		351,535
eBay, Inc.		11,160		335,470
Arista Networks, Inc.*		1,292		261,695
Motorola Solutions, Inc.		1,809		240,452
Alphabet, Inc. — Class A*		203		235,876
Alphabet, Inc. — Class C*		201		233,725
Booking Holdings, Inc.*		130		174,891
Total Communications				4,089,133
Financial - 8.8%
Mastercard, Inc. — Class A		2,420		584,575
Visa, Inc. — Class A		3,023		487,066
CBRE Group, Inc. — Class A*		11,530		434,796
Equinix, Inc. REIT		695		434,076
SBA Communications Corp. REIT		1,467		396,046
Cboe Global Markets, Inc.		4,186		373,601
Synchrony Financial		20,169		324,519

12 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
S&P 500® PURE GROWTH FUND

	Shares		Value
American Tower Corp. — Class A REIT		1,290	$	280,898
Western Union Co.		9,930		180,031
Total Financial				3,495,608
Basic Materials - 4.3%
FMC Corp.		6,650		543,238
Sherwin-Williams Co.		840		385,997
Dow, Inc.		11,750		343,570
Air Products & Chemicals, Inc.		1,246		248,714
Celanese Corp. — Class A		2,430		178,338
Total Basic Materials				1,699,857
Energy - 1.2%
ConocoPhillips		8,733		268,976
Hess Corp.		5,970		198,801
Total Energy				467,777
Utilities - 0.9%
NRG Energy, Inc.		13,854		377,660
Total Common Stocks
(Cost $44,298,710)				39,611,387

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.4%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	111,322		111,322
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		42,816		42,816
Total Repurchase Agreements
(Cost $154,138)				154,138
Total Investments - 100.2%
(Cost $44,452,848)			$	39,765,525
Other Assets & Liabilities, net - (0.2)%				(78,638	)
Total Net Assets - 100.0%			$	39,686,887

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 6.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	39,611,387	$	—	$	—	$	39,611,387
Repurchase Agreements		—		154,138		—		154,138
Total Assets	$	39,611,387	$	154,138	$	—	$	39,765,525

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 13

S&P 500^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value (cost $44,298,710)	$	39,611,387
Repurchase agreements, at value (cost $154,138)		154,138
Cash		123,574
Receivables:
Dividends		19,002
Fund shares sold		15,621
Total assets		39,923,722
Liabilities:
Payable for:
Fund shares redeemed		102,012
Management fees		29,146
Distribution and service fees		13,956
Transfer agent and administrative fees		13,135
Portfolio accounting fees		3,886
Trustees’ fees*		1,109
Miscellaneous		73,591
Total liabilities		236,835
Commitments and contingent liabilities (Note 11)		—
Net assets	$	39,686,887
Net assets consist of:
Paid in capital	$	44,208,005
Total distributable earnings (loss)		(4,521,118	)
Net assets	$	39,686,887
A-Class:
Net assets	$	7,656,100
Capital shares outstanding		142,012
Net asset value per share	$	53.91
Maximum offering price per share (Net asset value divided by 95.25%)	$	56.60
C-Class:
Net assets	$	6,050,071
Capital shares outstanding		130,204
Net asset value per share	$	46.47
H-Class:
Net assets	$	25,980,716
Capital shares outstanding		482,084
Net asset value per share	$	53.89

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends	$	1,035,306
Interest		9,135
Income from securities lending, net		31
Total investment income		1,044,472
Expenses:
Management fees		656,877
Distribution and service fees:
A-Class		32,080
C-Class		96,130
H-Class		162,846
Transfer agent and administrative fees		222,379
Portfolio accounting fees		87,583
Registration fees		78,554
Professional fees		37,372
Trustees’ fees*		20,849
Custodian fees		12,517
Line of credit fees		106
Miscellaneous		90,880
Total expenses		1,498,173
Net investment loss		(453,701	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		17,941,754
Net realized gain		17,941,754
Net change in unrealized appreciation (depreciation) on:
Investments		(22,350,953	)
Net change in unrealized appreciation (depreciation)		(22,350,953	)
Net realized and unrealized loss		(4,409,199	)
Net decrease in net assets resulting from operations	$	(4,862,900	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

14 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P 500^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(453,701	)	$	(1,068,747	)
Net realized gain on investments		17,941,754			10,030,108
Net change in unrealized appreciation (depreciation) on investments		(22,350,953	)		(7,422,006	)
Net increase (decrease) in net assets resulting from operations		(4,862,900	)		1,539,355
Distributions to shareholders:
A-Class		(584,364	)		(870,081	)
C-Class		(524,964	)		(600,984	)
H-Class		(3,413,894	)		(4,191,710	)
Total distributions to shareholders		(4,523,222	)		(5,662,775	)
Capital share transactions:
Proceeds from sale of shares
A-Class		2,672,682			10,908,532
C-Class		2,747,902			8,317,472
H-Class		238,586,181			199,338,871
Distributions reinvested
A-Class		579,514			864,007
C-Class		521,531			594,072
H-Class		3,389,391			4,160,522
Cost of shares redeemed
A-Class		(9,216,614	)		(13,543,315	)
C-Class		(5,821,318	)		(11,926,777	)
H-Class		(292,741,951	)		(226,573,703	)
Net decrease from capital share transactions		(59,282,682	)		(27,860,319	)
Net decrease in net assets		(68,668,804	)		(31,983,739	)
Net assets:
Beginning of year		108,355,691			140,339,430
End of year	$	39,686,887		$	108,355,691
Capital share activity:
Shares sold
A-Class		39,759			167,257
C-Class		46,633			137,043
H-Class		3,527,207			3,043,070
Shares issued from reinvestment of distributions
A-Class		8,697			14,286
C-Class		9,061			11,196
H-Class		50,884			68,803
Shares redeemed
A-Class		(141,129	)		(206,325	)
C-Class		(104,655	)		(196,508	)
H-Class		(4,350,136	)		(3,506,875	)
Net decrease in shares		(913,679	)		(468,053	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 15

S&P 500^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	65.86		$	66.50		$	57.84		$	51.74		$	55.85
Income (loss) from investment operations:
Net investment income (loss)a		(.29	)		(.50	)		(.36	)		(.44	)		(.22	)
Net gain (loss) on investments (realized and unrealized)		(8.09	)		3.42			12.57			6.56			(2.47	)
Total from investment operations		(8.38	)		2.92			12.21			6.12			(2.69	)
Less distributions from:
Net realized gains		(3.57	)		(3.56	)		(3.55	)		(.02	)		(1.42	)
Total distributions		(3.57	)		(3.56	)		(3.55	)		(.02	)		(1.42	)
Net asset value, end of period	$	53.91		$	65.86		$	66.50		$	57.84		$	51.74
Total Returnb		(13.76	%)		4.88	%		21.39	%		11.84	%		(4.90	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,656		$	15,456		$	17,254		$	15,575		$	24,037
Ratios to average net assets:
Net investment income (loss)		(0.43	%)		(0.75	%)		(0.56	%)		(0.82	%)		(0.41	%)
Total expenses		1.63	%		1.61	%		1.53	%		1.53	%		1.50	%
Portfolio turnover rate		282	%		177	%		215	%		184	%		290	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	57.65		$	59.10		$	52.13		$	46.99		$	51.23
Income (loss) from investment operations:
Net investment income (loss)a		(.69	)		(.90	)		(.75	)		(.77	)		(.57	)
Net gain (loss) on investments (realized and unrealized)		(6.92	)		3.01			11.27			5.93			(2.25	)
Total from investment operations		(7.61	)		2.11			10.52			5.16			(2.82	)
Less distributions from:
Net realized gains		(3.57	)		(3.56	)		(3.55	)		(.02	)		(1.42	)
Total distributions		(3.57	)		(3.56	)		(3.55	)		(.02	)		(1.42	)
Net asset value, end of period	$	46.47		$	57.65		$	59.10		$	52.13		$	46.99
Total Returnb		(14.40	%)		4.09	%		20.50	%		10.99	%		(5.61	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,050		$	10,329		$	13,442		$	10,951		$	17,546
Ratios to average net assets:
Net investment income (loss)		(1.18	%)		(1.52	%)		(1.32	%)		(1.57	%)		(1.16	%)
Total expenses		2.38	%		2.36	%		2.28	%		2.27	%		2.25	%
Portfolio turnover rate		282	%		177	%		215	%		184	%		290	%

16 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P 500^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	65.84		$	66.49		$	57.83		$	51.73		$	55.84
Income (loss) from investment operations:
Net investment income (loss)a		(.29	)		(.53	)		(.38	)		(.44	)		(.18	)
Net gain (loss) on investments (realized and unrealized)		(8.09	)		3.44			12.59			6.56			(2.51	)
Total from investment operations		(8.38	)		2.91			12.21			6.12			(2.69	)
Less distributions from:
Net realized gains		(3.57	)		(3.56	)		(3.55	)		(.02	)		(1.42	)
Total distributions		(3.57	)		(3.56	)		(3.55	)		(.02	)		(1.42	)
Net asset value, end of period	$	53.89		$	65.84		$	66.49		$	57.83		$	51.73
Total Return		(13.77	%)		4.86	%		21.40	%		11.84	%		(4.91	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	25,981		$	82,570		$	109,644		$	78,673		$	113,223
Ratios to average net assets:
Net investment income (loss)		(0.44	%)		(0.79	%)		(0.59	%)		(0.81	%)		(0.35	%)
Total expenses		1.63	%		1.61	%		1.53	%		1.52	%		1.51	%
Portfolio turnover rate		282	%		177	%		215	%		184	%		290	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 17

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

S&P 500^® PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for large-cap value securities on a daily basis. The Fund’s current benchmark is the S&P 500^® Pure Value Index (the “underlying index”).

For the year ended March 31, 2020, S&P 500 Pure Value Fund H-Class returned -35.38%, compared with a return of -34.66% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

No sector contributed to the return of the underlying index for the period. The sectors detracting the most from return were Financials, Consumer Discretionary, and Energy.

The holdings contributing the most to the return of the underlying index for the period were Target Corp., Tyson Foods, Inc. — Class A, and PulteGroup, Inc. The holdings detracting the most from return were Macy’s, Inc., Kohl’s Corp., and Marathon Petroleum Corp.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	September 1, 2004
C-Class	February 20, 2004
H-Class	February 20, 2004

Ten Largest Holdings (% of Total Net Assets)
Berkshire Hathaway, Inc. — Class B	3.6%
Kroger Co.	2.6%
Centene Corp.	2.1%
Archer-Daniels-Midland Co.	2.1%
Westrock Co.	1.9%
AmerisourceBergen Corp. — Class A	1.9%
Ford Motor Co.	1.9%
General Motors Co.	1.8%
CVS Health Corp.	1.8%
MetLife, Inc.	1.8%
Top Ten Total	21.5%

“Ten Largest Holdings” excludes any temporary cash investments.

18 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(35.38%)	(4.88%)	4.49%
A-Class Shares with sales charge‡	(38.45%)	(5.80%)	3.98%
C-Class Shares	(35.87%)	(5.59%)	3.71%
C-Class Shares with CDSC§	(36.50%)	(5.59%)	3.71%
H-Class Shares	(35.38%)	(4.88%)	4.49%
S&P 500 Pure Value Index	(34.66%)	(3.41%)	6.51%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Pure Value Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 19

SCHEDULE OF INVESTMENTS	March 31, 2020
S&P 500® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.8%
Financial - 34.5%
Berkshire Hathaway, Inc. — Class B*		1,660	$	303,498
MetLife, Inc.		4,965		151,780
Prudential Financial, Inc.		2,823		147,191
Unum Group		8,913		133,784
Loews Corp.		3,740		130,264
Lincoln National Corp.		4,142		109,017
American International Group, Inc.		4,062		98,504
Principal Financial Group, Inc.		2,959		92,735
Invesco Ltd.		10,140		92,071
Goldman Sachs Group, Inc.		570		88,116
Allstate Corp.		931		85,401
Assurant, Inc.		794		82,648
People’s United Financial, Inc.		7,416		81,947
Morgan Stanley		2,313		78,642
Citizens Financial Group, Inc.		3,989		75,033
Citigroup, Inc.		1,779		74,932
Capital One Financial Corp.		1,470		74,117
Travelers Companies, Inc.		741		73,618
Everest Re Group Ltd.		353		67,924
Chubb Ltd.		530		59,196
Hartford Financial Services Group, Inc.		1,656		58,358
Regions Financial Corp.		6,495		58,260
Bank of New York Mellon Corp.		1,723		58,031
State Street Corp.		1,026		54,655
Aflac, Inc.		1,505		51,531
Fifth Third Bancorp		3,399		50,475
Bank of America Corp.		2,340		49,678
Franklin Resources, Inc.		2,880		48,067
Zions Bancorp North America		1,711		45,786
KeyCorp		4,030		41,791
Wells Fargo & Co.		1,381		39,635
Globe Life, Inc.		530		38,144
Raymond James Financial, Inc.		596		37,667
M&T Bank Corp.		330		34,132
Host Hotels & Resorts, Inc. REIT		3,050		33,672
Huntington Bancshares, Inc.		4,074		33,448
Truist Financial Corp.		1,055		32,536
Comerica, Inc.		950		27,873
Alliance Data Systems Corp.		650		21,873
Total Financial				2,916,030
Consumer, Non-cyclical - 22.0%
Kroger Co.		7,407		223,099
Centene Corp.*		3,050		181,200
Archer-Daniels-Midland Co.		5,041		177,342
AmerisourceBergen Corp. — Class A		1,815		160,627
CVS Health Corp.		2,609		154,792
Corteva, Inc.		6,209		145,912
McKesson Corp.		1,048		141,752
Mylan N.V.*		9,483		141,392
Cigna Corp.		740		131,113
Molson Coors Beverage Co. — Class B		3,340		130,294
Perrigo Company plc		1,740		83,677
JM Smucker Co.		659		73,149
Anthem, Inc.		270		61,301
Kraft Heinz Co.		2,202		54,477
Total Consumer, Non-cyclical				1,860,127
Consumer, Cyclical - 17.1%
Ford Motor Co.		32,854		158,685
General Motors Co.		7,505		155,954
Walgreens Boots Alliance, Inc.		2,754		125,996
Macy’s, Inc.1		23,253		114,172
Lennar Corp. — Class A		2,327		88,891
Gap, Inc.		12,229		86,092
Whirlpool Corp.		899		77,134
American Airlines Group, Inc.1		5,734		69,897
Kohl’s Corp.		4,762		69,478
Mohawk Industries, Inc.*		850		64,804
L Brands, Inc.		5,350		61,846
PVH Corp.		1,537		57,853
Best Buy Company, Inc.		905		51,585
BorgWarner, Inc.		2,034		49,569
Nordstrom, Inc.1		3,060		46,940
United Airlines Holdings, Inc.*,1		1,410		44,485
Delta Air Lines, Inc.		1,367		39,001
Carnival Corp.		2,360		31,081
Alaska Air Group, Inc.		1,068		30,406
Capri Holdings Ltd.*		1,410		15,214
Norwegian Cruise Line Holdings Ltd.*		948		10,390
Total Consumer, Cyclical				1,449,473
Energy - 10.6%
Baker Hughes Co.		11,654		122,367
Marathon Petroleum Corp.		4,781		112,927
Concho Resources, Inc.		2,100		89,985
HollyFrontier Corp.		3,630		88,971
Valero Energy Corp.		1,935		87,772
Chevron Corp.		684		49,563
Marathon Oil Corp.		14,610		48,067
Exxon Mobil Corp.		1,220		46,323
Diamondback Energy, Inc.		1,630		42,706
Kinder Morgan, Inc.		3,002		41,788
TechnipFMC plc		5,971		40,245
Devon Energy Corp.		5,360		37,038
Helmerich & Payne, Inc.		2,316		36,245
Halliburton Co.		3,878		26,564
Occidental Petroleum Corp.		2,130		24,665
Total Energy				895,226
Basic Materials - 5.4%
Mosaic Co.		11,120		120,318
DuPont de Nemours, Inc.		2,779		94,764
Nucor Corp.		2,069		74,525
Newmont Corp.		1,560		70,637
International Paper Co.		1,551		48,283
Eastman Chemical Co.		940		43,785
Total Basic Materials				452,312

20 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
S&P 500® PURE VALUE FUND

	Shares		Value
Industrial - 3.3%
Westrock Co.		5,758	$	162,721
FedEx Corp.		530		64,268
Textron, Inc.		2,079		55,447
Total Industrial				282,436
Communications - 2.6%
News Corp. — Class A		9,829		88,215
AT&T, Inc.		1,937		56,464
DISH Network Corp. — Class A*		2,336		46,697
News Corp. — Class B		3,078		27,671
Total Communications				219,047
Technology - 2.3%
Hewlett Packard Enterprise Co.		9,126		88,613
HP, Inc.		3,070		53,295
DXC Technology Co.		3,971		51,822
Total Technology				193,730
Utilities - 2.0%
Exelon Corp.		2,124		78,184
Duke Energy Corp.		644		52,087
CenterPoint Energy, Inc.		2,735		42,256
Total Utilities				172,527
Total Common Stocks
(Cost $12,064,554)				8,440,908

	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.3%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	18,298		18,298
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		7,037		7,037
Total Repurchase Agreements
(Cost $25,335)				25,335
	Shares
SECURITIES LENDING COLLATERAL†,3 - 2.4%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		203,849		203,849
Total Securities Lending Collateral
(Cost $203,849)				203,849
Total Investments - 102.5%
(Cost $12,293,738)			$	8,670,092
Other Assets & Liabilities, net - (2.5)%				(211,283	)
Total Net Assets - 100.0%			$	8,458,809

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	8,440,908	$	—	$	—	$	8,440,908
Repurchase Agreements		—		25,335		—		25,335
Securities Lending Collateral		203,849		—		—		203,849
Total Assets	$	8,644,757	$	25,335	$	—	$	8,670,092

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 21

S&P 500^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $191,609 of securities loaned (cost $12,268,403)	$	8,644,757
Repurchase agreements, at value (cost $25,335)		25,335
Cash		20,311
Receivables:
Dividends		30,385
Securities lending income		61
Fund shares sold		18
Total assets		8,720,867
Liabilities:
Payable for:
Return of securities lending collateral		203,849
Fund shares redeemed		19,642
Management fees		7,842
Transfer agent and administrative fees		4,019
Distribution and service fees		3,501
Portfolio accounting fees		1,046
Trustees’ fees*		319
Miscellaneous		21,840
Total liabilities		262,058
Commitments and contingent liabilities (Note 11)		—
Net assets	$	8,458,809
Net assets consist of:
Paid in capital	$	17,623,549
Total distributable earnings (loss)		(9,164,740	)
Net assets	$	8,458,809
A-Class:
Net assets	$	1,716,151
Capital shares outstanding		35,272
Net asset value per share	$	48.65
Maximum offering price per share (Net asset value divided by 95.25%)	$	51.08
C-Class:
Net assets	$	1,320,764
Capital shares outstanding		32,131
Net asset value per share	$	41.11
H-Class:
Net assets	$	5,421,894
Capital shares outstanding		110,953
Net asset value per share	$	48.87

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends	$	1,230,159
Interest		4,134
Income from securities lending, net		11,846
Total investment income		1,246,139
Expenses:
Management fees		328,805
Distribution and service fees:
A-Class		7,923
C-Class		36,501
H-Class		92,554
Transfer agent and administrative fees		111,007
Portfolio accounting fees		43,840
Registration fees		43,410
Professional fees		19,388
Trustees’ fees*		11,231
Pricing fees		10,358
Custodian fees		6,501
Line of credit fees		15
Miscellaneous		29,752
Total expenses		741,285
Net investment income		504,854
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,699,354
Net realized gain		1,699,354
Net change in unrealized appreciation (depreciation) on:
Investments		(8,983,225	)
Net change in unrealized appreciation (depreciation)		(8,983,225	)
Net realized and unrealized loss		(7,283,871	)
Net decrease in net assets resulting from operations	$	(6,779,017	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

22 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P 500^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	504,854		$	667,896
Net realized gain on investments		1,699,354			526,450
Net change in unrealized appreciation (depreciation) on investments		(8,983,225	)		(5,246,075	)
Net decrease in net assets resulting from operations		(6,779,017	)		(4,051,729	)
Distributions to shareholders:
A-Class		(35,656	)		(437,999	)
C-Class		(34,327	)		(226,269	)
H-Class		(345,333	)		(4,111,371	)
Total distributions to shareholders		(415,316	)		(4,775,639	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,349,084			7,532,490
C-Class		8,884,403			20,662,832
H-Class		97,623,692			110,771,594
Distributions reinvested
A-Class		34,706			399,027
C-Class		32,664			218,319
H-Class		344,762			4,106,739
Cost of shares redeemed
A-Class		(2,191,323	)		(9,948,084	)
C-Class		(9,179,384	)		(22,301,020	)
H-Class		(130,456,068	)		(123,104,778	)
Net decrease from capital share transactions		(33,557,464	)		(11,662,881	)
Net decrease in net assets		(40,751,797	)		(20,490,249	)
Net assets:
Beginning of year		49,210,606			69,700,855
End of year	$	8,458,809		$	49,210,606
Capital share activity:
Shares sold
A-Class		17,823			87,067
C-Class		137,298			291,103
H-Class		1,239,820			1,375,940
Shares issued from reinvestment of distributions
A-Class		428			5,474
C-Class		475			3,504
H-Class		4,229			56,103
Shares redeemed
A-Class		(29,223	)		(119,480	)
C-Class		(141,719	)		(314,385	)
H-Class		(1,700,575	)		(1,575,202	)
Net decrease in shares		(471,444	)		(189,876	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 23

S&P 500^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	76.07		$	83.46		$	76.42		$	66.03		$	72.54
Income (loss) from investment operations:
Net investment income (loss)a		1.02			.85			.60			.55			.73
Net gain (loss) on investments (realized and unrealized)		(27.62	)		(2.17	)		7.41			10.52			(4.63	)
Total from investment operations		(26.60	)		(1.32	)		8.01			11.07			(3.90	)
Less distributions from:
Net investment income		(.82	)		(1.14	)		(.27	)		(.68	)		(.98	)
Net realized gains		—			(4.93	)		(.70	)		—			(1.63	)
Total distributions		(.82	)		(6.07	)		(.97	)		(.68	)		(2.61	)
Net asset value, end of period	$	48.65		$	76.07		$	83.46		$	76.42		$	66.03
Total Returnb		(35.38	%)		(1.26	%)		10.48	%		16.80	%		(5.44	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,716		$	3,518		$	6,108		$	6,686		$	11,135
Ratios to average net assets:
Net investment income (loss)		1.32	%		1.01	%		0.74	%		0.79	%		1.08	%
Total expenses		1.63	%		1.61	%		1.53	%		1.53	%		1.50	%
Portfolio turnover rate		254	%		190	%		252	%		321	%		365	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	64.87		$	72.64		$	67.13		$	58.51		$	65.08
Income (loss) from investment operations:
Net investment income (loss)a		.17			.12			(.03	)		(.01	)		.17
Net gain (loss) on investments (realized and unrealized)		(23.11	)		(1.82	)		6.51			9.31			(4.13	)
Total from investment operations		(22.94	)		(1.70	)		6.48			9.30			(3.96	)
Less distributions from:
Net investment income		(.82	)		(1.14	)		(.27	)		(.68	)		(.98	)
Net realized gains		—			(4.93	)		(.70	)		—			(1.63	)
Total distributions		(.82	)		(6.07	)		(.97	)		(.68	)		(2.61	)
Net asset value, end of period	$	41.11		$	64.87		$	72.64		$	67.13		$	58.51
Total Returnb		(35.87	%)		(2.00	%)		9.66	%		15.94	%		(6.15	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,321		$	2,340		$	4,058		$	3,913		$	3,550
Ratios to average net assets:
Net investment income (loss)		0.26	%		0.17	%		(0.05	%)		(0.01	%)		0.28	%
Total expenses		2.38	%		2.36	%		2.28	%		2.28	%		2.25	%
Portfolio turnover rate		254	%		190	%		252	%		321	%		365	%

24 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P 500^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	76.39		$	83.78		$	76.71		$	66.28		$	72.81
Income (loss) from investment operations:
Net investment income (loss)a		.96			.81			.57			.59			.80
Net gain (loss) on investments (realized and unrealized)		(27.66	)		(2.13	)		7.47			10.52			(4.72	)
Total from investment operations		(26.70	)		(1.32	)		8.04			11.11			(3.92	)
Less distributions from:
Net investment income		(.82	)		(1.14	)		(.27	)		(.68	)		(.98	)
Net realized gains		—			(4.93	)		(.70	)		—			(1.63	)
Total distributions		(.82	)		(6.07	)		(.97	)		(.68	)		(2.61	)
Net asset value, end of period	$	48.87		$	76.39		$	83.78		$	76.71		$	66.28
Total Return		(35.38	%)		(1.25	%)		10.48	%		16.81	%		(5.44	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,422		$	43,352		$	59,536		$	55,613		$	70,983
Ratios to average net assets:
Net investment income (loss)		1.22	%		0.97	%		0.70	%		0.83	%		1.17	%
Total expenses		1.63	%		1.61	%		1.53	%		1.53	%		1.50	%
Portfolio turnover rate		254	%		190	%		252	%		321	%		365	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Share split — Per share amounts for the periods presented through March 31, 2017 have been restated to reflect a 2:1 share split effective October 28, 2016.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 25

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

S&P MIDCAP 400^® PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for mid-cap growth securities on a daily basis. The Fund’s current benchmark is the S&P MidCap 400^® Pure Growth Index (the “underlying index”).

For the year ended March 31, 2020, S&P MidCap 400 Pure Growth Fund H-Class returned -26.38%, compared with a return of -25.57% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

The only sector contributing to the return of the underlying index for the period was Real Estate. The sectors detracting the most from return were Consumer Discretionary, Energy and Information Technology.

The holdings contributing the most to the return of the underlying index for the period were Amedisys, Inc., Churchill Downs, Inc., and Cypress Semiconductor Corp. The holdings detracting the most from return were Mallinckrodt Plc, Matador Resources Co., and WPX Energy, Inc.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	September 1, 2004
C-Class	February 20, 2004
H-Class	February 20, 2004

Ten Largest Holdings (% of Total Net Assets)
SolarEdge Technologies, Inc.	2.6%
Repligen Corp.	2.5%
Axon Enterprise, Inc.	2.4%
Generac Holdings, Inc.	2.3%
Mercury Systems, Inc.	2.2%
Penumbra, Inc.	2.1%
RenaissanceRe Holdings Ltd.	1.9%
FTI Consulting, Inc.	1.8%
Universal Display Corp.	1.8%
Cable One, Inc.	1.8%
Top Ten Total	21.4%

“Ten Largest Holdings” excludes any temporary cash investments.

26 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(26.39%)	(3.91%)	5.16%
A-Class Shares with sales charge‡	(29.89%)	(4.84%)	4.65%
C-Class Shares	(26.95%)	(4.63%)	4.37%
C-Class Shares with CDSC§	(27.68%)	(4.63%)	4.37%
H-Class Shares	(26.38%)	(3.90%)	5.16%
S&P MidCap 400 Pure Growth Index	(25.57%)	(2.50%)	6.61%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Pure Growth Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 27

SCHEDULE OF INVESTMENTS	March 31, 2020
S&P MIDCAP 400® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.7%
Industrial - 26.5%
Axon Enterprise, Inc.*		12,390	$	876,840
Generac Holdings, Inc.*		9,170		854,369
Mercury Systems, Inc.*		11,020		786,167
Universal Display Corp.		5,010		660,218
Trex Company, Inc.*		7,080		567,391
Jabil, Inc.		21,770		535,107
Carlisle Companies, Inc.		4,240		531,187
Knight-Swift Transportation Holdings, Inc.		15,490		508,072
MasTec, Inc.*		14,950		489,314
Teledyne Technologies, Inc.*		1,570		466,714
KBR, Inc.		19,800		409,464
Tetra Tech, Inc.		5,750		406,065
Hubbell, Inc.		3,010		345,367
Timken Co.		10,270		332,132
Coherent, Inc.*		2,840		302,205
Cognex Corp.		6,890		290,896
Woodward, Inc.		4,460		265,102
Nordson Corp.		1,860		251,230
Gentex Corp.		9,990		221,378
Lincoln Electric Holdings, Inc.		2,820		194,580
Clean Harbors, Inc.*		3,660		187,904
Eagle Materials, Inc.		2,730		159,487
Total Industrial				9,641,189
Consumer, Non-cyclical - 23.0%
Repligen Corp.*		9,390		906,511
Penumbra, Inc.*		4,790		772,771
FTI Consulting, Inc.*		5,590		669,514
Exelixis, Inc.*		32,140		553,451
Boston Beer Company, Inc. — Class A*		1,420		521,935
Masimo Corp.*		2,659		470,962
Arrowhead Pharmaceuticals, Inc.*		14,610		420,330
Bio-Techne Corp.		2,110		400,098
Ligand Pharmaceuticals, Inc. — Class B*,1		5,300		385,416
Amedisys, Inc.*		2,060		378,092
PRA Health Sciences, Inc.*		4,281		355,494
Syneos Health, Inc.*		8,830		348,079
Chemed Corp.		791		342,661
WEX, Inc.*		3,070		320,969
Charles River Laboratories International, Inc.*		2,360		297,856
West Pharmaceutical Services, Inc.		1,880		286,230
ICU Medical, Inc.*		1,360		274,407
Catalent, Inc.*		4,900		254,555
Sanderson Farms, Inc.		1,960		241,707
Brink’s Co.		2,950		153,547
Total Consumer, Non-cyclical				8,354,585
Consumer, Cyclical - 16.9%
Domino’s Pizza, Inc.		1,849		599,205
RH*		5,010		503,355
Casey’s General Stores, Inc.		3,730		494,188
Scotts Miracle-Gro Co. — Class A		4,780		489,472
Caesars Entertainment Corp.*		56,680		383,157
Dunkin’ Brands Group, Inc.		7,100		377,010
Five Below, Inc.*		5,280		371,606
Skechers U.S.A., Inc. — Class A*		15,050		357,287
Pool Corp.		1,597		314,242
Marriott Vacations Worldwide Corp.		5,521		306,857
Churchill Downs, Inc.		2,721		280,127
Deckers Outdoor Corp.*		1,930		258,620
Scientific Games Corp. — Class A*		22,795		221,111
Toro Co.		3,270		212,844
Boyd Gaming Corp.		13,220		190,633
Eldorado Resorts, Inc.*,1		11,974		172,426
Wyndham Hotels & Resorts, Inc.		5,218		164,419
Herman Miller, Inc.		6,860		152,292
Polaris, Inc.		3,020		145,413
Tempur Sealy International, Inc.*		3,220		140,746
Total Consumer, Cyclical				6,135,010
Technology - 16.7%
Teradyne, Inc.		11,660		631,622
Cabot Microelectronics Corp.		5,290		603,801
Lumentum Holdings, Inc.*		8,170		602,129
Tyler Technologies, Inc.*		1,950		578,292
MKS Instruments, Inc.		7,050		574,222
Fair Isaac Corp.*		1,721		529,534
Cypress Semiconductor Corp.		22,120		515,838
j2 Global, Inc.		6,241		467,139
Monolithic Power Systems, Inc.		2,760		462,190
CACI International, Inc. — Class A*		1,990		420,189
Perspecta, Inc.		16,280		296,947
Manhattan Associates, Inc.*		4,340		216,219
ACI Worldwide, Inc.*		6,846		165,331
Total Technology				6,063,453
Financial - 6.9%
RenaissanceRe Holdings Ltd.		4,740		707,777
LendingTree, Inc.*,1		2,780		509,824
Cousins Properties, Inc. REIT		16,370		479,150
Brown & Brown, Inc.		10,110		366,184
Primerica, Inc.		3,061		270,837
EastGroup Properties, Inc. REIT		1,800		188,064
Total Financial				2,521,836
Energy - 5.1%
SolarEdge Technologies, Inc.*		11,430		935,889
Murphy USA, Inc.*		6,400		539,904
WPX Energy, Inc.*		73,100		222,955
Matador Resources Co.*,1		59,950		148,676
Total Energy				1,847,424
Communications - 2.6%
Cable One, Inc.		390		641,164
Etsy, Inc.*		7,530		289,453
Total Communications				930,617

28 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
S&P MIDCAP 400® PURE GROWTH FUND

	Shares		Value
Basic Materials - 2.0%
Reliance Steel & Aluminum Co.		5,480	$	479,993
Royal Gold, Inc.		2,920		256,113
Total Basic Materials				736,106
Total Common Stocks
(Cost $43,108,316)				36,230,220
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.3%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	90,593		90,593
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		34,843		34,843
Total Repurchase Agreements
(Cost $125,436)				125,436

	Shares
SECURITIES LENDING COLLATERAL†,3 - 2.2%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		809,443		809,443
Total Securities Lending Collateral
(Cost $809,443)				809,443
Total Investments - 102.2%
(Cost $44,043,195)			$	37,165,099
Other Assets & Liabilities, net - (2.2)%				(804,853	)
Total Net Assets - 100.0%			$	36,360,246

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	36,230,220	$	—	$	—	$	36,230,220
Repurchase Agreements		—		125,436		—		125,436
Securities Lending Collateral		809,443		—		—		809,443
Total Assets	$	37,039,663	$	125,436	$	—	$	37,165,099

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 29

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $803,754 of securities loaned (cost $43,917,759)	$	37,039,663
Repurchase agreements, at value (cost $125,436)		125,436
Cash		101,992
Receivables:
Securities sold		1,451,552
Fund shares sold		35,324
Dividends		13,061
Securities lending income		271
Total assets		38,767,299
Liabilities:
Payable for:
Fund shares redeemed		1,503,571
Return of securities lending collateral		809,443
Management fees		21,175
Distribution and service fees		9,702
Transfer agent and administrative fees		9,055
Portfolio accounting fees		2,823
Trustees’ fees*		766
Miscellaneous		50,518
Total liabilities		2,407,053
Commitments and contingent liabilities (Note 11)		—
Net assets	$	36,360,246
Net assets consist of:
Paid in capital	$	47,941,133
Total distributable earnings (loss)		(11,580,887	)
Net assets	$	36,360,246
A-Class:
Net assets	$	4,556,239
Capital shares outstanding		134,916
Net asset value per share	$	33.77
Maximum offering price per share (Net asset value divided by 95.25%)	$	35.45
C-Class:
Net assets	$	3,956,460
Capital shares outstanding		140,453
Net asset value per share	$	28.17
H-Class:
Net assets	$	27,847,547
Capital shares outstanding		823,489
Net asset value per share	$	33.82

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends	$	464,740
Interest		4,997
Income from securities lending, net		2,436
Total investment income		472,173
Expenses:
Management fees		387,060
Distribution and service fees:
A-Class		20,594
C-Class		66,031
H-Class		91,918
Transfer agent and administrative fees		131,016
Registration fees		52,790
Portfolio accounting fees		51,608
Professional fees		24,048
Trustees’ fees*		13,651
Custodian fees		7,443
Line of credit fees		66
Miscellaneous		43,655
Total expenses		889,880
Net investment loss		(417,707	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		6,126,223
Net realized gain		6,126,223
Net change in unrealized appreciation (depreciation) on:
Investments		(18,577,132	)
Net change in unrealized appreciation (depreciation)		(18,577,132	)
Net realized and unrealized loss		(12,450,909	)
Net decrease in net assets resulting from operations	$	(12,868,616	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

30 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(417,707	)	$	(625,735	)
Net realized gain (loss) on investments		6,126,223			(3,143,761	)
Net change in unrealized appreciation (depreciation) on investments		(18,577,132	)		(123,715	)
Net decrease in net assets resulting from operations		(12,868,616	)		(3,893,211	)
Distributions to shareholders:
A-Class		—			(1,480,551	)
C-Class		—			(1,352,505	)
H-Class		—			(6,205,701	)
Total distributions to shareholders		—			(9,038,757	)
Capital share transactions:
Proceeds from sale of shares
A-Class		2,320,669			9,908,515
C-Class		734,313			1,179,771
H-Class		57,910,692			88,802,650
Distributions reinvested
A-Class		—			1,446,877
C-Class		—			1,337,378
H-Class		—			6,125,144
Cost of shares redeemed
A-Class		(6,586,092	)		(9,974,936	)
C-Class		(3,685,518	)		(6,073,902	)
H-Class		(68,683,226	)		(111,688,160	)
Net decrease from capital share transactions		(17,989,162	)		(18,936,663	)
Net decrease in net assets		(30,857,778	)		(31,868,631	)
Net assets:
Beginning of year		67,218,024			99,086,655
End of year	$	36,360,246		$	67,218,024
Capital share activity:
Shares sold
A-Class		52,212			188,628
C-Class		19,823			26,086
H-Class		1,345,912			1,713,618
Shares issued from reinvestment of distributions
A-Class		—			33,431
C-Class		—			36,691
H-Class		—			141,328
Shares redeemed
A-Class		(150,079	)		(195,357	)
C-Class		(102,639	)		(134,221	)
H-Class		(1,565,661	)		(2,151,342	)
Net decrease in shares		(400,432	)		(341,138	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 31

S&P MIDCAP 400^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	45.88		$	54.96		$	50.84		$	46.51		$	53.86
Income (loss) from investment operations:
Net investment income (loss)a		(.32	)		(.30	)		(.41	)		(.34	)		(.36	)
Net gain (loss) on investments (realized and unrealized)		(11.79	)		(2.39	)		8.09			5.41			(4.48	)
Total from investment operations		(12.11	)		(2.69	)		7.68			5.07			(4.84	)
Less distributions from:
Net realized gains		—			(6.39	)		(3.56	)		(.74	)		(2.51	)
Total distributions		—			(6.39	)		(3.56	)		(.74	)		(2.51	)
Net asset value, end of period	$	33.77		$	45.88		$	54.96		$	50.84		$	46.51
Total Returnb		(26.39	%)		(4.19	%)		15.33	%		10.98	%		(9.23	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,556		$	10,681		$	11,327		$	16,269		$	29,017
Ratios to average net assets:
Net investment income (loss)		(0.72	%)		(0.59	%)		(0.77	%)		(0.71	%)		(0.71	%)
Total expenses		1.63	%		1.62	%		1.53	%		1.52	%		1.50	%
Portfolio turnover rate		190	%		165	%		160	%		127	%		143	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	38.56		$	47.66		$	44.83		$	41.41		$	48.60
Income (loss) from investment operations:
Net investment income (loss)a		(.54	)		(.62	)		(.71	)		(.61	)		(.66	)
Net gain (loss) on investments (realized and unrealized)		(9.85	)		(2.09	)		7.10			4.77			(4.02	)
Total from investment operations		(10.39	)		(2.71	)		6.39			4.16			(4.68	)
Less distributions from:
Net realized gains		—			(6.39	)		(3.56	)		(.74	)		(2.51	)
Total distributions		—			(6.39	)		(3.56	)		(.74	)		(2.51	)
Net asset value, end of period	$	28.17		$	38.56		$	47.66		$	44.83		$	41.41
Total Returnb		(26.95	%)		(4.90	%)		14.47	%		10.16	%		(9.92	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,956		$	8,609		$	14,046		$	15,049		$	20,279
Ratios to average net assets:
Net investment income (loss)		(1.47	%)		(1.37	%)		(1.49	%)		(1.44	%)		(1.46	%)
Total expenses		2.38	%		2.36	%		2.28	%		2.27	%		2.25	%
Portfolio turnover rate		190	%		165	%		160	%		127	%		143	%

32 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P MIDCAP 400^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	45.94		$	55.03		$	50.89		$	46.56		$	53.91
Income (loss) from investment operations:
Net investment income (loss)a		(.31	)		(.34	)		(.40	)		(.33	)		(.36	)
Net gain (loss) on investments (realized and unrealized)		(11.81	)		(2.36	)		8.10			5.40			(4.48	)
Total from investment operations		(12.12	)		(2.70	)		7.70			5.07			(4.84	)
Less distributions from:
Net realized gains		—			(6.39	)		(3.56	)		(.74	)		(2.51	)
Total distributions		—			(6.39	)		(3.56	)		(.74	)		(2.51	)
Net asset value, end of period	$	33.82		$	45.94		$	55.03		$	50.89		$	46.56
Total Return		(26.38	%)		(4.19	%)		15.32	%		10.99	%		(9.22	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	27,848		$	47,929		$	73,714		$	78,373		$	94,915
Ratios to average net assets:
Net investment income (loss)		(0.71	%)		(0.64	%)		(0.74	%)		(0.68	%)		(0.71	%)
Total expenses		1.63	%		1.61	%		1.53	%		1.53	%		1.50	%
Portfolio turnover rate		190	%		165	%		160	%		127	%		143	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 33

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

S&P MIDCAP 400^® PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for mid-cap value securities on a daily basis. The Fund’s current benchmark is the S&P MidCap 400^® Pure Value Index (the “underlying index”).

For the year ended March 31, 2020, S&P MidCap 400 Pure Value Fund H-Class returned -40.86%, compared with a return of -39.51% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

The only sector contributing to the return of the underlying index for the period was Consumer Staples. The sectors detracting the most from return were Consumer Discretionary, Industrials, and Financials.

The holdings contributing the most to the return of the underlying index for the period were KB Home, Legg Mason, Inc., and Jabil, Inc. The holdings detracting the most from return were Resideo Technologies, Inc., Chesapeake Energy Corp., and PBF Energy, Inc. Class A.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	September 1, 2004
C-Class	February 20, 2004
H-Class	February 20, 2004

Ten Largest Holdings (% of Total Net Assets)
Genworth Financial, Inc. — Class A	3.5%
Tech Data Corp.	2.6%
Telephone & Data Systems, Inc.	2.2%
Brighthouse Financial, Inc.	2.2%
Avnet, Inc.	2.2%
Patterson Companies, Inc.	2.1%
United States Steel Corp.	2.1%
CNX Resources Corp.	2.1%
Dillard’s, Inc. — Class A	2.0%
Resideo Technologies, Inc.	2.0%
Top Ten Total	23.0%

“Ten Largest Holdings” excludes any temporary cash investments.

34 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(40.86%)	(6.76%)	1.51%
A-Class Shares with sales charge‡	(43.66%)	(7.66%)	1.02%
C-Class Shares	(41.32%)	(7.46%)	0.75%
C-Class Shares with CDSC§	(41.90%)	(7.46%)	0.75%
H-Class Shares	(40.86%)	(6.76%)	1.50%
S&P MidCap 400 Pure Value Index	(39.51%)	(4.87%)	3.88%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Pure Value Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 35

SCHEDULE OF INVESTMENTS	March 31, 2020
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Financial - 28.8%
Genworth Financial, Inc. — Class A*		32,139	$	106,701
Brighthouse Financial, Inc.*		2,768		66,903
Legg Mason, Inc.		1,203		58,767
CNO Financial Group, Inc.		4,510		55,879
Jefferies Financial Group, Inc.		2,991		40,887
Kemper Corp.		535		39,788
Reinsurance Group of America, Inc. — Class A		432		36,348
GEO Group, Inc. REIT		2,940		35,750
Mercury General Corp.		838		34,123
Umpqua Holdings Corp.		3,033		33,060
CoreCivic, Inc. REIT		2,730		30,494
Old Republic International Corp.		1,994		30,409
FNB Corp.		4,024		29,657
Associated Banc-Corp.		2,033		26,002
Janus Henderson Group plc		1,649		25,263
Navient Corp.		3,080		23,346
Bank OZK		1,305		21,793
PacWest Bancorp		1,165		20,877
Diversified Healthcare Trust REIT		5,617		20,390
Sterling Bancorp		1,896		19,813
Hancock Whitney Corp.		838		16,358
Pinnacle Financial Partners, Inc.		428		16,067
Valley National Bancorp		2,177		15,914
Park Hotels & Resorts, Inc. REIT		2,004		15,852
First Horizon National Corp.		1,869		15,064
Wintrust Financial Corp.		435		14,294
Pebblebrook Hotel Trust REIT		1,207		13,144
TCF Financial Corp.		531		12,032
Texas Capital Bancshares, Inc.*		482		10,686
Total Financial				885,661
Consumer, Cyclical - 25.1%
Dillard’s, Inc. — Class A1		1,646		60,820
Resideo Technologies, Inc.*		12,514		60,568
World Fuel Services Corp.		2,127		53,558
BJ’s Wholesale Club Holdings, Inc.*		2,073		52,799
AutoNation, Inc.*		1,831		51,378
Goodyear Tire & Rubber Co.		8,579		49,930
Lear Corp.		563		45,744
Dana, Inc.		5,647		44,103
Delphi Technologies plc*		5,447		43,848
TRI Pointe Group, Inc.*		4,027		35,317
Thor Industries, Inc.		796		33,575
Taylor Morrison Home Corp. — Class A*		3,008		33,088
Penn National Gaming, Inc.*		2,251		28,475
Foot Locker, Inc.		1,229		27,100
JetBlue Airways Corp.*		2,986		26,725
Adient plc*		2,879		26,112
KAR Auction Services, Inc.		1,844		22,128
Urban Outfitters, Inc.*		1,442		20,534
American Eagle Outfitters, Inc.		2,479		19,708
Dick’s Sporting Goods, Inc.		924		19,644
Bed Bath & Beyond, Inc.1		3,772		15,880
Total Consumer, Cyclical				771,034
Industrial - 17.4%
Tech Data Corp.*		605		79,165
Avnet, Inc.		2,641		66,289
Arrow Electronics, Inc.*		1,037		53,789
Ryder System, Inc.		2,034		53,779
SYNNEX Corp.		691		50,512
AECOM*		1,393		41,581
Greif, Inc. — Class A		1,129		35,101
Trinity Industries, Inc.		1,717		27,592
Terex Corp.		1,754		25,187
II-VI, Inc.*		848		24,168
Dycom Industries, Inc.*		921		23,624
Regal Beloit Corp.		361		22,725
XPO Logistics, Inc.*		334		16,282
Worthington Industries, Inc.		561		14,726
Total Industrial				534,520
Consumer, Non-cyclical - 9.7%
Patterson Companies, Inc.		4,311		65,915
ManpowerGroup, Inc.		869		46,049
TreeHouse Foods, Inc.*		802		35,408
Sprouts Farmers Market, Inc.*		1,611		29,949
Molina Healthcare, Inc.*		201		28,082
Avis Budget Group, Inc.*		1,921		26,702
Graham Holdings Co. — Class B		66		22,517
Adtalem Global Education, Inc.*		719		19,262
Acadia Healthcare Company, Inc.*		797		14,625
Tenet Healthcare Corp.*		796		11,462
Total Consumer, Non-cyclical				299,971
Basic Materials - 8.6%
United States Steel Corp.1		10,312		65,069
Domtar Corp.		2,605		56,372
Olin Corp.		4,594		53,612
Commercial Metals Co.		2,890		45,633
Minerals Technologies, Inc.		608		22,046
Chemours Co.		2,310		20,490
Total Basic Materials				263,222
Energy - 6.3%
CNX Resources Corp.*		12,218		65,000
NOW, Inc.*		8,535		44,041
Equities Corp.		5,976		42,250
PBF Energy, Inc. — Class A		3,056		21,636
Antero Midstream Corp.		6,181		12,980
Patterson-UTI Energy, Inc.		3,877		9,111
Total Energy				195,018
Communications - 2.7%
Telephone & Data Systems, Inc.		4,064		68,113
Meredith Corp.		1,220		14,908
Total Communications				83,021

36 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
Technology - 0.9%
NetScout Systems, Inc.*		1,157	$	27,386
Total Common Stocks
(Cost $3,908,286)				3,059,833
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.2%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	3,669		3,669
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		1,411		1,411
Total Repurchase Agreements
(Cost $5,080)				5,080

	Shares
SECURITIES LENDING COLLATERAL†,3 - 3.4%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		105,657		105,657
Total Securities Lending Collateral
(Cost $105,657)				105,657
Total Investments - 103.1%
(Cost $4,019,023)			$	3,170,570
Other Assets & Liabilities, net - (3.1)%				(94,446	)
Total Net Assets - 100.0%			$	3,076,124

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	3,059,833	$	—	$	—	$	3,059,833
Repurchase Agreements		—		5,080		—		5,080
Securities Lending Collateral		105,657		—		—		105,657
Total Assets	$	3,165,490	$	5,080	$	—	$	3,170,570

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 37

S&P MIDCAP 400^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $101,082 of securities loaned (cost $4,013,943)	$	3,165,490
Repurchase agreements, at value (cost $5,080)		5,080
Cash		4,073
Receivables:
Securities sold		36,108
Dividends		5,590
Securities lending income		138
Total assets		3,216,479
Liabilities:
Payable for:
Return of securities lending collateral		105,657
Fund shares redeemed		25,232
Management fees		1,940
Distribution and service fees		1,056
Transfer agent and administrative fees		933
Portfolio accounting fees		258
Trustees’ fees*		73
Miscellaneous		5,206
Total liabilities		140,355
Commitments and contingent liabilities (Note 11)		—
Net assets	$	3,076,124
Net assets consist of:
Paid in capital	$	6,777,419
Total distributable earnings (loss)		(3,701,295	)
Net assets	$	3,076,124
A-Class:
Net assets	$	749,425
Capital shares outstanding		24,549
Net asset value per share	$	30.53
Maximum offering price per share (Net asset value divided by 95.25%)	$	32.05
C-Class:
Net assets	$	708,211
Capital shares outstanding		26,634
Net asset value per share	$	26.59
H-Class:
Net assets	$	1,618,488
Capital shares outstanding		53,104
Net asset value per share	$	30.48

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends	$	275,447
Interest		1,636
Income from securities lending, net		20,577
Total investment income		297,660
Expenses:
Management fees		108,161
Distribution and service fees:
A-Class		2,948
C-Class		11,902
H-Class		30,130
Transfer agent and administrative fees		36,340
Portfolio accounting fees		14,421
Registration fees		13,249
Professional fees		7,809
Printing fees		4,805
Trustees’ fees*		3,627
Custodian fees		2,074
Line of credit fees		19
Miscellaneous		8,686
Total expenses		244,171
Net investment income		53,489
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		93,505
Net realized gain		93,505
Net change in unrealized appreciation (depreciation) on:
Investments		(2,510,628	)
Net change in unrealized appreciation (depreciation)		(2,510,628	)
Net realized and unrealized loss		(2,417,123	)
Net decrease in net assets resulting from operations	$	(2,363,634	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

38 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P MIDCAP 400^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	53,489		$	(29,720	)
Net realized gain (loss) on investments		93,505			(308,470	)
Net change in unrealized appreciation (depreciation) on investments		(2,510,628	)		150,200
Net decrease in net assets resulting from operations		(2,363,634	)		(187,990	)
Distributions to shareholders:
A-Class		—			(45,986	)
C-Class		—			(43,988	)
H-Class		—			(196,579	)
Total distributions to shareholders		—			(286,553	)
Capital share transactions:
Proceeds from sale of shares
A-Class		2,888,368			3,525,367
C-Class		801,208			2,050,559
H-Class		151,848,364			66,894,202
Distributions reinvested
A-Class		—			33,094
C-Class		—			43,697
H-Class		—			195,599
Cost of shares redeemed
A-Class		(2,875,817	)		(3,336,488	)
C-Class		(1,579,032	)		(2,030,965	)
H-Class		(159,616,730	)		(63,758,018	)
Net increase (decrease) from capital share transactions		(8,533,639	)		3,617,047
Net increase (decrease) in net assets		(10,897,273	)		3,142,504
Net assets:
Beginning of year		13,973,397			10,830,893
End of year	$	3,076,124		$	13,973,397
Capital share activity:
Shares sold
A-Class		56,905			64,344
C-Class		22,021			43,351
H-Class		2,970,212			1,255,133
Shares issued from reinvestment of distributions
A-Class		—			691
C-Class		—			1,038
H-Class		—			4,094
Shares redeemed
A-Class		(55,665	)		(62,058	)
C-Class		(36,039	)		(42,998	)
H-Class		(3,129,154	)		(1,195,323	)
Net increase (decrease) in shares		(171,720	)		68,272

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 39

S&P MIDCAP 400^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	51.62		$	53.32		$	51.39		$	42.43		$	45.68
Income (loss) from investment operations:
Net investment income (loss)a		.34			(.04	)		.02			(.08	)		.16
Net gain (loss) on investments (realized and unrealized)		(21.43	)		(.17	)		2.89			9.14			(3.30	)
Total from investment operations		(21.09	)		(.21	)		2.91			9.06			(3.14	)
Less distributions from:
Net investment income		—			(.02	)		—			(.10	)		(.11	)
Net realized gains		—			(1.47	)		(.98	)		—			—
Total distributions		—			(1.49	)		(.98	)		(.10	)		(.11	)
Net asset value, end of period	$	30.53		$	51.62		$	53.32		$	51.39		$	42.43
Total Returnb		(40.86	%)		(0.16	%)		5.63	%		21.34	%		(6.88	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	749		$	1,203		$	1,084		$	2,957		$	4,775
Ratios to average net assets:
Net investment income (loss)		0.68	%		(0.07	%)		0.03	%		(0.17	%)		0.39	%
Total expenses		1.63	%		1.62	%		1.54	%		1.53	%		1.50	%
Portfolio turnover rate		993	%		558	%		506	%		628	%		493	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	45.31		$	47.35		$	46.08		$	38.33		$	41.59
Income (loss) from investment operations:
Net investment income (loss)a		(.05	)		(.41	)		(.29	)		(.36	)		(.12	)
Net gain (loss) on investments (realized and unrealized)		(18.67	)		(.14	)		2.54			8.21			(3.03	)
Total from investment operations		(18.72	)		(.55	)		2.25			7.85			(3.15	)
Less distributions from:
Net investment income		—			(.02	)		—			(.10	)		(.11	)
Net realized gains		—			(1.47	)		(.98	)		—			—
Total distributions		—			(1.49	)		(.98	)		(.10	)		(.11	)
Net asset value, end of period	$	26.59		$	45.31		$	47.35		$	46.08		$	38.33
Total Returnb		(41.32	%)		(0.88	%)		4.82	%		20.46	%		(7.58	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	708		$	1,842		$	1,859		$	3,266		$	2,165
Ratios to average net assets:
Net investment income (loss)		(0.12	%)		(0.85	%)		(0.62	%)		(0.85	%)		(0.30	%)
Total expenses		2.37	%		2.37	%		2.28	%		2.28	%		2.25	%
Portfolio turnover rate		993	%		558	%		506	%		628	%		493	%

40 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P MIDCAP 400^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	51.54		$	53.25		$	51.33		$	42.38		$	45.62
Income (loss) from investment operations:
Net investment income (loss)a		.20			(.07	)		.04			(.07	)		.20
Net gain (loss) on investments (realized and unrealized)		(21.26	)		(.15	)		2.86			9.12			(3.33	)
Total from investment operations		(21.06	)		(.22	)		2.90			9.05			(3.13	)
Less distributions from:
Net investment income		—			(.02	)		—			(.10	)		(.11	)
Net realized gains		—			(1.47	)		(.98	)		—			—
Total distributions		—			(1.49	)		(.98	)		(.10	)		(.11	)
Net asset value, end of period	$	30.48		$	51.54		$	53.25		$	51.33		$	42.38
Total Return		(40.86	%)		(0.16	%)		5.58	%		21.36	%		(6.86	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,618		$	10,928		$	7,888		$	21,143		$	48,048
Ratios to average net assets:
Net investment income (loss)		0.39	%		(0.13	%)		0.08	%		(0.16	%)		0.47	%
Total expenses		1.63	%		1.62	%		1.53	%		1.53	%		1.51	%
Portfolio turnover rate		993	%		558	%		506	%		628	%		493	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 41

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

S&P SMALLCAP 600^® PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for small-cap growth securities on a daily basis. The Fund’s current benchmark is the S&P SmallCap 600^® Pure Growth Index (the “underlying index”).

For the year ended March 31, 2020, S&P SmallCap 600 Pure Growth Fund H-Class return was -32.77%, compared with a return of -31.65% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

The only sector contributing to the return of the underlying index for the period was Consumer Staples. The sectors detracting the most from return were Consumer Discretionary, Energy, and Industrials.

The holdings contributing the most to the return of the underlying index for the period were Avon Products, Inc., Arrowhead Pharmaceuticals, Inc., and Safehold, Inc. The holdings detracting the most from return were Talos Energy, Inc., NMI Holdings Plc, and Penn Virginia Corp.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	September 1, 2004
C-Class	February 20, 2004
H-Class	February 20, 2004

Ten Largest Holdings (% of Total Net Assets)
Safehold, Inc.	2.9%
Innovative Industrial Properties, Inc.	2.1%
Kinsale Capital Group, Inc.	2.1%
eHealth, Inc.	1.9%
Medpace Holdings, Inc.	1.4%
Federal Signal Corp.	1.4%
KEMET Corp.	1.3%
Wingstop, Inc.	1.3%
Brooks Automation, Inc.	1.3%
NeoGenomics, Inc.	1.3%
Top Ten Total	17.0%

“Ten Largest Holdings” excludes any temporary cash investments.

42 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(32.77%)	(3.68%)	5.54%
A-Class Shares with sales charge‡	(35.96%)	(4.61%)	5.02%
C-Class Shares	(33.28%)	(4.41%)	4.75%
C-Class Shares with CDSC§	(33.95%)	(4.41%)	4.75%
H-Class Shares	(32.77%)	(3.68%)	5.54%
S&P SmallCap 600 Pure Growth Index	(31.65%)	(1.96%)	7.58%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P SmallCap 600 Pure Growth Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 43

SCHEDULE OF INVESTMENTS	March 31, 2020
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Industrial - 23.4%
Federal Signal Corp.		2,149	$	58,625
KEMET Corp.		2,358		56,969
TopBuild Corp.*		671		48,071
Universal Forest Products, Inc.		1,175		43,698
Saia, Inc.*		593		43,609
Griffon Corp.		3,065		38,772
OSI Systems, Inc.*		555		38,251
Ichor Holdings Ltd.*		1,961		37,573
Simpson Manufacturing Company, Inc.		598		37,064
Patrick Industries, Inc.		1,275		35,904
Advanced Energy Industries, Inc.*		674		32,682
ESCO Technologies, Inc.		420		31,882
Alarm.com Holdings, Inc.*		808		31,439
Aerojet Rocketdyne Holdings, Inc.*		729		30,494
Exponent, Inc.		418		30,058
American Woodmark Corp.*		637		29,028
Franklin Electric Company, Inc.		600		28,278
Fabrinet*		509		27,771
John Bean Technologies Corp.		367		27,257
Alamo Group, Inc.		296		26,279
Itron, Inc.*		456		25,458
Watts Water Technologies, Inc. — Class A		292		24,718
AAON, Inc.		496		23,967
Plexus Corp.*		435		23,734
Forward Air Corp.		468		23,704
Vicor Corp.*		512		22,805
Tennant Co.		393		22,775
Triumph Group, Inc.		2,825		19,097
SPX FLOW, Inc.*		665		18,899
SPX Corp.*		528		17,234
Albany International Corp. — Class A		361		17,086
Comtech Telecommunications Corp.		1,037		13,782
CIRCOR International, Inc.*		975		11,339
Total Industrial				998,302
Financial - 18.3%
Safehold, Inc. REIT		1,986		125,575
Innovative Industrial Properties, Inc. REIT1		1,184		89,901
Kinsale Capital Group, Inc.		858		89,687
eHealth, Inc.*		592		83,366
Meta Financial Group, Inc.		2,053		44,591
Virtus Investment Partners, Inc.		565		43,002
Essential Properties Realty Trust, Inc. REIT		3,269		42,693
Community Healthcare Trust, Inc. REIT		1,085		41,534
Walker & Dunlop, Inc.		901		36,283
Enova International, Inc.*		2,188		31,704
NMI Holdings, Inc. — Class A*		2,648		30,743
PennyMac Mortgage Investment Trust REIT		2,738		29,078
Universal Health Realty Income Trust REIT		266		26,815
Preferred Bank/Los Angeles CA		628		21,239
Agree Realty Corp. REIT		281		17,394
ServisFirst Bancshares, Inc.		572		16,771
Granite Point Mortgage Trust, Inc. REIT		2,730		13,841
Total Financial				784,217
Consumer, Non-cyclical - 18.0%
Medpace Holdings, Inc.*		832		61,052
NeoGenomics, Inc.*		1,992		54,999
Innoviva, Inc.*		4,217		49,592
Eagle Pharmaceuticals, Inc.*		944		43,424
Cardiovascular Systems, Inc.*		1,206		42,463
Rent-A-Center, Inc.		2,978		42,109
Corcept Therapeutics, Inc.*		3,266		38,833
Coca-Cola Consolidated, Inc.		179		37,327
ANI Pharmaceuticals, Inc.*		875		35,647
Hanger, Inc.*		2,184		34,027
LHC Group, Inc.*		242		33,928
Enanta Pharmaceuticals, Inc.*		470		24,172
Addus HomeCare Corp.*		344		23,255
Glaukos Corp.*		746		23,022
RadNet, Inc.*		2,099		22,061
Pennant Group, Inc.*		1,513		21,424
CONMED Corp.		357		20,445
LeMaitre Vascular, Inc.		789		19,662
John B Sanfilippo & Son, Inc.		214		19,132
Inter Parfums, Inc.		381		17,659
Cutera, Inc.*		1,324		17,291
EVERTEC, Inc.		748		17,002
Anika Therapeutics, Inc.*		576		16,652
REGENXBIO, Inc.*		484		15,672
CorVel Corp.*		237		12,919
Medifast, Inc.1		201		12,562
RR Donnelley & Sons Co.		12,132		11,629
Total Consumer, Non-cyclical				767,960
Technology - 14.3%
Brooks Automation, Inc.		1,857		56,638
Ultra Clean Holdings, Inc.*		3,454		47,665
FormFactor, Inc.*		2,193		44,057
TTEC Holdings, Inc.		1,188		43,623
Xperi Corp.		2,672		37,168
SPS Commerce, Inc.*		779		36,231
Diodes, Inc.*		847		34,418
ManTech International Corp. — Class A		455		33,065
CSG Systems International, Inc.		747		31,262
Qualys, Inc.*		348		30,273
Glu Mobile, Inc.*		4,458		28,041
3D Systems Corp.*		3,362		25,921
Power Integrations, Inc.		284		25,086
Virtusa Corp.*		839		23,828
Agilysys, Inc.*		1,414		23,614
ExlService Holdings, Inc.*		430		22,373
LivePerson, Inc.*		821		18,678
Digi International, Inc.*		1,953		18,631
Diebold Nixdorf, Inc.*		4,495		15,822
Progress Software Corp.		439		14,048
Total Technology				610,442
Consumer, Cyclical - 13.9%
Wingstop, Inc.		713		56,826
LGI Homes, Inc.*		1,150		51,922
Installed Building Products, Inc.*		1,141		45,492

44 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
Winnebago Industries, Inc.		1,614	$	44,885
Lithia Motors, Inc. — Class A		436		35,660
MDC Holdings, Inc.		1,360		31,552
Callaway Golf Co.		2,965		30,302
Fox Factory Holding Corp.*		718		30,156
LCI Industries		443		29,606
Sleep Number Corp.*		1,424		27,284
UniFirst Corp.		170		25,685
Shake Shack, Inc. — Class A*		632		23,852
Zumiez, Inc.*		1,347		23,330
St. Joe Co.*		1,378		23,123
Cavco Industries, Inc.*		157		22,756
Universal Electronics, Inc.*		546		20,950
Steven Madden Ltd.		882		20,489
Allegiant Travel Co. — Class A		194		15,869
Boot Barn Holdings, Inc.*		1,077		13,926
Chuy’s Holdings, Inc.*		1,213		12,215
Crocs, Inc.*		598		10,160
Total Consumer, Cyclical				596,040
Communications - 5.8%
TechTarget, Inc.*		1,930		39,777
Viavi Solutions, Inc.*		3,168		35,513
Cogent Communications Holdings, Inc.		413		33,853
NIC, Inc.		1,389		31,947
Perficient, Inc.*		957		25,925
Harmonic, Inc.*		3,955		22,781
Extreme Networks, Inc.*		5,375		16,609
8x8, Inc.*		1,087		15,066
QuinStreet, Inc.*		1,758		14,152
Shutterstock, Inc.		437		14,054
Total Communications				249,677
Energy - 3.5%
DMC Global, Inc.		1,556		35,803
Par Pacific Holdings, Inc.*		4,171		29,614
Talos Energy, Inc.*		4,534		26,071
Ring Energy, Inc.*,1		30,234		19,915
Geospace Technologies Corp.*		3,019		19,322
Helix Energy Solutions Group, Inc.*		6,583		10,796
Penn Virginia Corp.*		2,642		8,164
Total Energy				149,685
Basic Materials - 2.3%
Innospec, Inc.		605		42,041
Schweitzer-Mauduit International, Inc.		812		22,590
Koppers Holdings, Inc.*		1,573		19,458
Rogers Corp.*		154		14,541
Total Basic Materials				98,630
Total Common Stocks
(Cost $5,009,676)				4,254,953
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.4%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	11,925		11,925
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		4,586		4,586
Total Repurchase Agreements
(Cost $16,511)				16,511
	Shares
SECURITIES LENDING COLLATERAL†,3 - 2.1%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%4		91,576		91,576
Total Securities Lending Collateral
(Cost $91,576)				91,576
Total Investments - 102.0%
(Cost $5,117,763)			$	4,363,040
Other Assets & Liabilities, net - (2.0)%				(86,009	)
Total Net Assets - 100.0%			$	4,277,031

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of March 31, 2020.
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 45

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
S&P SMALLCAP 600® PURE GROWTH FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	4,254,953	$	—	$	—	$	4,254,953
Repurchase Agreements		—		16,511		—		16,511
Securities Lending Collateral		91,576		—		—		91,576
Total Assets	$	4,346,529	$	16,511	$	—	$	4,363,040

46 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $82,725 of securities loaned (cost $5,101,252)	$	4,346,529
Repurchase agreements, at value (cost $16,511)		16,511
Cash		13,237
Receivables:
Securities sold		34,470
Dividends		3,911
Fund shares sold		189
Securities lending income		28
Total assets		4,414,875
Liabilities:
Payable for:
Return of securities lending collateral		91,576
Fund shares redeemed		30,236
Management fees		3,465
Distribution and service fees		1,615
Transfer agent and administrative fees		1,591
Portfolio accounting fees		462
Trustees’ fees*		132
Miscellaneous		8,767
Total liabilities		137,844
Commitments and contingent liabilities (Note 11)		—
Net assets	$	4,277,031
Net assets consist of:
Paid in capital	$	7,207,580
Total distributable earnings (loss)		(2,930,549	)
Net assets	$	4,277,031
A-Class:
Net assets	$	1,168,560
Capital shares outstanding		26,652
Net asset value per share	$	43.85
Maximum offering price per share (Net asset value divided by 95.25%)	$	46.04
C-Class:
Net assets	$	678,492
Capital shares outstanding		17,663
Net asset value per share	$	38.41
H-Class:
Net assets	$	2,429,979
Capital shares outstanding		55,429
Net asset value per share	$	43.84

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends	$	95,383
Interest		1,190
Income from securities lending, net		4,161
Total investment income		100,734
Expenses:
Management fees		76,989
Distribution and service fees:
A-Class		5,739
C-Class		10,159
H-Class		17,385
Transfer agent and administrative fees		26,100
Registration fees		10,984
Portfolio accounting fees		10,265
Professional fees		6,680
Trustees’ fees*		2,889
Custodian fees		1,481
Line of credit fees		13
Miscellaneous		6,029
Total expenses		174,713
Net investment loss		(73,979	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(384,045	)
Net realized loss		(384,045	)
Net change in unrealized appreciation (depreciation) on:
Investments		(2,835,633	)
Net change in unrealized appreciation (depreciation)		(2,835,633	)
Net realized and unrealized loss		(3,219,678	)
Net decrease in net assets resulting from operations	$	(3,293,657	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 47

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(73,979	)	$	(322,961	)
Net realized loss on investments		(384,045	)		(170,877	)
Net change in unrealized appreciation (depreciation) on investments		(2,835,633	)		(396,935	)
Net decrease in net assets resulting from operations		(3,293,657	)		(890,773	)
Distributions to shareholders:
A-Class		—			(199,451	)
C-Class		—			(184,824	)
H-Class		—			(801,038	)
Total distributions to shareholders		—			(1,185,313	)
Capital share transactions:
Proceeds from sale of shares
A-Class		719,908			7,538,860
C-Class		378,469			3,647,297
H-Class		56,396,230			129,539,372
Distributions reinvested
A-Class		—			186,968
C-Class		—			176,270
H-Class		—			791,837
Cost of shares redeemed
A-Class		(1,307,711	)		(6,699,917	)
C-Class		(595,749	)		(4,578,267	)
H-Class		(59,193,712	)		(137,087,116	)
Net decrease from capital share transactions		(3,602,565	)		(6,484,696	)
Net decrease in net assets		(6,896,222	)		(8,560,782	)
Net assets:
Beginning of year		11,173,253			19,734,035
End of year	$	4,277,031		$	11,173,253
Capital share activity:
Shares sold
A-Class		11,355			96,228
C-Class		6,675			52,419
H-Class		877,834			1,703,060
Shares issued from reinvestment of distributions
A-Class		—			2,842
C-Class		—			3,029
H-Class		—			12,038
Shares redeemed
A-Class		(21,456	)		(88,180	)
C-Class		(10,753	)		(70,247	)
H-Class		(937,806	)		(1,815,964	)
Net decrease in shares		(74,151	)		(104,775	)

48 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P SMALLCAP 600^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	65.22		$	71.79		$	65.58		$	52.28		$	58.90
Income (loss) from investment operations:
Net investment income (loss)a		(.44	)		(.70	)		(.63	)		(.41	)		(.20	)
Net gain (loss) on investments (realized and unrealized)		(20.93	)		(.94	)		9.35			13.71			(6.42	)
Total from investment operations		(21.37	)		(1.64	)		8.72			13.30			(6.62	)
Less distributions from:
Net realized gains		—			(4.93	)		(2.51	)		—			—
Total distributions		—			(4.93	)		(2.51	)		—			—
Net asset value, end of period	$	43.85		$	65.22		$	71.79		$	65.58		$	52.28
Total Returnb		(32.77	%)		(2.34	%)		13.41	%		25.44	%		(11.24	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,169		$	2,397		$	1,857		$	2,526		$	2,451
Ratios to average net assets:
Net investment income (loss)		(0.69	%)		(0.93	%)		(0.91	%)		(0.71	%)		(0.36	%)
Total expenses		1.63	%		1.62	%		1.53	%		1.52	%		1.50	%
Portfolio turnover rate		628	%		421	%		643	%		818	%		309	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	57.57		$	64.43		$	59.55		$	47.82		$	54.28
Income (loss) from investment operations:
Net investment income (loss)a		(.79	)		(1.16	)		(.96	)		(.79	)		(.62	)
Net gain (loss) on investments (realized and unrealized)		(18.37	)		(.77	)		8.35			12.52			(5.84	)
Total from investment operations		(19.16	)		(1.93	)		7.39			11.73			(6.46	)
Less distributions from:
Net realized gains		—			(4.93	)		(2.51	)		—			—
Total distributions		—			(4.93	)		(2.51	)		—			—
Net asset value, end of period	$	38.41		$	57.57		$	64.43		$	59.55		$	47.82
Total Returnb		(33.28	%)		(3.06	%)		12.52	%		24.51	%		(11.90	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	678		$	1,252		$	2,354		$	3,054		$	2,542
Ratios to average net assets:
Net investment income (loss)		(1.43	%)		(1.70	%)		(1.52	%)		(1.48	%)		(1.19	%)
Total expenses		2.38	%		2.36	%		2.28	%		2.28	%		2.25	%
Portfolio turnover rate		628	%		421	%		643	%		818	%		309	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 49

S&P SMALLCAP 600^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	65.21		$	71.78		$	65.58		$	52.27		$	58.89
Income (loss) from investment operations:
Net investment income (loss)a		(.40	)		(.77	)		(.55	)		(.44	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		(20.97	)		(.87	)		9.26			13.75			(6.34	)
Total from investment operations		(21.37	)		(1.64	)		8.71			13.31			(6.62	)
Less distributions from:
Net realized gains		—			(4.93	)		(2.51	)		—			—
Total distributions		—			(4.93	)		(2.51	)		—			—
Net asset value, end of period	$	43.84		$	65.21		$	71.78		$	65.58		$	52.27
Total Return		(32.77	%)		(2.33	%)		13.38	%		25.46	%		(11.24	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,430		$	7,525		$	15,523		$	31,750		$	25,046
Ratios to average net assets:
Net investment income (loss)		(0.63	%)		(0.99	%)		(0.80	%)		(0.75	%)		(0.49	%)
Total expenses		1.63	%		1.61	%		1.53	%		1.53	%		1.50	%
Portfolio turnover rate		628	%		421	%		643	%		818	%		309	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

50 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

S&P SMALLCAP 600^® PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for small-cap value securities on a daily basis. The Fund’s current benchmark is the S&P SmallCap 600^® Pure Value Index (the “underlying index”).

For the year ended March 31, 2020, S&P SmallCap 600 Pure Value Fund H-Class returned -47.87%, compared with a return of -46.25% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

The sectors contributing the most to the return of the underlying index for the year were Information Technology and Health Care. The sectors detracting the most from return were Energy, Consumer Discretionary, and Industrials.

The holdings contributing the most to the return of the underlying index for the period were Ultra Clean Holdings, Inc., Seneca Foods Corp. Class A, and M/I Homes, Inc. The holdings detracting the most from return were Gannett Co., Inc., Denbury Resources, Inc., and Gulfport Energy Corp.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	September 1, 2004
C-Class	February 20, 2004
H-Class	February 20, 2004

Ten Largest Holdings (% of Total Net Assets)
Consolidated Communications Holdings, Inc.	2.5%
Atlas Air Worldwide Holdings, Inc.	2.5%
SpartanNash Co.	2.4%
Southwestern Energy Co.	2.2%
Seneca Foods Corp. — Class A	2.0%
Andersons, Inc.	2.0%
Renewable Energy Group, Inc.	1.7%
Office Depot, Inc.	1.7%
INTL FCStone, Inc.	1.6%
Greenbrier Companies, Inc.	1.6%
Top Ten Total	20.2%

“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 51

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(47.83%)	(12.17%)	(1.86%)
A-Class Shares with sales charge‡	(50.31%)	(13.02%)	(2.34%)
C-Class Shares	(48.24%)	(12.84%)	(2.61%)
C-Class Shares with CDSC§	(48.76%)	(12.84%)	(2.61%)
H-Class Shares	(47.87%)	(12.15%)	(1.88%)
S&P SmallCap 600 Pure Value Index	(46.25%)	(10.27%)	0.74%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P SmallCap 600 Pure Value Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

52 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.8%
Consumer, Cyclical - 27.1%
Office Depot, Inc.		32,035	$	52,537
MarineMax, Inc.*		4,097		42,691
Core-Mark Holding Company, Inc.		1,490		42,569
Anixter International, Inc.*		443		38,926
ScanSource, Inc.*		1,686		36,064
Abercrombie & Fitch Co. — Class A		3,646		33,142
Fossil Group, Inc.*		9,651		31,752
Big Lots, Inc.		2,044		29,066
Cooper-Standard Holdings, Inc.*		2,812		28,879
Titan International, Inc.		15,859		24,581
Movado Group, Inc.		2,063		24,385
Veritiv Corp.*		2,982		23,439
Vista Outdoor, Inc.*		2,339		20,583
Group 1 Automotive, Inc.		453		20,050
Daktronics, Inc.		3,989		19,666
Sonic Automotive, Inc. — Class A		1,455		19,322
Express, Inc.*		12,021		17,911
Red Robin Gourmet Burgers, Inc.*		2,080		17,722
Barnes & Noble Education, Inc.*		12,855		17,483
Genesco, Inc.*		1,295		17,275
Chico’s FAS, Inc.		13,111		16,913
Wabash National Corp.		2,328		16,808
Cooper Tire & Rubber Co.		986		16,072
Cato Corp. — Class A		1,436		15,322
Haverty Furniture Companies, Inc.		1,228		14,601
Conn’s, Inc.*		3,406		14,237
American Axle & Manufacturing Holdings, Inc.*		3,816		13,776
GameStop Corp. — Class A*,1		3,849		13,472
Signet Jewelers Ltd.		2,058		13,274
Ethan Allen Interiors, Inc.		1,280		13,081
Shoe Carnival, Inc.		619		12,857
Hawaiian Holdings, Inc.		1,046		10,920
Designer Brands, Inc. — Class A		2,188		10,896
Caleres, Inc.		2,032		10,566
Unifi, Inc.*		905		10,453
G-III Apparel Group Ltd.*		1,275		9,817
Lumber Liquidators Holdings, Inc.*		1,810		8,489
Tailored Brands, Inc.1		4,792		8,338
Garrett Motion, Inc.*		2,389		6,833
J.C. Penney Company, Inc.*		18,838		6,782
Michaels Companies, Inc.*		3,527		5,714
Vera Bradley, Inc.*		1,268		5,224
Tupperware Brands Corp.		3,158		5,116
Total Consumer, Cyclical				817,604
Consumer, Non-cyclical - 18.8%
SpartanNash Co.		5,061		72,473
Seneca Foods Corp. — Class A*		1,510		60,068
Andersons, Inc.		3,156		59,175
Fresh Del Monte Produce, Inc.		1,682		46,440
Kelly Services, Inc. — Class A		3,583		45,468
Invacare Corp.		5,154		38,294
Magellan Health, Inc.*		576		27,712
United Natural Foods, Inc.*		3,011		27,641
Universal Corp.		619		27,366
B&G Foods, Inc.1		1,432		25,905
Lannett Company, Inc.*		3,514		24,422
TrueBlue, Inc.*		1,663		21,220
Owens & Minor, Inc.		2,240		20,496
ABM Industries, Inc.		781		19,025
Central Garden & Pet Co. — Class A*		641		16,391
Green Dot Corp. — Class A*		623		15,818
Team, Inc.*		2,108		13,702
Central Garden & Pet Co.*		156		4,290
Total Consumer, Non-cyclical				565,906
Industrial - 18.1%
Atlas Air Worldwide Holdings, Inc.*		2,931		75,239
Greenbrier Companies, Inc.		2,644		46,905
Echo Global Logistics, Inc.*		2,503		42,751
Olympic Steel, Inc.		4,120		42,642
Sanmina Corp.*		1,563		42,638
ArcBest Corp.		2,361		41,365
TimkenSteel Corp.*		7,651		24,713
TTM Technologies, Inc.*		2,373		24,537
Hub Group, Inc. — Class A*		537		24,417
Granite Construction, Inc.		1,595		24,212
Boise Cascade Co.		833		19,808
Bel Fuse, Inc. — Class B		1,981		19,295
Briggs & Stratton Corp.		10,163		18,395
Arcosa, Inc.		457		18,161
Lydall, Inc.*		2,779		17,952
LSB Industries, Inc.*		6,099		12,808
Aegion Corp. — Class A*		697		12,497
Trinseo S.A.		686		12,424
Applied Optoelectronics, Inc.*		1,371		10,406
US Concrete, Inc.*		470		8,526
DXP Enterprises, Inc.*		419		5,137
Total Industrial				544,828
Energy - 14.3%
Southwestern Energy Co.*,1		38,864		65,680
Renewable Energy Group, Inc.*		2,560		52,557
Exterran Corp.*		8,345		40,056
Green Plains, Inc.		4,461		21,636
CONSOL Energy, Inc.*		5,847		21,575
Bonanza Creek Energy, Inc.*		1,857		20,891
SunCoke Energy, Inc.		5,161		19,870
Era Group, Inc.*		3,063		16,326
Matrix Service Co.*		1,576		14,925
ProPetro Holding Corp.*		5,533		13,832
Gulfport Energy Corp.*		29,256		13,010
RPC, Inc.1		5,840		12,030
Denbury Resources, Inc.*		64,783		11,959
Range Resources Corp.1		5,217		11,895
TETRA Technologies, Inc.*		34,719		11,110
Warrior Met Coal, Inc.		910		9,664
Whiting Petroleum Corp.*		13,826		9,269
Oasis Petroleum, Inc.*		25,112		8,789
HighPoint Resources Corp.*		38,799		7,372

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 53

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
Laredo Petroleum, Inc.*		19,331	$	7,342
KLX Energy Services Holdings, Inc.*		10,317		7,222
US Silica Holdings, Inc.		3,788		6,818
SM Energy Co.		5,220		6,368
Noble Corporation plc*		20,667		5,374
Valaris plc*		8,505		3,828
Oceaneering International, Inc.*		1,188		3,493
Nabors Industries Ltd.		8,796		3,431
Oil States International, Inc.*		1,585		3,218
Total Energy				429,540
Financial - 11.8%
INTL FCStone, Inc.*		1,335		48,407
EZCORP, Inc. — Class A*		10,716		44,686
FGL Holdings		3,410		33,418
iStar, Inc. REIT		2,307		24,477
American Equity Investment Life Holding Co.		975		18,330
Stewart Information Services Corp.		669		17,842
Realogy Holdings Corp.		5,845		17,594
United Insurance Holdings Corp.		1,494		13,805
Encore Capital Group, Inc.*		561		13,116
Horace Mann Educators Corp.		339		12,404
Third Point Reinsurance Ltd.*		1,551		11,493
United Fire Group, Inc.		325		10,598
Simmons First National Corp. — Class A		554		10,194
Hope Bancorp, Inc.		1,199		9,856
Opus Bank		554		9,601
Cedar Realty Trust, Inc. REIT		9,723		9,072
Customers Bancorp, Inc.*		809		8,842
Cadence BanCorp		1,304		8,541
Pacific Premier Bancorp, Inc.		423		7,969
Ready Capital Corp. REIT		999		7,213
Hersha Hospitality Trust REIT		1,945		6,963
Berkshire Hills Bancorp, Inc.		466		6,925
CBL & Associates Properties, Inc. REIT*		18,699		3,742
Total Financial				355,088
Communications - 4.6%
Consolidated Communications Holdings, Inc.		16,689		75,935
Gannett Company, Inc.		11,472		16,979
NETGEAR, Inc.*		734		16,765
Spok Holdings, Inc.		1,496		15,992
Scholastic Corp.		546		13,917
Total Communications				139,588
Basic Materials - 3.0%
Clearwater Paper Corp.*		933		20,349
Kraton Corp.*		2,375		19,237
AdvanSix, Inc.*		1,925		18,365
Century Aluminum Co.*		5,065		18,335
Rayonier Advanced Materials, Inc.		14,501		15,371
Total Basic Materials				91,657
Technology - 2.1%
Donnelley Financial Solutions, Inc.*		4,012		21,143
Unisys Corp.*		1,630		20,131
Pitney Bowes, Inc.		5,086		10,375
Photronics, Inc.*		1,006		10,322
Total Technology				61,971
Total Common Stocks
(Cost $3,366,799)				3,006,182
RIGHTS††† - 0.0%
BASIC MATERIALS - 0.0%
A Schulman, Inc.*,2		1,520		—
Total Rights
(Cost $—)				—
	Face Amount
REPURCHASE AGREEMENTS††,3 - 0.3%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	$	6,963		6,963
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		2,678		2,678
Total Repurchase Agreements
(Cost $9,641)				9,641
	Shares
SECURITIES LENDING COLLATERAL†,4 - 3.1%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%5		93,624		93,624
Total Securities Lending Collateral
(Cost $93,624)				93,624
Total Investments - 103.2%
(Cost $3,470,064)			$	3,109,447
Other Assets & Liabilities, net - (3.2)%				(95,353	)
Total Net Assets - 100.0%			$	3,014,094

54 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
S&P SMALLCAP 600® PURE VALUE FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Security was fair valued by the Valuation Committee at March 31, 2020. The total market value of fair valued securities amounts to $0, (cost $0) or 0.0% of total net assets.
3	Repurchase Agreements — See Note 6.
4	Securities lending collateral — See Note 7.
5	Rate indicated is the 7-day yield as of March 31, 2020.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs			Total
Common Stocks	$	3,006,182	$	—	$	—		$	3,006,182
Rights		—		—		—	*		—
Repurchase Agreements		—		9,641		—			9,641
Securities Lending Collateral		93,624		—		—			93,624
Total Assets	$	3,099,806	$	9,641	$	—		$	3,109,447

* Security has a market value of $0.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 55

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value - including $91,270 of securities loaned (cost $3,460,423)	$	3,099,806
Repurchase agreements, at value (cost $9,641)		9,641
Cash		8,636
Receivables:
Dividends		3,123
Securities lending income		177
Total assets		3,121,383
Liabilities:
Payable for:
Return of securities lending collateral		93,624
Fund shares redeemed		5,805
Management fees		1,630
Transfer agent and administrative fees		789
Distribution and service fees		770
Portfolio accounting fees		217
Trustees’ fees*		60
Miscellaneous		4,394
Total liabilities		107,289
Commitments and contingent liabilities (Note 11)		—
Net assets	$	3,014,094
Net assets consist of:
Paid in capital	$	11,488,205
Total distributable earnings (loss)		(8,474,111	)
Net assets	$	3,014,094
A-Class:
Net assets	$	935,644
Capital shares outstanding		69,362
Net asset value per share	$	13.49
Maximum offering price per share (Net asset value divided by 95.25%)	$	14.16
C-Class:
Net assets	$	571,438
Capital shares outstanding		49,855
Net asset value per share	$	11.46
H-Class:
Net assets	$	1,507,012
Capital shares outstanding		112,051
Net asset value per share	$	13.45

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends	$	122,795
Interest		1,322
Income from securities lending, net		8,910
Total investment income		133,027
Expenses:
Management fees		83,092
Distribution and service fees:
A-Class		3,147
C-Class		5,279
H-Class		23,230
Transfer agent and administrative fees		27,942
Registration fees		12,019
Portfolio accounting fees		11,079
Professional fees		6,581
Trustees’ fees*		2,913
Printing fees		2,622
Custodian fees		1,576
Line of credit fees		290
Miscellaneous		5,715
Total expenses		185,485
Net investment loss		(52,458	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(777,560	)
Net realized loss		(777,560	)
Net change in unrealized appreciation (depreciation) on:
Investments		(1,353,130	)
Net change in unrealized appreciation (depreciation)		(1,353,130	)
Net realized and unrealized loss		(2,130,690	)
Net decrease in net assets resulting from operations	$	(2,183,148	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

56 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(52,458	)	$	4,020
Net realized loss on investments		(777,560	)		(597,081	)
Net change in unrealized appreciation (depreciation) on investments		(1,353,130	)		112,414
Net decrease in net assets resulting from operations		(2,183,148	)		(480,647	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,507,622			3,963,689
C-Class		873,764			1,906,223
H-Class		136,769,330			90,671,854
Cost of shares redeemed
A-Class		(1,281,826	)		(3,227,735	)
C-Class		(1,203,729	)		(2,343,774	)
H-Class		(142,913,535	)		(88,932,802	)
Net increase (decrease) from capital share transactions		(6,248,374	)		2,037,455
Net increase (decrease) in net assets		(8,431,522	)		1,556,808
Net assets:
Beginning of year		11,445,616			9,888,808
End of year	$	3,014,094		$	11,445,616
Capital share activity:
Shares sold
A-Class		67,970			137,867
C-Class		58,172			76,965
H-Class		5,501,520			3,174,393
Shares redeemed
A-Class		(50,006	)		(114,025	)
C-Class		(55,955	)		(93,594	)
H-Class		(5,740,669	)		(3,098,645	)
Net increase (decrease) in shares		(218,968	)		82,961

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 57

S&P SMALLCAP 600^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	25.86		$	27.64		$	27.24		$	23.16		$	25.81
Income (loss) from investment operations:
Net investment income (loss)a		(.10	)		.06			(.08	)		(.14	)		(.10	)
Net gain (loss) on investments (realized and unrealized)		(12.27	)		(1.84	)		.48			4.22			(2.55	)
Total from investment operations		(12.37	)		(1.78	)		.40			4.08			(2.65	)
Net asset value, end of period	$	13.49		$	25.86		$	27.64		$	27.24		$	23.16
Total Returnb		(47.83	%)		(6.44	%)		1.47	%		17.62	%		(10.27	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	936		$	1,329		$	762		$	1,720		$	1,113
Ratios to average net assets:
Net investment income (loss)		(0.42	%)		0.21	%		(0.30	%)		(0.50	%)		(0.42	%)
Total expenses		1.63	%		1.62	%		1.53	%		1.53	%		1.50	%
Portfolio turnover rate		1,104	%		534	%		1,832	%		1,449	%		417	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	22.14		$	23.84		$	23.68		$	20.28		$	22.78
Income (loss) from investment operations:
Net investment income (loss)a		(.25	)		(.13	)		(.21	)		(.28	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		(10.43	)		(1.57	)		.37			3.68			(2.26	)
Total from investment operations		(10.68	)		(1.70	)		.16			3.40			(2.50	)
Net asset value, end of period	$	11.46		$	22.14		$	23.84		$	23.68		$	20.28
Total Returnb		(48.24	%)		(7.13	%)		0.68	%		16.77	%		(10.97	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	571		$	1,055		$	1,532		$	1,778		$	1,847
Ratios to average net assets:
Net investment income (loss)		(1.20	%)		(0.53	%)		(0.90	%)		(1.26	%)		(1.17	%)
Total expenses		2.38	%		2.36	%		2.28	%		2.28	%		2.25	%
Portfolio turnover rate		1,104	%		534	%		1,832	%		1,449	%		417	%

58 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P SMALLCAP 600^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	25.80		$	27.57		$	27.13		$	23.07		$	25.71
Income (loss) from investment operations:
Net investment income (loss)a		(.11	)		.02			(.09	)		(.12	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		(12.24	)		(1.79	)		.53			4.18			(2.57	)
Total from investment operations		(12.35	)		(1.77	)		.44			4.06			(2.64	)
Net asset value, end of period	$	13.45		$	25.80		$	27.57		$	27.13		$	23.07
Total Return		(47.87	%)		(6.42	%)		1.62	%		17.60	%		(10.27	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,507		$	9,062		$	7,595		$	19,782		$	18,071
Ratios to average net assets:
Net investment income (loss)		(0.44	%)		0.06	%		(0.32	%)		(0.47	%)		(0.32	%)
Total expenses		1.64	%		1.62	%		1.53	%		1.53	%		1.50	%
Portfolio turnover rate		1,104	%		534	%		1,832	%		1,449	%		417	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 59

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

EUROPE 1.25x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark. The Fund’s current benchmark is 125% of the fair value of the STOXX^® Europe 50 Index (the “underlying index”).

For the one year period ended March 31, 2020, Europe 1.25x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 125% of the daily price movement of the underlying index. Europe 1.25x Strategy Fund H-Class returned -18.28% while the underlying index returned -11.52% over the same period.

No sector contributed to the return of the underlying index for the period. The sectors detracting the most from return were Financials, Industrials, and Consumer Staples.

The holdings contributing the most to the return of the underlying index for the period were Nestle S.A., ASML Holding N.V., and Roche Holding AG. The holdings detracting the most from return were BP Plc, HSBE Holdings Plc, and Banco Santander S.A.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration Fund, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one year period ended March 31, 2020, investment in the Short Term Investment Vehicles benefited Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

60 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Inception Dates:
A-Class	March 31, 2004
C-Class	May 10, 2001
H-Class	May 8, 2000

Country Diversification

Country	% of Long-Term Investments
United Kingdom	30.2%
Switzerland	24.0%
France	18.4%
Germany	12.1%
Netherlands	5.5%
Italy	3.0%
Denmark	2.9%
Spain	2.7%
Other	1.2%
Total Long-Term Investments	100.0%

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	14.5%
Guggenheim Ultra Short Duration Fund — Institutional Class	13.6%
Nestle S.A. ADR	2.1%
Roche Holding AG ADR	1.6%
Novartis AG ADR	1.4%
SAP SE ADR	0.8%
AstraZeneca plc ADR	0.8%
HSBC Holdings plc ADR	0.8%
ASML Holding N.V. — Class G	0.7%
Novo Nordisk A/S ADR	0.7%
Top Ten Total	37.0%

“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(18.25%)	(3.75%)	(0.93%)
A-Class Shares with sales charge‡	(22.13%)	(4.69%)	(1.41%)
C-Class Shares	(18.79%)	(4.42%)	(1.74%)
C-Class Shares with CDSC§	(19.60%)	(4.42%)	(1.74%)
H-Class Shares	(18.28%)	(3.72%)	(1.01%)
STOXX Europe 50 Index	(11.52%)	(0.85%)	1.65%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The STOXX Europe 50 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 61

SCHEDULE OF INVESTMENTS	March 31, 2020
EUROPE 1.25x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 24.3%
Consumer, Non-cyclical - 11.5%
Nestle S.A. ADR		379	$	39,033
Roche Holding AG ADR		716		29,048
Novartis AG ADR		305		25,147
AstraZeneca plc ADR		331		14,782
Novo Nordisk A/S ADR		219		13,184
Sanofi ADR		289		12,635
GlaxoSmithKline plc ADR		317		12,011
British American Tobacco plc ADR		288		9,847
Diageo plc ADR		74		9,407
Unilever N.V. — Class Y		174		8,489
L’Oreal S.A. ADR		155		8,138
Unilever plc ADR		147		7,434
Bayer AG ADR1		501		7,250
Reckitt Benckiser Group plc ADR		464		7,148
RELX plc ADR		251		5,371
Anheuser-Busch InBev S.A. ADR1		108		4,765
Total Consumer, Non-cyclical				213,689
Financial - 3.4%
HSBC Holdings plc ADR		527		14,761
Allianz SE ADR*		534		9,051
Zurich Insurance Group AG ADR		192		6,777
Banco Santander S.A. ADR		2,135		5,017
AXA S.A. ADR		261		4,513
BNP Paribas S.A. ADR		296		4,458
UBS Group AG*		455		4,213
Prudential plc ADR		165		4,089
Lloyds Banking Group plc ADR		2,351		3,550
Intesa Sanpaolo SpA ADR		345		3,392
ING Groep N.V. ADR		501		2,580
Total Financial				62,401
Energy - 1.9%
Total S.A. ADR		331		12,326
BP plc ADR		432		10,537
Royal Dutch Shell plc — Class A ADR		263		9,176
Eni SpA ADR		161		3,191
Total Energy				35,230
Industrial - 1.8%
Siemens AG ADR		205		8,610
Schneider Electric SE ADR		348		5,951
Vinci S.A. ADR		282		5,747
Airbus SE ADR		296		4,780
Safran S.A. ADR		184		4,013
ABB Ltd. ADR		226		3,901
Total Industrial				33,002
Basic Materials - 1.7%
Linde plc		70		12,110
Air Liquide S.A. ADR		304		7,705
Rio Tinto plc ADR		135		6,150
BASF SE ADR		474		5,546
Total Basic Materials				31,511
Technology - 1.6%
SAP SE ADR1		139		15,360
ASML Holding N.V. — Class G		53		13,867
Total Technology				29,227
Utilities - 1.0%
Iberdrola S.A. ADR		189		7,353
Enel SpA ADR		998		7,006
National Grid plc ADR		88		5,128
Total Utilities				19,487
Consumer, Cyclical - 0.9%
LVMH Moet Hennessy Louis Vuitton SE ADR		169		12,576
Daimler AG ADR		433		3,217
Total Consumer, Cyclical				15,793
Communications - 0.5%
Deutsche Telekom AG ADR*		412		5,331
Vodafone Group plc ADR		339		4,668
Total Communications				9,999
Total Common Stocks
(Cost $434,463)				450,339
MUTUAL FUNDS† - 28.1%
Guggenheim Strategy Fund II2		11,196		269,269
Guggenheim Ultra Short Duration Fund — Institutional Class2		25,819		252,254
Total Mutual Funds
(Cost $534,490)				521,523
	Face Amount
U.S. TREASURY BILLS†† - 7.2%
U.S. Treasury Bills
0.50% due 04/30/203,4	$	133,000		132,994
Total U.S. Treasury Bills
(Cost $132,945)				132,994
REPURCHASE AGREEMENTS††,5 - 18.8%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20		252,383		252,383
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20		97,071		97,071
Total Repurchase Agreements
(Cost $349,454)				349,454

62 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
EUROPE 1.25x STRATEGY FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,6 - 1.1%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%7		21,155	$	21,155
Total Securities Lending Collateral
(Cost $21,155)				21,155
Total Investments - 79.5%
(Cost $1,472,507)			$	1,475,465
Other Assets & Liabilities, net - 20.5%				381,548
Total Net Assets - 100.0%			$	1,857,013

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation (Depreciation)**
Equity Futures Contracts Purchased†
STOXX Europe 50 Index Futures Contracts		62		Jun 2020	$	1,821,318	$	160,993
Currency Futures Contracts Purchased†
Euro FX Futures Contracts		14		Jun 2020		1,936,113		(16,004	)

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Affiliated issuer.
3	All or a portion of this security is pledged as futures collateral at March 31, 2020.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	Securities lending collateral — See Note 7.
7	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 63

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
EUROPE 1.25x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	450,339	$	—	$	—	$	450,339
Mutual Funds		521,523		—		—		521,523
U.S. Treasury Bills		—		132,994		—		132,994
Repurchase Agreements		—		349,454		—		349,454
Securities Lending Collateral		21,155		—		—		21,155
Equity Futures Contracts**		160,993		—		—		160,993
Total Assets	$	1,154,010	$	482,448	$	—	$	1,636,458

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Currency Futures Contracts**	$	16,004	$	—	$	—	$	16,004

** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	1,602,092	$	3,400,000	$	(4,720,000	)	$	(8,723	)	$	(4,100	)	$	269,269		11,196	$	38,376
Guggenheim Ultra Short Duration Fund — Institutional Class		1,659,329		3,300,000		(4,700,000	)		(2,394	)		(4,681	)		252,254		25,819		32,774
	$	3,261,421	$	6,700,000	$	(9,420,000	)	$	(11,117	)	$	(8,781	)	$	521,523			$	71,150

64 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

EUROPE 1.25x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value - including $20,492 of securities loaned (cost $588,563)	$	604,488
Investments in affiliated issuers, at value (cost $534,490)		521,523
Repurchase agreements, at value (cost $349,454)		349,454
Foreign currency, at value (cost $195,794)		196,093
Cash		84,498
Segregated cash with broker		286,032
Receivables:
Foreign tax reclaims		17,600
Dividends		2,158
Fund shares sold		1,270
Securities lending income		8
Total assets		2,063,124
Liabilities:
Payable for:
Fund shares redeemed		178,930
Return of securities lending collateral		21,155
Management fees		1,033
Transfer agent and administrative fees		435
Distribution and service fees		391
Variation margin on futures contracts		272
Portfolio accounting fees		121
Trustees’ fees*		32
Miscellaneous		3,742
Total liabilities		206,111
Commitments and contingent liabilities (Note 11)		—
Net assets	$	1,857,013
Net assets consist of:
Paid in capital	$	2,248,906
Total distributable earnings (loss)		(391,893	)
Net assets	$	1,857,013
A-Class:
Net assets	$	217,337
Capital shares outstanding		3,136
Net asset value per share	$	69.30
Maximum offering price per share (Net asset value divided by 95.25%)	$	72.76
C-Class:
Net assets	$	296,100
Capital shares outstanding		5,084
Net asset value per share	$	58.24
H-Class:
Net assets	$	1,343,576
Capital shares outstanding		19,531
Net asset value per share	$	68.79

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $5,801)	$	71,623
Dividends from securities of affiliated issuers		71,150
Interest		83,866
Income from securities lending, net		1,326
Total investment income		227,965
Expenses:
Management fees		84,784
Distribution and service fees:
A-Class		380
C-Class		682
H-Class		23,000
Transfer agent and administrative fees		23,684
Portfolio accounting fees		9,420
Registration fees		6,759
Professional fees		4,535
Printing fees		3,920
Pricing fees		2,183
Licensing fees		2,122
Trustees’ fees*		1,911
Custodian fees		1,141
Line of credit fees		4
Miscellaneous		5,341
Total expenses		169,866
Less:
Expenses waived by Adviser		(3,356	)
Net expenses		166,510
Net investment income		61,455
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		230,492
Investments in affiliated issuers		(11,117	)
Futures contracts		(85,515	)
Foreign currency transactions		6,718
Net realized gain		140,578
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(156,227	)
Investments in affiliated issuers		(8,781	)
Futures contracts		85,388
Foreign currency translations		256
Net change in unrealized appreciation (depreciation)		(79,364	)
Net realized and unrealized gain		61,214
Net increase in net assets resulting from operations	$	122,669

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 65

EUROPE 1.25x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	61,455		$	62,717
Net realized gain (loss) on investments		140,578			(586,715	)
Net change in unrealized appreciation (depreciation) on investments		(79,364	)		7,390
Net increase (decrease) in net assets resulting from operations		122,669			(516,608	)
Distributions to shareholders:
A-Class		(1,228	)		(11,761	)
C-Class		(1,486	)		(5,085	)
H-Class		(58,704	)		(138,834	)
Total distributions to shareholders		(61,418	)		(155,680	)
Capital share transactions:
Proceeds from sale of shares
A-Class		260,090			113,776
C-Class		1,532,352			1,056,521
H-Class		341,054,759			190,754,647
Distributions reinvested
A-Class		999			9,063
C-Class		1,157			5,085
H-Class		57,686			136,099
Cost of shares redeemed
A-Class		(241,632	)		(311,969	)
C-Class		(1,307,652	)		(1,209,501	)
H-Class		(377,010,299	)		(156,987,688	)
Net increase (decrease) from capital share transactions		(35,652,540	)		33,566,033
Net increase (decrease) in net assets		(35,591,289	)		32,893,745
Net assets:
Beginning of year		37,448,302			4,554,557
End of year	$	1,857,013		$	37,448,302
Capital share activity:
Shares sold
A-Class		3,600			1,280
C-Class		21,584			13,646
H-Class		3,874,912			2,140,485
Shares issued from reinvestment of distributions
A-Class		11			121
C-Class		15			80
H-Class		633			1,829
Shares redeemed
A-Class		(2,632	)		(3,484	)
C-Class		(16,852	)		(15,670	)
H-Class		(4,296,290	)		(1,744,293	)
Net increase (decrease) in shares		(415,019	)		393,994

66 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

EUROPE 1.25x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	85.18		$	94.56		$	84.99		$	78.10		$	93.32
Income (loss) from investment operations:
Net investment income (loss)a		.63			1.70			.82			1.08			(.06	)
Net gain (loss) on investments (realized and unrealized)		(16.07	)f		(4.78	)		8.99			6.51			(14.44	)
Total from investment operations		(15.44	)		(3.08	)		9.81			7.59			(14.50	)
Less distributions from:
Net investment income		(.44	)		(6.30	)		(.24	)		(.70	)		(.72	)
Total distributions		(.44	)		(6.30	)		(.24	)		(.70	)		(.72	)
Net asset value, end of period	$	69.30		$	85.18		$	94.56		$	84.99		$	78.10
Total Returnb		(18.25	%)		(2.32	%)		11.53	%		9.83	%		(15.58	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	217		$	184		$	401		$	417		$	859
Ratios to average net assets:
Net investment income (loss)		0.72	%		1.89	%		0.88	%		1.35	%		(0.08	%)
Total expensesc		1.77	%		1.76	%		1.71	%		1.72	%		1.67	%
Net expensesd		1.73	%		1.76	%		1.71	%		1.72	%		1.67	%
Portfolio turnover rate		1,787	%		1,411	%		422	%		1,616	%		920	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	72.13		$	81.77		$	74.07		$	68.62		$	82.63
Income (loss) from investment operations:
Net investment income (loss)a		(.18	)		.96			(.09	)		.35			(.54	)
Net gain (loss) on investments (realized and unrealized)		(13.27	)f		(4.30	)		8.03			5.80			(12.75	)
Total from investment operations		(13.45	)		(3.34	)		7.94			6.15			(13.29	)
Less distributions from:
Net investment income		(.44	)		(6.30	)		(.24	)		(.70	)		(.72	)
Total distributions		(.44	)		(6.30	)		(.24	)		(.70	)		(.72	)
Net asset value, end of period	$	58.24		$	72.13		$	81.77		$	74.07		$	68.62
Total Returnb		(18.79	%)		(3.04	%)		10.70	%		9.09	%		(16.14	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	296		$	24		$	187		$	840		$	440
Ratios to average net assets:
Net investment income (loss)		(0.25	%)		1.22	%		(0.11	%)		0.50	%		(0.64	%)
Total expensesc		2.49	%		2.50	%		2.46	%		2.49	%		2.42	%
Net expensesd		2.45	%		2.50	%		2.46	%		2.49	%		2.42	%
Portfolio turnover rate		1,787	%		1,411	%		422	%		1,616	%		920	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 67

EUROPE 1.25x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	84.58		$	93.89		$	84.38		$	77.38		$	92.50
Income (loss) from investment operations:
Net investment income (loss)a		.58			1.26			1.02			.46			.18
Net gain (loss) on investments (realized and unrealized)		(15.93	)f		(4.27	)		8.73			7.24			(14.58	)
Total from investment operations		(15.35	)		(3.01	)		9.75			7.70			(14.40	)
Less distributions from:
Net investment income		(.44	)		(6.30	)		(.24	)		(.70	)		(.72	)
Total distributions		(.44	)		(6.30	)		(.24	)		(.70	)		(.72	)
Net asset value, end of period	$	68.79		$	84.58		$	93.89		$	84.38		$	77.38
Total Return		(18.28	%)		(2.28	%)		11.55	%		10.06	%		(15.64	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,344		$	37,240		$	3,967		$	6,439		$	4,533
Ratios to average net assets:
Net investment income (loss)		0.66	%		1.42	%		1.09	%		0.59	%		0.19	%
Total expensesc		1.80	%		1.76	%		1.71	%		1.73	%		1.66	%
Net expensesd		1.76	%		1.76	%		1.71	%		1.73	%		1.66	%
Portfolio turnover rate		1,787	%		1,411	%		422	%		1,616	%		920	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Reverse share split — Per share amounts for the periods presented through March 31, 2017 have been restated to reflect a 1:6 reverse share split effective October 28, 2016.
f	The amount shown for a share outstanding throughout the period does not accord with the aggregate net gains on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

68 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

JAPAN 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark. The Fund’s current benchmark is 200% of the fair value of the Nikkei-225 Stock Average Index (the “underlying index”).

For the one year period ended March 31, 2020, Japan 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the fair value of the underlying index. Japan 2x Strategy Fund H-Class returned -20.17%, while the underlying index returned -8.32% over the same time period.

The sectors contributing the most to the return of the underlying index for the period were Information Technology and Health Care. The sectors detracting the most from return were Industrials, Financials, and Materials.

The holdings contributing the most to the return of the underlying index for the period were Fast Retailing Co. Ltd., Tokyo Electron Ltd., and Advantest Corp. Those detracting most from return were SoftBank Group Corp., Mitsubishi UFJ Financial Group, Inc., and Sumitomo Mitsui Financial Group, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration Fund, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one year period ended March 31, 2020, investment in the Short Term Investment Vehicles benefited Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

THE RYDEX FUNDS ANNUAL REPORT | 69

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Inception Dates:
A-Class	February 22, 2008
C-Class	February 22, 2008
H-Class	February 22, 2008

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Ultra Short Duration Fund — Institutional Class	16.5%
Guggenheim Strategy Fund II	16.0%
Total	32.5%

“Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(20.15%)	1.29%	4.18%
A-Class Shares with sales charge‡	(23.94%)	0.31%	3.67%
C-Class Shares	(20.75%)	0.53%	3.47%
C-Class Shares with CDSC§	(21.53%)	0.53%	3.47%
H-Class Shares	(20.17%)	1.36%	4.26%
Nikkei-225 Stock Average Index	(8.32%)	1.85%	3.99%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Nikkei-225 Stock Average Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

70 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
JAPAN 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 32.4%
Guggenheim Ultra Short Duration Fund — Institutional Class1		16,474	$	160,954
Guggenheim Strategy Fund II1		6,492		156,143
Total Mutual Funds
(Cost $325,163)				317,097
	Face Amount
FEDERAL AGENCY NOTES†† - 20.4%
Federal Farm Credit Bank
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222	$	100,000		100,220
0.38% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/222		100,000		99,836
Total Federal Agency Notes
(Cost $200,000)				200,056

U.S. TREASURY BILLS†† - 13.7%
U.S. Treasury Bills
0.50% due 04/30/203,4	134,000		133,994
Total U.S. Treasury Bills
(Cost $133,945)			133,994
REPURCHASE AGREEMENTS††,5 - 19.1%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/20	134,819		134,819
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/20	51,853		51,853
Total Repurchase Agreements
(Cost $186,672)			186,672
Total Investments - 85.6%
(Cost $845,780)		$	837,819
Other Assets & Liabilities, net - 14.4%			140,434
Total Net Assets - 100.0%		$	978,253

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation (Depreciation)**
Currency Futures Contracts Purchased†
Japanese Yen Futures Contracts		17		Jun 2020	$	1,982,625	$	29,735
Equity Futures Contracts Purchased†
Nikkei 225 (CME) Index Futures Contracts		21		Jun 2020		1,990,800		(52,426	)

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at March 31, 2020. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures collateral at March 31, 2020.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
	CME — Chicago Mercantile Exchange
	See Sector Classification in Other Information section.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 71

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
JAPAN 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	317,097	$	—	$	—	$	317,097
Federal Agency Notes		—		200,056		—		200,056
U.S. Treasury Bills		—		133,994		—		133,994
Repurchase Agreements		—		186,672		—		186,672
Currency Futures Contracts**		29,735		—		—		29,735
Total Assets	$	346,832	$	520,722	$	—	$	867,554

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts**	$	52,426	$	—	$	—	$	52,426

** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	551,937	$	—	$	(390,000	)	$	(2,975	)	$	(2,819	)	$	156,143		6,492	$	14,561
Guggenheim Ultra Short Duration Fund — Institutional Class		544,826		—		(380,000	)		(1,497	)		(2,375	)		160,954		16,474		10,204
	$	1,096,763	$	—	$	(770,000	)	$	(4,472	)	$	(5,194	)	$	317,097			$	24,765

72 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

JAPAN 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value (cost $333,945)	$	334,050
Investments in affiliated issuers, at value (cost $325,163)		317,097
Repurchase agreements, at value (cost $186,672)		186,672
Cash		149,657
Segregated cash with broker		35,275
Receivables:
Dividends		922
Interest		355
Fund shares sold		300
Total assets		1,024,328
Liabilities:
Payable for:
Variation margin on futures contracts		31,944
Fund shares redeemed		11,469
Management fees		577
Transfer agent and administrative fees		288
Distribution and service fees		224
Portfolio accounting fees		85
Trustees’ fees*		23
Miscellaneous		1,465
Total liabilities		46,075
Commitments and contingent liabilities (Note 11)		—
Net assets	$	978,253
Net assets consist of:
Paid in capital	$	3,831,826
Total distributable earnings (loss)		(2,853,573	)
Net assets	$	978,253
A-Class:
Net assets	$	140,544
Capital shares outstanding		1,480
Net asset value per share	$	94.96
Maximum offering price per share (Net asset value divided by 95.25%)	$	99.70
C-Class:
Net assets	$	20,855
Capital shares outstanding		240
Net asset value per share	$	87.00
H-Class:
Net assets	$	816,854
Capital shares outstanding		8,536
Net asset value per share	$	95.70

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of affiliated issuers	$	24,765
Interest		22,787
Total investment income		47,552
Expenses:
Management fees		15,734
Distribution and service fees:
A-Class		617
C-Class		337
H-Class		4,544
Transfer agent and administrative fees		5,322
Portfolio accounting fees		2,097
Registration fees		1,799
Professional fees		617
Trustees’ fees*		449
Custodian fees		298
Line of credit fees		10
Miscellaneous		2,538
Total expenses		34,362
Less:
Expenses waived by Adviser		(1,043	)
Net expenses		33,319
Net investment income		14,233
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		3,104
Investments in affiliated issuers		(4,472	)
Futures contracts		(376,018	)
Net realized loss		(377,386	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		190
Investments in affiliated issuers		(5,194	)
Futures contracts		(1,783	)
Net change in unrealized appreciation (depreciation)		(6,787	)
Net realized and unrealized loss		(384,173	)
Net decrease in net assets resulting from operations	$	(369,940	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 73

JAPAN 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	14,233		$	33,302
Net realized loss on investments		(377,386	)		(316,418	)
Net change in unrealized appreciation (depreciation) on investments		(6,787	)		(411,313	)
Net decrease in net assets resulting from operations		(369,940	)		(694,429	)
Distributions to shareholders:
A-Class		(2,129	)		(900	)
C-Class		(330	)		(137	)
H-Class		(17,851	)		(12,057	)
Total distributions to shareholders		(20,310	)		(13,094	)
Capital share transactions:
Proceeds from sale of shares
A-Class		444,621			172,222
C-Class		353,184			625,943
H-Class		26,008,199			120,323,537
Distributions reinvested
A-Class		1,354			583
C-Class		321			134
H-Class		14,464			11,391
Cost of shares redeemed
A-Class		(458,558	)		(326,361	)
C-Class		(353,755	)		(662,832	)
H-Class		(26,780,558	)		(122,716,606	)
Net decrease from capital share transactions		(770,728	)		(2,571,989	)
Net decrease in net assets		(1,160,978	)		(3,279,512	)
Net assets:
Beginning of year		2,139,231			5,418,743
End of year	$	978,253		$	2,139,231
Capital share activity:
Shares sold
A-Class		3,455			1,347
C-Class		2,897			5,185
H-Class		205,913			907,364
Shares issued from reinvestment of distributions
A-Class		9			5
C-Class		2			1
H-Class		98			95
Shares redeemed
A-Class		(3,747	)		(2,550	)
C-Class		(2,928	)		(5,457	)
H-Class		(213,175	)		(927,706	)
Net decrease in shares		(7,476	)		(21,716	)

74 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

JAPAN 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	119.96		$	136.57		$	102.24		$	78.81		$	93.15
Income (loss) from investment operations:
Net investment income (loss)a		.91			1.22			(.03	)		(.74	)		(1.12	)
Net gain (loss) on investments (realized and unrealized)		(24.67	)		(17.32	)		38.80	f		24.17			(13.22	)
Total from investment operations		(23.76	)		(16.10	)		38.77			23.43			(14.34	)
Less distributions from:
Net investment income		(1.24	)		(.51	)		—			—			—
Net realized gains		—			—			(4.44	)		—			—
Total distributions		(1.24	)		(.51	)		(4.44	)		—			—
Net asset value, end of period	$	94.96		$	119.96		$	136.57		$	102.24		$	78.81
Total Returnb		(20.15	%)		(11.79	%)		37.94	%		29.73	%		(15.41	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	141		$	211		$	404		$	389		$	351
Ratios to average net assets:
Net investment income (loss)		0.70	%		0.93	%		(0.02	%)		(0.80	%)		(1.22	%)
Total expensesc		1.63	%		1.58	%		1.51	%		1.52	%		1.51	%
Net expensesd		1.57	%		1.56	%		1.51	%		1.52	%		1.51	%
Portfolio turnover rate		—			—			17	%		1,225	%		543	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	110.80		$	127.14		$	96.17		$	74.63		$	88.92
Income (loss) from investment operations:
Net investment income (loss)a		(.06	)		.19			(.80	)		(1.33	)		(1.68	)
Net gain (loss) on investments (realized and unrealized)		(22.50	)		(16.02	)		36.21	f		22.87			(12.61	)
Total from investment operations		(22.56	)		(15.83	)		35.41			21.54			(14.29	)
Less distributions from:
Net investment income		(1.24	)		(.51	)		—			—			—
Net realized gains		—			—			(4.44	)		—			—
Total distributions		(1.24	)		(.51	)		(4.44	)		—			—
Net asset value, end of period	$	87.00		$	110.80		$	127.14		$	96.17		$	74.63
Total Returnb		(20.75	%)		(12.43	%)		36.90	%		28.74	%		(16.06	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	21		$	30		$	69		$	52		$	56
Ratios to average net assets:
Net investment income (loss)		(0.05	%)		0.16	%		(0.68	%)		(1.53	%)		(1.91	%)
Total expensesc		2.38	%		2.33	%		2.26	%		2.27	%		2.24	%
Net expensesd		2.32	%		2.31	%		2.26	%		2.27	%		2.24	%
Portfolio turnover rate		—			—			17	%		1,225	%		543	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 75

JAPAN 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	120.89		$	137.58		$	102.97		$	79.15		$	93.52
Income (loss) from investment operations:
Net investment income (loss)a		.90			1.09			(.12	)		(.86	)		(1.08	)
Net gain (loss) on investments (realized and unrealized)		(24.85	)		(17.27	)		39.17	f		24.68			(13.29	)
Total from investment operations		(23.95	)		(16.18	)		39.05			23.82			(14.37	)
Less distributions from:
Net investment income		(1.24	)		(.51	)		—			—			—
Net realized gains		—			—			(4.44	)		—			—
Total distributions		(1.24	)		(.51	)		(4.44	)		—			—
Net asset value, end of period	$	95.70		$	120.89		$	137.58		$	102.97		$	79.15
Total Return		(20.17	%)		(11.76	%)		37.95	%		30.08	%		(15.36	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	817		$	1,898		$	4,946		$	3,145		$	2,413
Ratios to average net assets:
Net investment income (loss)		0.69	%		0.83	%		(0.10	%)		(0.95	%)		(1.17	%)
Total expensesc		1.63	%		1.58	%		1.50	%		1.52	%		1.49	%
Net expensesd		1.58	%		1.57	%		1.50	%		1.52	%		1.49	%
Portfolio turnover rate		—			—			17	%		1,225	%		543	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Reverse share split — Per share amounts for the years presented through March 31, 2017 have been restated to reflect a 1:4 share split effective November 4, 2016.
f	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the period because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

76 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

STRENGTHENING DOLLAR 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the performance of the U.S. Dollar Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one year period ended March 31, 2020, Strengthening Dollar 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the underlying index. Strengthening Dollar 2x Strategy Fund H-Class returned 6.39%, compared with a return of 1.82% for its benchmark, the underlying index.

Contributing the most to performance of the underlying index for the year were the values of the U.S. Dollar relative to the British Pound, Euro, and Canadian Dollar. The values of the U.S. Dollar relative to the Japanese Yen and Swiss Franc detracted the most from performance.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration Fund, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one year period ended March 31, 2020, investment in the Short Term Investment Vehicles benefited Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

THE RYDEX FUNDS ANNUAL REPORT | 77

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Inception Dates:
A-Class	May 25, 2005
C-Class	May 25, 2005
H-Class	May 25, 2005

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Ultra Short Duration Fund — Institutional Class	9.6%
Guggenheim Strategy Fund II	9.5%
Total	19.1%

“Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	6.38%	0.82%	1.68%
A-Class Shares with sales charge‡	1.32%	(0.16%)	1.19%
C-Class Shares	5.62%	0.07%	0.92%
C-Class Shares with CDSC§	4.62%	0.07%	0.92%
H-Class Shares	6.39%	0.82%	1.69%
U.S. Dollar Index	1.82%	0.14%	2.02%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The U.S. Dollar Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

78 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
STRENGTHENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 19.1%
Guggenheim Ultra Short Duration Fund — Institutional Class1		129,747	$	1,267,630
Guggenheim Strategy Fund II1		52,018		1,251,036
Total Mutual Funds
(Cost $2,584,320)				2,518,666
	Face Amount
FEDERAL AGENCY NOTES†† - 9.0%
Federal Farm Credit Bank
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222	$	500,000		501,102
0.44% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/222		180,000		180,391
Fannie Mae
0.23% (U.S. Secured Overnight Financing Rate + 0.22%, Rate Floor: 0.00%) due 03/16/222		500,000		499,010
Total Federal Agency Notes
(Cost $1,180,000)				1,180,503

U.S. TREASURY BILLS†† - 1.9%
U.S. Treasury Bills
0.50% due 04/30/203,4	246,000		245,989
Total U.S. Treasury Bills
(Cost $245,900)			245,989
REPURCHASE AGREEMENTS††,5 - 37.7%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/206	3,592,954		3,592,954
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/206	1,381,905		1,381,905
Total Repurchase Agreements
(Cost $4,974,859)			4,974,859
Total Investments - 67.7%
(Cost $8,985,079)		$	8,920,017
Other Assets & Liabilities, net - 32.3%			4,260,958
Total Net Assets - 100.0%		$	13,180,975

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Currency Futures Contracts Purchased†
U.S. Dollar Index Futures Contracts		239		Jun 2020	$	23,653,830	$	213,600

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Currency Index Swap Agreements††
Goldman Sachs International	U.S. Dollar Index	N/A	At Maturity		06/19/20		27,660	$	2,736,210	$	55,165

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at March 31, 2020. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures collateral at March 31, 2020.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as currency index swap collateral at March 31, 2020.
	See Sector Classification in Other Information section.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 79

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
STRENGTHENING DOLLAR 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	2,518,666	$	—	$	—	$	2,518,666
Federal Agency Notes		—		1,180,503		—		1,180,503
U.S. Treasury Bills		—		245,989		—		245,989
Repurchase Agreements		—		4,974,859		—		4,974,859
Currency Futures Contracts**		213,600		—		—		213,600
Currency Index Swap Agreements**		—		55,165		—		55,165
Total Assets	$	2,732,266	$	6,456,516	$	—	$	9,188,782

** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	1,491,136	$	—	$	(200,000	)	$	(1,554	)	$	(38,546	)	$	1,251,036		52,018	$	39,720
Guggenheim Ultra Short Duration Fund — Institutional Class		1,493,579		—		(200,000	)		(954	)		(24,995	)		1,267,630		129,747		32,451
	$	2,984,715	$	—	$	(400,000	)	$	(2,508	)	$	(63,541	)	$	2,518,666			$	72,171

80 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value (cost $1,425,900)	$	1,426,492
Investments in affiliated issuers, at value (cost $2,584,320)		2,518,666
Repurchase agreements, at value (cost $4,974,859)		4,974,859
Cash		3,959,940
Segregated cash with broker		352,740
Unrealized appreciation on OTC swap agreements		55,165
Receivables:
Fund shares sold		9,790
Swap settlement		7,615
Dividends		4,747
Interest		517
Total assets		13,310,531
Liabilities:
Payable for:
Variation margin on futures contracts		74,329
Fund shares redeemed		19,374
Licensing fees		8,785
Management fees		7,255
Transfer agent and administrative fees		2,451
Distribution and service fees		2,141
Portfolio accounting fees		835
Trustees’ fees*		221
Miscellaneous		14,165
Total liabilities		129,556
Commitments and contingent liabilities (Note 11)		—
Net assets	$	13,180,975
Net assets consist of:
Paid in capital	$	31,755,236
Total distributable earnings (loss)		(18,574,261	)
Net assets	$	13,180,975
A-Class:
Net assets	$	2,535,331
Capital shares outstanding		45,815
Net asset value per share	$	55.34
Maximum offering price per share (Net asset value divided by 95.25%)	$	58.10
C-Class:
Net assets	$	96,339
Capital shares outstanding		1,963
Net asset value per share	$	49.08
H-Class:
Net assets	$	10,549,305
Capital shares outstanding		191,376
Net asset value per share	$	55.12

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of affiliated issuers	$	72,171
Interest		98,802
Total investment income		170,973
Expenses:
Management fees		70,023
Distribution and service fees:
A-Class		4,097
C-Class		1,920
H-Class		14,874
Transfer agent and administrative fees		19,814
Licensing fees		17,667
Portfolio accounting fees		7,780
Professional fees		2,907
Trustees’ fees*		1,909
Custodian fees		1,113
Line of credit fees		17
Miscellaneous		15,001
Total expenses		157,122
Less:
Expenses waived by Adviser		(3,338	)
Net expenses		153,784
Net investment income		17,189
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		1,480
Investments in affiliated issuers		(2,508	)
Swap agreements		(13,409	)
Futures contracts		(50,465	)
Net realized loss		(64,902	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		1,257
Investments in affiliated issuers		(63,541	)
Swap agreements		46,386
Futures contracts		102,745
Net change in unrealized appreciation (depreciation)		86,847
Net realized and unrealized gain		21,945
Net increase in net assets resulting from operations	$	39,134

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 81

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	17,189		$	47,969
Net realized gain (loss) on investments		(64,902	)		2,695,502
Net change in unrealized appreciation (depreciation) on investments		86,847			86,614
Net increase in net assets resulting from operations		39,134			2,830,085
Distributions to shareholders:
A-Class		(9,611	)		—
C-Class		(807	)		—
H-Class		(35,177	)		—
Total distributions to shareholders		(45,595	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		3,235,923			6,926,805
C-Class		215,609			3,989,197
H-Class		77,816,276			109,304,977
Distributions reinvested
A-Class		9,238			—
C-Class		804			—
H-Class		34,387			—
Cost of shares redeemed
A-Class		(2,491,383	)		(7,246,656	)
C-Class		(919,579	)		(4,150,682	)
H-Class		(72,303,681	)		(112,677,372	)
Net increase (decrease) from capital share transactions		5,597,594			(3,853,731	)
Net increase (decrease) in net assets		5,591,133			(1,023,646	)
Net assets:
Beginning of year		7,589,842			8,613,488
End of year	$	13,180,975		$	7,589,842
Capital share activity:
Shares sold
A-Class		57,467			147,999
C-Class		4,363			92,512
H-Class		1,436,108			2,248,108
Shares issued from reinvestment of distributions
A-Class		173			—
C-Class		17			—
H-Class		648			—
Shares redeemed
A-Class		(45,804	)		(148,943	)
C-Class		(19,278	)		(95,966	)
H-Class		(1,341,390	)		(2,297,724	)
Net increase (decrease) in shares		92,304			(54,014	)

82 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

STRENGTHENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	52.46		$	43.45		$	53.23		$	47.68		$	55.75
Income (loss) from investment operations:
Net investment income (loss)a		.16			.19			(.16	)		(.55	)		(.58	)
Net gain (loss) on investments (realized and unrealized)		3.17			8.82			(9.62	)		6.10			(5.32	)
Total from investment operations		3.33			9.01			(9.78	)		5.55			(5.90	)
Less distributions from:
Net investment income		(.45	)		—			—			—			—
Net realized gains		—			—			—			—			(2.17	)
Total distributions		(.45	)		—			—			—			(2.17	)
Net asset value, end of period	$	55.34		$	52.46		$	43.45		$	53.23		$	47.68
Total Returnb		6.38	%		20.74	%		(18.37	%)		11.64	%		(11.01	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,535		$	1,782		$	1,517		$	2,245		$	1,900
Ratios to average net assets:
Net investment income (loss)		0.29	%		0.40	%		(0.34	%)		(1.07	%)		(1.10	%)
Total expensesc		2.00	%		1.83	%		1.72	%		1.73	%		1.69	%
Net expensesd		1.96	%		1.82	%		1.72	%		1.73	%		1.69	%
Portfolio turnover rate		—			9	%		—			142	%		376	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	46.91		$	39.14		$	48.32		$	43.60		$	51.55
Income (loss) from investment operations:
Net investment income (loss)a		(.16	)		(.15	)		(.48	)		(.82	)		(.85	)
Net gain (loss) on investments (realized and unrealized)		2.78			7.92			(8.70	)		5.54			(4.93	)
Total from investment operations		2.62			7.77			(9.18	)		4.72			(5.78	)
Less distributions from:
Net investment income		(.45	)		—			—			—			—
Net realized gains		—			—			—			—			(2.17	)
Total distributions		(.45	)		—			—			—			(2.17	)
Net asset value, end of period	$	49.08		$	46.91		$	39.14		$	48.32		$	43.60
Total Returnb		5.62	%		19.85	%		(18.98	%)		10.80	%		(11.69	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	96		$	791		$	795		$	1,309		$	1,938
Ratios to average net assets:
Net investment income (loss)		(0.33	%)		(0.33	%)		(1.14	%)		(1.80	%)		(1.75	%)
Total expensesc		2.77	%		2.59	%		2.47	%		2.48	%		2.45	%
Net expensesd		2.72	%		2.58	%		2.47	%		2.48	%		2.45	%
Portfolio turnover rate		—			9	%		—			142	%		376	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 83

STRENGTHENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	52.25		$	43.27		$	53.03		$	47.49		$	55.53
Income (loss) from investment operations:
Net investment income (loss)a		.12			.18			(.17	)		(.56	)		(.59	)
Net gain (loss) on investments (realized and unrealized)		3.20			8.80			(9.59	)		6.10			(5.28	)
Total from investment operations		3.32			8.98			(9.76	)		5.54			(5.87	)
Less distributions from:
Net investment income		(.45	)		—			—			—			—
Net realized gains		—			—			—			—			(2.17	)
Total distributions		(.45	)		—			—			—			(2.17	)
Net asset value, end of period	$	55.12		$	52.25		$	43.27		$	53.03		$	47.49
Total Return		6.39	%		20.75	%		(18.39	%)		11.64	%		(11.00	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,549		$	5,017		$	6,301		$	7,506		$	10,608
Ratios to average net assets:
Net investment income (loss)		0.22	%		0.36	%		(0.36	%)		(1.11	%)		(1.12	%)
Total expensesc		2.00	%		1.83	%		1.72	%		1.73	%		1.70	%
Net expensesd		1.96	%		1.82	%		1.72	%		1.73	%		1.70	%
Portfolio turnover rate		—			9	%		—			142	%		376	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

84 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

WEAKENING DOLLAR 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the inverse (opposite) of the performance of the U.S. Dollar Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one year period ended March 31, 2020, Weakening Dollar 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of -200% of the daily price movement of the underlying index. Weakening Dollar 2x Strategy Fund H-Class returned -8.98%, compared with a return of 1.82% for its benchmark, the underlying index.

Contributing the most to performance of the underlying index for the year were the values of the U.S. Dollar relative to the British Pound, Euro, and Canadian Dollar. The values of the U.S. Dollar relative to the Japanese Yen and Swiss Franc detracted the most from performance.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration Fund, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one year period ended March 31, 2020, investment in the Short Term Investment Vehicles benefited Fund performance.

Performance displayed represents past performance, which is no guarantee of future result.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

THE RYDEX FUNDS ANNUAL REPORT | 85

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Inception Dates:
A-Class	May 25, 2005
C-Class	May 25, 2005
H-Class	May 25, 2005

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Ultra Short Duration Fund — Institutional Class	10.9%
Guggenheim Strategy Fund II	10.5%
Total	21.4%

“Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(8.94%)	(3.86%)	(6.01%)
A-Class Shares with sales charge‡	(13.27%)	(4.80%)	(6.47%)
C-Class Shares	(9.65%)	(4.60%)	(6.71%)
C-Class Shares with CDSC§	(10.55%)	(4.60%)	(6.71%)
H-Class Shares	(8.98%)	(3.88%)	(6.01%)
U.S. Dollar Index	1.82%	0.14%	2.02%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The U.S. Dollar Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

86 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
WEAKENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 21.4%
Guggenheim Ultra Short Duration Fund — Institutional Class1		17,470	$	170,685
Guggenheim Strategy Fund II1		6,870		165,222
Total Mutual Funds
(Cost $343,024)				335,907
	Face Amount
FEDERAL AGENCY NOTES†† - 58.1%
Federal Farm Credit Bank
0.38% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/222	$	400,000		399,346
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222		250,000		250,551
0.44% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/222		60,000		60,130
Federal Home Loan Bank
0.75% (3 Month USD LIBOR - 0.14%, Rate Floor: 0.00%) due 12/18/202		200,000		200,042
Total Federal Agency Notes
(Cost $909,924)				910,069

U.S. TREASURY BILLS†† - 5.1%
U.S. Treasury Bills
0.50% due 04/30/203,4	80,000		79,997
Total U.S. Treasury Bills
(Cost $79,968)			79,997
REPURCHASE AGREEMENTS††,5 - 26.2%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/206	296,019		296,019
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/206	113,854		113,854
Total Repurchase Agreements
(Cost $409,873)			409,873
Total Investments - 110.8%
(Cost $1,742,789)		$	1,735,846
Other Assets & Liabilities, net - (10.8)%			(169,770	)
Total Net Assets - 100.0%		$	1,566,076

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Currency Futures Contracts Sold Short†
U.S. Dollar Index Futures Contracts		29		Jun 2020	$	2,870,130	$	(32,589	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Currency Index Swap Agreements Sold Short††
Goldman Sachs International	U.S. Dollar Index	N/A	At Maturity		06/19/20		3,007	$	297,494	$	3,173

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at March 31, 2020. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures collateral at March 31, 2020.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as currency index swap collateral at March 31, 2020.
	See Sector Classification in Other Information section.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 87

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
WEAKENING DOLLAR 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	335,907	$	—	$	—	$	335,907
Federal Agency Notes		—		910,069		—		910,069
U.S. Treasury Bills		—		79,997		—		79,997
Repurchase Agreements		—		409,873		—		409,873
Currency Index Swap Agreements**		—		3,173		—		3,173
Total Assets	$	335,907	$	1,403,112	$	—	$	1,739,019

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Currency Futures Contracts**	$	32,589	$	—	$	—	$	32,589

** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	372,974	$	—	$	(200,000	)	$	(4,047	)	$	(3,705	)	$	165,222		6,870	$	10,083
Guggenheim Ultra Short Duration Fund — Institutional Class		274,635		—		(100,000	)		(857	)		(3,093	)		170,685		17,470		5,579
	$	647,609	$	—	$	(300,000	)	$	(4,904	)	$	(6,798	)	$	335,907			$	15,662

88 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value (cost $989,892)	$	990,066
Investments in affiliated issuers, at value (cost $343,024)		335,907
Repurchase agreements, at value (cost $409,873)		409,873
Cash		245,800
Segregated cash with broker		7,903
Unrealized appreciation on OTC swap agreements		3,173
Receivables:
Variation margin on futures contracts		10,911
Interest		1,515
Dividends		887
Fund shares sold		340
Total assets		2,006,375
Liabilities:
Payable for:
Fund shares redeemed		412,271
Swap settlement		17,928
Management fees		1,772
Transfer agent and administrative fees		670
Distribution and service fees		514
Portfolio accounting fees		202
Trustees’ fees*		59
Miscellaneous		6,883
Total liabilities		440,299
Commitments and contingent liabilities (Note 11)		—
Net assets	$	1,566,076
Net assets consist of:
Paid in capital	$	11,829,877
Total distributable earnings (loss)		(10,263,801	)
Net assets	$	1,566,076
A-Class:
Net assets	$	237,381
Capital shares outstanding		4,103
Net asset value per share	$	57.85
Maximum offering price per share (Net asset value divided by 95.25%)	$	60.73
C-Class:
Net assets	$	20,855
Capital shares outstanding		408
Net asset value per share	$	51.07
H-Class:
Net assets	$	1,307,840
Capital shares outstanding		22,641
Net asset value per share	$	57.76

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends from securities of affiliated issuers	$	15,662
Interest		48,515
Total investment income		64,177
Expenses:
Management fees		27,446
Distribution and service fees:
A-Class		933
C-Class		240
H-Class		6,631
Transfer agent and administrative fees		7,790
Licensing fees		6,517
Portfolio accounting fees		3,049
Professional fees		1,428
Trustees’ fees*		666
Custodian fees		428
Miscellaneous		5,712
Total expenses		60,840
Less:
Expenses waived by Adviser		(575	)
Net expenses		60,265
Net investment income		3,912
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(4,904	)
Swap agreements		(54,229	)
Futures contracts		(189,507	)
Net realized loss		(248,640	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		387
Investments in affiliated issuers		(6,798	)
Swap agreements		4,783
Futures contracts		(2,825	)
Net change in unrealized appreciation (depreciation)		(4,453	)
Net realized and unrealized loss		(253,093	)
Net decrease in net assets resulting from operations	$	(249,181	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 89

WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	3,912		$	14,570
Net realized loss on investments		(248,640	)		(946,169	)
Net change in unrealized appreciation (depreciation) on investments		(4,453	)		(32,206	)
Net decrease in net assets resulting from operations		(249,181	)		(963,805	)
Distributions to shareholders:
A-Class		(981	)		—
C-Class		(86	)		—
H-Class		(11,434	)		—
Total distributions to shareholders		(12,501	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		3,412,501			3,191,819
C-Class		5,000			2,409,633
H-Class		34,836,156			36,403,192
Distributions reinvested
A-Class		918			—
C-Class		86			—
H-Class		11,032			—
Cost of shares redeemed
A-Class		(3,440,177	)		(6,106,598	)
C-Class		(17,656	)		(2,691,925	)
H-Class		(34,990,291	)		(37,192,749	)
Net decrease from capital share transactions		(182,431	)		(3,986,628	)
Net decrease in net assets		(444,113	)		(4,950,433	)
Net assets:
Beginning of year		2,010,189			6,960,622
End of year	$	1,566,076		$	2,010,189
Capital share activity:
Shares sold
A-Class		54,128			45,113
C-Class		99			37,258
H-Class		565,225			534,605
Shares issued from reinvestment of distributions
A-Class		15			—
C-Class		2			—
H-Class		179			—
Shares redeemed
A-Class		(54,689	)		(83,033	)
C-Class		(320	)		(42,196	)
H-Class		(569,120	)		(550,347	)
Net decrease in shares		(4,481	)		(58,600	)

90 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

WEAKENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	63.74		$	77.67		$	64.99		$	75.31		$	70.69
Income (loss) from investment operations:
Net investment income (loss)a		.16			.23			(.35	)		(.80	)		(.84	)
Net gain (loss) on investments (realized and unrealized)		(5.84	)		(14.16	)		13.03			(9.52	)		5.46
Total from investment operations		(5.68	)		(13.93	)		12.68			(10.32	)		4.62
Less distributions from:
Net investment income		(.21	)		—			—			—			—
Total distributions		(.21	)		—			—			—			—
Net asset value, end of period	$	57.85		$	63.74		$	77.67		$	64.99		$	75.31
Total Returnb		(8.94	%)		(17.93	%)		19.51	%		(13.69	%)		6.54	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	237		$	296		$	3,306		$	324		$	1,314
Ratios to average net assets:
Net investment income (loss)		0.26	%		0.32	%		(0.48	%)		(1.13	%)		(1.13	%)
Total expensesc		2.01	%		1.80	%		1.72	%		1.72	%		1.70	%
Net expensesd		2.00	%		1.80	%		1.72	%		1.72	%		1.70	%
Portfolio turnover rate		—			—			28	%		77	%		699	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	56.74		$	69.66		$	58.72		$	68.57		$	64.88
Income (loss) from investment operations:
Net investment income (loss)a		(.29	)		(.27	)		(.80	)		(1.19	)		(1.20	)
Net gain (loss) on investments (realized and unrealized)		(5.17	)		(12.65	)		11.74			(8.66	)		4.89
Total from investment operations		(5.46	)		(12.92	)		10.94			(9.85	)		3.69
Less distributions from:
Net investment income		(.21	)		—			—			—			—
Total distributions		(.21	)		—			—			—			—
Net asset value, end of period	$	51.07		$	56.74		$	69.66		$	58.72		$	68.57
Total Returnb		(9.65	%)		(18.55	%)		18.65	%		(14.39	%)		5.74	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	21		$	36		$	388		$	695		$	536
Ratios to average net assets:
Net investment income (loss)		(0.53	%)		(0.42	%)		(1.23	%)		(1.88	%)		(1.81	%)
Total expensesc		2.75	%		2.53	%		2.47	%		2.47	%		2.45	%
Net expensesd		2.73	%		2.53	%		2.47	%		2.47	%		2.45	%
Portfolio turnover rate		—			—			28	%		77	%		699	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 91

WEAKENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e
Per Share Data
Net asset value, beginning of period	$	63.67		$	77.60		$	64.92		$	75.23		$	70.59
Income (loss) from investment operations:
Net investment income (loss)a		.07			.28			(.36	)		(.85	)		(.78	)
Net gain (loss) on investments (realized and unrealized)		(5.77	)		(14.21	)		13.04			(9.46	)		5.42
Total from investment operations		(5.70	)		(13.93	)		12.68			(10.31	)		4.64
Less distributions from:
Net investment income		(.21	)		—			—			—			—
Total distributions		(.21	)		—			—			—			—
Net asset value, end of period	$	57.76		$	63.67		$	77.60		$	64.92		$	75.23
Total Return		(8.98	%)		(17.95	%)		19.55	%		(13.73	%)		6.54	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,308		$	1,678		$	3,267		$	5,068		$	3,645
Ratios to average net assets:
Net investment income (loss)		0.12	%		0.41	%		(0.49	%)		(1.19	%)		(1.04	%)
Total expensesc		1.99	%		1.83	%		1.72	%		1.71	%		1.70	%
Net expensesd		1.97	%		1.83	%		1.72	%		1.71	%		1.70	%
Portfolio turnover rate		—			—			28	%		77	%		699	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Reverse share split — Per share amounts for the years presented through March 31, 2017 have been restated to reflect a 1:6 reverse share split effective October 28, 2016.

92 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

NOTES TO FINANCIAL STATEMENTS

Note 1 – Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory trust, is registered with the SEC under the Investment Company Act of 1940 (”1940 Act”), as an open-ended investment company of the series type. Each series, in effect, is representing a separate fund (each, a “Fund”). The Trust is authorized to issue an unlimited number of no par value shares. The Trust accounts for the assets of each Fund separately.

The Trust offers a combination of seven separate classes of shares: Investor Class shares, A-Class shares, C-Class shares, H-Class shares, P-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share (“NAV”), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. C-Class shares of each Fund automatically convert to A-Class shares of the same Fund on or about the 10th day of the month following the 10-year anniversary of the purchase of the C-Class shares. This conversion will be executed without any sales charge, fee or other charge. After the conversion is completed, the shares will be subject to all features and expenses of A-Class shares. Institutional Class shares are offered primarily for direct investment by institutions such as pension and profit sharing plans, endowments, foundations and corporations. Institutional Class shares require a minimum initial investment of $2 million and a minimum account balance of $1 million. At March 31, 2020, the Trust consisted of fifty-two funds.

This report covers the following funds (collectively, the “Funds”):

Fund Name	Investment Company Type
S&P 500® Pure Growth Fund	Non-diversified
S&P 500® Pure Value Fund	Non-diversified
S&P MidCap 400® Pure Growth Fund	Non-diversified
S&P MidCap 400® Pure Value Fund	Non-diversified
S&P SmallCap 600® Pure Growth Fund	Non-diversified
S&P SmallCap 600® Pure Value Fund	Non-diversified
Europe 1.25x Strategy Fund	Non-diversified
Japan 2x Strategy Fund	Non-diversified
Strengthening Dollar 2x Strategy Fund	Non-diversified
Weakening Dollar 2x Strategy Fund	Non-diversified

At March 31, 2020, only A-Class, C-Class, and H-Class shares have been issued by the Funds.

The Funds are designed and operated to accommodate frequent trading by shareholders and, unlike most mutual funds, offer unlimited exchange privileges with no minimum holding periods or transactions fees, which may cause the Funds to experience high portfolio turnover.

Security Investors, LLC, which operates under the name Guggenheim Investments (“GI”), provides advisory services. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities.

Significant Accounting Policies

The Funds operate as investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

The NAV of each Class of a fund is calculated by dividing the market value of a fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

(a) Valuation of Investments

The Board of Trustees of the Funds (the “Board”) has adopted policies and procedures for the valuation of the Funds’ investments (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Board has delegated to a valuation committee, consisting of representatives from Guggenheim’s investment management, fund administration, legal and compliance departments (the “Valuation Committee”), the day-to-day responsibility for implementing the Valuation Procedures, including, under most circumstances, the responsibility for determining the fair value of the Funds’ securities and/or other assets.

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NOTES TO FINANCIAL STATEMENTS (continued)

Valuations of the Funds’ securities and other assets are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Valuation Committee convenes monthly, or more frequently as needed, to review the valuation of all assets which have been fair valued for reasonableness. The Funds’ officers, through the Valuation Committee and consistent with the monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used and valuations provided by the pricing services.

If the pricing service cannot or does not provide a valuation for a particular investment or such valuation is deemed unreliable, such investment is fair valued by the Valuation Committee.

Equity securities listed or traded on a recognized U.S. securities exchange or the National Association of Securities Dealers Automated Quotations (“NASDAQ”) National Market System shall generally be valued on the basis of the last sale price on the primary U.S. exchange or market on which the security is listed or traded; provided, however, that securities listed on NASDAQ will be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. If there is no sale on the valuation date, exchange-traded U.S. equity securities will be valued on the basis of the last bid price.

Open-end investment companies are valued at their NAV as of the close of business, on the valuation date.

U.S. Government securities are valued by independent pricing services, the last traded fill price, or at the reported bid price at the close of business.

Debt securities with a maturity of greater than 60 days at acquisition are valued at prices that reflect broker-dealer supplied valuations or are obtained from independent pricing services, which may consider the trade activity, treasury spreads, yields or price of bonds of comparable quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities. Short-term debt securities with a maturity of 60 days or less at acquisition are valued at amortized cost, provided such amount approximates market value.

Repurchase agreements are generally valued at amortized cost, provided such amounts approximate market value.

The value of futures contracts is accounted for using the unrealized appreciation or depreciation on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the official settlement price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The value of currency index swap agreements entered into by a fund is accounted for using the unrealized appreciation or depreciation on the agreements that is determined by marking the agreements to the broker quote.

Investments for which market quotations are not readily available are fair-valued as determined in good faith by GI subject to review and approval by the Valuation Committee, pursuant to methods established or ratified by the Board. Valuations in accordance with these methods are intended to reflect each security’s (or asset’s or liability’s) “fair value”. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over U.S. Treasury securities, and other information analysis.

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

(b) U.S. Government and Agency Obligations

Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

(c) Futures Contracts

Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

94 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

(d) Swap Agreements

Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized appreciation or depreciation. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

Upon entering into certain centrally-cleared swap transactions, a Fund is required to deposit with its clearing broker an amount of cash or securities as an initial margin. Subsequent variation margin receipts or payments are received or made by the Fund depending on fluctuations in the fair value of the reference entity and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

(e) Currency Translations

The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds. Foreign investments may also subject the Funds to foreign government exchange restrictions, expropriation, taxation, or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments.

The Funds do not isolate that portion of the results of operations resulting from changes in the foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized gain or loss and unrealized appreciation or depreciation on investments.

Reported net realized foreign exchange gains and losses arise from sales of foreign currencies and currency gains or losses realized between the trade and settlement dates on investment transactions. Net unrealized appreciation and depreciation arise from changes in the fair values of assets and liabilities other than investments in securities at the fiscal period end, resulting from changes in exchange rates.

(f) Foreign Taxes

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in their Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of March 31, 2020, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.

(g) Security Transactions

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries, if any. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from Real Estate Investment Trusts (“REITs”) is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

(h) Distributions

Distributions of net investment income and net realized gains, if any, are declared and paid at least annually. Dividends are reinvested in additional shares, unless shareholders request payment in cash. Distributions are recorded on the ex-dividend date and are determined in accordance with U.S. federal income tax regulations which may differ from U.S. GAAP.

(i) Class Allocations

Interest and dividend income, most expenses, all realized gains and losses, and all unrealized appreciation and depreciation are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution and service fees are charged directly to specific classes. In addition, certain expenses have been allocated to the individual Funds in the Trust based on the respective net assets of each Fund included in the Trust.

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NOTES TO FINANCIAL STATEMENTS (continued)

(j) Cash

The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 0.08% at March 31, 2020.

(k) Indemnifications

Under the Funds’ organizational documents, the Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

Note 2 – Derivatives

As part of their investment strategy, the Funds utilize a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of amounts recognized in the Statements of Assets and Liabilities. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Financial Statements.

Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund’s financial position and results of operations.

The Funds may utilize derivatives for the following purposes:

Index Exposure: the use of an instrument to obtain exposure to a listed or other type of index.

Leverage: gaining total exposure to equities or other assets on the long and short sides at greater than 100% of invested capital.

Liquidity: the ability to buy or sell exposure with little price/market impact.

For any Fund whose investment strategy consistently involves applying leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index or other asset. In addition, because an investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. The Fund’s use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

Futures Contracts

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to a Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as segregated cash with broker on the Statements of Assets and Liabilities; securities held as collateral are noted on the Schedules of Investments.

96 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The following table represents the Funds’ use and volume of futures on a monthly basis:

		Average Notional Amount
Fund	Use	Long		Short
Europe 1.25x Strategy Fund	Index exposure, Leverage, Liquidity	$	19,254,314	$	—
Japan 2x Strategy Fund	Index exposure, Leverage, Liquidity		7,526,627		—
Strengthening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity		13,492,939		—
Weakening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity		—		4,944,009

Swap Agreements

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. When utilizing over-the-counter (“OTC”) swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing and are executed on a multi-lateral or other trade facility platform, such as a registered exchange. There is limited counterparty credit risk with respect to centrally-cleared swaps as the transaction is facilitated through a central clearinghouse, much like exchange-traded futures contracts. For a fund utilizing centrally cleared swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. There is no guarantee that a fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Currency swaps enable the Funds to gain exposure to currencies in a market without actually possessing a given currency, or to hedge a position. Currency swaps involve the exchange of the principal and interest in one currency for the principal and interest in another currency. As in other types of OTC swaps, the Funds may be at risk due to the counterparty’s inability to perform.

The following table represents the Funds’ use and volume of currency swaps on a monthly basis:

		Average Notional Amount
Fund	Use	Long		Short
Strengthening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity	$	2,157,132	$	—
Weakening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity		—		874,892

Derivative Investment Holdings Categorized by Risk Exposure

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of March 31, 2020:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Currency contracts	Variation margin on futures contracts	Variation margin on futures contracts
Currency contracts	Unrealized appreciation on OTC swap agreements

The following table sets forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at March 31, 2020:

Asset Derivative Investments Value
Fund	Futures Equity Risk*		Futures Foreign Currency Exchange Risk*		Swaps Currency Risk		Total Value at March 31, 2020
Europe 1.25x Strategy Fund	$	160,993	$	—	$	—	$	160,993
Japan 2x Strategy Fund		—		29,735		—		29,735
Strengthening Dollar 2x Strategy Fund		—		213,600		55,165		268,765
Weakening Dollar 2x Strategy Fund		—		—		3,173		3,173

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NOTES TO FINANCIAL STATEMENTS (continued)

Liability Derivative Investments Value
Fund	Futures Equity Risk*		Futures Foreign Currency Exchange Risk*		Swaps Currency Risk		Total Value at March 31, 2020
Europe 1.25x Strategy Fund	$	—	$	16,004	$	—	$	16,004
Japan 2x Strategy Fund		52,426		—		—		52,426
Weakening Dollar 2x Strategy Fund		—		32,589		—		32,589

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedules of Investments. For exchange-traded and centrally cleared derivatives, variation margin is reported within the Statements of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the year ended March 31, 2020:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity/Currency contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts
Currency contracts	Net realized gain (loss) on swap agreements
	Net change in unrealized appreciation (depreciation) on swap agreements

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the year ended March 31, 2020:

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk		Futures Foreign Currency Exchange Risk			Swaps Currency Risk			Total
Europe 1.25x Strategy Fund	$	509,216		$	—	$	(594,731	)	$	—		$	(85,515	)
Japan 2x Strategy Fund		(567,294	)		—		191,276			—			(376,018	)
Strengthening Dollar 2x Strategy Fund		—			—		(50,465	)		(13,409	)		(63,874	)
Weakening Dollar 2x Strategy Fund		—			—		(189,507	)		(54,229	)		(243,736	)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk		Futures Foreign Currency Exchange Risk			Swaps Currency Risk		Total
Europe 1.25x Strategy Fund	$	41,569		$	—	$	43,819		$	—	$	85,388
Japan 2x Strategy Fund		(22,095	)		—		20,312			—		(1,783	)
Strengthening Dollar 2x Strategy Fund		—			—		102,745			46,386		149,131
Weakening Dollar 2x Strategy Fund		—			—		(2,825	)		4,783		1,958

In conjunction with the use of derivative instruments, the Funds are required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Funds use margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Funds as collateral.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

98 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Note 3 – Offsetting

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, are reported separately on the Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Cash and/or securities pledged or received as collateral by the Funds in connection with an OTC derivative subject to an ISDA Master Agreement generally may not be invested, sold or rehypothecated by the counterparty or the Funds, as applicable, absent an event of default under such agreement, in which case such collateral generally may be applied towards obligations due to and payable by such counterparty or the Funds, as applicable. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements:

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset in the Statements of Assets and Liabilities		Net Amount of Assets Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Received		Net Amount
Strengthening Dollar 2x Strategy Fund	Swap currency contracts	$	55,165	$	—	$	55,165	$	—	$	—	$	55,165
Weakening Dollar 2x Strategy Fund	Swap currency contracts		3,173		—		3,173		—		—		3,173

¹ Exchange-traded or centrally-cleared derivatives are excluded from these reported amounts.

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NOTES TO FINANCIAL STATEMENTS (continued)

The Funds have the right to offset deposits against any related derivative liabilities outstanding with each counterparty with the exception of exchange-traded or centrally-cleared derivatives. The following table presents deposits held by others in connection with derivative investments as of March 31, 2020.

Fund	Counterparty	Asset Type	Cash Pledged		Cash Received
Europe 1.25x Strategy Fund	Goldman Sachs International	Futures contracts	$	286,032	$	—
Japan 2x Strategy Fund	Goldman Sachs International	Futures contracts		35,275		—
Strengthening Dollar 2x Strategy Fund	Goldman Sachs International	Futures contracts		352,740		—
Weakening Dollar 2x Strategy Fund	Goldman Sachs International	Futures contracts		7,903		—

Note 4 – Fair Value Measurement

In accordance with U.S. GAAP, fair value is defined as the price that the Funds would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. U.S. GAAP establishes a three-tier fair value hierarchy based on the types of inputs used to value assets and liabilities and requires corresponding disclosure. The hierarchy and the corresponding inputs are summarized below:

Level 1 — quoted prices in active markets for identical assets or liabilities.

Level 2 — significant other observable inputs (for example quoted prices for securities that are similar based on characteristics such as interest rates, prepayment speeds, credit risk, etc.).

Level 3 — significant unobservable inputs based on the best information available under the circumstances, to the extent observable inputs are not available, which may include assumptions.

The types of inputs available depend on a variety of factors, such as the type of security and the characteristics of the markets in which it trades, if any. Fair valuation determinations that rely on fewer or no observable inputs require greater judgment. Accordingly, fair value determinations for Level 3 securities require the greatest amount of judgment.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The suitability of the techniques and sources employed to determine fair valuation are regularly monitored and subject to change.

Note 5 – Investment Advisory Agreement and Other Agreements

Under the terms of an investment advisory contract, the Funds pay GI investment advisory fees calculated at the annualized rates below, based on the average daily net assets of the Funds:

Fund	Management Fees (as a % of Net Assets)
S&P 500® Pure Growth Fund		0.75	%
S&P 500® Pure Value Fund		0.75	%
S&P MidCap 400® Pure Growth Fund		0.75	%
S&P MidCap 400® Pure Value Fund		0.75	%
S&P SmallCap 600® Pure Growth Fund		0.75	%
S&P SmallCap 600® Pure Value Fund		0.75	%
Europe 1.25x Strategy Fund		0.90	%
Japan 2x Strategy Fund		0.75	%
Strengthening Dollar 2x Strategy Fund		0.90	%
Weakening Dollar 2x Strategy Fund		0.90	%

100 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

When the aggregate assets of each series of the Trust (excluding the Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund) and each series of Rydex Dynamic Funds equal or exceed $10 billion, the advisory fee rate paid by each individual Fund will be reduced in accordance with the asset level and breakpoint schedule set forth below.

Fund Assets Under Management	Fund Asset-Based Breakpoint Reductions
$500 million – $1 billion	0.025%
> $1 billion – $2 billion	0.05%
> $2 billion	0.075%

GI pays operating expenses on behalf of the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, among others, on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Board has adopted a Distribution Plan applicable to A-Class shares and H-Class shares for which GFD and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a Service Provider provides distribution services, the Funds will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services.

The Board has adopted a separate Distribution and Shareholder Services Plan applicable to C-Class shares that allows the Funds to pay annual distribution and service fees of 1.00% of the Funds’ C-Class shares average daily net assets. The annual 0.25% service fee compensates a shareholder’s financial adviser for providing ongoing services to the shareholder. The annual distribution fee of 0.75% reimburses GFD for paying the shareholder’s financial adviser an ongoing sales commission. GFD advances the first year’s service and distribution fees to the financial adviser. GFD retains the service and distribution fees on accounts with no authorized dealer of record.

For the year ended March 31, 2020, GFD retained sales charges of $122,345 relating to sales of A-Class shares of the Trust.

If a Fund invests in a fund that is advised by the same adviser or an affiliated adviser, the investing Fund’s adviser has agreed to waive fees at the investing fund level to the extent necessary to offset the proportionate share of any management fee paid by each Fund with respect to its investment in such affiliated fund. Fee waivers will be calculated at the investing Fund level without regard to any expense cap in effect for the investing Fund. Fees waived under this arrangement are not subject to reimbursement to GI. For the year ended March 31, 2020, the following Funds waived fees related to investments in affiliated funds:

Fund	Amount Waived
Europe 1.25x Strategy Fund	$	3,356
Japan 2x Strategy Fund		1,043
Strengthening Dollar 2x Strategy Fund		3,338
Weakening Dollar 2x Strategy Fund		575

Certain trustees and officers of the Trust are also officers of GI and/or GFD. The Trust does not compensate its officers or trustees who are officers, directors and/or employees of GI or GFD.

MUFG Investor Services (US), LLC (“MUIS”) acts as the Funds’ administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS maintains the books and records of the Funds’ securities and cash. U.S. Bank, N.A. (“U.S. Bank”) acts as the Funds’ custodian. As custodian, U.S. Bank is responsible for the custody of the Funds’ assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund’s average daily net assets and out of pocket expenses.

THE RYDEX FUNDS ANNUAL REPORT | 101

NOTES TO FINANCIAL STATEMENTS (continued)

Note 6 – Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The joint account includes other Funds in the Guggenheim complex not covered in this report. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At March 31, 2020, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
J.P. Morgan Securities LLC					U.S. Treasury Note
0.01%					2.00%
Due 04/01/20	$	129,371,353	$	129,371,389	11/30/22	$	125,405,900	$	131,958,818
BofA Securities, Inc.					U.S. Treasury Note
0.00%					2.13%
Due 04/01/20		49,758,213		49,758,213	08/15/21		49,322,100		50,753,381

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

Note 7 – Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds’ securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class Z. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

102 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

At March 31, 2020, the Funds participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

	Gross Amounts Not Offset in the Statements of Assets and Liabilities							Securities Lending Collateral
Fund	Value of Securities Loaned		Collateral Received(a)			Net Amount		Cash Collateral Invested		Cash Collateral Uninvested		Total Collateral
S&P 500® Pure Value Fund	$	191,609	$	(191,609	)	$	—	$	203,849	$	—	$	203,849
S&P MidCap 400® Pure Growth Fund		803,754		(803,754	)		—		809,443		—		809,443
S&P MidCap 400® Pure Value Fund		101,082		(101,082	)		—		105,657		—		105,657
S&P SmallCap 600® Pure Growth Fund		82,725		(82,725	)		—		91,576		—		91,576
S&P SmallCap 600® Pure Value Fund		91,270		(91,270	)		—		93,624		—		93,624
Europe 1.25x Strategy Fund		20,492		(20,492	)		—		21,155		—		21,155

^(a) Actual collateral received by the Fund is generally greater than the amount shown due to overcollateralization.

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers to evaluate potential risks.

Note 8 – Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Funds from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax or federal excise tax is required.

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken, or to be taken, on U.S. federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Funds’ financial statements. The Funds’ U.S. federal income tax returns are subject to examination by the Internal Revenue Service (“IRS”) for a period of three years after they are filed.

The tax character of distributions paid during the year ended March 31, 2020 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
S&P 500® Pure Growth Fund	$	—	$	4,523,222	$	4,523,222
S&P 500® Pure Value Fund		415,316		—		415,316
Europe 1.25x Strategy Fund		61,418		—		61,418
Japan 2x Strategy Fund		20,310		—		20,310
Strengthening Dollar 2x Strategy Fund		45,595		—		45,595
Weakening Dollar 2x Strategy Fund		12,501		—		12,501

THE RYDEX FUNDS ANNUAL REPORT | 103

NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid during the year ended March 31, 2019 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
S&P 500® Pure Growth Fund	$	5,662,743	$	32	$	5,662,775
S&P 500® Pure Value Fund		4,196,633		579,006		4,775,639
S&P MidCap 400® Pure Growth Fund		4,944,925		4,093,832		9,038,757
S&P MidCap 400® Pure Value Fund		286,553		—		286,553
S&P SmallCap 600® Pure Growth Fund		231,789		953,524		1,185,313
Europe 1.25x Strategy Fund		155,680		—		155,680
Japan 2x Strategy Fund		13,094		—		13,094

Note: For U.S. federal income tax purposes, short-term capital gain distributions are treated as ordinary income distributions.

The tax components of distributable earnings/(loss) as of March 31, 2020 were as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation (Depreciation)			Accumulated Capital and Other Losses			Total
S&P 500® Pure Growth Fund	$	1,666,873	$	—	$	(6,187,991	)	$	—		$	(4,521,118	)
S&P 500® Pure Value Fund		158,332		—		(6,148,634	)		(3,174,438	)		(9,164,740	)
S&P MidCap 400® Pure Growth Fund		—		—		(9,590,096	)		(1,990,791	)		(11,580,887	)
S&P MidCap 400® Pure Value Fund		—		—		(2,195,358	)		(1,505,937	)		(3,701,295	)
S&P SmallCap 600® Pure Growth Fund		—		—		(1,592,527	)		(1,338,022	)		(2,930,549	)
S&P SmallCap 600® Pure Value Fund		—		—		(2,318,104	)		(6,156,007	)		(8,474,111	)
Europe 1.25x Strategy Fund		68,173		—		(21,545	)		(438,521	)		(391,893	)
Japan 2x Strategy Fund		14,233		—		(7,963	)		(2,859,843	)		(2,853,573	)
Strengthening Dollar 2x Strategy Fund		17,189		—		(65,198	)		(18,526,252	)		(18,574,261	)
Weakening Dollar 2x Strategy Fund		3,912		—		(7,061	)		(10,260,652	)		(10,263,801	)

For U.S. federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. Under the RIC Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital loss carryforwards will retain their character as either short-term or long-term capital losses. As of March 31, 2020, capital loss carryforwards for the Funds were as follows:

	Unlimited
Fund	Short-Term			Long-Term			Total Capital Loss Carryforward
S&P MidCap 400® Pure Growth Fund	$	(1,990,791	)	$	—		$	(1,990,791	)
S&P SmallCap 600® Pure Growth Fund		(1,312,703	)		—			(1,312,703	)
S&P SmallCap 600® Pure Value Fund		(4,624,790	)		(1,506,352	)		(6,131,142	)
Europe 1.25x Strategy Fund		(232,957	)		(205,564	)		(438,521	)
Japan 2x Strategy Fund		(821,460	)		(2,038,383	)		(2,859,843	)
Strengthening Dollar 2x Strategy Fund		(7,465,355	)		(11,060,897	)		(18,526,252	)
Weakening Dollar 2x Strategy Fund		(4,116,816	)		(6,143,836	)		(10,260,652	)

For the year ended March 31, 2020, the following capital loss carryforward amounts were utilized:

Fund	Utilized
S&P MidCap 400® Pure Value Fund	$	901,796
S&P SmallCap 600® Pure Value Fund		73,082
Europe 1.25x Strategy Fund		155,841
Strengthening Dollar 2x Strategy Fund		84,230

104 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to investments in real estate investment trusts, foreign currency gains and losses, losses deferred due to wash sales, distributions in connection with redemption of fund shares, return of capital distributions received, and the “mark-to-market” of certain derivatives. Additional differences may result from the tax treatment of net operating losses. To the extent these differences are permanent and would require a reclassification between Paid in Capital and Total Distributable Earnings (Loss), such reclassifications are made in the period that the differences arise. These reclassifications have no effect on net assets or NAV per share.

The following adjustments were made on the Statements of Assets and Liabilities as of March 31, 2020 for permanent book/tax differences:

Fund	Paid In Capital			Total Distributable Earnings/(Loss)
S&P 500® Pure Growth Fund	$	15,621,394		$	(15,621,394	)
S&P 500® Pure Value Fund		1,948,960			(1,948,960	)
S&P MidCap 400® Pure Growth Fund		(417,707	)		417,707
S&P MidCap 400® Pure Value Fund		479,876			(479,876	)
S&P SmallCap 600® Pure Growth Fund		(84,938	)		84,938
S&P SmallCap 600® Pure Value Fund		(27,593	)		27,593

At March 31, 2020, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
S&P 500® Pure Growth Fund	$	45,953,516	$	2,451,360	$	(8,639,351	)	$	(6,187,991	)
S&P 500® Pure Value Fund		14,818,726		65,215		(6,213,849	)		(6,148,634	)
S&P MidCap 400® Pure Growth Fund		46,755,195		1,744,274		(11,334,370	)		(9,590,096	)
S&P MidCap 400® Pure Value Fund		5,365,928		—		(2,195,358	)		(2,195,358	)
S&P SmallCap 600® Pure Growth Fund		5,955,567		160,742		(1,753,269	)		(1,592,527	)
S&P SmallCap 600® Pure Value Fund		5,427,551		—		(2,318,104	)		(2,318,104	)
Europe 1.25x Strategy Fund		1,497,309		47,990		(69,834	)		(21,844	)
Japan 2x Strategy Fund		845,782		38,217		(46,180	)		(7,963	)
Strengthening Dollar 2x Strategy Fund		8,985,215		1,580		(66,778	)		(65,198	)
Weakening Dollar 2x Strategy Fund		1,742,907		6,600		(13,661	)		(7,061	)

Pursuant to U.S. federal income tax regulations applicable to regulated investment companies, the Funds have elected to treat net capital losses and certain ordinary losses realized between November 1 and March 31 of each year as occurring on the first day of the following tax year. The Funds have also elected to treat certain ordinary losses realized between January 1 and March 31 of each year as occurring on the first day of the following tax year. For the year ended March 31, 2020, the following losses reflected in the accompanying financial statements were deferred for U.S. federal income tax purposes until April 1, 2020:

Fund	Ordinary			Capital
S&P 500® Pure Value Fund	$	—		$	(3,174,438	)
S&P MidCap 400® Pure Value Fund		—			(1,505,937	)
S&P SmallCap 600® Pure Growth Fund		(25,319	)		—
S&P SmallCap 600® Pure Value Fund		(24,865	)		—

THE RYDEX FUNDS ANNUAL REPORT | 105

NOTES TO FINANCIAL STATEMENTS (continued)

Note 9 – Securities Transactions

For the year ended March 31, 2020, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Fund	Purchases		Sales
S&P 500® Pure Growth Fund	$	250,252,063	$	313,881,563
S&P 500® Pure Value Fund		106,937,528		140,123,845
S&P MidCap 400® Pure Growth Fund		97,041,187		114,854,448
S&P MidCap 400® Pure Value Fund		143,440,614		151,792,454
S&P SmallCap 600® Pure Growth Fund		62,534,526		66,155,014
S&P SmallCap 600® Pure Value Fund		128,006,640		134,219,691
Europe 1.25x Strategy Fund		118,056,212		136,781,804
Japan 2x Strategy Fund		—		770,000
Strengthening Dollar 2x Strategy Fund		—		400,000
Weakening Dollar 2x Strategy Fund		—		300,000

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the year ended March 31, 2020, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Fund	Purchases		Sales		Realized Gain
S&P 500® Pure Growth Fund	$	33,309,492	$	53,462,593	$	2,354,079
S&P 500® Pure Value Fund		12,178,562		26,970,645		542,117
S&P MidCap 400® Pure Growth Fund		5,719,685		6,205,601		353,239
S&P MidCap 400® Pure Value Fund		7,172,751		6,807,080		369,224
S&P SmallCap 600® Pure Growth Fund		2,372,905		1,488,428		236,042
S&P SmallCap 600® Pure Value Fund		2,592,899		3,018,881		532,267
Europe 1.25x Strategy Fund		1,856,453		1,343,375		77,268

Note 10 – Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 8, 2020. On March 30, 2020, the Board approved increasing the line of credit from $75,000,000 to $150,000,000. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 3.02% for the year ended March 31, 2020. The Funds did not have any borrowings outstanding under this agreement at March 31, 2020.

The average daily balances borrowed for the year ended March 31, 2020, were as follows:

Fund	Average Daily Balance
S&P 500® Pure Growth Fund	$	3,098
S&P 500® Pure Value Fund		500
S&P MidCap 400® Pure Growth Fund		1,869
S&P MidCap 400® Pure Value Fund		880
S&P SmallCap 600® Pure Growth Fund		620
S&P SmallCap 600® Pure Value Fund		10,123
Europe 1.25x Strategy Fund		126
Japan 2x Strategy Fund		344
Strengthening Dollar 2x Strategy Fund		617
Weakening Dollar 2x Strategy Fund		3

106 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Note 11 – Legal Proceedings

Tribune Company

Rydex Series Funds has been named as a defendant and a putative member of the proposed defendant class of shareholders in the case entitled Kirschner v. FitzSimons, No. 12-2652 (S.D.N.Y.) (formerly Official Committee of Unsecured Creditors of Tribune Co. v. FitzSimons, Adv. Pro. No. 10-54010 (Bankr. D. Del.)) (the “FitzSimons action”), as a result of ownership by certain series of the Rydex Series Funds of shares in the Tribune Company (“Tribune”) in 2007, when Tribune effected a leveraged buyout transaction (“LBO”) by which Tribune converted to a privately-held company. In his complaint, the plaintiff has alleged that, in connection with the LBO, Tribune insiders and shareholders were overpaid for their Tribune stock using financing that the insiders knew would, and ultimately did, leave Tribune insolvent. The plaintiff has asserted claims against certain insiders, major shareholders, professional advisers, and others involved in the LBO. The plaintiff is also attempting to obtain from former Tribune shareholders, including the Rydex Series Funds, the proceeds they received in connection with the LBO.

In June 2011, a group of Tribune creditors filed multiple actions against former Tribune shareholders involving state law constructive fraudulent conveyance claims arising out of the 2007 LBO (the “SLCFC actions”). Rydex Series Funds has been named as a defendant in one or more of these suits. In those actions, the creditors seek to recover from Tribune’s former shareholders the proceeds received in connection with the 2007 LBO.

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2296 (S.D.N.Y.) (the “MDL Proceeding”).

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order.

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments.

On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. On April 3, 2018, Justice Kennedy and Justice Thomas issued a “Statement” related to the petition for certiorari suggesting that the Second Circuit and/or District Court may want to take steps to reexamine the application of the Section 546(e) safe harbor to the previously dismissed state law constructive fraudulent transfer claims based on the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. On April 10, 2018, Plaintiffs filed in the Second Circuit a motion for that court to recall its mandate, vacate its prior decision, and remand to the district court for further proceedings consistent with Merit Management. On April 20, 2018, the shareholder defendants filed an opposition to Plaintiffs’ motion to recall the mandate. On May 15, 2018, the Second Circuit issued an order recalling the mandate “in anticipation of further panel review.” On December 19, 2019, the Second Circuit issued an amended opinion that again affirmed the district court’s ruling on the basis that plaintiffs’ claims were preempted by Section 546(e) of the Bankruptcy Code. Plaintiffs filed a motion for rehearing and rehearing en banc on January 2, 2020. The Second Circuit denied the petition on February 6, 2020.

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. On January 6, 2017, the United States District Court for the Southern District of New York granted the shareholder defendants’ motion to dismiss the intentional fraudulent conveyance claim in the FitzSimons action. In dismissing the intentional fraudulent conveyance claim, the Court denied the plaintiff’s request to amend the complaint. The plaintiff requested that the Court direct entry of a final judgment in order to make the order immediately appealable. On February 23, 2017, the Court issued an order stating that it intended to permit an interlocutory appeal of the dismissal order, but would wait to do so until it has resolved outstanding motions to dismiss filed by other defendants.

THE RYDEX FUNDS ANNUAL REPORT | 107

NOTES TO FINANCIAL STATEMENTS (concluded)

On July 18, 2017, the plaintiff submitted a letter to the District Court seeking leave to amend its complaint to add a constructive fraudulent transfer claim. The shareholder defendants opposed that request. On August 24, 2017, the Court denied the plaintiff’s request without prejudice to renewal of the request in the event of an intervening change in the law. On March 8, 2018, the plaintiff renewed his request for leave to file a motion to amend the complaint to assert a constructive fraudulent transfer claim based on the Supreme Court’s ruling in Merit Management Group LP v. FTI Consulting, Inc. The shareholder defendants opposed that request. On June 18, 2018 the District Court ordered that the request would be stayed pending further action by the Second Circuit in the SLCFC actions.

On December 18, 2018, plaintiff filed a letter with the District Court requesting that the stay be dissolved in order to permit briefing on the motion to amend the complaint and indicating plaintiff’s intention to file another motion to amend the complaint to reinstate claims for intentional fraudulent transfer. The shareholder defendants opposed that request. On January 14, 2019, the court held a case management conference, during which the court stated that it would not lift the stay prior to further action from the Second Circuit in the SLCFC actions. The court further stated that it would allow the plaintiff to file a motion to amend to try to reinstate its intentional fraudulent transfer claim. On January 23, 2019, the court ordered the parties still facing pending claims to participate in a mediation, to commence on January 28, 2019. The mediation did not result in a settlement of the claims against the shareholder defendants.

On April 4, 2019, plaintiff filed a motion to amend the Fifth Amended Complaint to assert a federal constructive fraudulent transfer claim against certain shareholder defendants. On April 10, 2019, the shareholder defendants filed a brief in opposition to plaintiff’s motion to amend. On April 12, 2019, the plaintiff filed a reply brief. On April 23, 2019, the court denied the plaintiff’s motion to amend. On June 13, 2019, the court entered judgment pursuant to Rule 54(b). On July 12, 2019, the Plaintiff filed a notice of appeal with respect to the dismissal of his claims and the District Court’s denial of his motion for leave to amend. Plaintiff filed an appellate brief on January 7, 2020. The shareholder defendants’ brief was filed on April 27, 2020.

None of these lawsuits alleges any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds held shares of Tribune and tendered these shares as part of Tribune’s LBO: Nova Fund, S&P 500^® Pure Value Fund, Multi-Cap Core Equity Fund, S&P 500^® Fund, Multi-Hedge Strategies Fund and Hedged Equity Fund (the “Funds”). The value of the proceeds received by the foregoing Funds was $28,220, $109,242, $9,860, $3,400, $1,181,160, and $10,880, respectively. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

Note 12 – COVID-19 and Recent Developments

The global ongoing crisis caused by the outbreak of COVID-19 is causing materially reduced consumer demand and economic output, disrupting supply chains, resulting in market closures, travel restrictions and quarantines, and adversely impacting local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and health conditions all over the world, the Funds’ investments and a shareholder’s investment in a Fund are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational risks.

Note 13 – Subsequent Events

Share Splits

On May 18, 2020, the Board approved reverse share splits as follows:

Fund	Effective Date	Split Type
S&P SmallCap 600® Pure Value Fund	August 14, 2020	One-for-Five Reverse Split

The Funds evaluated subsequent events through the date the financial statements were available for issue and determined there were no material events other than the one disclosed above, that would require adjustment to or disclosure in the Funds’ financial statements.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of S&P 500^® Pure Growth Fund, S&P 500^® Pure Value Fund, S&P MidCap 400^® Pure Growth Fund, S&P MidCap 400^® Pure Value Fund, S&P SmallCap 600^® Pure Growth Fund, S&P SmallCap 600^® Pure Value Fund, Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund and Weakening Dollar 2x Strategy Fund and the Board of Trustees of Rydex Series Funds

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of S&P 500^® Pure Growth Fund, S&P 500^® Pure Value Fund, S&P MidCap 400^® Pure Growth Fund, S&P MidCap 400^® Pure Value Fund, S&P SmallCap 600^® Pure Growth Fund, S&P SmallCap 600^® Pure Value Fund, Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund and Weakening Dollar 2x Strategy Fund (collectively referred to as the “Funds”), (ten of the funds constituting Rydex Series Funds (the “Trust”)), including the schedules of investments, as of March 31, 2020, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (ten of the funds constituting Rydex Series Funds) at March 31, 2020, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2020, by correspondence with the custodian, transfer agent, and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Guggenheim investment companies since 1979.

Tysons, Virginia
May 28, 2020

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OTHER INFORMATION (Unaudited)

Federal Income Tax Information

This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

In January 2021, shareholders will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by shareholders in the calendar year 2020.

The Funds’ investment income (dividend income plus short-term capital gains, if any) qualifies as follows:

Of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2020, the following funds had the corresponding percentages qualify for the reduced tax rate pursuant to the Jobs and Growth Tax Relief and Reconciliation Act of 2003 or for the dividends received deduction for corporations. See the qualified dividend income and dividend received deduction columns, respectively, in the table below.

Fund	Qualified Dividend Income	Dividend Received Deduction
S&P 500® Pure Value Fund	86.92%	57.70%
Europe 1.25x Strategy Fund	100.00%	0.00%

With respect to the taxable year ended March 31, 2020, the Funds hereby designate as capital gain dividends the amounts listed below, or, if subsequently determined to be different, the net capital gain of such year:

Fund	From long-term capital gain:		From long-term capital gain, using proceeds from shareholder redemptions:
S&P 500® Pure Growth Fund	$	4,523,222	$	8,203,222
S&P 500® Pure Value Fund		—		906,071

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Information regarding how the Funds’ voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Sector Classification

Information in the Schedule of Investments is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds’ Forms N-PORT and N-Q are available on the SEC’s website at https://www.sec.gov. The Funds’ Forms N-PORT and N-Q may be reviewed and copied

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OTHER INFORMATION (Unaudited)(concluded)

at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by visiting guggenheiminvestments.com or by calling 800.820.0888.

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES
Randall C. Barnes (1951)	Trustee	Since 2019	Current: Private Investor (2001-present). Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).	157	Current: Purpose Investments Funds (2013-present). Former: Managed Duration Investment Grade Municipal Fund (2006-2016).
Angela Brock-Kyle (1959)	Trustee	Since 2016	Current: Founder and Chief Executive Officer, B.O.A.R.D.S. (2013-present). Former: Senior Leader, TIAA (1987-2012).	156	Current: Hunt Companies, Inc. (2019-present). Former: Infinity Property & Casualty Corp. (2014-2018).
Donald A. Chubb, Jr. (1946)	Trustee and Chair of the Valuation Oversight Committee	Since 2019	Current: Retired Former: Business broker and manager of commercial real estate, Griffith & Blair, Inc. (1997-2017).	156	Former: Midland Care, Inc. (2011-2016).
Jerry B. Farley (1946)	Trustee	Since 2019	Current: President, Washburn University (1997-present).	156	Current: CoreFirst Bank & Trust (2000-present). Former: Westar Energy, Inc. (2004-2018).
Roman Friedrich III (1946)	Trustee and Chair of the Contracts Review Committee	Since 2019	Current: Founder and Managing Partner, Roman Friedrich & Company (1998-present).	156	Former: Zincore Metals, Inc. (2009-2019).
Thomas F. Lydon, Jr. (1960)	Trustee and Vice Chair of the Contracts Review Committee	Since 2005 (Trustee) Since 2019 (Vice Chair of the Contracts Review Committee)	Current: President, Global Trends Investments (1996-present); Co-Chief Executive Officer, ETF Flows, LLC (2019-present); Chief Executive Officer, Lydon Media (2016-present).	156	Current: US Global Investors (GROW) (1995-present). Former: Harvest Volatility Edge Trust (3) (2017-2019).

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - concluded
Ronald A. Nyberg (1953)	Trustee and Chair of the Nominating and Governance Committee	Since 2019	Current: Partner, Momkus LLC (2016-present). Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).	157	Current: PPM Funds (9) (2018-present); Edward-Elmhurst Healthcare System (2012-present). Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-April 2020); Western Asset Inflation-Linked Income Fund (2003-April 2020); Managed Duration Investment Grade Municipal Fund (2003-2016).
Sandra G. Sponem (1958)	Trustee and Chair of the Audit Committee	Since 2016 (Trustee) Since 2019 (Chair of the Audit Committee)	Current: Retired. Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson-Companies, Inc. (2007-2017).	156	Current: SPDR Series Trust (78) (2018-present); SPDR Index Shares Funds (31) (2018-present); SSGA Active Trust (12) (2018-present); and SSGA Master Trust (1) (2018-present).
Ronald E. Toupin, Jr. (1958)	Trustee, Chair of the Board and Chair of the Executive Committee	Since 2019	Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999).	156	Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-April 2020); Western Asset Inflation-Linked Income Fund (2003-April 2020); Managed Duration Investment Grade Municipal Fund (2003-2016).

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INTERESTED TRUSTEE
Amy J. Lee**** (1961)	Trustee, Vice President and Chief Legal Officer	Since 2018 (Trustee) Since 2019 (Vice President and Chief Legal Officer)	Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: President and Chief Executive Officer, certain other funds in the Fund Complex (2017-2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).	156	None.

*	The business address of each Trustee is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each Trustee serves an indefinite term, until his or her successor is elected and qualified. Time served includes time served in the respective position for the Predecessor Corporation.
***	Each Trustee also serves on the boards of trustees of Guggenheim Funds Trust, Guggenheim Variable Funds Trust, Guggenheim Strategy Funds Trust, Fiduciary/Claymore Energy Infrastructure Fund, Guggenheim Taxable Municipal Managed Duration Trust, Guggenheim Strategic Opportunities Fund, Guggenheim Enhanced Equity Income Fund, Guggenheim Energy & Income Fund, Guggenheim Credit Allocation Fund, Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Funds and Transparent Value Trust. Messrs. Barnes and Nyberg also serve on the board of trustees of Advent Convertible & Income Fund.
****	This Trustee is deemed to be an “interested person” of the Funds under the 1940 Act by reason of her position with the Funds’ Investment Manager and/or the parent of the Investment Manager.

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS
Brian E. Binder (1972)	President and Chief Executive Officer	Since 2019	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President, Chief Executive Officer and Chairman of the Board of Managers, Guggenheim Funds Investment Advisors, LLC (2018-present); President and Chief Executive Officer, Security Investors, LLC (2018-present); Board Member of Guggenheim Partners Fund Management (Europe) Limited (2018-present); Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-present). Former: Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Head of Business Management and Consulting, Invesco Ltd. (2010-2012).
James M. Howley (1972)	Assistant Treasurer	Since 2016	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Mark E. Mathiasen (1978)	Secretary	Since 2017	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer	Since 2016	Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present).
Michael P. Megaris (1984)	Assistant Secretary	Since 2018	Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2012-present).
Elisabeth Miller (1968)	Chief Compliance Officer	Since 2012	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).
Margaux Misantone (1978)	AML Officer	Since 2017	Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Managing Director, Guggenheim Investments (2015-present). Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018).
William Rehder (1967)	Assistant Vice President	Since 2018	Current: Managing Director, Guggenheim Investments (2002-present).

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(concluded)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS - concluded
Kimberly J. Scott (1974)	Assistant Treasurer	Since 2016	Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
Bryan Stone (1979)	Vice President	Since 2019	Current: Vice President, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2013-present). Former: Senior Vice President, Neuberger Berman Group LLC (2009-2013); Vice President, Morgan Stanley (2002-2009).
John L. Sullivan (1955)	Chief Financial Officer, Chief Accounting Officer and Treasurer	Since 2016	Current: Chief Financial Officer, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and Chief Compliance Officer, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); Chief Financial Officer and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer	Since 2017	Current: Vice President, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (2017); Senior Analyst of US Fund Administration, HGINA (2014–2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	The business address of each officer is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each officer serves an indefinite term, until his or her successor is duly elected and qualified.

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)

Who We Are

This Privacy Notice describes the data protection practices of Guggenheim Investments. Guggenheim Investments as used herein refers to the affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Guggenheim Investment Advisors (Europe) Limited, Guggenheim Real Estate, LLC, GS Gamma Advisors, LLC, Guggenheim Partners India Management, LLC, Guggenheim Partners Europe Limited, as well as the funds in the Guggenheim Funds complex (the “Funds”) (“Guggenheim Investments,” “we,” “us,” or “our”).

Guggenheim Partners Investment Management Holdings, LLC, located at 330 Madison Avenue, New York, New York 10017 is the data controller for your information. The affiliates who are also controllers of certain of your information are: Guggenheim Investment Advisors (Europe) Limited, Guggenheim Partners Europe Limited, Guggenheim Partners, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC and Security Investors, LLC, as well as the Funds.

Our Commitment to You

Guggenheim Investments considers your privacy our utmost concern. When you become our client or investor, you entrust us with not only your hard-earned money but also with your personal and financial information. Because we have access to your private information, we hold ourselves to the highest standards in its safekeeping and use. We strictly limit how we share your information with others, whether you are a current or former Guggenheim Investments client or investor.

The Information We Collect About You

We collect certain nonpublic personal information about you from information you provide on applications, other forms, our website, and/or from third parties including investment advisors. This information includes Social Security or other tax identification number, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, bank account information, marital status, family relationships, information that we collect on our website through the use of “cookies,” and other personal information that you or others provide to us. We may also collect such information through your inquiries by mail, e-mail or telephone. We may also collect customer due diligence information, as required by applicable law and regulation, through third party service providers.

How We Handle Your Personal Information

The legal basis for using your information as set out in this Privacy Notice is as follows: (a) use of your personal data is necessary to perform our obligations under any contract with you (such as a contract for us to provide financial services to you); or (b) where use of your personal data is not necessary for performance of a contract, use of your personal data is necessary for our legitimate interests or the legitimate interests of others (for example, to enforce the legal terms governing our services, operate and market our website and other services we offer, ensure safe environments for our personnel and others, make and receive payments, prevent fraud and to know the customer to whom we are providing the services). Some processing is done to comply with applicable law.

In addition to the specific uses described above, we also use your information in the following manner:

● We use your information in connection with servicing your accounts.

● We use information to respond to your requests or questions. For example, we might use your information to respond to your customer feedback.

● We use information to improve our products and services. We may use your information to make our website and products better. We may use your information to customize your experience with us.

● We use information for security purposes. We may use your information to protect our company and our customers.

● We use information to communicate with you. For example, we will communicate with you about your account or our relationship. We may contact you about your feedback. We might also contact you about this Privacy Notice. We may also enroll you in our email newsletter.

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● We use information as otherwise permitted by law, as we may notify you.

● Aggregate/Anonymous Data. We may aggregate and/or anonymize any information collected through the website so that such information can no longer be linked to you or your device (“Aggregate/Anonymous Information”). We may use Aggregate/Anonymous Information for any purpose, including without limitation for research and marketing purposes, and may also share such data with any third parties, including advertisers, promotional partners, and sponsors.

We do not sell information about current or former clients or their accounts to third parties. Nor do we share this information, except when necessary to complete transactions at your request, to make you aware of investment products and services that we or our affiliates offer, or as permitted or required by law.

We provide information about you to companies and individuals not affiliated with Guggenheim Investments to complete certain transactions or account changes, or to perform services for us related to your account. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we must provide certain information about you to that company to complete the transaction. We provide the third party with only the information necessary to carry out its responsibilities and only for that purpose. And we require these third parties to treat your private information with the same high degree of confidentiality that we do. To alert you to other Guggenheim Investments products and services, we share your information within our family of affiliated companies. You may limit our sharing with affiliated companies as set out below. We may also share information with any successor to all or part of our business, or in connection with steps leading up to a merger or acquisition. For example, if part of our business was sold we may give customer information as part of that transaction. We may also share information about you with your consent.

We will release information about you if you direct us to do so, if we are compelled by law to do so, or in other circumstances as permitted by law (for example, to protect your account from fraud).

If you close your account(s) or become an inactive client or investor, we will continue to adhere to the privacy policies and practices described in this notice.

Opt-Out Provisions and Your Data Choices

The law allows you to “opt out” of certain kinds of information sharing with third parties. We do not share personal information about you with any third parties that triggers this opt-out right. This means YOU ARE ALREADY OPTED OUT.

When you are no longer our client or investor, we continue to share your information as described in this notice, and you may contact us at any time to limit our sharing by sending an email to CorporateDataPrivacy@GuggenheimPartners.com.

European Union Data Subjects and certain others: In addition to the choices set forth above, residents of the European Union and certain other jurisdictions have certain rights to (1) request access to or rectification or deletion of information we collect about them, (2) request a restriction on the processing of their information, (3) object to the processing of their information, or (4) request the portability of certain information. To exercise these or other rights, please contact us using the contact information below. We will consider all requests and provide our response within the time period stated by applicable law. Please note, however, that certain information may be exempt from such requests in some circumstances, which may include if we need to keep processing your information for our legitimate interests or to comply with a legal obligation. We may request you provide us with information necessary to confirm your identity before responding to your request.

Residents of France and certain other jurisdictions may also provide us with instructions regarding the manner in which we may continue to store, erase and share your information after your death, and where applicable, the person you have designated to exercise these rights after your death.

How We Protect Privacy Online

We take steps to protect your privacy when you use our web site – www.guggenheiminvestments.com – by using secure forms of online communication, including encryption technology, Secure Socket Layer (SSL) protocol, firewalls and user names and passwords. These safeguards vary based on the sensitivity of the information that we collect and store. However, we cannot and do not guarantee that these measures will prevent every unauthorized attempt to access, use, or disclose your information since despite our efforts, no Internet and/or other

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electronic transmissions can be completely secure. Our web site uses “http cookies”—tiny pieces of information that we ask your browser to store. We use cookies for session management and security features on the Guggenheim Investments web site. We do not use them to pull data from your hard drive, to learn your e-mail address, or to view data in cookies created by other web sites. We will not share the information in our cookies or give others access to it. See the legal information area on our web site for more details about web site security and privacy features.

How We Safeguard Your Personal Information and Data Retention

We restrict access to nonpublic personal information about you to our employees and in some cases to third parties (for example, the service providers described above) as permitted by law. We maintain strict physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

We keep your information for no longer than necessary for the purposes for which it is processed. The length of time for which we retain information depends on the purposes for which we collected and use it and/or as required to comply with applicable laws. Information may persist in copies made for backup and business continuity purposes for additional time.

International Visitors

If you are not a resident of the United States, please be aware that your information may be transferred to, stored and processed in the United States where our servers are located and our databases are operated. The data protection and other laws of the United States and other countries might not be as comprehensive as those in your country.

In such cases, we ensure that a legal basis for such a transfer exists and that adequate protection is provided as required by applicable law, for example, by using standard contractual clauses or by transferring your data to a jurisdiction that has obtained an adequacy finding. Individuals whose data may be transferred on the basis of standard contractual clauses may contact us as described below.

We’ll Keep You Informed

If you have any questions or concerns about how we treat your personal data, we encourage you to consult with us first. You may also contact the relevant supervisory authority.

We reserve the right to modify this policy at any time and will inform you promptly of material changes. You may access our privacy policy from our web site at www.guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us by email at CorporateDataPrivacy@GuggenheimPartners.com.

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3.31.2020

Rydex Funds Annual Report

Domestic Equity Fund

NASDAQ-100^® Fund

Beginning on January 1, 2021, paper copies of the Fund’s annual and semi-annual shareholder reports may no longer be sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from a fund electronically by calling 800.820.0888, going to GuggenheimInvestments.com/myaccount, or by contacting your financial intermediary.

You may elect to receive all future shareholder reports in paper free of charge. If you hold shares of a fund directly, you can inform the Fund that you wish to receive paper copies of reports by calling 800.820.0888. If you hold shares of a fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper will apply to all Guggenheim Funds in which you are invested and may apply to all funds held with your financial intermediary.

GuggenheimInvestments.com ROTC-ANN-2-0320x0321

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	4
ABOUT SHAREHOLDERS’ FUND EXPENSES	6
NASDAQ-100® FUND	9
NOTES TO FINANCIAL STATEMENTS	27
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	47
OTHER INFORMATION	49
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	51
GUGGENHEIM INVESTMENTS PRIVACY NOTICE	59

THE RYDEX FUNDS ANNUAL REPORT | 1

March 31, 2020

Dear Shareholder:

The fiscal year ended March 31, 2020, concluded on a somber note. Even though markets performed well for most of the period, the emergence of a novel and highly contagious form of coronavirus in the last weeks of the period adversely impacted global commercial activity and contributed to significant volatility in certain markets, unseen since the great recession of 2008.

As it spread beyond Asia to virtually every country in the world, many governments and businesses instituted quarantines and closures, which has resulted in significant disruption in manufacturing, supply chains, consumer demand and economic activity. The U.S. Federal Reserve responded quickly to provide liquidity in order to ensure that the U.S. markets continued to function efficiently. The fiscal policy included a spending bill worth over $2 trillion to assist consumers, states, small businesses and certain industries. While these actions helped stabilize the market, volatile conditions continued into April.

As discussed in this annual shareholder report, these events have affected performance of the Nasdaq-100 Fund (the “Fund”). We encourage you to read the Economic and Market Overview section of the report, which follows this letter, and then the Performance Report and Fund Profile for the Fund.

Security Investors, LLC (the “Investment Adviser”), the Investment Adviser for the Fund, is part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC (“Guggenheim”), a global, diversified financial services firm. An affiliate of Guggenheim and the Investment Adviser, Guggenheim Funds Distributors, LLC, is the distributor of the Fund.

Together, we are committed to the safety and prosperity of our clients, our employees, and our shareholders. The resources of the firm are being made fully available not only to support our clients, but also to support our employees and their families.

Please practice the appropriate prudence for the protection not only of your health and that of your friends and loved ones but also for our neighbors and communities. Thank you for the trust you place in us.

Sincerely,

Security Investors, LLC

April 30, 2020

Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expenses, and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at guggenheiminvestments.com or call 800.820.0888.

2 | THE RYDEX FUNDS ANNUAL REPORT

March 31, 2020

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/ or legal professional regarding your specific situation.

The global ongoing crisis caused by the outbreak of COVID-19 is causing materially reduced consumer demand and economic output, disrupting supply chains, resulting in market closures, travel restrictions and quarantines, and adversely impacting local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and health conditions all over the world, the Fund’s investments and a shareholder’s investment in the Fund are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Fund, the Fund, its service providers, the markets in which it invests and market intermediaries are also impacted by quarantines and similar measures intended to contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational risks.

The Nasdaq-100^® Fund may not be suitable for all investors. ● Investing in the NASDAQ-100^® Fund involves certain risks, which may include increased volatility due to the use of futures and the possibility that companies in which the Fund invests may not be commercially successful or may become obsolete more quickly. ● There are no assurances that any Rydex Fund will achieve its objective and/or strategy. This Fund is subject to active trading and tracking error risks, which may increase volatility, impact the Fund’s ability to achieve its investment objective and may decrease the Fund’s performance. ● This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified fund. ● For more on these and other risks, please read the prospectus.

THE RYDEX FUNDS ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) March 31, 2020

The 12-month period ended March 31,2020, was a wild ride for markets. While the U.S. economy was generally in good shape in 2019, recessionary fears rose throughout the year, prompting the U.S. Federal Reserve (the “Fed”) to announce a rate cut on July 31, the first since 2008, amid growing downside risks to policymakers’ baseline growth and inflation forecasts. Key among those risks were slowing global growth, the threat of additional U.S.-China tariffs, and the possible ramifications surrounding Brexit. The Fed subsequently cut rates twice more in 2019, which caused markets to rally toward the end of the year and into early 2020. Stocks reached new highs and credit spreads tightened to historic levels. Since then, the global outbreak of the coronavirus, COVID-19, has been at the center of everything. As of this writing, COVID-19 has spread to 210 countries, resulted in over 2.5 million cases, and caused over 170,000 deaths. Thus far, the U.S. makes up more than 30% of global cases, and 25% of global deaths. States have required the labor force to work from home if possible, individuals to practice social distancing, and non-essential businesses to shut down.

Closures, quarantines, and social distancing efforts have impacted the travel, hospitality, restaurants, and retail industries, with activity down 100% in some areas of the country. Further exacerbating the decline in output will be reduced business investment, which was already stalling due to falling profits, trade conflicts, and political uncertainty. The coronavirus shock and collapse in oil prices will likely further depress capital expenditures.

In response to the crisis, the Federal Open Market Committee cut rates by a further 125 basis points in the first quarter of 2020 and passed a series of stimulus programs. Among these were the Primary and Secondary Market Corporate Credit Facilities, which are lending programs primarily targeting investment-grade corporate bond issuers, implemented in concert with the U.S. Treasury. It was only after the announcement of this program that corporate credit found some relief from the selloff, but we expect this relief may be temporary.

With an alphabet soup of monetary programs targeting relief from the coronavirus impact, fiscal policy has also stepped up to the plate with a spending bill worth over $2 trillion that aims to assist consumers, states, small businesses, and certain industries. There is no question that these programs will help ease the economic fallout from virus containment measures, but even $2 trillion may be too small given the magnitude of the economic shock that we are facing. Additionally, it is far from clear that fiscal measures are an adequate solution to the issue at hand: the physical impediment to consumer spending. Fiscal and monetary policy can do their part, but ultimately it is public health policy that will likely be the greatest determinant of the economic outlook.

For the 12 months ended March 31, 2020, the Standard & Poor’s 500^® (“S&P 500”) Index* returned -6.98%. The decline, while significant, represents something of a recovery in stocks. The S&P 500 peaked at 3,386.15 on February 19, 2020, before plummeting 33.9% to a low of 2,237.40 on March 23, 2020, then recovering some lost ground by the end of the month.

The consensus estimate for S&P 500 earnings per share in 2020 is still around $150. Our research shows S&P 500 earnings per share could fall below $100. Similarly, economists have no way to calibrate how bad the economic data could be based on history. The March U.S. non-farm payrolls

4 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) March 31, 2020

report was evidence of this, as it showed a decline in payrolls of 700,000 jobs versus survey expectations of a decline of only 100,000 jobs. We currently expect that second quarter U.S. real gross domestic product (“GDP”) quarter-over-quarter growth could fall by 40% annualized and the unemployment rate could rise to at least 20%. Beyond that, the severity of the crisis depends on containment of the virus and the effectiveness of social distancing measures put in place, but expectations for a quick and sustained V-shaped recovery appear overly optimistic.

For the 12 months ended March 31, 2020, the MSCI Europe-Australasia-Far East (“EAFE”) Index* returned -13.92%. The return of the MSCI Emerging Markets Index* was -17.36%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted an 8.93% return for the 12-month period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned -6.94%. The return of the ICE Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 2.25% for the 12-month period.

The opinions and forecasts expressed may not actually come to pass. This information is subject to change at any time, based on market and other conditions, and should not be construed as a recommendation of any specific security or strategy.

*Index Definitions:

The following indices are referenced throughout this report. Indices are unmanaged and not available for direct investment. Index performance does not reflect transaction costs, fees, or expenses.

Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, mortgage-backed securities or “MBS” (agency fixed-rate and hybrid adjustable-rate mortgage, or “ARM”, pass-throughs), asset-backed securities (“ABS”), and commercial mortgage-backed securities (“CMBS”) (agency and non-agency).

Bloomberg Barclays U.S. Corporate High Yield Index measures the U.S. dollar-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB +/BB + or below.

ICE BofA Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged market Index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income.

MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

MSCI Emerging Markets Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets.

NASDAQ-100^® Index includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain securities of financial companies including investment companies.

S&P 500^® is a broad-based index, the performance of which is based on the performance of 500 widely held common stocks chosen for market size, liquidity, and industry group representation.

THE RYDEX FUNDS ANNUAL REPORT | 5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses, and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, other distributions, and exchange fees, and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund’s gross income and reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning September 30, 2019 and ending March 31, 2020.

The following tables illustrate the Fund’s costs in two ways:

Table 1. Based on actual Fund return: This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fifth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return: This section is intended to help investors compare a fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

6 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments, and contingent deferred sales charges (“CDSC”) on redemptions, if any. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

More information about the Fund’s expenses, including annual expense ratios for periods up to five years (subject to the Fund’s inception date), can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the Fund’s prospectus.

THE RYDEX FUNDS ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2019	Ending Account Value March 31, 2020	Expenses Paid During Period2
Table 1. Based on actual Fund return3
NASDAQ-100® Fund
Investor Class	1.38%	0.53%	$ 1,000.00	$ 1,005.30	$ 6.92
A-Class	1.63%	0.41%	1,000.00	1,004.10	8.17
C-Class	2.38%	0.00%	1,000.00	1,000.00	11.90
H-Class	1.63%	0.38%	1,000.00	1,003.80	8.17
Table 2. Based on hypothetical 5% return (before expenses)
NASDAQ-100® Fund
Investor Class	1.38%	5.00%	$ 1,000.00	$ 1,018.10	$ 6.96
A-Class	1.63%	5.00%	1,000.00	1,016.85	8.22
C-Class	2.38%	5.00%	1,000.00	1,013.10	11.98
H-Class	1.63%	5.00%	1,000.00	1,016.85	8.22

1	Annualized and excludes expenses of the underlying funds in which the Fund invests, if any.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period September 30, 2019 to March 31, 2020.

8 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

NASDAQ-100^® FUND

OBJECTIVE: Seeks to provide investment results that correspond, before fees and expenses, to a benchmark for over-the-counter securities on a daily basis. The Fund’s current benchmark is the NASDAQ-100^® Index (the “underlying index”).

For the one-year period ended March 31, 2020, NASDAQ-100 Fund maintained a daily correlation of over 99% to its benchmark of 100% of the daily price movement of the NASDAQ-100^® Index. The Fund Investor Class returned 5.40%, while the NASDAQ-100 Index returned 7.03% over the same time period.

The sectors contributing the most to the return of the underlying index were Information Technology, Consumer Discretionary, and Health Care. The sectors detracting the most were Industrials, Utilities, and Consumer Staples.

The holdings contributing the most to the return of the underlying index were Microsoft Corp., Apple, Inc., and Amazon.com, Inc. The holdings detracting the most were Cisco Systems, Inc., Comcast Corp. Class A, and Baidu, Inc. ADR.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. Derivatives performed as expected.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the one-year period ended March 31, 2020, investment in the Short Term Investment Vehicles had a negligible impact on Fund performance.

Performance displayed represents past performance, which is no guarantee of future results.

THE RYDEX FUNDS ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2020

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

Inception Dates:
Investor Class	February 14, 1994
A-Class	March 31, 2004
C-Class	March 26, 2001
H-Class	September 18, 2014

Ten Largest Holdings (% of Total Net Assets)
Microsoft Corp.	10.7%
Apple, Inc.	10.1%
Amazon.com, Inc.	8.6%
Facebook, Inc. — Class A	3.6%
Alphabet, Inc. — Class C	3.6%
Alphabet, Inc. — Class A	3.6%
Intel Corp.	2.7%
PepsiCo, Inc.	1.9%
Cisco Systems, Inc.	1.9%
Netflix, Inc.	1.9%
Top Ten Total	48.6%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

10 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2020

Cumulative Fund Performance*

THE RYDEX FUNDS ANNUAL REPORT | 11

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Average Annual Returns* Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
Investor Class Shares	5.40%	12.28%	14.69%
A-Class Shares	5.14%	11.98%	14.37%
A-Class Shares with sales charge‡	0.14%	10.89%	13.82%
C-Class Shares	4.31%	11.16%	13.54%
C-Class Shares with CDSC§	3.31%	11.16%	13.54%
NASDAQ-100 Index	7.03%	13.81%	16.17%
	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	5.11%	12.00%	11.84%
NASDAQ-100 Index	7.03%	13.81%	13.65%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on the Investor Class shares and A-Class shares only; performance for C-Class shares and H-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

12 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
NASDAQ-100® FUND

	Shares		Value
COMMON STOCKS† - 89.7%
Technology - 39.5%
Microsoft Corp.		702,912	$	110,856,252
Apple, Inc.		409,399		104,106,072
Intel Corp.		511,272		27,670,041
NVIDIA Corp.		71,931		18,961,012
Adobe, Inc.*		56,896		18,106,583
Broadcom, Inc.		46,623		11,054,313
Texas Instruments, Inc.		109,868		10,979,109
QUALCOMM, Inc.		134,206		9,079,036
Fiserv, Inc.*		79,911		7,590,746
Intuit, Inc.		30,595		7,036,850
Advanced Micro Devices, Inc.*		130,889		5,952,832
Micron Technology, Inc.*		130,116		5,472,679
Activision Blizzard, Inc.		90,296		5,370,806
Applied Materials, Inc.		108,572		4,974,769
Lam Research Corp.		17,052		4,092,480
Autodesk, Inc.*		25,809		4,028,785
Analog Devices, Inc.		43,288		3,880,769
Electronic Arts, Inc.*		34,318		3,437,634
Cognizant Technology Solutions Corp. — Class A		64,358		2,990,716
NetEase, Inc. ADR		8,575		2,752,232
NXP Semiconductor N.V.		32,854		2,724,582
KLA Corp.		18,546		2,665,802
Paychex, Inc.		42,071		2,647,107
Workday, Inc. — Class A*		19,276		2,510,121
Cerner Corp.		36,918		2,325,465
Xilinx, Inc.		29,556		2,303,595
ANSYS, Inc.*		9,895		2,300,291
ASML Holding N.V. — Class G		8,705		2,277,576
Synopsys, Inc.*		17,664		2,274,947
Splunk, Inc.*		17,789		2,245,505
Cadence Design Systems, Inc.*		32,979		2,177,933
Citrix Systems, Inc.		15,305		2,166,423
Microchip Technology, Inc.		28,088		1,904,366
Check Point Software Technologies Ltd.*		17,893		1,798,962
Skyworks Solutions, Inc.		20,025		1,789,834
Take-Two Interactive Software, Inc.*		13,322		1,580,122
Maxim Integrated Products, Inc.		31,806		1,546,090
Western Digital Corp.		34,955		1,454,827
NetApp, Inc.		26,824		1,118,293
Total Technology				408,205,557
Communications - 29.8%
Amazon.com, Inc.*		45,683		89,069,059
Facebook, Inc. — Class A*		221,730		36,984,564
Alphabet, Inc. — Class C*		31,655		36,808,751
Alphabet, Inc. — Class A*		31,676		36,805,928
Cisco Systems, Inc.		498,609		19,600,320
Netflix, Inc.*		51,509		19,341,630
Comcast Corp. — Class A		533,580		18,344,480
Charter Communications, Inc. — Class A*		25,244		11,014,210
T-Mobile US, Inc.*		100,559		8,436,900
Booking Holdings, Inc.*		4,919		6,617,629
JD.com, Inc. ADR*		108,945		4,412,272
Baidu, Inc. ADR*		32,498		3,275,473
eBay, Inc.		95,617		2,874,247
MercadoLibre, Inc.*		5,843		2,854,773
Sirius XM Holdings, Inc.1		519,936		2,568,484
VeriSign, Inc.*		13,800		2,485,242

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 13

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
NASDAQ-100® FUND

	Shares		Value
CDW Corp.		16,887	$	1,575,050
Trip.com Group Ltd. ADR*		61,467		1,441,401
Fox Corp. — Class A		41,667		984,591
Expedia Group, Inc.		16,380		921,703
Liberty Global plc — Class C*		51,572		810,196
Fox Corp. — Class B		31,285		715,801
Liberty Global plc — Class A*		21,335		352,241
Total Communications				308,294,945
Consumer, Non-cyclical - 12.8%
PepsiCo, Inc.		163,893		19,683,549
Amgen, Inc.		69,837		14,158,055
PayPal Holdings, Inc.*		138,007		13,212,790
Gilead Sciences, Inc.		148,697		11,116,588
Mondelez International, Inc. — Class A		169,228		8,474,938
Vertex Pharmaceuticals, Inc.*		30,224		7,191,801
Automatic Data Processing, Inc.		50,857		6,951,135
Intuitive Surgical, Inc.*		13,584		6,726,932
Biogen, Inc.*		21,208		6,709,787
Regeneron Pharmaceuticals, Inc.*		12,687		6,194,935
Illumina, Inc.*		17,278		4,718,967
Monster Beverage Corp.*		63,196		3,555,407
Kraft Heinz Co.		143,528		3,550,883
Verisk Analytics, Inc. — Class A		19,260		2,684,459
CoStar Group, Inc.*		4,306		2,528,526
IDEXX Laboratories, Inc.*		10,082		2,442,264
Alexion Pharmaceuticals, Inc.*		26,009		2,335,348
Seattle Genetics, Inc.*		20,144		2,324,215
Cintas Corp.		12,165		2,107,222
Incyte Corp.*		25,316		1,853,891
BioMarin Pharmaceutical, Inc.*		21,112		1,783,964
Align Technology, Inc.*		9,264		1,611,473
Total Consumer, Non-cyclical				131,917,129
Consumer, Cyclical - 6.1%
Costco Wholesale Corp.		51,925		14,805,375
Tesla, Inc.*		21,186		11,101,464
Starbucks Corp.		138,807		9,125,172
Walgreens Boots Alliance, Inc.		104,904		4,799,358
Ross Stores, Inc.		42,515		3,697,529
Marriott International, Inc. — Class A		38,426		2,874,649
Lululemon Athletica, Inc.*		14,474		2,743,547
O’Reilly Automotive, Inc.*		8,892		2,676,937
PACCAR, Inc.		40,652		2,485,057
Fastenal Co.		67,409		2,106,531
Dollar Tree, Inc.*		27,816		2,043,641
Copart, Inc.*		27,322		1,872,104
Ulta Beauty, Inc.*		6,918		1,215,493
United Airlines Holdings, Inc.*,1		29,741		938,329
American Airlines Group, Inc.1		51,487		627,626
Total Consumer, Cyclical				63,112,812
Utilities - 0.8%
Exelon Corp.		114,255		4,205,727
Xcel Energy, Inc.		63,025		3,800,407
Total Utilities				8,006,134
Industrial - 0.5%
CSX Corp.		91,951		5,268,792

14 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
NASDAQ-100® FUND

	Shares		Value
Financial - 0.2%
Willis Towers Watson plc		15,112	$	2,566,773
Total Common Stocks
(Cost $406,950,400)				927,372,142
MUTUAL FUNDS† - 3.7%
Guggenheim Ultra Short Duration Fund — Institutional Class2		1,610,622		15,735,775
Guggenheim Strategy Fund II2		575,584		13,842,806
Guggenheim Strategy Fund III2		356,029		8,569,619
Total Mutual Funds
(Cost $39,328,710)				38,148,200
	Face Amount
FEDERAL AGENCY NOTES†† - 4.7%
Freddie Mac
0.01% (Rate Floor: 0.00%) due 04/13/203	$	20,000,000		19,999,530
Federal Farm Credit Bank
1.96% due 12/30/20		5,000,000		5,000,000
0.40% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/223		3,000,000		3,010,256
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 11/23/213		1,400,000		1,402,344
1.75% (3 Month USD LIBOR - 0.08%, Rate Floor: 0.00%) due 01/15/213		1,000,000		1,000,053
Fannie Mae
0.09% (U.S. Secured Overnight Financing Rate + 0.08%, Rate Floor: 0.00%) due 09/16/203		5,000,000		4,999,534
1.88% due 12/28/20		2,500,000		2,527,021
0.23% (U.S. Secured Overnight Financing Rate + 0.22%, Rate Floor: 0.00%) due 03/16/223		2,000,000		1,996,038
Farmer Mac
0.23% (U.S. Prime Rate - 3.02%, Rate Floor: 0.00%) due 09/01/203		9,500,000		9,500,000
Total Federal Agency Notes
(Cost $49,426,340)				49,434,776
FEDERAL AGENCY DISCOUNT NOTES†† - 0.5%
Federal Home Loan Bank
0.05% due 04/08/204		5,000,000		4,999,951
Total Federal Agency Discount Notes
(Cost $4,999,951)				4,999,951
U.S. TREASURY BILLS†† - 0.3%
U.S. Treasury Bills
0.50% due 04/30/204,5		3,095,000		3,094,862
Total U.S. Treasury Bills
(Cost $3,093,735)				3,094,862

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 15

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
NASDAQ-100® FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,6 - 0.8%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/207	$	6,046,507	$	6,046,507
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/207		2,325,579		2,325,579
Total Repurchase Agreements
(Cost $8,372,086)				8,372,086

	Shares
SECURITIES LENDING COLLATERAL†,8 - 0.3%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.39%9		2,627,975		2,627,975
Total Securities Lending Collateral
(Cost $2,627,975)				2,627,975
Total Investments - 100.0%
(Cost $514,799,197)				1,034,049,992
Other Assets & Liabilities, net - 0.0%				(396,295	)
Total Net Assets - 100.0%			$	1,033,653,697

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Purchased†
NASDAQ-100 Index Mini Futures Contracts		324		Jun 2020	$	50,527,800	$	3,920,366

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements††
BNP Paribas	NASDAQ-100 Index	1.64% (1 Month USD LIBOR + 0.65%)	At Maturity		04/29/20		220	$	1,720,976	$	(18,417	)
Barclays Bank plc	NASDAQ-100 Index	1.09% (1 Week USD LIBOR + 0.50%)	At Maturity		04/30/20		2,563		20,029,168		(193,553	)
Goldman Sachs International	NASDAQ-100 Index	1.14% (1 Week USD LIBOR + 0.55%)	At Maturity		04/28/20		4,232		33,070,602		(353,962	)
								$	54,820,746	$	(565,932	)

16 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
NASDAQ-100® FUND

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2020 — See Note 7.
2	Affiliated issuer.
3	Variable rate security. Rate indicated is the rate effective at March 31, 2020. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
4	Rate indicated is the effective yield at the time of purchase.
5	All or a portion of this security is pledged as futures collateral at March 31, 2020.
6	Repurchase Agreements — See Note 6.
7	All or a portion of this security is pledged as equity index swap collateral at March 31, 2020.
8	Securities lending collateral — See Note 7.
9	Rate indicated is the 7-day yield as of March 31, 2020.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	927,372,142	$	—	$	—	$	927,372,142
Mutual Funds		38,148,200		—		—		38,148,200
Federal Agency Notes		—		49,434,776		—		49,434,776
Federal Agency Discount Notes		—		4,999,951		—		4,999,951
U.S. Treasury Bills		—		3,094,862		—		3,094,862
Repurchase Agreements		—		8,372,086		—		8,372,086
Securities Lending Collateral		2,627,975		—		—		2,627,975
Equity Futures Contracts**		3,920,366		—		—		3,920,366
Total Assets	$	972,068,683	$	65,901,675	$	—	$	1,037,970,358

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	565,932	$	—	$	565,932

** This derivative is reported as unrealized appreciation/depreciation at period end.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 17

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
NASDAQ-100® FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2019, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180419000405/gug78512-ncsr.htm.

Transactions during the year ended March 31, 2020, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)
Mutual Funds
Guggenheim Strategy Fund II	$	14,280,251	$	—	$	—	$	—	$	(437,445	)
Guggenheim Strategy Fund III		8,825,959		—		—		—		(256,340	)
Guggenheim Ultra Short Duration Fund — Institutional Class		11,953,180		4,100,000		—		—		(317,405	)
	$	35,059,390	$	4,100,000	$	—	$	—	$	(1,011,190	)

Security Name	Value 03/31/20		Shares 03/31/20		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	13,842,806		575,584	$	392,540
Guggenheim Strategy Fund III		8,569,619		356,029		241,783
Guggenheim Ultra Short Duration Fund — Institutional Class		15,735,775		1,610,622		327,163
	$	38,148,200			$	961,486

18 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

STATEMENT OF ASSETS AND LIABILITIES

NASDAQ-100^® FUND

March 31, 2020

Assets:
Investments in unaffiliated issuers, at value - including $2,610,381 of securities loaned (cost $467,098,401)	$	987,529,706
Investments in affiliated issuers, at value (cost $39,328,710)		38,148,200
Repurchase agreements, at value (cost $8,372,086)		8,372,086
Cash		2,350,689
Segregated cash with broker		2,261,601
Receivables:
Securities sold		6,947,272
Fund shares sold		2,404,038
Dividends		380,694
Interest		106,191
Securities lending income		882
Total assets		1,048,501,359
Liabilities:
Unrealized depreciation on OTC swap agreements		565,932
Payable for:
Fund shares redeemed		8,532,673
Return of securities lending collateral		2,627,975
Management fees		641,912
Variation margin on futures contracts		370,980
Transfer agent and administrative fees		274,107
Distribution and service fees		81,610
Portfolio accounting fees		53,471
Swap settlement		42,436
Trustees’ fees*		23,473
Miscellaneous		1,633,093
Total liabilities		14,847,662
Commitments and contingent liabilities (Note 11)		—
Net assets	$	1,033,653,697
Net assets consist of:
Paid in capital	$	495,894,523
Total distributable earnings (loss)		537,759,174
Net assets	$	1,033,653,697
Investor Class:
Net assets	$	888,189,143
Capital shares outstanding		22,385,823
Net asset value per share	$	39.68
A-Class:
Net assets	$	41,054,358
Capital shares outstanding		1,131,419
Net asset value per share	$	36.29
Maximum offering price per share (Net asset value divided by 95.25%)	$	38.10
C-Class:
Net assets	$	80,633,082
Capital shares outstanding		2,585,704
Net asset value per share	$	31.18
H-Class:
Net assets	$	23,777,114
Capital shares outstanding		655,372
Net asset value per share	$	36.28

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 19

STATEMENT OF OPERATIONS

NASDAQ-100^® FUND

Year Ended March 31, 2020

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $12,278)	$	11,825,938
Dividends from securities of affiliated issuers		961,486
Interest		1,420,342
Income from securities lending, net		7,681
Total investment income		14,215,447
Expenses:
Management fees		9,059,142
Distribution and service fees:
A-Class		133,876
C-Class		893,228
H-Class		89,968
Transfer agent and administrative fees		3,078,765
Registration fees		992,583
Portfolio accounting fees		700,119
Professional fees		586,790
Trustees’ fees*		265,593
Custodian fees		170,700
Line of credit fees		903
Prime broker interest expense		162
Miscellaneous		1,731,274
Total expenses		17,703,103
Less:
Expenses waived by Adviser		(34,372	)
Net expenses		17,668,731
Net investment loss		(3,453,284	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments	$	95,863,271
Swap agreements		10,425,445
Futures contracts		2,397,651
Net realized gain		108,686,367
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(35,712,847	)
Investments in affiliated issuers		(1,011,190	)
Swap agreements		(628,331	)
Futures contracts		263,638
Net change in unrealized appreciation (depreciation)		(37,088,730	)
Net realized and unrealized gain		71,597,637
Net increase in net assets resulting from operations	$	68,144,353

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

20 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

STATEMENTS OF CHANGES IN NET ASSETS

NASDAQ-100^® FUND

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(3,453,284	)	$	(2,672,127	)
Net realized gain on investments		108,686,367			29,980,370
Net change in unrealized appreciation (depreciation) on investments		(37,088,730	)		88,603,777
Net increase in net assets resulting from operations		68,144,353			115,912,020
Distributions to shareholders:
Investor Class		(20,287,863	)		(15,419,551	)
A-Class		(1,043,499	)		(985,618	)
C-Class		(2,257,087	)		(1,757,606	)
H-Class		(648,117	)		(662,148	)
Total distributions to shareholders		(24,236,566	)		(18,824,923	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		1,328,414,692			1,133,065,829
A-Class		30,863,059			45,605,047
C-Class		18,499,187			30,479,325
H-Class		140,487,069			136,853,790
Distributions reinvested
Investor Class		19,606,905			14,906,982
A-Class		977,143			845,201
C-Class		2,159,664			1,687,671
H-Class		645,234			660,051
Cost of shares redeemed
Investor Class		(1,477,875,968	)		(1,176,363,858	)
A-Class		(52,878,356	)		(43,829,464	)
C-Class		(26,781,762	)		(38,634,376	)
H-Class		(164,617,240	)		(160,150,861	)
Net decrease from capital share transactions		(180,500,373	)		(54,874,663	)
Net increase (decrease) in net assets		(136,592,586	)		42,212,434
Net assets:
Beginning of year		1,170,246,283			1,128,033,849
End of year	$	1,033,653,697		$	1,170,246,283

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 21

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

NASDAQ-100^® FUND

	Year Ended March 31, 2020			Year Ended March 31, 2019
Capital share activity:
Shares sold
Investor Class		32,616,628			30,604,193
A-Class		865,992			1,323,544
C-Class		567,526			1,009,503
H-Class		3,768,582			4,004,601
Shares issued from reinvestment of distributions
Investor Class		458,320			423,253
A-Class		24,959			26,111
C-Class		64,046			59,869
H-Class		16,485			20,391
Shares redeemed
Investor Class		(36,205,571	)		(32,014,747	)
A-Class		(1,433,295	)		(1,297,551	)
C-Class		(829,227	)		(1,296,281	)
H-Class		(4,442,249	)		(4,713,948	)
Net decrease in shares		(4,527,804	)		(1,851,062	)

22 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

FINANCIAL HIGHLIGHTS

NASDAQ-100^® FUND

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Investor Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	38.39		$	34.94		$	30.68		$	25.75		$	25.38
Income (loss) from investment operations:
Net investment income (loss)a		(.08	)		(.05	)		(.05	)		(.06	)		(.05	)
Net gain (loss) on investments (realized and unrealized)		2.21			4.11			6.35			5.47			.96
Total from investment operations		2.13			4.06			6.30			5.41			.91
Less distributions from:
Net realized gains		(.84	)		(.61	)		(2.04	)		(.48	)		(.54	)
Total distributions		(.84	)		(.61	)		(2.04	)		(.48	)		(.54	)
Net asset value, end of period	$	39.68		$	38.39		$	34.94		$	30.68		$	25.75
Total Return		5.40	%		11.79	%		20.76	%		21.21	%		3.49	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	888,189		$	979,675		$	926,146		$	760,485		$	667,018
Ratios to average net assets:
Net investment income (loss)		(0.19	%)		(0.14	%)		(0.14	%)		(0.21	%)		(0.19	%)
Total expensesb		1.37	%		1.36	%		1.28	%		1.29	%		1.25	%
Net expensesc		1.37	%		1.36	%		1.28	%		1.29	%		1.25	%
Portfolio turnover rate		54	%		32	%		48	%		72	%		228	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 23

FINANCIAL HIGHLIGHTS (continued)

NASDAQ-100^® FUND

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	35.26		$	32.22		$	28.49		$	24.04		$	23.78
Income (loss) from investment operations:
Net investment income (loss)a		(.17	)		(.13	)		(.12	)		(.13	)		(.10	)
Net gain (loss) on investments (realized and unrealized)		2.04			3.78			5.89			5.06			.90
Total from investment operations		1.87			3.65			5.77			4.93			.80
Less distributions from:
Net realized gains		(.84	)		(.61	)		(2.04	)		(.48	)		(.54	)
Total distributions		(.84	)		(.61	)		(2.04	)		(.48	)		(.54	)
Net asset value, end of period	$	36.29		$	35.26		$	32.22		$	28.49		$	24.04
Total Returnd		5.14	%		11.51	%		20.44	%		20.76	%		3.26	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	41,054		$	59,021		$	52,257		$	63,311		$	60,499
Ratios to average net assets:
Net investment income (loss)		(0.44	%)		(0.38	%)		(0.39	%)		(0.51	%)		(0.42	%)
Total expensesb		1.62	%		1.61	%		1.53	%		1.53	%		1.51	%
Net expensesc		1.62	%		1.61	%		1.53	%		1.53	%		1.51	%
Portfolio turnover rate		54	%		32	%		48	%		72	%		228	%

24 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

FINANCIAL HIGHLIGHTS (continued)

NASDAQ-100^® FUND

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	30.64		$	28.29		$	25.41		$	21.62		$	21.60
Income (loss) from investment operations:
Net investment income (loss)a		(.39	)		(.34	)		(.32	)		(.28	)		(.26	)
Net gain (loss) on investments (realized and unrealized)		1.77			3.30			5.24			4.55			.82
Total from investment operations		1.38			2.96			4.92			4.27			.56
Less distributions from:
Net realized gains		(.84	)		(.61	)		(2.04	)		(.48	)		(.54	)
Total distributions		(.84	)		(.61	)		(2.04	)		(.48	)		(.54	)
Net asset value, end of period	$	31.18		$	30.64		$	28.29		$	25.41		$	21.62
Total Returnd		4.31	%		10.70	%		19.57	%		19.98	%		2.48	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	80,633		$	85,274		$	85,149		$	58,647		$	38,900
Ratios to average net assets:
Net investment income (loss)		(1.19	%)		(1.14	%)		(1.15	%)		(1.21	%)		(1.19	%)
Total expensesb		2.37	%		2.36	%		2.28	%		2.28	%		2.26	%
Net expensesc		2.37	%		2.36	%		2.28	%		2.28	%		2.26	%
Portfolio turnover rate		54	%		32	%		48	%		72	%		228	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 25

FINANCIAL HIGHLIGHTS (concluded)

NASDAQ-100^® FUND

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	35.26		$	32.22		$	28.49		$	24.00		$	23.76
Income (loss) from investment operations:
Net investment income (loss)a		(.16	)		(.13	)		(.12	)		(.14	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		2.02			3.78			5.89			5.11			.91
Total from investment operations		1.86			3.65			5.77			4.97			.78
Less distributions from:
Net realized gains		(.84	)		(.61	)		(2.04	)		(.48	)		(.54	)
Total distributions		(.84	)		(.61	)		(2.04	)		(.48	)		(.54	)
Net asset value, end of period	$	36.28		$	35.26		$	32.22		$	28.49		$	24.00
Total Return		5.11	%		11.51	%		20.49	%		20.92	%		3.18	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	23,777		$	46,276		$	64,483		$	53,441		$	173,638
Ratios to average net assets:
Net investment income (loss)		(0.43	%)		(0.37	%)		(0.37	%)		(0.57	%)		(0.51	%)
Total expensesb		1.62	%		1.61	%		1.53	%		1.54	%		1.51	%
Net expensesc		1.62	%		1.61	%		1.53	%		1.54	%		1.51	%
Portfolio turnover rate		54	%		32	%		48	%		72	%		228	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Does not include expenses of the underlying funds in which the Fund invests.
c	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
d	Total return does not reflect the impact of any applicable sales charges.

26 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

NOTES TO FINANCIAL STATEMENTS

Note 1 – Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory trust, is registered with the SEC under the Investment Company Act of 1940 (”1940 Act”), as an open-ended investment company of the series type. Each series, in effect, is representing a separate fund. The Trust is authorized to issue an unlimited number of no par value shares. The Trust accounts for the assets of each fund separately.

The Trust offers a combination of seven separate classes of shares: Investor Class shares, A-Class shares, C-Class shares, H-Class shares, P-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share (“NAV”), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. C-Class shares automatically convert to A-Class shares on or about the 10th day of the month following the 10-year anniversary of the purchase of the C-Class shares. This conversion will be executed without any sales charge, fee or other charge. After the conversion is completed, the shares will be subject to all features and expenses of A-Class shares. Institutional Class shares are offered primarily for direct investment by institutions such as pension and profit sharing plans, endowments, foundations and corporations. Institutional Class shares require a minimum initial investment of $2 million and a minimum account balance of $1 million. At March 31, 2020, the Trust consisted of fifty-two funds (the “Funds”).

This report covers the NASDAQ-100^® Fund (the “Fund”), a non-diversified investment company.

Only Investor Class, A-Class, C-Class, and H-Class shares have been issued by the Fund.

The Fund is designed and operated to accommodate frequent trading by shareholders and, unlike most mutual funds, offers unlimited exchange privileges with no minimum holding periods or transactions fees, which may cause the Fund to experience high portfolio turnover.

Security Investors, LLC, which operates under the name Guggenheim Investments (“GI”), provides advisory services. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities.

Significant Accounting Policies

The Fund operates as an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

THE RYDEX FUNDS ANNUAL REPORT | 27

NOTES TO FINANCIAL STATEMENTS (continued)

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

The NAV of each Class of the Fund is calculated by dividing the market value of the Fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

(a) Valuation of Investments

The Board of Trustees of the Fund (the “Board”) has adopted policies and procedures for the valuation of the Fund’s investments (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Board has delegated to a valuation committee, consisting of representatives from Guggenheim’s investment management, fund administration, legal and compliance departments (the “Valuation Committee”), the day-to-day responsibility for implementing the Valuation Procedures, including, under most circumstances, the responsibility for determining the fair value of the Fund’s securities and/or other assets.

Valuations of the Fund’s securities and other assets are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Valuation Committee convenes monthly, or more frequently as needed, to review the valuation of all assets which have been fair valued for reasonableness. The Fund’s officers, through the Valuation Committee and consistent with the monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used and valuations provided by the pricing services.

If the pricing service cannot or does not provide a valuation for a particular investment or such valuation is deemed unreliable, such investment is fair valued by the Valuation Committee.

Equity securities listed or traded on a recognized U.S. securities exchange or the National Association of Securities Dealers Automated Quotations (“NASDAQ”) National Market System shall generally be valued on the basis of the last sale price on the primary U.S. exchange or market on which the security is listed or traded; provided, however, that securities listed on NASDAQ will be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. If there is no sale on the valuation date, exchange-traded U.S. equity securities will be valued on the basis of the last bid price.

Open-end investment companies are valued at their NAV as of the close of business, on the valuation date.

U.S. Government securities are valued by independent pricing services, the last traded fill price, or at the reported bid price at the close of business.

28 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Repurchase agreements are generally valued at amortized cost, provided such amounts approximate market value.

Debt securities with a maturity of greater than 60 days at acquisition are valued at prices that reflect broker-dealer supplied valuations or are obtained from independent pricing services, which may consider the trade activity, treasury spreads, yields or price of bonds of comparable quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities. Short-term debt securities with a maturity of 60 days or less at acquisition are valued at amortized cost, provided such amount approximates market value.

The value of futures contracts is accounted for using the unrealized appreciation or depreciation on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the official settlement price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The values of swap agreements entered into by the Fund are accounted for using the unrealized appreciation or depreciation on the agreements that are determined by marking the agreements to the last quoted value of the index or other underlying position that the swaps pertain to at the close of the NYSE.

Investments for which market quotations are not readily available are fair-valued as determined in good faith by GI subject to review and approval by the Valuation Committee, pursuant to methods established or ratified by the Board. Valuations in accordance with these methods are intended to reflect each security’s (or asset’s or liability’s) “fair value”. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over U.S. Treasury securities, and other information analysis.

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

(b) U.S. Government and Agency Obligations

Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedule of Investments reflect the effective rates paid at the time of purchase by the Fund. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

THE RYDEX FUNDS ANNUAL REPORT | 29

NOTES TO FINANCIAL STATEMENTS (continued)

(c) Futures Contracts

Upon entering into a futures contract, the Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

(d) Swap Agreements

Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized appreciation or depreciation. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

Upon entering into certain centrally-cleared swap transactions, a Fund is required to deposit with its clearing broker an amount of cash or securities as an initial margin. Subsequent variation margin receipts or payments are received or made by the Fund depending on fluctuations in the fair value of the reference entity and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

(e) Foreign Taxes

The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the Fund and reflected in its Statement of Operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of March 31, 2020, if any, are disclosed in the Fund’s Statement of Assets and Liabilities.

(f) Security Transactions

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as a reduction to cost if the securities are still held and as realized gains if no longer held in the Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries, if any. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from Real Estate Investment Trusts (“REITs”) is recorded based on the income included

30 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

(g) Distributions

Distributions of net investment income and net realized gains, if any, are declared and paid at least annually. Dividends are reinvested in additional shares, unless shareholders request payment in cash. Distributions are recorded on the ex-dividend date and are determined in accordance with U.S. federal income tax regulations which may differ from U.S. GAAP.

(h) Class Allocations

Interest and dividend income, most expenses, all realized gains and losses, and all unrealized appreciation and depreciation are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution and service fees are charged directly to specific classes. In addition, certain expenses have been allocated to the individual Funds in the Trust based on the respective net assets of each Fund included in the Trust.

(i) Cash

The Fund may leave cash overnight in its cash account with the custodian. Periodically, the Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 0.08% at March 31, 2020.

(j) Indemnifications

Under the Fund’s organizational documents, its Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.

Note 2 – Derivatives

As part of its investment strategy, the Fund utilizes a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of amounts recognized in the Statement of Assets and Liabilities. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Financial Statements.

THE RYDEX FUNDS ANNUAL REPORT | 31

NOTES TO FINANCIAL STATEMENTS (continued)

Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund’s financial position and results of operations.

The Fund utilized derivatives for the following purposes:

Index Exposure: the use of an instrument to obtain exposure to a listed or other type of index.

Liquidity: the ability to buy or sell exposure with little price/market impact.

Futures Contracts

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to a Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as segregated cash with broker on the Statement of Assets and Liabilities; securities held as collateral are noted on the Schedule of Investments.

The following table represents the Fund’s use and volume of futures on a monthly basis:

	Average Notional Amount
Use	Long
Index exposure, Liquidity	$	77,358,032

Swap Agreements

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. When utilizing over-the-counter (“OTC”) swaps, the Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing and are

32 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

executed on a multi-lateral or other trade facility platform, such as a registered exchange. There is limited counterparty credit risk with respect to centrally-cleared swaps as the transaction is facilitated through a central clearinghouse, much like exchange-traded futures contracts. For a fund utilizing centrally cleared swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. There is no guarantee that a fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Total return swaps involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset (such as an index) for a fixed or variable interest rate. Total return swaps will usually be computed based on the current value of the reference asset as of the close of regular trading on the NYSE or other exchange, with the swap value being adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreement. When utilizing total return swaps, the Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying reference asset declines in value.

The following table represents the Fund’s use and volume of total return swaps on a monthly basis:

	Average Notional Amount
Use	Long
Index exposure,Liquidity	$	27,175,446

Derivative Investment Holdings Categorized by Risk Exposure

The following is a summary of the location of derivative investments on the Fund’s Statement of Assets and Liabilities as of March 31, 2020:

Derivative Investment Type	Asset Derivative	Liability Derivatives
Equity contracts		Variation margin on futures contracts
		Unrealized depreciation on OTC swap agreements

The following table sets forth the fair value of the Fund’s derivative investments categorized by primary risk exposure at March 31, 2020:

Asset Derivative Investments Value
	Futures Equity Risk*		Swaps Equity Risk		Total Value at March 31, 2020
	$	3,920,366	$	—	$	3,920,366

THE RYDEX FUNDS ANNUAL REPORT | 33

NOTES TO FINANCIAL STATEMENTS (continued)

Liability Derivative Investments Value
	Futures Equity Risk*		Swaps Equity Risk		Total Value at March 31, 2020
	$	—	$	565,932	$	565,932

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments. For exchange-traded and centrally cleared derivatives, variation margin is reported within the Statement of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Fund’s Statement of Operations for the year ended March 31, 2020:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts
	Net realized gain (loss) on swap agreements
	Net change in unrealized appreciation (depreciation) on swap agreements

The following is a summary of the Fund’s realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statement of Operations categorized by primary risk exposure for the year ended March 31, 2020:

Realized Gain (Loss) on Derivative Investments Recognized on the Statement of Operations
	Futures Equity Risk		Swaps Equity Risk		Total
	$	2,397,651	$	10,425,445	$	12,823,096

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statement of Operations
	Futures Equity Risk		Swaps Equity Risk			Total
	$	263,638	$	(628,331	)	$	(364,693	)

In conjunction with the use of derivative instruments, the Fund is required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Fund uses margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Fund as collateral.

34 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

Note 3 – Offsetting

In the normal course of business, the Fund enters into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Fund to counteract the exposure to a specific counterparty with collateral received from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, are reported separately on the Statement of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Cash and/or securities pledged or received as collateral by the Fund in connection with an OTC derivative subject to an ISDA Master Agreement generally may not be invested, sold or rehypothecated by the counterparty or the Fund, as applicable, absent an event of default under such agreement, in which case such collateral generally may be applied towards obligations due to and payable by such counterparty or the Fund, as applicable. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.

THE RYDEX FUNDS ANNUAL REPORT | 35

NOTES TO FINANCIAL STATEMENTS (continued)

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements:

	Gross		Gross Amounts Offset in the		Net Amount of Liabilities Presented on		Gross Amounts Not Offset in the Statement of Assets and Liabilities
Instrument	Amounts of Recognized Liabilities1		Statement of Assets and Liabilities		the Statement of Assets and Liabilities		Financial Instruments			Cash Collateral Pledged			Net Amount
Swap equity contracts	$	565,932	$	—	$	565,932	$	(372,379	)	$	(193,553	)	$	—

¹ Exchange-traded or centrally-cleared derivatives are excluded from these reported amounts.

The Fund has the right to offset deposits against any related derivative liabilities outstanding with each counterparty with the exception of exchange-traded or centrally-cleared derivatives. The following table presents deposits held by others in connection with derivative investments as of March 31, 2020.

Counterparty	Asset Type	Cash Pledged		Cash Received
Barclays Bank plc	Total return swap agreements	$	481,003	$	—
Goldman Sachs Group	Futures contracts		1,780,598		—
		$	2,261,601	$	—

Note 4 – Fair Value Measurement

In accordance with U.S. GAAP, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. U.S. GAAP establishes a three-tier fair value hierarchy based on the types of inputs used to value assets and liabilities and requires corresponding disclosure. The hierarchy and the corresponding inputs are summarized below:

Level 1 — quoted prices in active markets for identical assets or liabilities.

Level 2 — significant other observable inputs (for example quoted prices for securities that are similar based on characteristics such as interest rates, prepayment speeds, credit risk, etc.).

Level 3 — significant unobservable inputs based on the best information available under the circumstances, to the extent observable inputs are not available, which may include assumptions.

36 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The types of inputs available depend on a variety of factors, such as the type of security and the characteristics of the markets in which it trades, if any. Fair valuation determinations that rely on fewer or no observable inputs require greater judgment. Accordingly, fair value determinations for Level 3 securities require the greatest amount of judgment.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The suitability of the techniques and sources employed to determine fair valuation are regularly monitored and subject to change.

Note 5 – Investment Advisory Agreement and Other Agreements

Under the terms of an investment advisory contract, the Fund pays GI investment advisory fees calculated at an annualized rate of 0.75% of the average daily net assets of the Fund.

When the aggregate assets of each series of the Trust (excluding the Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund) and each series of Rydex Dynamic Funds equal or exceed $10 billion, the advisory fee rate paid by the Fund will be reduced in accordance with the asset level and breakpoint schedule set forth below.

Fund Assets Under Management	Fund Asset-Based Breakpoint Reductions
$500 million - $1 billion		0.025	%
> $1 billion - $2 billion		0.050	%
> $2 billion		0.075	%

GI pays operating expenses on behalf of the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, among others, on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Board has adopted a Distribution Plan applicable to A-Class and P-Class shares and H-Class shares for which GFD and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a Service Provider provides distribution services, the Fund will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services.

The Board has adopted a separate Distribution and Shareholder Services Plan applicable to C-Class shares that allows the Fund to pay annual distribution and service fees of 1.00% of the Fund’s C-Class shares average daily net assets. The annual 0.25% service fee compensates a shareholder’s financial adviser for providing ongoing services to the shareholder. The annual distribution fee of 0.75% reimburses GFD for paying the shareholder’s financial adviser an ongoing sales commission. GFD advances the first year’s service and distribution fees to the financial adviser. GFD retains the service and distribution fees on accounts with no authorized dealer of record.

THE RYDEX FUNDS ANNUAL REPORT | 37

NOTES TO FINANCIAL STATEMENTS (continued)

For the year ended March 31, 2020, GFD retained sales charges of $122,345 relating to sales of A-Class shares of the Trust.

If the Fund invests in a fund that is advised by the same adviser or an affiliated adviser, the investing Fund’s adviser has agreed to waive fees at the investing fund level to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. Fee waivers will be calculated at the investing Fund level without regard to any expense cap, if any, in effect for the investing Fund. Fees waived under this arrangement are not subject to reimbursement to GI. For the year ended March 31, 2020, the Fund waived $34,372 related to investments in affiliated funds.

Certain trustees and officers of the Trust are also officers of GI and/or GFD. The Trust does not compensate its officers or trustees who are officers, directors and/or employees of GI or GFD.

MUFG Investor Services (US), LLC (“MUIS”) acts as the Fund’s administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS maintains the books and records of the Fund’s securities and cash. U.S. Bank, N.A. (“U.S. Bank”) acts as the Fund’s custodian. As custodian, U.S. Bank is responsible for the custody of the Fund’s assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of the Fund’s average daily net assets and out of pocket expenses.

Note 6 – Repurchase Agreements

The Fund transfers uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The joint account includes other Funds in the Guggenheim complex not covered in this report. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At March 31, 2020, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral			Par Value		Fair Value
J.P. Morgan Securities LLC						U.S. Treasury Note
0.01%						2.00	%
Due 04/01/20	$	129,371,353	$	129,371,389		11/30/22		$	125,405,900	$	131,958,818
BofA Securities, Inc.						U.S. Treasury Note
0.00%						2.13	%
Due 04/01/20		49,758,213		49,758,213		08/15/21			49,322,100		50,753,381

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk

38 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

Note 7 – Portfolio Securities Loaned

The Fund may lend its securities to approved brokers to earn additional income. Security lending income shown on the Statement of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Fund act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Fund receives cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Fund’s securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class Z. The Fund bears the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Fund the next business day. Although the collateral mitigates the risk, the Fund could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

At March 31, 2020, the Fund participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

Gross Amounts Not Offset in the Statement of Assets and Liabilities							Securities Lending Collateral
Value of Securities Loaned		Collateral Received(a)			Net Amount		Cash Collateral Invested		Cash Collateral Uninvested		Total Collateral
$	2,610,381	$	(2,610,381	)	$	—	$	2,627,975	$	—	$	2,627,975

^(a) Actual collateral received by the Fund is generally greater than the amount shown due to over collateralization.

In the event of counterparty default, the Fund has the right to collect the collateral to offset losses incurred. There is potential loss to the Fund in the event the Fund is delayed or prevented from exercising its right to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Fund seeks to assert its rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers to evaluate potential risks.

THE RYDEX FUNDS ANNUAL REPORT | 39

NOTES TO FINANCIAL STATEMENTS (continued)

Note 8 – Federal Income Tax Information

The Fund intends to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Fund from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax or federal excise tax is required.

Tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Fund’s tax positions taken, or to be taken, on U.S. federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Fund’s financial statements. The Fund’s U.S. federal income tax returns are subject to examination by the Internal Revenue Service (“IRS”) for a period of three years after they are filed.

At March 31, 2020, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost, and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

The Fund intends to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Fund from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax or federal excise tax is required.

Tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Fund’s tax positions taken, or to be taken, on U.S. federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Fund’s financial statements. The Fund’s U.S. federal income tax returns are subject to examination by the Internal Revenue Service (“IRS”) for a period of three years after they are filed.

The tax character of distributions paid during the year ended March 31, 2020 was as follows:

Ordinary Income		Long-Term Capital Gain		Total Distributions
$	157,143	$	24,079,423	$	24,236,566

40 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid during the year ended March 31, 2019 was as follows:

Ordinary Income		Long-Term Capital Gain		Total Distributions
$	18,824,070	$	853	$	18,824,923

Note: For U.S. federal income tax purposes, short-term capital gain distributions are treated as ordinary income distributions.

The tax components of distributable earnings/(loss) as of March 31, 2020 were as follows:

Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation (Depreciation)		Accumulated Capital and Other Losses		Total
$	14,003,461	$	54,549,732	$	469,205,981	$	—	$	537,759,174

For U.S. federal income tax purposes, capital loss carryforwards represent realized losses of the Fund that may be carried forward and applied against future capital gains. Under the RIC Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital loss carryforwards will retain their character as either short-term or long-term capital losses. As of March 31, 2020, the Fund had no capital loss carryforwards.

For the year ended March 31, 2020, no capital loss carryforward amounts were utilized.

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to losses deferred due to wash sales, distributions in connection with redemption of fund shares, income accruals on certain investments, and the “mark-to-market” of certain derivatives. Additional differences may result from the tax treatment of net operating losses and the tax treatement of bond premium/discount amortization. To the extent these differences are permanent and would require a reclassification between Paid in Capital and Total Distributable Earnings (Loss), such reclassifications are made in the period that the differences arise. These reclassifications have no effect on net assets or NAV per share.

The following adjustments were made on the Statement of Assets and Liabilities as of March 31, 2020 for permanent book/tax differences:

Paid In Capital		Total Distributable Earnings/(Loss)
$	45,178,393	$	(45,178,393	)

THE RYDEX FUNDS ANNUAL REPORT | 41

NOTES TO FINANCIAL STATEMENTS (continued)

At March 31, 2020, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
$	564,278,079	$	484,073,698	$	(14,867,717	)	$	469,205,981

Note 9 – Securities Transactions

For the year ended March 31, 2020, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Purchases		Sales
$	604,722,236	$	797,842,962

The Fund is permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the year ended March 31, 2020, the Fund engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Purchases		Sales		Realized Loss
$	280,173,777	$	240,138,952	$	(784,126	)

Note 10 – Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 8, 2020. On March 30, 2020, the Board approved increasing the line of credit from $75,000,000 to $150,000,000. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 3.02% for the year ended March 31, 2020. The Fund did not have any borrowings outstanding under this agreement at March 31, 2020.

42 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The average daily balance borrowed by the Fund for the year ended March 31, 2020, was as follows:

Average Daily Balance
$	71,041

Note 11 – Legal Proceedings

Tribune Company

Rydex Series Funds has been named as a defendant and a putative member of the proposed defendant class of shareholders in the case entitled Kirschner v. FitzSimons, No. 12-2652 (S.D.N.Y.) (formerly Official Committee of Unsecured Creditors of Tribune Co. v. FitzSimons, Adv. Pro. No. 10-54010 (Bankr. D. Del.)) (the “FitzSimons action”), as a result of ownership by certain series of the Rydex Series Funds of shares in the Tribune Company (“Tribune”) in 2007, when Tribune effected a leveraged buyout transaction (“LBO”) by which Tribune converted to a privately-held company. In his complaint, the plaintiff has alleged that, in connection with the LBO, Tribune insiders and shareholders were overpaid for their Tribune stock using financing that the insiders knew would, and ultimately did, leave Tribune insolvent. The plaintiff has asserted claims against certain insiders, major shareholders, professional advisers, and others involved in the LBO. The plaintiff is also attempting to obtain from former Tribune shareholders, including the Rydex Series Funds, the proceeds they received in connection with the LBO.

In June 2011, a group of Tribune creditors filed multiple actions against former Tribune shareholders involving state law constructive fraudulent conveyance claims arising out of the 2007 LBO (the “SLCFC actions”). Rydex Series Funds has been named as a defendant in one or more of these suits. In those actions, the creditors seek to recover from Tribune’s former shareholders the proceeds received in connection with the 2007 LBO.

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2296 (S.D.N.Y.) (the “MDL Proceeding”).

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order.

THE RYDEX FUNDS ANNUAL REPORT | 43

NOTES TO FINANCIAL STATEMENTS (continued)

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments.

On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. On April 3, 2018, Justice Kennedy and Justice Thomas issued a “Statement” related to the petition for certiorari suggesting that the Second Circuit and/or District Court may want to take steps to reexamine the application of the Section 546(e) safe harbor to the previously dismissed state law constructive fraudulent transfer claims based on the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. On April 10, 2018, Plaintiffs filed in the Second Circuit a motion for that court to recall its mandate, vacate its prior decision, and remand to the district court for further proceedings consistent with Merit Management. On April 20, 2018, the shareholder defendants filed an opposition to Plaintiffs’ motion to recall the mandate. On May 15, 2018, the Second Circuit issued an order recalling the mandate “in anticipation of further panel review.” On December 19, 2019, the Second Circuit issued an amended opinion that again affirmed the district court’s ruling on the basis that plaintiffs’ claims were preempted by Section 546(e) of the Bankruptcy Code. Plaintiffs filed a motion for rehearing and rehearing en banc on January 2, 2020. The Second Circuit denied the petition on February 6, 2020.

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. On January 6, 2017, the United States District Court for the Southern District of New York granted the shareholder defendants’ motion to dismiss the intentional fraudulent conveyance claim in the FitzSimons action. In dismissing the intentional fraudulent conveyance claim, the Court denied the plaintiff’s request to amend the complaint. The plaintiff requested that the Court direct entry of a final judgment in order to make the order immediately appealable. On February 23, 2017, the Court issued an order stating that it intended to permit an interlocutory appeal of the dismissal order, but would wait to do so until it has resolved outstanding motions to dismiss filed by other defendants.

On July 18, 2017, the plaintiff submitted a letter to the District Court seeking leave to amend its complaint to add a constructive fraudulent transfer claim. The shareholder defendants opposed that request. On August 24, 2017, the Court denied the plaintiff’s request without prejudice to renewal of the request in the event of an intervening change in the law. On March 8, 2018, the plaintiff renewed his request for leave to file a motion to amend the complaint to assert a constructive fraudulent transfer claim based on the Supreme Court’s ruling in Merit

44 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Management Group LP v. FTI Consulting, Inc. The shareholder defendants opposed that request. On June 18, 2018 the District Court ordered that the request would be stayed pending further action by the Second Circuit in the SLCFC actions.

On December 18, 2018, plaintiff filed a letter with the District Court requesting that the stay be dissolved in order to permit briefing on the motion to amend the complaint and indicating plaintiff’s intention to file another motion to amend the complaint to reinstate claims for intentional fraudulent transfer. The shareholder defendants opposed that request. On January 14, 2019, the court held a case management conference, during which the court stated that it would not lift the stay prior to further action from the Second Circuit in the SLCFC actions. The court further stated that it would allow the plaintiff to file a motion to amend to try to reinstate its intentional fraudulent transfer claim. On January 23, 2019, the court ordered the parties still facing pending claims to participate in a mediation, to commence on January 28, 2019. The mediation did not result in a settlement of the claims against the shareholder defendants.

On April 4, 2019, plaintiff filed a motion to amend the Fifth Amended Complaint to assert a federal constructive fraudulent transfer claim against certain shareholder defendants. On April 10, 2019, the shareholder defendants filed a brief in opposition to plaintiff’s motion to amend. On April 12, 2019, the plaintiff filed a reply brief. On April 23, 2019, the court denied the plaintiff’s motion to amend. On June 13, 2019, the court entered judgment pursuant to Rule 54(b). On July 12, 2019, the Plaintiff filed a notice of appeal with respect to the dismissal of his claims and the District Court’s denial of his motion for leave to amend. Plaintiff filed an appellate brief on January 7, 2020. The shareholder defendants’ brief was filed on April 27, 2020.

None of these lawsuits alleges any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds held shares of Tribune and tendered these shares as part of Tribune’s LBO: Nova Fund, S&P 500^® Pure Value Fund, Multi-Cap Core Equity Fund, S&P 500^® Fund, Multi-Hedge Strategies Fund and Hedged Equity Fund (the “Funds”). The value of the proceeds received by the foregoing Funds was $28,220, $109,242, $9,860, $3,400, $1,181,160, and $10,880, respectively. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

Note 12 – Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (the “2017 ASU”) which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The 2017 ASU does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. As of April 1, 2019, the Fund has fully adopted the provisions of the 2017 ASU which were applied on a modified retrospective basis, as prescribed. The adoption did not result in a cumulative-effect

THE RYDEX FUNDS ANNUAL REPORT | 45

NOTES TO FINANCIAL STATEMENTS (concluded)

adjustment as of the beginning of the period and had no impact on total distributable earnings, net assets, the current period results from operations, or any prior period information presented in the financial statements.

Note 13 – COVID-19 and Recent Developments

The global ongoing crisis caused by the outbreak of COVID-19 is causing materially reduced consumer demand and economic output, disrupting supply chains, resulting in market closures, travel restrictions and quarantines, and adversely impacting local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and health conditions all over the world, the Fund’s investments and a shareholder’s investment in the Fund are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Fund, the Fund, its service providers, the markets in which it invests and market intermediaries are also impacted by quarantines and similar measures intended to contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational risks.

Note 14 – Subsequent Events

The Fund evaluated subsequent events through the date the financial statements were available for issue and determined there were no material events that would require adjustment to or disclosure in the Fund’s financial statements.

46 | THE RYDEX FUNDS ANNUAL REPORT

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of NASDAQ-100^® Fund and the Board of Trustees of Rydex Series Funds

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of NASDAQ-100^® Fund (the “Fund”) (one of the funds constituting Rydex Series Funds (the “Trust”)), including the schedule of investments, as of March 31, 2020, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Rydex Series Funds) at March 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities

THE RYDEX FUNDS ANNUAL REPORT | 47

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (concluded)

owned as of March 31, 2020, by correspondence with the custodian, transfer agent, and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Guggenheim investment companies since 1979.

Tysons, Virginia
May 28, 2020

48 | THE RYDEX FUNDS ANNUAL REPORT

OTHER INFORMATION (Unaudited)

Federal Income Tax Information

This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

In January 2021, shareholders will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by shareholders in the calendar year 2020.

The Fund’s investment income (dividend income plus short-term capital gains, if any) qualifies as follows:

Of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2020, the Fund had the corresponding percentages qualify for the reduced tax rate pursuant to the Jobs and Growth Tax Relief and Reconciliation Act of 2003 or for the dividends received deduction for corporations. See the qualified dividend income and dividend received deduction columns, respectively, in the table below.

Additionally, of the taxable ordinary income distributions paid during the fiscal year ended March 31, 2020, the Fund had the corresponding percentage qualify as qualified short-term capital gains as permitted by IRC Section 871(k)(2). See qualified short-term capital gain column in the table below.

Qualified Dividend Income			Dividend Received Deduction			Qualified Short-Term Capital Gain
	100.00	%		38.40	%		100.00	%

With respect to the taxable year ended March 31, 2020, the Fund hereby designates as capital gain dividends the amount listed below, or, if subsequently determined to be different, the net capital gain of such year:

From long-term capital gain:		From long-term capital gain, using proceeds from shareholder redemptions:
$	24,079,423	$	45,178,393

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Fund’s portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

THE RYDEX FUNDS ANNUAL REPORT | 49

OTHER INFORMATION (Unaudited)(concluded)

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Sector Classification

Information in the Schedule of Investments is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. The Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Fund usually classifies sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Fund’s Forms N-PORT and N-Q are available on the SEC’s website at https://www.sec.gov. The Fund’s Forms N-PORT and N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

50 | THE RYDEX FUNDS ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by visiting guggenheiminvestments.com or by calling 800.820.0888.

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES
Randall C. Barnes (1951)	Trustee	Since 2019	Current: Private Investor (2001-present). Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).	157	Current: Purpose Investments Funds (2013-present). Former: Managed Duration Investment Grade Municipal Fund (2006-2016).
Angela Brock-Kyle (1959)	Trustee	Since 2016	Current: Founder and Chief Executive Officer, B.O.A.R.D.S. (2013-present). Former: Senior Leader, TIAA (1987-2012).	156	Current: Hunt Companies, Inc. (2019-present). Former: Infinity Property & Casualty Corp. (2014-2018).
Donald A. Chubb, Jr. (1946)	Trustee and Chair of the Valuation Oversight Committee	Since 2019	Current: Retired Former: Business broker and manager of commercial real estate, Griffith & Blair, Inc. (1997-2017).	156	Former: Midland Care, Inc. (2011-2016).

THE RYDEX FUNDS ANNUAL REPORT | 51

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - continued
Jerry B. Farley (1946)	Trustee	Since 2019	Current: President, Washburn University (1997-present).	156	Current: CoreFirst Bank & Trust (2000-present). Former: Westar Energy, Inc. (2004-2018).
Roman Friedrich III (1946)	Trustee and Chair of the Contracts Review Committee	Since 2019	Current: Founder and Managing Partner, Roman Friedrich & Company (1998-present).	156	Former: Zincore Metals, Inc. (2009-2019).
Thomas F. Lydon, Jr. (1960)	Trustee and Vice Chair of the Contracts Review Committee	Since 2005 (Trustee) Since 2019 (Vice Chair of the Contracts Review Committee)	Current: President, Global Trends Investments (1996-present); Co-Chief Executive Officer, ETF Flows, LLC (2019-present); Chief Executive Officer, Lydon Media (2016-present).	156	Current: US Global Investors (GROW) (1995-present). Former: Harvest Volatility Edge Trust (3) (2017-2019).

52 | THE RYDEX FUNDS ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - continued
Ronald A. Nyberg (1953)	Trustee and Chair of the Nominating and Governance Committee	Since 2019	Current: Partner, Momkus LLC (2016-present). Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).	157	Current: PPM Funds (9) (2018-present); Edward-Elmhurst Healthcare System (2012-present). Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-April 2020); Western Asset Inflation-Linked Income Fund (2003-April 2020); Managed Duration Investment Grade Municipal Fund (2003-2016).
Sandra G. Sponem (1958)	Trustee and Chair of the Audit Committee	Since 2016 (Trustee) Since 2019 (Chair of the Audit Committee)	Current: Retired. Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson-Companies, Inc. (2007-2017).	156	Current: SPDR Series Trust (78) (2018-present); SPDR Index Shares Funds (31) (2018-present); SSGA Active Trust (12) (2018-present); and SSGA Master Trust (1) (2018-present).

THE RYDEX FUNDS ANNUAL REPORT | 53

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - concluded
Ronald E. Toupin, Jr. (1958)	Trustee, Chair of the Board and Chair of the Executive Committee	Since 2019	Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999).	156	Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-April 2020); Western Asset Inflation-Linked Income Fund (2003-April 2020); Managed Duration Investment Grade Municipal Fund (2003-2016).

54 | THE RYDEX FUNDS ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INTERESTED TRUSTEE
Amy J. Lee**** (1961)	Trustee, Vice President and Chief Legal Officer	Since 2018 (Trustee) Since 2019 (Vice President and Chief Legal Officer)	Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: President and Chief Executive Officer, certain other funds in the Fund Complex (2017-2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).	156	None.

*	The business address of each Trustee is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each Trustee serves an indefinite term, until his or her successor is elected and qualified. Time served includes time served in the respective position for the Predecessor Corporation.
***	Each Trustee also serves on the boards of trustees of Guggenheim Funds Trust, Guggenheim Variable Funds Trust, Guggenheim Strategy Funds Trust, Fiduciary/Claymore Energy Infrastructure Fund, Guggenheim Taxable Municipal Managed Duration Trust, Guggenheim Strategic Opportunities Fund, Guggenheim Enhanced Equity Income Fund, Guggenheim Energy & Income Fund, Guggenheim Credit Allocation Fund, Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Funds and Transparent Value Trust. Messrs. Barnes and Nyberg also serve on the board of trustees of Advent Convertible & Income Fund.
****	This Trustee is deemed to be an “interested person” of the Funds under the 1940 Act by reason of her position with the Funds’ Investment Manager and/or the parent of the Investment Manager.

THE RYDEX FUNDS ANNUAL REPORT | 55

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS
Brian E. Binder (1972)	President and Chief Executive Officer	Since 2019	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President, Chief Executive Officer and Chairman of the Board of Managers, Guggenheim Funds Investment Advisors, LLC (2018-present); President and Chief Executive Officer, Security Investors, LLC (2018-present); Board Member of Guggenheim Partners Fund Management (Europe) Limited (2018-present); Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-present). Former: Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Head of Business Management and Consulting, Invesco Ltd. (2010-2012).
James M. Howley (1972)	Assistant Treasurer	Since 2016	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Mark E. Mathiasen (1978)	Secretary	Since 2017	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer	Since 2016	Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present).
Michael P. Megaris (1984)	Assistant Secretary	Since 2018	Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2012-present).
Elisabeth Miller (1968)	Chief Compliance Officer	Since 2012	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).

56 | THE RYDEX FUNDS ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS - continued
Margaux Misantone (1978)	AML Officer	Since 2017	Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Managing Director, Guggenheim Investments (2015-present). Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018).
William Rehder (1967)	Assistant Vice President	Since 2018	Current: Managing Director, Guggenheim Investments (2002-present).
Kimberly J. Scott (1974)	Assistant Treasurer	Since 2016	Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
Bryan Stone (1979)	Vice President	Since 2019	Current: Vice President, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2013-present). Former: Senior Vice President, Neuberger Berman Group LLC (2009-2013); Vice President, Morgan Stanley (2002-2009).

THE RYDEX FUNDS ANNUAL REPORT | 57

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(concluded)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS - concluded
John L. Sullivan (1955)	Chief Financial Officer, Chief Accounting Officer and Treasurer	Since 2016	Current: Chief Financial Officer, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and Chief Compliance Officer, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); Chief Financial Officer and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer	Since 2017	Current: Vice President, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (2017); Senior Analyst of US Fund Administration, HGINA (2014–2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	The business address of each officer is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each officer serves an indefinite term, until his or her successor is duly elected and qualified.

58 | THE RYDEX FUNDS ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)

Who We Are

This Privacy Notice describes the data protection practices of Guggenheim Investments. Guggenheim Investments as used herein refers to the affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Guggenheim Investment Advisors (Europe) Limited, Guggenheim Real Estate, LLC, GS Gamma Advisors, LLC, Guggenheim Partners India Management, LLC, Guggenheim Partners Europe Limited, as well as the funds in the Guggenheim Funds complex (the “Funds”) (“Guggenheim Investments,” “we,” “us,” or “our”).

Guggenheim Partners Investment Management Holdings, LLC, located at 330 Madison Avenue, New York, New York 10017 is the data controller for your information. The affiliates who are also controllers of certain of your information are: Guggenheim Investment Advisors (Europe) Limited, Guggenheim Partners Europe Limited, Guggenheim Partners, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC and Security Investors, LLC, as well as the Funds.

Our Commitment to You

Guggenheim Investments considers your privacy our utmost concern. When you become our client or investor, you entrust us with not only your hard-earned money but also with your personal and financial information. Because we have access to your private information, we hold ourselves to the highest standards in its safekeeping and use. We strictly limit how we share your information with others, whether you are a current or former Guggenheim Investments client or investor.

The Information We Collect About You

We collect certain nonpublic personal information about you from information you provide on applications, other forms, our website, and/or from third parties including investment advisors. This information includes Social Security or other tax identification number, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, bank account information, marital status, family relationships, information that we collect on our website through the use of “cookies,” and other personal information that you or others provide to us. We may also collect such information through your inquiries by mail, e-mail or telephone. We may also collect customer due diligence information, as required by applicable law and regulation, through third party service providers.

How We Handle Your Personal Information

The legal basis for using your information as set out in this Privacy Notice is as follows: (a) use of your personal data is necessary to perform our obligations under any contract with you (such as a contract for us to provide financial services to you); or (b) where use of your personal data is not necessary for performance of a contract, use of your personal data is necessary for our

THE RYDEX FUNDS ANNUAL REPORT | 59

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

legitimate interests or the legitimate interests of others (for example, to enforce the legal terms governing our services, operate and market our website and other services we offer, ensure safe environments for our personnel and others, make and receive payments, prevent fraud and to know the customer to whom we are providing the services). Some processing is done to comply with applicable law. In addition to the specific uses described above, we also use your information in the following manner:

● We use your information in connection with servicing your accounts.

● We use information to respond to your requests or questions. For example, we might use your information to respond to your customer feedback.

● We use information to improve our products and services. We may use your information to make our website and products better. We may use your information to customize your experience with us.

● We use information for security purposes. We may use your information to protect our company and our customers.

● We use information to communicate with you. For example, we will communicate with you about your account or our relationship. We may contact you about your feedback. We might also contact you about this Privacy Notice. We may also enroll you in our email newsletter.

● We use information as otherwise permitted by law, as we may notify you.

● Aggregate/Anonymous Data. We may aggregate and/or anonymize any information collected through the website so that such information can no longer be linked to you or your device (“Aggregate/Anonymous Information”). We may use Aggregate/Anonymous Information for any purpose, including without limitation for research and marketing purposes, and may also share such data with any third parties, including advertisers, promotional partners, and sponsors.

We do not sell information about current or former clients or their accounts to third parties. Nor do we share this information, except when necessary to complete transactions at your request, to make you aware of investment products and services that we or our affiliates offer, or as permitted or required by law.

We provide information about you to companies and individuals not affiliated with Guggenheim Investments to complete certain transactions or account changes, or to perform services for us related to your account. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we must provide certain information about you to that company to complete the transaction. We provide the third party with only the information necessary to carry out its responsibilities and only for that purpose. And we require these third parties to treat your private information with the same high degree of confidentiality that we do.

60 | THE RYDEX FUNDS ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

To alert you to other Guggenheim Investments products and services, we share your information within our family of affiliated companies. You may limit our sharing with affiliated companies as set out below. We may also share information with any successor to all or part of our business, or in connection with steps leading up to a merger or acquisition. For example, if part of our business was sold we may give customer information as part of that transaction. We may also share information about you with your consent.

We will release information about you if you direct us to do so, if we are compelled by law to do so, or in other circumstances as permitted by law (for example, to protect your account from fraud).

If you close your account(s) or become an inactive client or investor, we will continue to adhere to the privacy policies and practices described in this notice.

Opt-Out Provisions and Your Data Choices

The law allows you to “opt out” of certain kinds of information sharing with third parties. We do not share personal information about you with any third parties that triggers this opt-out right. This means YOU ARE ALREADY OPTED OUT.

When you are no longer our client or investor, we continue to share your information as described in this notice, and you may contact us at any time to limit our sharing by sending an email to CorporateDataPrivacy@GuggenheimPartners.com.

European Union Data Subjects and certain others: In addition to the choices set forth above, residents of the European Union and certain other jurisdictions have certain rights to (1) request access to or rectification or deletion of information we collect about them, (2) request a restriction on the processing of their information, (3) object to the processing of their information, or (4) request the portability of certain information. To exercise these or other rights, please contact us using the contact information below. We will consider all requests and provide our response within the time period stated by applicable law. Please note, however, that certain information may be exempt from such requests in some circumstances, which may include if we need to keep processing your information for our legitimate interests or to comply with a legal obligation. We may request you provide us with information necessary to confirm your identity before responding to your request.

Residents of France and certain other jurisdictions may also provide us with instructions regarding the manner in which we may continue to store, erase and share your information after your death, and where applicable, the person you have designated to exercise these rights after your death.

How We Protect Privacy Online

We take steps to protect your privacy when you use our web site – www.guggenheiminvestments.com – by using secure forms of online communication, including encryption technology, Secure Socket Layer (SSL) protocol, firewalls and user names and passwords. These safeguards vary based

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(concluded)

on the sensitivity of the information that we collect and store. However, we cannot and do not guarantee that these measures will prevent every unauthorized attempt to access, use, or disclose your information since despite our efforts, no Internet and/or other electronic transmissions can be completely secure. Our web site uses “http cookies”—tiny pieces of information that we ask your browser to store. We use cookies for session management and security features on the Guggenheim Investments web site. We do not use them to pull data from your hard drive, to learn your e-mail address, or to view data in cookies created by other web sites. We will not share the information in our cookies or give others access to it. See the legal information area on our web site for more details about web site security and privacy features.

How We Safeguard Your Personal Information and Data Retention

We restrict access to nonpublic personal information about you to our employees and in some cases to third parties (for example, the service providers described above) as permitted by law. We maintain strict physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

We keep your information for no longer than necessary for the purposes for which it is processed. The length of time for which we retain information depends on the purposes for which we collected and use it and/or as required to comply with applicable laws. Information may persist in copies made for backup and business continuity purposes for additional time.

International Visitors

If you are not a resident of the United States, please be aware that your information may be transferred to, stored and processed in the United States where our servers are located and our databases are operated. The data protection and other laws of the United States and other countries might not be as comprehensive as those in your country.

In such cases, we ensure that a legal basis for such a transfer exists and that adequate protection is provided as required by applicable law, for example, by using standard contractual clauses or by transferring your data to a jurisdiction that has obtained an adequacy finding. Individuals whose data may be transferred on the basis of standard contractual clauses may contact us as described below.

We’ll Keep You Informed

If you have any questions or concerns about how we treat your personal data, we encourage you to consult with us first. You may also contact the relevant supervisory authority.

We reserve the right to modify this policy at any time and will inform you promptly of material changes. You may access our privacy policy from our web site at www.guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us by email at CorporateDataPrivacy@GuggenheimPartners.com.

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3.31.2020

Rydex Funds Annual Report

Guggenheim Alternatives Funds

Guggenheim Long Short Equity Fund

Rydex International Equity Funds

Rydex Emerging Markets 2x Strategy Fund

Rydex Inverse Emerging Markets 2x Strategy Fund

Rydex Fixed Income Fund

Rydex Emerging Markets Bond Strategy Fund

Beginning on January 1, 2021, paper copies of the Funds’ annual and semi-annual shareholder reports may no longer be sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from a fund electronically by calling 800.820.0888, going to GuggenheimInvestments.com/myaccount, or by contacting your financial intermediary.

You may elect to receive all future shareholder reports in paper free of charge. If you hold shares of a fund directly, you can inform the Fund that you wish to receive paper copies of reports by calling 800.820.0888. If you hold shares of a fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper will apply to all Guggenheim Funds in which you are invested and may apply to all funds held with your financial intermediary.

GuggenheimInvestments.com RSTF-ANN-0320x0321

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	4
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	6
ABOUT SHAREHOLDERS’ FUND EXPENSES	7
LONG SHORT EQUITY FUND	10
EMERGING MARKETS 2x STRATEGY FUND	30
INVERSE EMERGING MARKETS 2x STRATEGY FUND	39
EMERGING MARKETS BOND STRATEGY FUND	47
NOTES TO FINANCIAL STATEMENTS	55
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	71
OTHER INFORMATION	72
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	74
GUGGENHEIM INVESTMENTS PRIVACY NOTICE	79

THE RYDEX FUNDS ANNUAL REPORT | 1

March 31, 2020

Dear Shareholder:

The fiscal year ended March 31, 2020, concluded on a somber note. Even though markets performed well for most of the period, the emergence of a novel and highly contagious form of coronavirus in the last weeks of the period adversely impacted global commercial activity and contributed to significant volatility in certain markets, unseen since the great recession of 2008.

As it spread beyond Asia to virtually every country in the world, many governments and businesses instituted quarantines and closures, which has resulted in significant disruption in manufacturing, supply chains, consumer demand and economic activity. The U.S. Federal Reserve responded quickly to provide liquidity in order to ensure that the U.S. markets continued to function efficiently. The fiscal policy included a spending bill worth over $2 trillion to assist consumers, states, small businesses and certain industries. While these actions helped stabilize the market, volatile conditions continued into April.

As discussed in this annual shareholder report, these events have affected performance of many of our funds (the “Fund” or “Funds”). We encourage you to read the Economic and Market Overview section of the report, which follows this letter, and then the Performance Report and Fund Profile for each Fund.

Security Investors, LLC (the “Investment Adviser”), the Investment Adviser for the Funds, is part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC (“Guggenheim”), a global, diversified financial services firm. An affiliate of Guggenheim and the Investment Adviser, Guggenheim Funds Distributors, LLC, is the distributor of the Funds.

Together, we are committed to the safety and prosperity of our clients, our employees, and our shareholders. The resources of the firm are being made fully available not only to support our clients, but also to support our employees and their families.

Please practice the appropriate prudence for the protection not only of your health and that of your friends and loved ones but also for our neighbors and communities. Thank you for the trust you place in us.

Sincerely,

Security Investors, LLC

April 30, 2020

Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at guggenheiminvestments.com or call 800.820.0888.

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.

2 | THE RYDEX FUNDS ANNUAL REPORT

March 31, 2020

The global ongoing crisis caused by the outbreak of COVID-19 is causing materially reduced consumer demand and economic output, disrupting supply chains, resulting in market closures, travel restrictions and quarantines, and adversely impacting local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and health conditions all over the world, the Funds’ investments and a shareholder’s investment in a Fund are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational risks.

The Long Short Equity Fund may not be suitable for all investors. ● The Fund is subject to the risk that the Advisor’s use of a momentum-driven investment strategy may cause the Fund to underperform other types of mutual funds that use different investment strategies during periods when momentum investing is out of favor. ● It is possible that the stocks the Fund holds long will decline in value at the same time that the stocks or indices being shorted increase in value, thereby increasing potential losses to the Fund. ● The Fund’s loss on a short sale is potentially unlimited because there is no upper limit on the price a borrowed security could attain. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● The use of derivatives, such as futures, options and swap agreements, may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. ● The Fund may invest in American Depositary Receipts (“ADRs”) therefore subjecting the value of the Fund’s portfolio to fluctuations in foreign exchange rates. ● This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified fund. See the prospectus for more information on these and additional risks.

Inverse and leveraged Funds are not suitable for all investors. ● These Funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking daily leveraged investment results, (c) understand the risk of shorting, and (d) intend to actively monitor and manage their investments. ● The more a Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● Inverse Funds involve certain risks, which include increased volatility due to the Funds’ possible use of short sales of securities and derivatives, such as options and futures. ● The Funds’ use of derivatives, such as futures, options and swap agreements, may expose the Funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. ● Short-selling involves increased risks and costs. You risk paying more for a security than you received from its sale. ● Leveraged and inverse Funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. Because the Funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those Funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse Funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. For those Funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. The Funds rebalance their portfolios on a daily basis, increasing exposure in response to that day’s gains or reducing exposure in response to that day’s losses. Daily rebalancing will impair a fund’s performance if the benchmark experiences volatility. Investors should monitor their leveraged and inverse Funds’ holdings consistent with their strategies, as frequently as daily. ● For more on these and other risks, please read the prospectus. ● The leveraged and Inverse Emerging Markets Funds’ investments in developed and emerging foreign markets may increase the Funds’ volatility due to the impact of diplomatic, political or economic developments on the country in question. ● Additionally, the Funds’ direct and indirect exposure to foreign currencies subjects the Funds to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currencies. ● A Fund’s investment in the securities of non-U.S. companies in the form of American Depositary Receipts (ADRs) poses special risks associated with international investing, including fluctuating exchange rates, government regulations and differences in liquidity, which may affect the volatility and performance of a fund.

The Emerging Markets Bond Strategy Fund may not be suitable for all investors. Investments in securities, in general, are subject to market risks that may cause their prices to fluctuate over time. An investment in the Fund may lose money. ● The Fund’s investments in bonds and financial instruments that in combination have economic characteristics similar to emerging markets bonds carries additional risks when compared to investing in U.S. securities, due to the impact of diplomatic, political or economic developments in the country in question. ● The Fund’s investments in derivatives, including credit default swaps, may pose risks in addition to those associated with investing directly in securities or other investments, including illiquidity of the derivatives, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, lack of availability and counterparty risk. To the extent the Fund invests in derivatives to seek to hedge risk or limit leveraged exposure created by other investments, there is no guarantee that such hedging strategies will be effective at managing risk or limiting exposure to leveraged investments. ● The Fund’s exposure to high yield securities may subject the Fund to greater volatility. ● The Fund’s market value will change in response to interest rate changes and market conditions among other factors. In general, bond prices rise when interest rates fall and vice versa. ● The Fund’s investments in bank obligations may expose it to adverse developments in or related to the banking industry. ● The Funds use of leverage will exaggerate the effect on net asset value of any increase or decrease in the market value of the Fund’s portfolio. ● The Fund’s indirect and direct exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. ● The Fund’s investments in other investment vehicles subject the Fund to those risks and expenses affecting the investment vehicle. ● This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund. ● See the prospectus for more information on these and other risks.

THE RYDEX FUNDS ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) March 31, 2020

The 12-month period ended March 31, 2020, was a wild ride for markets. While the U.S. economy was generally in good shape in 2019, recessionary fears rose throughout the year, prompting the U.S. Federal Reserve (the “Fed”) to announce a rate cut on July 31, the first since 2008, amid growing downside risks to policymakers’ baseline growth and inflation forecasts. Key among those risks were slowing global growth, the threat of additional U.S.-China tariffs, and the possible ramifications surrounding Brexit. The Fed subsequently cut rates twice more in 2019, which caused markets to rally toward the end of the year and into early 2020. Stocks reached new highs and credit spreads tightened to historic levels. Since then, the global outbreak of the coronavirus, COVID-19, has been at the center of everything. As of this writing, COVID-19 has spread to 210 countries, resulted in over 2.5 million cases, and caused over 170,000 deaths. Thus far, the U.S. makes up more than 30% of global cases, and 25% of global deaths. States have required the labor force to work from home if possible, individuals to practice social distancing, and non-essential businesses to shut down.

Closures, quarantines, and social distancing efforts have impacted the travel, hospitality, restaurants, and retail industries, with activity down 100% in some areas of the country. Further exacerbating the decline in output will be reduced business investment, which was already stalling due to falling profits, trade conflicts, and political uncertainty. The coronavirus shock and collapse in oil prices will likely further depress capital expenditures.

In response to the crisis, the Federal Open Market Committee cut rates by a further 125 basis points in the first quarter of 2020 and passed a series of stimulus programs. Among these were the Primary and Secondary Market Corporate Credit Facilities, which are lending programs primarily targeting investment-grade corporate bond issuers, implemented in concert with the U.S. Treasury. It was only after the announcement of this program that corporate credit found some relief from the selloff, but we expect this relief may be temporary.

With an alphabet soup of monetary programs targeting relief from the coronavirus impact, fiscal policy has also stepped up to the plate with a spending bill worth over $2 trillion that aims to assist consumers, states, small businesses, and certain industries. There is no question that these programs will help ease the economic fallout from virus containment measures, but even $2 trillion may be too small given the magnitude of the economic shock that we are facing. Additionally, it is far from clear that fiscal measures are an adequate solution to the issue at hand: the physical impediment to consumer spending. Fiscal and monetary policy can do their part, but ultimately it is public health policy that will likely be the greatest determinant of the economic outlook.

For the 12 months ended March 31, 2020, the Standard & Poor’s 500^® (“S&P 500”) Index* returned -6.98%. The decline, while significant, represents something of a recovery in stocks. The S&P 500 peaked at 3,386.15 on February 19, 2020, before plummeting 33.9% to a low of 2,237.40 on March 23, 2020, then recovering some lost ground by the end of the month.

The consensus estimate for S&P 500 earnings per share in 2020 is still around $150. Our research shows S&P 500 earnings per share could fall below $100. Similarly, economists have no way to calibrate how bad the economic data could be based on history. The March U.S. non-farm payrolls report was evidence of this, as it showed a decline in payrolls of 700,000 jobs versus survey expectations of a decline of only 100,000 jobs. We currently expect that second quarter U.S. real gross domestic product (“GDP”) quarter-over-quarter growth could fall by 40% annualized and the unemployment rate could rise to at least 20%. Beyond that, the severity of the crisis depends on containment of the virus and the effectiveness of social distancing measures put in place, but expectations for a quick and sustained V-shaped recovery appear overly optimistic.

For the 12 months ended March 31, 2020, the MSCI Europe-Australasia-Far East (“EAFE”) Index* returned -13.92%. The return of the MSCI Emerging Markets Index* was -17.36%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted an 8.93% return for the 12-month period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned -6.94%. The return of the ICE Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 2.25% for the 12-month period.

The opinions and forecasts expressed may not actually come to pass. This information is subject to change at any time, based on market and other conditions, and should not be construed as a recommendation of any specific security or strategy.

4 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) March 31, 2020

*Index Definitions:

The following indices are referenced throughout this report. Indices are unmanaged and not available for direct investment. Index performance does not reflect transaction costs, fees, or expenses.

BNY Mellon Emerging Markets 50 ADR Index is capitalization-weighted and designed to track the performance of approximately 50 emerging market-based depositary receipts.

Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, mortgage-backed securities or “MBS” (agency fixed-rate and hybrid adjustable-rate mortgage, or “ARM”, pass-throughs), asset-backed securities (“ABS”), and commercial mortgage-backed securities (“CMBS”) (agency and non-agency).

Bloomberg Barclays U.S. Corporate High Yield Index measures the U.S. dollar-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB +/BB + or below.

HFRX Equity Hedge Fund Index is designed to be representative of the overall composition of the equity hedge segment of the hedge fund universe. In an equity hedge strategy both long and short positions primarily in equities are maintained. Equities which are believed to be undervalued are bought and equities which are believed to be overvalued are sold.

ICE BofA Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged market Index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income.

ICE BofA Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index tracks the performance of U.S. dollar-denominated emerging market and crossover sovereign debt publicly issued in the eurobond or U.S. domestic market. Qualifying countries must have a BBB1 or lower foreign currency long-term sovereign debt rating (based on an average of Moody’s, S&P and Fitch). Countries that are not rated, or that are rated “D” or “SD” by one or several rating agencies qualify for inclusion in the index but individual non-performing securities are removed. Qualifying securities must have at least one year remaining term to final maturity, at least 18 months to maturity at point of issuance, a fixed or floating coupon and a minimum amount outstanding of $250 million. Local currency debt is excluded from the Index. Index constituents are capitalization-weighted based on their current amount outstanding times the market price plus accrued interest.

MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

MSCI Emerging Markets Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets.

Morningstar Long/Short Equity Category Average represents long-short portfolios which hold sizable stakes in both long and short positions in equities and related derivatives. Some funds that fall into this category will shift their exposure to long and short positions depending on their macro outlook or the opportunities they uncover through bottom-up research. Some funds may simply hedge long stock positions through exchange traded funds or derivatives. At least 75% of the assets are in equity securities or derivatives.

Morningstar Long/Short Equity Category Average is an average return of the funds in the Morningstar Long/Short Equity Category. The categories assist investors and investment professionals in making meaningful comparisons between funds, making it easier to build well-diversified portfolios, assess potential risk, and identify top-performing funds.

S&P 500^® is a broad-based index, the performance of which is based on the performance of 500 widely held common stocks chosen for market size, liquidity, and industry group representation.

Russell 3000^® Index measures the performance of the largest 3,000 U.S. companies, representing approximately 98% of the investable U.S. equity market

THE RYDEX FUNDS ANNUAL REPORT | 5

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

The Rydex Emerging Markets 2x Strategy Fund and Rydex Inverse Emerging Markets 2x Strategy Fund are benchmarked daily to leveraged and/or inverse leveraged versions of published indices. To properly evaluate the performance of these funds, it is essential to understand the effect of mathematical compounding on their respective returns.

Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in-line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period on a cumulative basis. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem to outperform its benchmark over longer periods.

An Example of Compounding

For example, consider a hypothetical fund that is designed to produce returns that correspond to 150% of an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a 6.0% gain and an expectation that the fund will rise by 9.0%. On the same day, the fund’s net asset value per share (“NAV”) increases from $10.00 to $10.90 for a gain of 9.0% — in line with its benchmark.

On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but for the two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking into account the daily compounding of returns, one would expect the fund to lose 1.5% and would see the fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the table below.

	Index Level	Index Performance	Fund Expectation	Fund NAV	Fund Performance	Assessment
Start	100			$ 10.00
Day 1	106	6.0%	9.0%	$ 10.90	9.0%	In line
Day 2	99	-6.6%	-9.9%	$ 9.82	-9.9%	In line
Cumulative		-1.0%	-1.5%		-1.8%	-0.3%

As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or judgments about fund performance given only the returns of the unleveraged index.

Because certain funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily. For those funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. For more on correlation, leverage and other risks, please read the prospectus.

In general, any change in direction in an index will produce compounding that seems to work against an investor. Were the index to move in the same direction (either up or down) for two or more periods in a row, the compounding of those returns would work in an investor’s favor, causing the fund to seemingly beat its benchmark.

As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less leverage will generally produce results that are more in line with expectations. In addition, periods of high volatility in an underlying index will also cause the effects of compounding to be more pronounced, while lower volatility will produce a more muted effect.

6 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses, and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, other distributions, and exchange fees, and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund’s gross income and reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning September 30, 2019 and ending March 31, 2020.

The following tables illustrate the Funds’ costs in two ways:

Table 1. Based on actual Fund return: This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fifth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return: This section is intended to help investors compare a fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments, and contingent deferred sales charges (“CDSC”) on redemptions, if any. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

More information about the Funds’ expenses, including annual expense ratios for periods up to five years (subject to the Fund’s inception date), can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

THE RYDEX FUNDS ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2019	Ending Account Value March 31, 2020	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Long Short Equity Fund
A-Class	1.79%	(10.15%)	$ 1,000.00	$ 898.50	$ 8.50
C-Class	2.54%	(10.54%)	1,000.00	894.60	12.03
P-Class	1.79%	(10.24%)	1,000.00	897.60	8.49
Institutional Class	1.54%	(10.12%)	1,000.00	898.80	7.31
Emerging Markets 2x Strategy Fund
A-Class	1.86%	(27.33%)	1,000.00	726.70	8.03
C-Class	2.61%	(27.60%)	1,000.00	724.00	11.25
H-Class	1.88%	(27.36%)	1,000.00	726.40	8.11
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.89%	8.47%	1,000.00	1,084.70	9.85
C-Class	2.84%	9.56%	1,000.00	1,095.60	14.88
H-Class	1.86%	8.53%	1,000.00	1,085.30	9.70
Emerging Markets Bond Strategy Fund
A-Class	1.69%	(10.60%)	1,000.00	894.00	8.00
C-Class	2.43%	(10.95%)	1,000.00	890.50	11.48
H-Class	1.68%	(10.64%)	1,000.00	893.60	7.95

8 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2019	Ending Account Value March 31, 2020	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Long Short Equity Fund
A-Class	1.79%	5.00%	$ 1,000.00	$ 1,016.05	$ 9.02
C-Class	2.54%	5.00%	1,000.00	1,012.30	12.78
P-Class	1.79%	5.00%	1,000.00	1,016.05	9.02
Institutional Class	1.54%	5.00%	1,000.00	1,017.30	7.77
Emerging Markets 2x Strategy Fund
A-Class	1.86%	5.00%	1,000.00	1,015.70	9.37
C-Class	2.61%	5.00%	1,000.00	1,011.95	13.13
H-Class	1.88%	5.00%	1,000.00	1,015.60	9.47
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.89%	5.00%	1,000.00	1,015.55	9.52
C-Class	2.84%	5.00%	1,000.00	1,010.80	14.28
H-Class	1.86%	5.00%	1,000.00	1,015.70	9.37
Emerging Markets Bond Strategy Fund
A-Class	1.69%	5.00%	1,000.00	1,016.55	8.52
C-Class	2.43%	5.00%	1,000.00	1,012.85	12.23
H-Class	1.68%	5.00%	1,000.00	1,016.60	8.47

1	Annualized and excludes expenses of the underlying funds in which the Funds invest, if any.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period September 30, 2019 to March 31, 2020.

THE RYDEX FUNDS ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

LONG SHORT EQUITY FUND

OBJECTIVE: Seeks long-term capital appreciation.

For the one-year period ended March 31, 2020, the Long Short Equity Fund P-Class returned -12.17%. The two benchmarks used by the Fund in the period, the Morningstar Long/Short Equity Category Average and the S&P 500 Index, returned -9.60% and -6.98%, respectively, for the same one-year period.

Investment Approach

The Fund is managed as an opportunistic long/short strategy, which employs forward-looking, fundamental analysis to measure the market’s expected return for each stock in the universe. Quantitative techniques are then applied to evaluate market- and company-specific risk factors embedded in each stock and to assess which specific risk factors (such as size, growth, or sectors) are being overvalued or undervalued by the market. Finally, a portfolio is constructed within guidelines that is long the stocks that give the portfolio both the broad risk characteristics and company-specific risks that are perceived to be undervalued and is short stocks for which those characteristics are perceived to be overpriced.

The Fund will ordinarily hold simultaneous long and short positions in equity securties or securities markets that provide exposure up to a level equal to 200% of the Fund’s net assets for the long and 150% of the Fund’s net assets for the short positions. The Fund intends to maintain a hedged overall net exposure (the difference between the notional value of long positions and the notional value of short positions), typically varying between 0% and 80% net long, in order to maintain lower-than-market volatility and beta, and to seek to provide consistent return above an approximately 30% market weighted internal benchmark. The overall net exposure will change as market opportunities change and may, based on the Fund’s view of current market conditions, be outside this range.

Derivatives in the Fund are used to take short positions as well as long exposure above 100% of NAV (that is, to take leverage). The performance discussion below referencing short position performance would be entirely due to total return swap derivatives, and performance of long positions would be partially due to total return swap derivatives.

Performance Review

For most of 2019, the stock market continued a strong and steady ascent with just a few short-lived dips. As global growth expectations decreased, while the risk of trade conflict escalation and a disorderly Brexit increased, investors continued moving towards safer assets, such as long-term U.S. Treasurys and high-quality stocks. In August, the yield curve between the 2-year and 10-year U.S. Treasury rates briefly inverted, a historical indicator that has presaged past recessions. The markets took the clues and began punishing a whole host of more cyclical industries, while groups with any sort of organic growth (whether profitable or not) became market favorites. The U.S. Federal Reserve by then had fully abandoned 2018’s hawkish stance and cut short-term rates multiple times during 2019, calling it a “midcycle adjustment to policy.” Before 2019 was over, two political risk events suddenly cleared up. A Phase One trade deal was signed with China, and a new election in the UK seemed to have resolved the muddy Brexit saga. The resolution of these major uncertainties contributed to strong U.S. stock market moves higher through early 2020. From March 31, 2019, through January 31, 2020, the S&P 500 benchmark achieved a roughly 15.6% return.

At that same point, 10 months into the period, the Fund had lost roughly -3%. Despite being long biased, the Fund’s strategy had failed to provide any of the market upside as its long positions suffered from stagnation (particularly the Energy, Industrials, Discretionary, Staples, and Media names underperforming the market), while its short positions of the more expensive nature (particularly in REITs, Financials, and IT) outperformed the market. The big undertone of this poor performance was fundamental style positioning that was not moving the Fund’s way (more on that style performance below).

The narrative of continuing economic strength from early 2020 now seems like a distant memory, as the rapid spread of the COVID-19 pandemic quickly changed the markets and world economic situation. The months of February and March 2020 closed out the fiscal year with sharp drops in the equity markets and extreme volatility. The daily moves (in both directions) exceeded several records that had held for 30-70 years. Over those last two months, the S&P 500 Index dropped about -19.6%. The Fund endured a -8.9% return over that same period, less than half the drop of the broad market. For this period, the long side roughly matched the intensity of the broad market drop, but the average short position fell considerably more (averaging about -33% returns), providing some protection when needed the most. The pandemic represented one of those exogenous events that a pure quantitative approach can struggle with, as the modelling of fundamental impacts and economic signals are so uncertain. Indeed, when looking at single name correlations, a hidden ‘pandemic’ factor quickly emerged related to names with heavy exposure

10 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) (continued) March 31, 2020

to the stay-at-home closures (travel companies, real estate related to retail businesses, and oil & gas producers). This factor is hard to model—its riskiness hard to predict—and of course will be transient once the world recuperates and finds effective virus-fighting medical solutions. During the month of March, the portfolio managers took discretion to both decrease exposure to this new ‘pandemic factor’ on both the long side (selling of travel names, selling of low volatility names that held up) and on the short side (particularly by closing some battered REIT and bank shorts). This action was taken amid the volatile weeks in March by taking advantage of some of the big oversold days, and rapid rebounds. The trades ended up both reducing gross positioning and adding some modest profit and loss.

At period end, the Fund held about 119% of assets in long securities, and 59% short, for a net-dollar exposure of 60%. The net exposure averaged 58% during the year (ranging between 53% and 63%). Usually, the Fund has gross exposure (the sum of long positions and short positions) around 240%-250%, but with the dramatic increase in market volatility, we brought down the size of many positions on both sides to a total of under 180% while maintaining a similar net market exposure.

The realized net beta (sensitivity of daily Fund returns to the S&P 500 index) averaged around 0.49 during the year. The long positions (on a standalone unlevered basis) averaged a return of -17.1%, compared to the Russell 3000 index return of -8.8%. Short positions returned -19.6% on a stand-alone basis. The underwhelming total return results for the year stemmed mostly from poor alpha on the long side, while shorts ended up with worse-than-market-like total return, serving as a decent hedge with alpha generation on the short side.

The Fund’s fundamental style tilts were the primary negative contributor to the period’s returns, as a bias towards value names and away from high growth companies both underperformed. While the current pandemic situation is clearly the number one worry for global markets, for a fundamentals-based long/short strategy like the Fund uses, the biggest challenge continues to be the unprecedented persistence of value names underperforming expensive stocks. The magnitude of cumulative value style underperformance has reached historic levels last seen in the 1999 tech bubble. The recent pandemic reaction (including very low interest rates and forced economic slowdown) has only exacerbated the investing public’s shunning of any name with economic sensitivity, and the related embrace of technology-related growth stories (regardless of profits). History also shows that strong momentum as we have seen can create crowding in narrow market leaders, and that crowding can turn into a rush to exit as soon as the leading names disappoint the most optimistic expectations.

The Fund’s strategy is to determine attractiveness of broad groups of stocks relative to their fundamentals. The value factor has seen its risk premium (or embedded valuation) improve as the returns have struggled—implying that the valuation of the stocks (both cheaper and expensive) have spread much further than fundamentals of the companies. To what extent this ‘behavioral’ cycle will continue is a key question—and one that is very difficult to answer. In every market environment there are elements of the macro-economic cycle that are somewhat predictable, and elements that are new and completely unpredictable (pandemic, global quantitative easing, negative rates, and trade conflicts being unique situations this time around). These unique elements can drive market sentiment in ways that are hard to predict or time.

Focusing on corporate fundamentals tends to produce slightly more predictability. Companies must invest in operations and research to produce sales and earnings—and there are some bounds on how much and how little the companies can earn on that capital before competition comes in to erode them. Given some bounded limits on corporate earnings power, we believe that the valuations awarded the most expensive tiers of the equity market have far surpassed the likely long-term earnings power.

We find some comfort during a poor relative performance period in knowing that, in past periods of value drawdown, the forward performance of the factor has been tremendous due to the rewinding of all the excess valuations.

Positioning

At period end, the Fund’s net dollar exposure was 60%. The Fund maintains its large style bias towards cheaper valuation names along with quality biases towards free cash flow and higher profitability—both of which are styles that have historically helped protect against macro risk in the event of recession.

From an industry perspective, the Fund now holds a underweight in the Technology sector after prior years of being positioned quite long. The flip in exposure occurred during this year in response to relative attractiveness of the names vis-à-vis other sector opportunities. The net short in Financials has begun to shrink after remaining quite negative for a few years. The largest sector net long exposures are in Healthcare, Consumer Staples, and Industrials. The largest net short exposures exist in Real Estate, Materials, and Financials sectors.

Performance displayed represents past performance, which is no guarantee of future results.

THE RYDEX FUNDS ANNUAL REPORT | 11

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) (continued) March 31, 2020

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
Institutional Class	November 30, 2011
A-Class	March 31, 2004
C-Class	March 22, 2002
P-Class	March 22, 2002

Ten Largest Holdings (% of Total Net Assets)
Alphabet, Inc. — Class C	1.3%
Johnson & Johnson	1.1%
Verizon Communications, Inc.	1.1%
Procter & Gamble Co.	1.1%
Kimberly-Clark Corp.	1.0%
Merck & Company, Inc.	1.0%
Omnicom Group, Inc.	1.0%
McKesson Corp.	1.0%
Pfizer, Inc.	1.0%
Gilead Sciences, Inc.	1.0%
Top Ten Total	10.6%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

12 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	10 Year
A-Class Shares	(12.15%)	(2.17%)	1.45%
A-Class Shares with sales charge‡	(16.33%)	(3.12%)	0.95%
C-Class Shares	(12.81%)	(2.90%)	0.69%
C-Class Shares with CDSC§	(13.68%)	(2.90%)	0.69%
P-Class Shares	(12.17%)	(2.17%)	1.44%
Morningstar Long/Short Equity Category Average**	(9.60%)	(0.62%)	2.70%
S&P 500 Index**	(6.98%)	6.73%	10.53%
	1 Year	5 Year	Since Inception (11/30/11)
Institutional Class Shares	(11.96%)	(1.92%)	2.22%
Morningstar Long/Short Equity Category Average**	(9.60%)	(0.62%)	2.81%
S&P 500 Index**	(6.98%)	6.73%	10.25%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Morningstar Long/Short Equity Category Average and S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The Morningstar Long/Short Equity Category Average is the equal-weighted, simple average daily return for all funds in the Morningstar Long/Short Equity Category. The graphs are based on A-Class shares and P-Class shares only; performance for C-Class shares and Institutional Class shares will vary due to differences in fee structure.
**	Effective May 31, 2017, the Fund changed its principal investment strategy. As a result of the investment strategy change, the Fund’s new benchmarks are the Morningstar Long/Short Equity Category Average and S&P 500® Index. Prior to May 31, 2017, the Fund’s benchmark was the HFRX Equity Hedge Index and Russell 3000 Index.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 13

SCHEDULE OF INVESTMENTS	March 31, 2020
LONG SHORT EQUITY FUND

	Shares		Value
COMMON STOCKS† - 80.5%
Consumer, Non-cyclical - 25.8%
Johnson & Johnson1		1,266	$	166,011
Procter & Gamble Co.1		1,413		155,430
Kimberly-Clark Corp.1		1,197		153,060
Merck & Company, Inc.1		1,976		152,034
McKesson Corp.		1,094		147,974
Pfizer, Inc.1		4,430		144,595
Gilead Sciences, Inc.1		1,924		143,838
Eli Lilly & Co.1		1,014		140,662
Amgen, Inc.1		686		139,073
Medtronic plc		1,343		121,112
JM Smucker Co.1		1,079		119,769
Molson Coors Beverage Co. — Class B1		2,850		111,178
General Mills, Inc.1		2,011		106,120
Abbott Laboratories		1,299		102,504
Kellogg Co.		1,689		101,323
Sysco Corp.1		2,041		93,131
Post Holdings, Inc.*		1,111		92,180
CVS Health Corp.1		1,464		86,859
Coca-Cola Co.		1,958		86,642
Cardinal Health, Inc.		1,682		80,635
PepsiCo, Inc.1		636		76,384
Philip Morris International, Inc.1		1,031		75,222
Becton Dickinson and Co.1		300		68,931
Hologic, Inc.*,1		1,951		68,480
Jazz Pharmaceuticals plc*		585		58,348
TreeHouse Foods, Inc.*		1,319		58,234
Edwards Lifesciences Corp.*		307		57,906
John B Sanfilippo & Son, Inc.		641		57,305
United Therapeutics Corp.*		587		55,662
Ingredion, Inc.1		706		53,303
Mondelez International, Inc. — Class A		997		49,930
Archer-Daniels-Midland Co.		1,349		47,458
STERIS plc		329		46,050
Integer Holdings Corp.*		725		45,573
Cal-Maine Foods, Inc.		1,032		45,387
Baxter International, Inc.1		546		44,330
BioMarin Pharmaceutical, Inc.*		512		43,264
Alexion Pharmaceuticals, Inc.*		481		43,189
Thermo Fisher Scientific, Inc.1		148		41,973
Herbalife Nutrition Ltd.*		1,340		39,074
Innoviva, Inc.*		3,169		37,268
Illumina, Inc.*		136		37,144
Conagra Brands, Inc.		1,196		35,091
Halozyme Therapeutics, Inc.*		1,865		33,551
Macquarie Infrastructure Corp.		1,328		33,532
Zoetis, Inc.		249		29,305
Laboratory Corporation of America Holdings*		222		28,059
Henry Schein, Inc.*		490		24,755
Zimmer Biomet Holdings, Inc.1		225		22,743
Total Consumer, Non-cyclical				3,801,581
Industrial - 16.2%
FedEx Corp.1		1,041		126,232
Honeywell International, Inc.1		847		113,320
CH Robinson Worldwide, Inc.		1,601		105,986
Caterpillar, Inc.1		841		97,590
Eaton Corporation plc		1,195		92,839
Norfolk Southern Corp.1		628		91,688
Werner Enterprises, Inc.		2,370		85,936
Landstar System, Inc.		884		84,740
Lincoln Electric Holdings, Inc.1		1,224		84,456
CSX Corp.		1,403		80,392
Kansas City Southern1		607		77,198
Mettler-Toledo International, Inc.*		106		73,194
Crane Co.		1,480		72,786
Gentex Corp.		3,206		71,045
Emerson Electric Co.1		1,440		68,616
Illinois Tool Works, Inc.		476		67,649
Waters Corp.*,1		360		65,538
Union Pacific Corp.1		456		64,314
Regal Beloit Corp.		1,019		64,146
Rockwell Automation, Inc.		392		59,157
Masco Corp.		1,614		55,796
J.B. Hunt Transport Services, Inc.		535		49,343
Heartland Express, Inc.		2,463		45,738
Marten Transport Ltd.		2,201		45,164
Echo Global Logistics, Inc.*		2,595		44,323
Kennametal, Inc.		2,179		40,573
Schneider National, Inc. — Class B		2,097		40,556
Garmin Ltd.		527		39,504
Old Dominion Freight Line, Inc.		291		38,197
Textron, Inc.1		1,410		37,605
Westrock Co.		1,191		33,658
Oshkosh Corp.		523		33,645
Albany International Corp. — Class A		688		32,563
AGCO Corp.		664		31,374
Knight-Swift Transportation Holdings, Inc.		936		30,701
Arconic, Inc.*		1,784		28,651
Terex Corp.		1,846		26,508
General Dynamics Corp.		186		24,610
Vishay Intertechnology, Inc.		1,661		23,935
MasTec, Inc.*		712		23,304
General Electric Co.		2,830		22,470
Total Industrial				2,395,040
Communications - 9.7%
Alphabet, Inc. — Class C*		162		188,375
Verizon Communications, Inc.1		2,970		159,578
Omnicom Group, Inc.1		2,752		151,085
Facebook, Inc. — Class A*,1		737		122,932
AT&T, Inc.1		3,740		109,021
Amazon.com, Inc.*,1		53		103,335
Discovery, Inc. — Class A*,1		3,147		61,178
Charter Communications, Inc. — Class A*		132		57,593
News Corp. — Class A		6,397		57,413
Booking Holdings, Inc.*		42		56,504
Cisco Systems, Inc.		1,367		53,737
AMC Networks, Inc. — Class A*		2,018		49,057

14 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
LONG SHORT EQUITY FUND

	Shares		Value
Altice USA, Inc. — Class A*		2,051	$	45,717
GCI Liberty, Inc. — Class A*		802		45,690
Comcast Corp. — Class A		1,310		45,038
Yelp, Inc. — Class A*		2,265		40,838
eBay, Inc.		1,270		38,176
Scholastic Corp.		994		25,337
Walt Disney Co.		231		22,314
Total Communications				1,432,918
Consumer, Cyclical - 9.3%
Southwest Airlines Co.1		2,537		90,342
Home Depot, Inc.1		417		77,858
Starbucks Corp.		1,088		71,525
Cummins, Inc.1		474		64,142
Allison Transmission Holdings, Inc.1		1,839		59,970
General Motors Co.		2,822		58,641
DR Horton, Inc.		1,723		58,582
Lear Corp.1		666		54,113
Whirlpool Corp.		593		50,879
Gentherm, Inc.*		1,616		50,742
Brunswick Corp.		1,427		50,473
Toll Brothers, Inc.		2,614		50,320
Autoliv, Inc.		1,079		49,645
Aptiv plc		879		43,282
BorgWarner, Inc.		1,760		42,891
Lowe’s Companies, Inc.		485		41,734
PulteGroup, Inc.		1,622		36,203
MSC Industrial Direct Company, Inc. — Class A		650		35,731
Wyndham Destinations, Inc.		1,440		31,248
Lennar Corp. — Class A		807		30,827
Extended Stay America, Inc.		3,960		28,948
Carnival Corp.		2,121		27,933
Walgreens Boots Alliance, Inc.		604		27,633
Walmart, Inc.		240		27,269
Costco Wholesale Corp.		94		26,802
Polaris, Inc.		531		25,568
Las Vegas Sands Corp.		582		24,718
VF Corp.		455		24,606
Delta Air Lines, Inc.		844		24,079
Hilton Worldwide Holdings, Inc.		298		20,335
Mohawk Industries, Inc.*		263		20,051
SkyWest, Inc.		707		18,516
Allegiant Travel Co. — Class A		212		17,342
JetBlue Airways Corp.*		1,568		14,034
Total Consumer, Cyclical				1,376,982
Utilities - 8.3%
Public Service Enterprise Group, Inc.		2,388		107,245
FirstEnergy Corp.1		2,661		106,626
NRG Energy, Inc.1		3,688		100,535
Exelon Corp.1		2,721		100,160
PPL Corp.1		3,899		96,227
AES Corp.		6,800		92,480
Southern Co.1		1,623		87,869
National Fuel Gas Co.1		2,353		87,743
Vistra Energy Corp.1		4,899		78,188
Evergy, Inc.1		1,303		71,730
Pinnacle West Capital Corp.1		941		71,318
Portland General Electric Co.		1,232		59,062
ALLETE, Inc.		875		53,095
OGE Energy Corp.		1,235		37,952
Entergy Corp.		375		35,239
NiSource, Inc.		1,079		26,943
Avista Corp.		309		13,130
Total Utilities				1,225,542
Financial - 4.4%
Lexington Realty Trust REIT		11,508		114,274
Berkshire Hathaway, Inc. — Class B*		405		74,046
JPMorgan Chase & Co.		641		57,709
Weingarten Realty Investors REIT		3,713		53,579
Bank of America Corp.		2,426		51,504
Sunstone Hotel Investors, Inc. REIT		4,914		42,801
Brixmor Property Group, Inc. REIT		4,265		40,517
Summit Hotel Properties, Inc. REIT		9,462		39,930
Kennedy-Wilson Holdings, Inc.		2,704		36,288
Visa, Inc. — Class A		204		32,868
Travelers Companies, Inc.		278		27,619
Mastercard, Inc. — Class A		110		26,572
Northern Trust Corp.		315		23,770
Wells Fargo & Co.		637		18,282
Citigroup, Inc.		282		11,878
Total Financial				651,637
Technology - 3.8%
Microsoft Corp.1		830		130,899
Apple, Inc.1		497		126,382
Activision Blizzard, Inc.		1,574		93,622
Oracle Corp.1		1,059		51,181
Intel Corp.1		571		30,903
NVIDIA Corp.		115		30,314
Adobe, Inc.*		82		26,096
Teradata Corp.*		1,262		25,858
QUALCOMM, Inc.		315		21,310
Micron Technology, Inc.*		390		16,403
Total Technology				552,968
Energy - 2.6%
Exxon Mobil Corp.1		2,518		95,608
Chevron Corp.		1,047		75,866
Kinder Morgan, Inc.1		3,131		43,584
Valero Energy Corp.1		775		35,154
HollyFrontier Corp.1		1,308		32,059
Delek US Holdings, Inc.		1,647		25,957
CVR Energy, Inc.		1,393		23,026
Phillips 661		404		21,674
ConocoPhillips		662		20,390
Devon Energy Corp.		2,255		15,582
Total Energy				388,900

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 15

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
LONG SHORT EQUITY FUND

	Shares		Value
Basic Materials - 0.4%
International Paper Co.		944	$	29,387
Domtar Corp.		1,039		22,484
Total Basic Materials				51,871
Total Common Stocks
(Cost $14,247,072)				11,877,439
MONEY MARKET FUND† - 12.6%
Invesco Short-Term Investments Trust Treasury Obligations Portfolio Institutional Class 0.63%3		1,855,620		1,855,620
Total Money Market Fund
(Cost $1,855,620)				1,855,620
Total Investments - 93.1%
(Cost $16,100,543)			$	13,733,059
Other Assets & Liabilities, net - 6.9%				1,018,188
Total Net Assets - 100.0%			$	14,751,247

Custom Basket Swap Agreements
Counterparty	Reference Obligation	Financing Rate Pay (Receive)	Payment Frequency	Maturity Date		Notional Amount		Value and Unrealized Appreciation (Depreciation)
OTC Custom Basket Swap Agreements ††
Goldman Sachs International	GS Equity Custom Basket	0.54% (Federal Funds Rate+ 0.45%)	At Maturity		05/06/24	$	2,992,359	$	(764,713	)
Morgan Stanley Capital Services LLC	MS Equity Custom Basket	0.50% (Federal Funds Rate+ 0.40%)	At Maturity		03/27/24		3,009,908		(776,545	)
						$	6,002,267	$	(1,541,258	)
OTC Custom Basket Swap Agreements Sold Short ††
Morgan Stanley Capital Services LLC	MS Equity Custom Basket	(0.20%) (Federal Funds Rate - 0.30%)	At Maturity		03/27/24	$	4,568,212	$	560,203
Goldman Sachs International	GS Equity Custom Basket	(0.11%) (Federal Funds Rate - 0.20%)	At Maturity		05/06/24		4,304,376		618,075
						$	8,872,588	$	1,178,278

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
GS EQUITY LONG CUSTOM BASKET
Technology
Microsoft Corp.		230		1.21	%	$	5,874
Apple, Inc.		138		1.17	%		4,326
Activision Blizzard, Inc.		437		0.87	%		1,854
Intel Corp.		158		0.29	%		1,149
NVIDIA Corp.		32		0.28	%		665
Adobe, Inc.		22		0.23	%		(478	)
Micron Technology, Inc.		108		0.15	%		(504	)
QUALCOMM, Inc.		87		0.20	%		(699	)
Oracle Corp.		294		0.47	%		(1,646	)
Teradata Corp.		350		0.24	%		(2,952	)
Total Technology							7,589
Industrial
Werner Enterprises, Inc.		711		0.86	%		3,728
Old Dominion Freight Line, Inc.		81		0.36	%		3,032
Marten Transport Ltd.		611		0.42	%		1,607
Schneider National, Inc. — Class B		419		0.27	%		578
Knight-Swift Transportation Holdings, Inc.		234		0.26	%		407
Heartland Express, Inc.		683		0.42	%		(109	)
Vishay Intertechnology, Inc.		461		0.22	%		(664	)
Mettler-Toledo International, Inc.		29		0.67	%		(1,040	)
Garmin Ltd.		146		0.37	%		(1,247	)
Landstar System, Inc.		245		0.78	%		(1,553	)
Westrock Co.		595		0.56	%		(1,780	)
Oshkosh Corp.		145		0.31	%		(1,872	)
Union Pacific Corp.		126		0.59	%		(2,022	)
Regal Beloit Corp.		283		0.60	%		(2,114	)
Echo Global Logistics, Inc.		720		0.41	%		(2,446	)
General Dynamics Corp.		51		0.23	%		(2,510	)

16 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
Caterpillar, Inc.		233		0.90	%	$	(2,927	)
General Electric Co.		785		0.21	%		(3,125	)
Waters Corp.		100		0.61	%		(3,205	)
J.B. Hunt Transport Services, Inc.		148		0.46	%		(3,574	)
Gentex Corp.		890		0.66	%		(3,861	)
Lincoln Electric Holdings, Inc.		339		0.78	%		(4,754	)
Illinois Tool Works, Inc.		132		0.63	%		(4,937	)
AGCO Corp.		184		0.29	%		(5,263	)
Albany International Corp. — Class A		191		0.30	%		(5,615	)
Masco Corp.		448		0.52	%		(5,757	)
Eaton Corporation plc		331		0.86	%		(5,790	)
MasTec, Inc.		197		0.22	%		(5,849	)
Rockwell Automation, Inc.		108		0.54	%		(6,071	)
CH Robinson Worldwide, Inc.		444		0.98	%		(6,387	)
Norfolk Southern Corp.		174		0.85	%		(6,683	)
Arconic, Inc.		495		0.27	%		(6,811	)
CSX Corp.		389		0.74	%		(7,211	)
FedEx Corp.		206		0.83	%		(7,329	)
Terex Corp.		512		0.25	%		(7,416	)
Honeywell International, Inc.		235		1.05	%		(8,378	)
Kennametal, Inc.		605		0.38	%		(8,543	)
Textron, Inc.		470		0.42	%		(9,388	)
Emerson Electric Co.		399		0.64	%		(9,933	)
Crane Co.		649		1.07	%		(15,755	)
Total Industrial							(162,567	)
Energy
Phillips 66		112		0.20	%		(3,479	)
ConocoPhillips		183		0.19	%		(4,189	)
HollyFrontier Corp.		363		0.30	%		(5,812	)
Kinder Morgan, Inc.		869		0.40	%		(5,942	)
Valero Energy Corp.		215		0.33	%		(6,665	)
Delek US Holdings, Inc.		457		0.24	%		(8,984	)
Devon Energy Corp.		626		0.14	%		(9,322	)
CVR Energy, Inc.		386		0.21	%		(11,371	)
Chevron Corp.		290		0.70	%		(14,164	)
Exxon Mobil Corp.		699		0.89	%		(24,152	)
Total Energy							(94,080	)
Communications
Amazon.com, Inc.		14		0.91	%		2,903
Alphabet, Inc. — Class C		49		1.90	%		1,008
Scholastic Corp.		276		0.24	%		(2,081	)
Facebook, Inc. — Class A		180		1.00	%		(2,154	)
Charter Communications, Inc. — Class A		36		0.52	%		(2,556	)
Verizon Communications, Inc.		824		1.48	%		(2,646	)
Walt Disney Co.		64		0.21	%		(3,219	)
Altice USA, Inc. — Class A		569		0.42	%		(3,724	)
Cisco Systems, Inc.		379		0.50	%		(3,847	)
Comcast Corp. — Class A		363		0.42	%		(3,994	)
GCI Liberty, Inc. — Class A		278		0.53	%		(4,672	)
eBay, Inc.		635		0.64	%		(4,743	)
News Corp. — Class A		1,776		0.53	%		(6,217	)
Booking Holdings, Inc.		11		0.49	%		(6,630	)
AT&T, Inc.		1,282		1.25	%		(7,512	)
AMC Networks, Inc. — Class A		560		0.45	%		(8,684	)
Discovery, Inc. — Class A		873		0.57	%		(8,742	)
Yelp, Inc. — Class A		628		0.38	%		(10,343	)
Omnicom Group, Inc.		596		1.09	%		(14,203	)
Total Communications							(92,056	)
Consumer, Non-cyclical
Eli Lilly & Co.		110		0.51	%		3,479
CVS Health Corp.		366		0.73	%		1,962
Cardinal Health, Inc.		467		0.75	%		1,478
JM Smucker Co.		134		0.50	%		999
United Therapeutics Corp.		162		0.51	%		833
McKesson Corp.		303		1.37	%		730
Amgen, Inc.		190		1.29	%		724
Baxter International, Inc.		182		0.49	%		644
General Mills, Inc.		502		0.89	%		186
Thermo Fisher Scientific, Inc.		49		0.46	%		(154	)
Kellogg Co.		421		0.84	%		(354	)
Becton Dickinson and Co.		83		0.64	%		(602	)
STERIS plc		91		0.43	%		(613	)
Kimberly-Clark Corp.		136		0.58	%		(637	)
Halozyme Therapeutics, Inc.		517		0.31	%		(651	)
BioMarin Pharmaceutical, Inc.		142		0.40	%		(718	)
John B Sanfilippo & Son, Inc.		178		0.53	%		(780	)
Ingredion, Inc.		196		0.49	%		(927	)
Conagra Brands, Inc.		332		0.33	%		(957	)
Mondelez International, Inc. — Class A		276		0.46	%		(1,128	)
Abbott Laboratories		360		0.95	%		(1,137	)
Zoetis, Inc.		69		0.27	%		(1,202	)
Zimmer Biomet Holdings, Inc.		62		0.21	%		(1,203	)
Philip Morris International, Inc.		286		0.70	%		(1,487	)
TreeHouse Foods, Inc.		366		0.54	%		(1,496	)
Innoviva, Inc.		879		0.35	%		(1,526	)
Alexion Pharmaceuticals, Inc.		133		0.40	%		(1,827	)
Henry Schein, Inc.		136		0.23	%		(2,150	)
Archer-Daniels-Midland Co.		374		0.44	%		(2,270	)
Illumina, Inc.		38		0.35	%		(2,350	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 17

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized (Depreciation)
PepsiCo, Inc.		176		0.71	%	$	(2,391	)
Johnson & Johnson		351		1.54	%		(2,472	)
Integer Holdings Corp.		201		0.42	%		(2,811	)
Merck & Company, Inc.		548		1.41	%		(3,359	)
Procter & Gamble Co.		392		1.44	%		(3,664	)
Edwards Lifesciences Corp.		85		0.54	%		(3,839	)
Jazz Pharmaceuticals plc		162		0.54	%		(4,882	)
Medtronic plc		373		1.12	%		(5,141	)
Herbalife Nutrition Ltd.		372		0.36	%		(5,376	)
Coca-Cola Co.		543		0.80	%		(5,392	)
Macquarie Infrastructure Corp.		368		0.31	%		(5,652	)
Post Holdings, Inc.		308		0.85	%		(6,562	)
Hologic, Inc.		541		0.63	%		(7,202	)
Pfizer, Inc.		1,229		1.34	%		(10,291	)
Sysco Corp.		680		1.04	%		(10,497	)
Molson Coors Beverage Co. — Class B		838		1.09	%		(12,334	)
Total Consumer, Non-cyclical							(104,999	)
Utilities
NiSource, Inc.		269		0.22	%		(381	)
Avista Corp.		154		0.22	%		(598	)
Southern Co.		463		0.84	%		(1,749	)
Portland General Electric Co.		307		0.49	%		(1,897	)
FirstEnergy Corp.		738		0.99	%		(1,999	)
Entergy Corp.		125		0.39	%		(2,949	)
OGE Energy Corp.		342		0.35	%		(4,417	)
AES Corp.		1,887		0.86	%		(4,625	)
ALLETE, Inc.		243		0.49	%		(4,891	)
Exelon Corp.		680		0.84	%		(6,239	)
PPL Corp.		1,082		0.89	%		(6,404	)
National Fuel Gas Co.		653		0.81	%		(9,001	)
Public Service Enterprise Group, Inc.		663		1.00	%		(9,675	)
NRG Energy, Inc.		1,023		0.93	%		(11,245	)
Vistra Energy Corp.		1,360		0.73	%		(12,247	)
Total Utilities							(78,317	)
Consumer, Cyclical
Walmart, Inc.		66		0.25	%		375
Costco Wholesale Corp.		26		0.25	%		(473	)
Walgreens Boots Alliance, Inc.		167		0.26	%		(1,500	)
Lear Corp.		83		0.23	%		(2,804	)
Home Depot, Inc.		115		0.72	%		(3,374	)
MSC Industrial Direct Company, Inc. — Class A		180		0.33	%		(3,610	)
Gentherm, Inc.		448		0.47	%		(4,187	)
Lennar Corp. — Class A		224		0.29	%		(4,573	)
Mohawk Industries, Inc.		73		0.19	%		(4,610	)
Cummins, Inc.		131		0.59	%		(4,693	)
Lowe’s Companies, Inc.		134		0.39	%		(4,834	)
DR Horton, Inc.		335		0.38	%		(4,835	)
VF Corp.		126		0.23	%		(5,265	)
Allison Transmission Holdings, Inc.		510		0.56	%		(5,861	)
PulteGroup, Inc.		450		0.34	%		(6,472	)
Starbucks Corp.		285		0.63	%		(6,579	)
Toll Brothers, Inc.		437		0.28	%		(7,602	)
Polaris, Inc.		147		0.24	%		(7,822	)
Extended Stay America, Inc.		1,099		0.27	%		(7,953	)
Autoliv, Inc.		299		0.46	%		(8,977	)
Brunswick Corp.		396		0.47	%		(9,232	)
Whirlpool Corp.		164		0.47	%		(10,778	)
Wyndham Destinations, Inc.		399		0.29	%		(11,516	)
General Motors Co.		783		0.54	%		(12,416	)
Carnival Corp.		741		0.33	%		(21,736	)
Total Consumer, Cyclical							(161,327	)
Financial
Lexington Realty Trust		2,157		0.72	%		(940	)
Visa, Inc. — Class A		56		0.30	%		(1,064	)
Berkshire Hathaway, Inc. — Class B		68		0.42	%		(1,513	)
Bank of America Corp.		285		0.20	%		(1,958	)
Mastercard, Inc. — Class A		30		0.24	%		(2,020	)
JPMorgan Chase & Co.		113		0.34	%		(2,333	)
Northern Trust Corp.		87		0.22	%		(2,843	)
Citigroup, Inc.		78		0.11	%		(2,953	)
Wells Fargo & Co.		176		0.17	%		(3,469	)
Sunstone Hotel Investors, Inc.		982		0.29	%		(3,648	)
Travelers Companies, Inc.		116		0.39	%		(4,318	)
Kennedy-Wilson Holdings, Inc.		750		0.34	%		(6,820	)
Summit Hotel Properties, Inc.		2,365		0.33	%		(10,650	)
Brixmor Property Group, Inc.		1,184		0.38	%		(12,416	)
Weingarten Realty Investors		1,030		0.50	%		(14,686	)
Total Financial							(71,631	)
Basic Materials
International Paper Co.		262		0.21	%		(3,393	)
Domtar Corp.		288		0.21	%		(3,932	)
Total Basic Materials							(7,325	)
Total GS Equity Long Custom Basket							(764, 713)
GS EQUITY SHORT CUSTOM BASKET
Financial
Realty Income Corp.		1,244		(1.44	)%		33,797
Cousins Properties, Inc.		2,183		(1.48	)%		24,169
People’s United Financial, Inc.		4,891		(1.26	)%		23,109

18 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
Essential Properties Realty Trust, Inc.		1,540		(0.47	)%	$	20,594
WP Carey, Inc.		560		(0.76	)%		18,378
Cadence BanCorp		1,598		(0.24	)%		18,231
BOK Financial Corp.		472		(0.47	)%		16,452
Old National Bancorp		3,229		(0.99	)%		13,702
Ameris Bancorp		718		(0.40	)%		13,562
First Republic Bank		718		(1.37	)%		13,310
UDR, Inc.		1,239		(1.05	)%		13,027
Western Alliance Bancorporation		436		(0.31	)%		11,790
Atlantic Union Bankshares Corp.		743		(0.38	)%		10,777
Global Net Lease, Inc.		1,439		(0.45	)%		9,931
CareTrust REIT, Inc.		1,667		(0.57	)%		9,054
Alexandria Real Estate Equities, Inc.		520		(1.66	)%		8,890
Northwest Bancshares, Inc.		1,448		(0.39	)%		7,707
First Midwest Bancorp, Inc.		809		(0.25	)%		7,704
Valley National Bancorp		2,413		(0.41	)%		7,561
Washington Real Estate Investment Trust		1,833		(1.02	)%		6,507
CenterState Bank Corp.		729		(0.29	)%		5,025
Agree Realty Corp.		1,045		(1.50	)%		4,744
Glacier Bancorp, Inc.		746		(0.59	)%		4,599
Arthur J Gallagher & Co.		873		(1.65	)%		4,593
EastGroup Properties, Inc.		457		(1.11	)%		4,587
CME Group, Inc. — Class A		128		(0.51	)%		4,221
Medical Properties Trust, Inc.		975		(0.39	)%		3,727
National Storage Affiliates Trust		842		(0.58	)%		3,687
Healthcare Realty Trust, Inc.		819		(0.53	)%		3,604
Brown & Brown, Inc.		1,775		(1.49	)%		2,882
Sun Communities, Inc.		535		(1.55	)%		2,493
Columbia Financial, Inc.		1,808		(0.60	)%		958
American Tower Corp. — Class A		117		(0.59	)%		648
Progressive Corp.		359		(0.62	)%		(18	)
RLI Corp.		925		(1.89	)%		(113	)
Crown Castle International Corp.		396		(1.33	)%		(2,862	)
Rexford Industrial Realty, Inc.		2,531		(2.41	)%		(3,450	)
QTS Realty Trust, Inc. — Class A		1,090		(1.47	)%		(6,313	)
Equinix, Inc.		71		(1.03	)%		(8,543	)
Terreno Realty Corp.		1,836		(2.21	)%		(8,568	)
Easterly Government Properties, Inc.		4,932		(2.82	)%		(13,446	)
SBA Communications Corp.		344		(2.16	)%		(15,121	)
Total Financial							275,586
Utilities
Sempra Energy		117		(0.31	)%		3,904
Eversource Energy		407		(0.74	)%		3,790
Dominion Energy, Inc.		551		(0.92	)%		3,708
WEC Energy Group, Inc.		502		(1.03	)%		3,547
MGE Energy, Inc.		343		(0.52	)%		3,410
American States Water Co.		639		(1.21	)%		2,947
American Water Works Company, Inc.		547		(1.52	)%		2,928
Alliant Energy Corp.		325		(0.36	)%		1,503
California Water Service Group		884		(1.03	)%		1,359
Atmos Energy Corp.		238		(0.55	)%		861
NextEra Energy, Inc.		146		(0.82	)%		(470	)
Total Utilities							27,487
Technology
Autodesk, Inc.		222		(0.81	)%		7,390
Twilio, Inc. — Class A		320		(0.67	)%		6,285
Broadcom, Inc.		111		(0.61	)%		5,745
Elastic N.V.		309		(0.40	)%		5,739
Workday, Inc. — Class A		74		(0.22	)%		5,682
HubSpot, Inc.		172		(0.53	)%		4,189
Alteryx, Inc. — Class A		232		(0.51	)%		3,048
CACI International, Inc. — Class A		210		(1.03	)%		2,748
Leidos Holdings, Inc.		263		(0.56	)%		2,514
Workiva, Inc.		515		(0.39	)%		2,445
ServiceNow, Inc.		101		(0.67	)%		2,208
salesforce.com, Inc.		392		(1.31	)%		1,995
MongoDB, Inc.		129		(0.41	)%		1,887
Coupa Software, Inc.		123		(0.40	)%		1,723
Paycom Software, Inc.		47		(0.22	)%		1,544
Fair Isaac Corp.		34		(0.24	)%		1,460
EPAM Systems, Inc.		238		(1.03	)%		1,314
Black Knight, Inc.		742		(1.00	)%		846
Veeva Systems, Inc. — Class A		75		(0.27	)%		813
Smartsheet, Inc. — Class A		478		(0.46	)%		364
Tyler Technologies, Inc.		61		(0.42	)%		(566	)
Appfolio, Inc. — Class A		92		(0.24	)%		(998	)
ANSYS, Inc.		52		(0.28	)%		(1,052	)
Splunk, Inc.		225		(0.66	)%		(1,667	)
Monolithic Power Systems, Inc.		75		(0.29	)%		(2,722	)
Five9, Inc.		253		(0.45	)%		(4,747	)
RingCentral, Inc. — Class A		73		(0.36	)%		(6,146	)
Total Technology							42,041
Consumer, Non-cyclical
Equifax, Inc.		634		(1.76	)%		18,044

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 19

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
Gartner, Inc.		189		(0.44	)%	$	11,084
Verisk Analytics, Inc. — Class A		264		(0.85	)%		3,476
CoStar Group, Inc.		80		(1.09	)%		3,416
PayPal Holdings, Inc.		500		(1.11	)%		3,338
MarketAxess Holdings, Inc.		73		(0.56	)%		206
Avalara, Inc.		466		(0.81	)%		(19	)
ResMed, Inc.		73		(0.25	)%		(905	)
Rollins, Inc.		1,749		(1.47	)%		(1,198	)
Total Consumer, Non-cyclical							37,442
Industrial
TransDigm Group, Inc.		252		(1.87	)%		33,762
Waste Management, Inc.		780		(1.68	)%		18,492
Materion Corp.		480		(0.39	)%		14,486
HEICO Corp.		218		(0.38	)%		12,304
Tetra Tech, Inc.		585		(0.96	)%		9,792
Roper Technologies, Inc.		108		(0.78	)%		6,585
Casella Waste Systems, Inc. — Class A		1,010		(0.92	)%		6,349
Sonoco Products Co.		600		(0.65	)%		5,707
Republic Services, Inc. — Class A		311		(0.54	)%		4,936
Ball Corp.		942		(1.42	)%		4,215
Exponent, Inc.		797		(1.33	)%		226
Total Industrial							116,854
Basic Materials
Compass Minerals International, Inc.		760		(0.68	)%		13,899
Kaiser Aluminum Corp.		505		(0.81	)%		13,507
PPG Industries, Inc.		421		(0.82	)%		12,863
Linde plc		305		(1.23	)%		9,398
Southern Copper Corp.		520		(0.34	)%		7,319
RPM International, Inc.		1,068		(1.48	)%		6,059
Sherwin-Williams Co.		83		(0.89	)%		6,000
Balchem Corp.		833		(1.91	)%		(2,090	)
Newmont Corp.		1,983		(2.09	)%		(2,484	)
Total Basic Materials							64,471
Consumer, Cyclical
Copart, Inc.		1,070		(1.70	)%		28,498
Communications
8x8, Inc.		1,760		(0.57	)%		11,373
Q2 Holdings, Inc.		488		(0.67	)%		8,286
Proofpoint, Inc.		309		(0.74	)%		3,467
Trade Desk, Inc. — Class A		38		(0.17	)%		1,718
Okta, Inc.		180		(0.50	)%		852
Total Communications							25,696
Total GS Equity Short Custom Basket							618,075
MS EQUITY LONG CUSTOM BASKET
Technology
Microsoft Corp.		230		1.21	%		9,338
Apple, Inc.		138		1.17	%		4,847
Activision Blizzard, Inc.		437		0.86	%		1,877
NVIDIA Corp.		32		0.28	%		667
Intel Corp.		158		0.28	%		152
Micron Technology, Inc.		108		0.15	%		(450	)
Adobe, Inc.		22		0.23	%		(469	)
QUALCOMM, Inc.		87		0.20	%		(632	)
Oracle Corp.		294		0.47	%		(1,357	)
Teradata Corp.		350		0.24	%		(3,088	)
Total Technology							10,885
Industrial
Old Dominion Freight Line, Inc.		81		0.35	%		2,879
Marten Transport Ltd.		611		0.42	%		1,888
Werner Enterprises, Inc.		711		0.86	%		1,704
Knight-Swift Transportation Holdings, Inc.		234		0.25	%		332
Heartland Express, Inc.		683		0.42	%		(464	)
Schneider National, Inc. — Class B		419		0.27	%		(670	)
Mettler-Toledo International, Inc.		29		0.67	%		(977	)
Garmin Ltd.		146		0.36	%		(1,184	)
Oshkosh Corp.		145		0.31	%		(1,233	)
Vishay Intertechnology, Inc.		461		0.22	%		(1,710	)
Union Pacific Corp.		126		0.59	%		(1,724	)
Westrock Co.		595		0.56	%		(1,791	)
Regal Beloit Corp.		283		0.59	%		(1,988	)
Landstar System, Inc.		245		0.78	%		(2,208	)
General Dynamics Corp.		51		0.22	%		(2,544	)
Caterpillar, Inc.		233		0.90	%		(2,619	)
Echo Global Logistics, Inc.		720		0.41	%		(2,788	)
General Electric Co.		785		0.21	%		(3,089	)
J.B. Hunt Transport Services, Inc.		148		0.45	%		(3,538	)
Gentex Corp.		890		0.66	%		(3,891	)
Lincoln Electric Holdings, Inc.		339		0.78	%		(4,631	)
Illinois Tool Works, Inc.		132		0.62	%		(4,920	)
Waters Corp.		100		0.60	%		(5,231	)
Norfolk Southern Corp.		174		0.84	%		(5,269	)
AGCO Corp.		184		0.29	%		(5,271	)
Albany International Corp. — Class A		191		0.30	%		(5,605	)
CSX Corp.		389		0.74	%		(5,718	)
Masco Corp.		448		0.51	%		(5,761	)
Eaton Corporation plc		331		0.85	%		(5,830	)
MasTec, Inc.		197		0.21	%		(5,866	)
Rockwell Automation, Inc.		108		0.54	%		(6,074	)
CH Robinson Worldwide, Inc.		444		0.98	%		(6,154	)
Arconic, Inc.		495		0.26	%		(6,816	)

20 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
FedEx Corp.		206		0.83	%	$	(7,328	)
Terex Corp.		512		0.24	%		(7,409	)
Honeywell International, Inc.		235		1.04	%		(8,273	)
Textron, Inc.		469		0.42	%		(9,292	)
Kennametal, Inc.		605		0.37	%		(9,660	)
Emerson Electric Co.		399		0.63	%		(9,834	)
Crane Co.		648		1.06	%		(15,636	)
Total Industrial							(166,193	)
Consumer, Cyclical
Walmart, Inc.		66		0.25	%		1,083
Costco Wholesale Corp.		26		0.25	%		(457	)
Walgreens Boots Alliance, Inc.		167		0.25	%		(1,508	)
Lear Corp.		83		0.22	%		(2,765	)
Home Depot, Inc.		115		0.71	%		(3,003	)
MSC Industrial Direct Company, Inc. — Class A		180		0.33	%		(3,582	)
Cummins, Inc.		131		0.59	%		(4,093	)
Gentherm, Inc.		448		0.47	%		(4,163	)
Lennar Corp. — Class A		224		0.28	%		(4,524	)
Mohawk Industries, Inc.		73		0.18	%		(4,639	)
DR Horton, Inc.		335		0.38	%		(4,759	)
Lowe’s Companies, Inc.		134		0.38	%		(4,855	)
VF Corp.		126		0.23	%		(5,248	)
Allison Transmission Holdings, Inc.		510		0.55	%		(6,432	)
PulteGroup, Inc.		450		0.33	%		(6,466	)
Starbucks Corp.		285		0.62	%		(6,560	)
Toll Brothers, Inc.		437		0.28	%		(7,266	)
Polaris, Inc.		147		0.24	%		(7,834	)
Extended Stay America, Inc.		1,099		0.27	%		(7,955	)
Autoliv, Inc.		299		0.46	%		(8,853	)
Brunswick Corp.		396		0.47	%		(9,293	)
Whirlpool Corp.		164		0.47	%		(10,717	)
Wyndham Destinations, Inc.		399		0.29	%		(11,519	)
General Motors Co.		783		0.54	%		(12,430	)
Carnival Corp.		741		0.32	%		(21,702	)
Total Consumer, Cyclical							(159,540	)
Communications
Amazon.com, Inc.		14		0.91	%		2,990
Alphabet, Inc. — Class C		49		1.89	%		(1,011	)
Facebook, Inc. — Class A		180		1.00	%		(1,111	)
Charter Communications, Inc. — Class A		36		0.52	%		(2,576	)
Walt Disney Co.		64		0.21	%		(3,198	)
Cisco Systems, Inc.		379		0.49	%		(3,491	)
Altice USA, Inc. — Class A		569		0.42	%		(3,758	)
Scholastic Corp.		276		0.23	%		(3,795	)
Comcast Corp. — Class A		363		0.41	%		(3,974	)
GCI Liberty, Inc. — Class A		278		0.53	%		(4,665	)
eBay, Inc.		636		0.64	%		(4,673	)
Verizon Communications, Inc.		824		1.47	%		(5,560	)
News Corp. — Class A		1,776		0.53	%		(6,635	)
Booking Holdings, Inc.		11		0.49	%		(6,675	)
AT&T, Inc.		1,282		1.24	%		(7,062	)
Discovery, Inc. — Class A		873		0.56	%		(8,081	)
AMC Networks, Inc. — Class A		560		0.45	%		(8,662	)
Yelp, Inc. — Class A		628		0.38	%		(10,427	)
Omnicom Group, Inc.		596		1.09	%		(13,321	)
Total Communications							(95,685	)
Consumer, Non-cyclical
McKesson Corp.		303		1.36	%		5,461
Eli Lilly & Co.		110		0.51	%		3,536
CVS Health Corp.		366		0.72	%		2,291
JM Smucker Co.		134		0.49	%		984
Cardinal Health, Inc.		467		0.74	%		969
United Therapeutics Corp.		162		0.51	%		960
Kimberly-Clark Corp.		135		0.57	%		610
General Mills, Inc.		502		0.88	%		566
Thermo Fisher Scientific, Inc.		49		0.46	%		435
Baxter International, Inc.		182		0.49	%		382
Amgen, Inc.		190		1.28	%		(24	)
Kellogg Co.		421		0.84	%		(271	)
STERIS plc		91		0.42	%		(590	)
Halozyme Therapeutics, Inc.		517		0.31	%		(655	)
BioMarin Pharmaceutical, Inc.		142		0.40	%		(747	)
John B Sanfilippo & Son, Inc.		178		0.53	%		(799	)
Mondelez International, Inc. — Class A		276		0.46	%		(813	)
Abbott Laboratories		360		0.94	%		(872	)
PepsiCo, Inc.		176		0.70	%		(985	)
Conagra Brands, Inc.		332		0.32	%		(1,001	)
Zoetis, Inc.		69		0.27	%		(1,211	)
Becton Dickinson and Co.		83		0.63	%		(1,314	)
Innoviva, Inc.		879		0.34	%		(1,340	)
TreeHouse Foods, Inc.		366		0.54	%		(1,477	)
Zimmer Biomet Holdings, Inc.		62		0.21	%		(1,600	)
Alexion Pharmaceuticals, Inc.		133		0.40	%		(1,796	)
Integer Holdings Corp.		201		0.42	%		(2,092	)
Henry Schein, Inc.		136		0.23	%		(2,194	)
Johnson & Johnson		351		1.53	%		(2,227	)
Illumina, Inc.		38		0.34	%		(2,328	)
Archer-Daniels-Midland Co.		374		0.44	%		(2,765	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 21

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Depreciation
Merck & Company, Inc.		548		1.40	%	$	(3,003	)
Ingredion, Inc.		196		0.49	%		(3,111	)
Procter & Gamble Co.		392		1.43	%		(3,141	)
Medtronic plc		373		1.12	%		(3,479	)
Edwards Lifesciences Corp.		85		0.53	%		(3,853	)
Philip Morris International, Inc.		286		0.69	%		(3,982	)
Coca-Cola Co.		543		0.80	%		(5,293	)
Macquarie Infrastructure Corp.		368		0.31	%		(5,572	)
Jazz Pharmaceuticals plc		162		0.54	%		(5,749	)
Hologic, Inc.		541		0.63	%		(6,013	)
Post Holdings, Inc.		308		0.85	%		(6,995	)
Sysco Corp.		680		1.03	%		(8,201	)
Pfizer, Inc.		1,229		1.33	%		(8,583	)
Herbalife Nutrition Ltd.		973		0.94	%		(10,057	)
Molson Coors Beverage Co. — Class B		839		1.09	%		(12,531	)
Total Consumer, Non-cyclical							(100,470	)
Utilities
NiSource, Inc.		269		0.22	%		(404	)
Avista Corp.		154		0.22	%		(497	)
FirstEnergy Corp.		738		1.06	%		(1,241	)
Portland General Electric Co.		307		0.49	%		(1,274	)
Southern Co.		464		0.83	%		(1,608	)
Entergy Corp.		125		0.39	%		(2,965	)
OGE Energy Corp.		342		0.35	%		(4,427	)
ALLETE, Inc.		243		0.49	%		(4,879	)
AES Corp.		1,887		0.85	%		(6,197	)
Exelon Corp.		680		0.83	%		(6,527	)
PPL Corp.		1,082		0.89	%		(8,119	)
Public Service Enterprise Group, Inc.		663		0.99	%		(9,444	)
NRG Energy, Inc.		1,023		0.93	%		(11,058	)
National Fuel Gas Co.		653		0.81	%		(12,966	)
Vistra Energy Corp.		1,360		0.72	%		(13,786	)
Total Utilities							(85,392	)
Financial
Lexington Realty Trust		2,157		0.71	%		(890	)
Visa, Inc. — Class A		56		0.30	%		(1,075	)
JPMorgan Chase & Co.		113		0.34	%		(1,079	)
Berkshire Hathaway, Inc. — Class B		68		0.41	%		(1,331	)
Bank of America Corp.		285		0.20	%		(1,989	)
Mastercard, Inc. — Class A		30		0.24	%		(2,024	)
Northern Trust Corp.		87		0.22	%		(2,834	)
Citigroup, Inc.		78		0.11	%		(2,962	)
Sunstone Hotel Investors, Inc.		983		0.28	%		(3,006	)
Wells Fargo & Co.		176		0.17	%		(3,414	)
Travelers Companies, Inc.		117		0.39	%		(4,359	)

					Value and Unrealized Appreciation (Depreciation)
Kennedy-Wilson Holdings, Inc.	750	0.33	%	$	(6,828	)
Summit Hotel Properties, Inc.	2,364	0.33	%		(10,291	)
Brixmor Property Group, Inc.	1,184	0.37	%		(12,365	)
Weingarten Realty Investors	1,030	0.49	%		(14,684	)
Total Financial					(69,131	)
Energy
ConocoPhillips	183	0.19	%		(4,030	)
Phillips 66	112	0.20	%		(4,885	)
Kinder Morgan, Inc.	869	0.40	%		(5,266	)
Valero Energy Corp.	215	0.32	%		(8,742	)
Devon Energy Corp.	626	0.14	%		(9,417	)
HollyFrontier Corp.	363	0.30	%		(9,442	)
Delek US Holdings, Inc.	457	0.24	%		(9,543	)
CVR Energy, Inc.	386	0.21	%		(11,330	)
Chevron Corp.	290	0.70	%		(14,447	)
Exxon Mobil Corp.	699	0.88	%		(26,586	)
Total Energy					(103,688	)
Basic Materials
International Paper Co.	262	0.27	%		(3,399	)
Domtar Corp.	288	0.21	%		(3,932	)
Total Basic Materials					(7,331	)
Total MS Equity Long Custom Basket					(776,545	)
MS EQUITY SHORT CUSTOM BASKET
Financial
Realty Income Corp.	1,244	(1.36	)%		31,641
Cousins Properties, Inc.	2,183	(1.40	)%		24,208
People’s United Financial, Inc.	4,891	(1.18	)%		23,171
Essential Properties Realty Trust, Inc.	1,540	(0.44	)%		20,645
WP Carey, Inc.	561	(0.71	)%		18,695
Cadence BanCorp	1,598	(0.23	)%		18,244
BOK Financial Corp.	472	(0.44	)%		17,661
First Republic Bank	718	(1.29	)%		14,445
Ameris Bancorp	718	(0.37	)%		13,521
Old National Bancorp	3,229	(0.93	)%		13,278
UDR, Inc.	1,239	(0.99	)%		12,714
Western Alliance Bancorporation	436	(0.29	)%		11,793
Atlantic Union Bankshares Corp.	743	(0.36	)%		10,536
Global Net Lease, Inc.	1,439	(0.42	)%		9,945
CareTrust REIT, Inc.	1,667	(0.54	)%		9,125
Agree Realty Corp.	1,051	(1.42	)%		8,482
Alexandria Real Estate Equities, Inc.	520	(1.56	)%		8,379
Northwest Bancshares, Inc.	1,448	(0.37	)%		7,734

22 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
First Midwest Bancorp, Inc.		809		(0.23	)%	$	7,702
Americold Realty Trust		5,101		(3.80	)%		6,575
Washington Real Estate Investment Trust		1,833		(0.96	)%		6,443
Valley National Bancorp		2,413		(0.39	)%		5,824
CenterState Bank Corp.		729		(0.27	)%		5,025
Arthur J Gallagher & Co.		873		(1.56	)%		4,365
CME Group, Inc. — Class A		128		(0.48	)%		4,184
Glacier Bancorp, Inc.		746		(0.56	)%		4,069
Medical Properties Trust, Inc.		975		(0.37	)%		3,749
Healthcare Realty Trust, Inc.		819		(0.50	)%		3,677
National Storage Affiliates Trust		842		(0.55	)%		3,396
EastGroup Properties, Inc.		457		(1.05	)%		3,333
Brown & Brown, Inc.		1,775		(1.41	)%		2,885
Columbia Financial, Inc.		1,808		(0.57	)%		2,043
American Tower Corp. — Class A		117		(0.56	)%		625
Progressive Corp.		359		(0.58	)%		(56	)
Sun Communities, Inc.		535		(1.46	)%		(2,850	)
Crown Castle International Corp.		396		(1.25	)%		(5,608	)
QTS Realty Trust, Inc. — Class A		1,090		(1.38	)%		(6,281	)
Equinix, Inc.		71		(0.97	)%		(12,531	)
Rexford Industrial Realty, Inc.		2,531		(2.27	)%		(12,814	)
RLI Corp.		925		(1.78	)%		(12,815	)
Easterly Government Properties, Inc.		4,932		(2.66	)%		(13,269	)
Terreno Realty Corp.		1,836		(2.08	)%		(18,052	)
SBA Communications Corp.		344		(2.03	)%		(20,056	)
Total Financial							233,780
Technology
Autodesk, Inc.		222		(0.76	)%		7,385
Twilio, Inc. — Class A		320		(0.63	)%		6,156
Workday, Inc. — Class A		74		(0.21	)%		5,577
Broadcom, Inc.		111		(0.58	)%		5,576
HubSpot, Inc.		172		(0.50	)%		3,619
Elastic N.V.		308		(0.38	)%		3,042
CACI International, Inc. — Class A		210		(0.97	)%		2,643
Leidos Holdings, Inc.		263		(0.53	)%		2,521
Workiva, Inc.		515		(0.36	)%		2,503
ServiceNow, Inc.		101		(0.63	)%		2,152
Alteryx, Inc. — Class A		232		(0.48	)%		2,135
salesforce.com, Inc.		392		(1.24	)%		1,475
Fair Isaac Corp.		34		(0.23	)%		1,452
MongoDB, Inc.		129		(0.39	)%		1,420
EPAM Systems, Inc.		238		(0.97	)%		1,237
Coupa Software, Inc.		123		(0.38	)%		1,127
Paycom Software, Inc.		47		(0.21	)%		754
Black Knight, Inc.		742		(0.94	)%		730
Smartsheet, Inc. — Class A		478		(0.43	)%		330
Veeva Systems, Inc. — Class A		75		(0.26	)%		(110	)
Tyler Technologies, Inc.		61		(0.40	)%		(571	)
ANSYS, Inc.		52		(0.26	)%		(708	)
Appfolio, Inc. — Class A		92		(0.22	)%		(962	)
Splunk, Inc.		225		(0.62	)%		(2,032	)
Monolithic Power Systems, Inc.		75		(0.27	)%		(2,404	)
Five9, Inc.		253		(0.42	)%		(4,904	)
RingCentral, Inc. — Class A		73		(0.34	)%		(6,407	)
Total Technology							33,736
Consumer, Non-cyclical
Equifax, Inc.		634		(1.66	)%		18,035
Gartner, Inc.		189		(0.41	)%		11,098
CoStar Group, Inc.		80		(1.03	)%		3,492
Verisk Analytics, Inc. — Class A		264		(0.81	)%		3,462
PayPal Holdings, Inc.		500		(1.05	)%		3,134
ResMed, Inc.		73		(0.24	)%		(929	)
Rollins, Inc.		1,750		(1.38	)%		(1,229	)
MarketAxess Holdings, Inc.		73		(0.53	)%		(1,509	)
Avalara, Inc.		466		(0.76	)%		(1,599	)
Total Consumer, Non-cyclical							33,955
Utilities
Dominion Energy, Inc.		1,795		(2.84	)%		11,618
Sempra Energy		117		(0.29	)%		3,963
Eversource Energy		407		(0.70	)%		3,725
WEC Energy Group, Inc.		502		(0.97	)%		3,536
MGE Energy, Inc.		343		(0.49	)%		3,433
American States Water Co.		639		(1.14	)%		2,862
American Water Works Company, Inc.		547		(1.43	)%		1,767
Alliant Energy Corp.		325		(0.34	)%		1,582
California Water Service Group		884		(0.97	)%		1,312
Atmos Energy Corp.		238		(0.52	)%		935
NextEra Energy, Inc.		146		(0.77	)%		(406	)
Total Utilities							34,327
Industrial
TransDigm Group, Inc.		252		(1.79	)%		30,827
Waste Management, Inc.		780		(1.58	)%		18,563
HEICO Corp.		218		(0.36	)%		11,992
Materion Corp.		480		(0.37	)%		10,666
Tetra Tech, Inc.		585		(0.90	)%		9,845
Roper Technologies, Inc.		108		(0.74	)%		6,423

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 23

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation
Casella Waste Systems, Inc. — Class A		1,010		(0.86	)%	$	6,355
Sonoco Products Co.		600		(0.61	)%		5,600
Republic Services, Inc. — Class A		311		(0.51	)%		4,962
Ball Corp.		942		(1.33	)%		2,462
Exponent, Inc.		797		(1.25	)%		125
Total Industrial							107,820
Basic Materials
Kaiser Aluminum Corp.		505		(0.77	)%		17,698
PPG Industries, Inc.		421		(0.77	)%		12,478
Compass Minerals International, Inc.		760		(0.64	)%		12,108
Linde plc		305		(1.16	)%		8,531
RPM International, Inc.		1,068		(1.39	)%		7,645

					Value and Unrealized Appreciation (Depreciation)
Southern Copper Corp.	520	(0.32	)%	$	7,303
Sherwin-Williams Co.	83	(0.83	)%		5,501
Newmont Corp.	1,983	(1.97	)%		(2,402	)
Balchem Corp.	833	(1.80	)%		(5,349	)
Total Basic Materials					63,513
Communications
8x8, Inc.	1,760	(0.53	)%		11,414
Q2 Holdings, Inc.	488	(0.63	)%		7,286
Proofpoint, Inc.	309	(0.69	)%		4,914
Trade Desk, Inc. — Class A	38	(0.16	)%		1,271
Okta, Inc.	180	(0.48	)%		(249	)
Total Communications					24,636
Consumer, Cyclical
Copart, Inc.	1,070	(1.60	)%		28,436
Total MS Equity Short Custom Basket					560,203

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is pledged as equity custom basket swap collateral at March 31, 2020.
2	Rate indicated is the 7-day yield as of March 31, 2020.
	GS — Goldman Sachs International
	MS — Morgan Stanley Capital Services LLC
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	11,877,439	$	—	$	—	$	11,877,439
Money Market Fund		1,855,620		—		—		1,855,620
Equity Custom Basket Swap Agreements**		—		1,178,278		—		1,178,278
Total Assets	$	13,733,059	$	1,178,278	$	—	$	14,911,337

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Custom Basket Swap Agreements**	$	—	$	1,541,258	$	—	$	1,541,258

** This derivative is reported as unrealized appreciation/depreciation at period end.

24 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

LONG SHORT EQUITY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value (cost $16,100,543)	$	13,733,059
Unrealized appreciation on OTC swap agreements		1,178,278
Receivables:
Swap settlement		1,350,128
Securities sold		51,335
Dividends		20,498
Fund shares sold		80
Total assets		16,333,378
Liabilities:
Unrealized depreciation on OTC swap agreements		1,541,258
Payable for:
Management fees		10,848
Transfer agent and administrative fees		3,839
Distribution and service fees		2,991
Portfolio accounting fees		1,206
Trustees’ fees*		328
Fund shares redeemed		25
Miscellaneous		21,636
Total liabilities		1,582,131
Commitments and contingent liabilities (Note 11)		—
Net assets	$	14,751,247
Net assets consist of:
Paid in capital	$	20,712,610
Total distributable earnings (loss)		(5,961,363	)
Net assets	$	14,751,247
A-Class:
Net assets	$	7,020,539
Capital shares outstanding		497,202
Net asset value per share	$	14.12
Maximum offering price per share (Net asset value divided by 95.25%)	$	14.82
C-Class:
Net assets	$	566,699
Capital shares outstanding		45,733
Net asset value per share	$	12.39
P-Class:
Net assets	$	5,369,752
Capital shares outstanding		379,072
Net asset value per share	$	14.17
Institutional Class:
Net assets	$	1,794,257
Capital shares outstanding		123,867
Net asset value per share	$	14.49

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends	$	467,635
Income from securities lending, net		819
Total investment income		468,454
Expenses:
Management fees		178,810
Distribution and service fees:
A-Class		21,870
C-Class		8,937
P-Class		20,522
Transfer agent and administrative fees		50,495
Portfolio accounting fees		19,867
Registration fees		19,078
Professional fees		9,810
Trustees’ fees*		4,990
Custodian fees		3,030
Miscellaneous		17,823
Total expenses		355,232
Net investment income		113,222
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		971,250
Swap agreements		129,462
Net realized gain		1,100,712
Net change in unrealized appreciation (depreciation) on:
Investments		(3,166,232	)
Swap agreements		(295,398	)
Net change in unrealized appreciation (depreciation)		(3,461,630	)
Net realized and unrealized loss		(2,360,918	)
Net decrease in net assets resulting from operations	$	(2,247,696	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 25

LONG SHORT EQUITY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	113,222		$	95,241
Net realized gain (loss) on investments		1,100,712			(3,806,811	)
Net change in unrealized appreciation (depreciation) on investments		(3,461,630	)		2,172,534
Net decrease in net assets resulting from operations		(2,247,696	)		(1,539,036	)
Distributions to shareholders:
A-Class		(68,033	)		(186,614	)
C-Class		—			(32,272	)
P-Class		(66,392	)		(181,349	)
Institutional Class		(19,220	)		(38,261	)
Total distributions to shareholders		(153,645	)		(438,496	)
Capital share transactions:
Proceeds from sale of shares
A-Class		577,147			8,704,774
C-Class		7,950			28,175
P-Class		323,678			1,075,439
Institutional Class		835,323			841,185
Distributions reinvested
A-Class		67,459			183,572
C-Class		—			32,052
P-Class		61,922			171,465
Institutional Class		19,220			38,261
Cost of shares redeemed
A-Class		(2,659,455	)		(2,055,064	)
C-Class		(754,681	)		(9,729,027	)
P-Class		(3,414,692	)		(3,739,420	)
Institutional Class		(798,573	)		(1,428,171	)
Net decrease from capital share transactions		(5,734,702	)		(5,876,759	)
Net decrease in net assets		(8,136,043	)		(7,854,291	)
Net assets:
Beginning of year		22,887,290			30,741,581
End of year	$	14,751,247		$	22,887,290
Capital share activity:
Shares sold
A-Class		36,834			507,240
C-Class		575			1,935
P-Class		20,296			62,121
Institutional Class		51,644			48,459
Shares issued from reinvestment of distributions
A-Class		4,146			11,339
C-Class		—			2,252
P-Class		3,794			10,558
Institutional Class		1,152			2,308
Shares redeemed
A-Class		(169,933	)		(122,808	)
C-Class		(55,084	)		(642,616	)
P-Class		(217,505	)		(222,239	)
Institutional Class		(50,497	)		(82,197	)
Net decrease in shares		(374,578	)		(423,648	)

26 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	16.20		$	17.41		$	15.80		$	15.26		$	16.16
Income (loss) from investment operations:
Net investment income (loss)a		.09			.10			—	b		(.09	)		(.10	)
Net gain (loss) on investments (realized and unrealized)		(2.04	)		(1.02	)		1.61			.63			(.80	)
Total from investment operations		(1.95	)		(.92	)		1.61			.54			(.90	)
Less distributions from:
Net investment income		(.13	)		—			—			—			—
Net realized gains		—			(.29	)		—			—			—
Total distributions		(.13	)		(.29	)		—			—			—
Net asset value, end of period	$	14.12		$	16.20		$	17.41		$	15.80		$	15.26
Total Returnc		(12.15	%)		(5.31	%)		10.19	%		3.54	%		(5.57	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,021		$	10,143		$	4,012		$	4,615		$	10,803
Ratios to average net assets:
Net investment income (loss)		0.58	%		0.58	%		0.01	%		(0.59	%)		(0.66	%)
Total expenses d,e		1.78	%		1.78	%		1.77	%		2.25	%		2.53	%
Portfolio turnover rate		119	%		170	%		328	%		223	%		224	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	14.21		$	15.43		$	14.11		$	13.72		$	14.64
Income (loss) from investment operations:
Net investment income (loss)a		(.02	)		(.07	)		(.11	)		(.18	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		(1.80	)		(.86	)		1.43			.57			(.71	)
Total from investment operations		(1.82	)		(.93	)		1.32			.39			(.92	)
Less distributions from:
Net realized gains		—			(.29	)		—			—			—
Total distributions		—			(.29	)		—			—			—
Net asset value, end of period	$	12.39		$	14.21		$	15.43		$	14.11		$	13.72
Total Returnc		(12.81	%)		(6.00	%)		9.36	%		2.77	%		(6.28	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	567		$	1,424		$	11,394		$	13,235		$	16,760
Ratios to average net assets:
Net investment income (loss)		(0.18	%)		(0.43	%)		(0.74	%)		(1.30	%)		(1.45	%)
Total expenses d,e		2.53	%		2.50	%		2.52	%		2.98	%		3.24	%
Portfolio turnover rate		119	%		170	%		328	%		223	%		224	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 27

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

P-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	16.25		$	17.47		$	15.86		$	15.31		$	16.21
Income (loss) from investment operations:
Net investment income (loss)a		.09			.08			—	b		(.09	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		(2.04	)		(1.01	)		1.61			.64			(.79	)
Total from investment operations		(1.95	)		(.93	)		1.61			.55			(.90	)
Less distributions from:
Net investment income		(.13	)		—			—			—			—
Net realized gains		—			(.29	)		—			—			—
Total distributions		(.13	)		(.29	)		—			—			—
Net asset value, end of period	$	14.17		$	16.25		$	17.47		$	15.86		$	15.31
Total Return		(12.17	%)		(5.35	%)		10.15	%		3.53	%		(5.55	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,370		$	9,303		$	12,614		$	13,779		$	23,477
Ratios to average net assets:
Net investment income (loss)		0.57	%		0.47	%		0.01	%		(0.58	%)		(0.67	%)
Total expenses d,e		1.78	%		1.77	%		1.76	%		2.24	%		2.50	%
Portfolio turnover rate		119	%		170	%		328	%		223	%		224	%

28 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Institutional Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	16.60		$	17.79		$	16.11		$	15.50		$	16.38
Income (loss) from investment operations:
Net investment income (loss)a		.14			.12			.05			(.03	)		(.05	)
Net gain (loss) on investments (realized and unrealized)		(2.10	)		(1.02	)		1.63			.64			(.83	)
Total from investment operations		(1.96	)		(.90	)		1.68			.61			(.88	)
Less distributions from:
Net investment income		(.15	)		—			—			—			—
Net realized gains		—			(.29	)		—			—			—
Total distributions		(.15	)		(.29	)		—			—			—
Net asset value, end of period	$	14.49		$	16.60		$	17.79		$	16.11		$	15.50
Total Return		(11.96	%)		(5.08	%)		10.43	%		3.94	%		(5.37	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,794		$	2,018		$	2,722		$	1,990		$	525
Ratios to average net assets:
Net investment income (loss)		0.85	%		0.72	%		0.31	%		(0.20	%)		(0.29	%)
Total expenses d,e		1.53	%		1.51	%		1.50	%		1.96	%		2.27	%
Portfolio turnover rate		119	%		170	%		328	%		223	%		224	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Net investment income is less than $0.01 per share.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Excluding interest and dividend expense related to short sales, the operating expense ratios for the years or periods presented was as follows:

	03/31/20	03/31/19	03/31/18	03/31/17	03/31/16
A-Class	1.78%	1.78%	1.68%	1.67%	1.66%
C-Class	2.53%	2.50%	2.44%	2.42%	2.41%
P-Class	1.78%	1.77%	1.69%	1.67%	1.66%
Institutional Class	1.53%	1.51%	1.43%	1.43%	1.41%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 29

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

EMERGING MARKETS 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the performance of the BNY Mellon Emerging Markets 50 ADR Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2020, Emerging Markets 2x Strategy Fund H-Class returned -37.27%, while the BNY Mellon Emerging Markets 50 ADR Index returned -16.81% over the same period.

For the period, Emerging Markets 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the BNY Mellon Emerging Markets 50 ADR Index.

The sectors that contributed the most to the performance of the underlying index over the past year were Consumer Discretionary, Information Technology, and Industrials. The sectors that detracted the most were Financials, Energy, and Communication Services.

The stocks that contributed the most to the return of the underlying index over the past year were Taiwan Semiconductor Manufacturing Co., Alibaba Group Holding Ltd. ADR, and JD.com, Inc. ADR Class A. The stocks that detracted the most were Itau Unibanco Holding S.A. Preferred ADR, Sasol Ltd. ADR, and HDFC Bank Ltd. ADR.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the most efficient manner possible and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations and were factors in the Fund’s negative performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	October 29, 2010
C-Class	October 29, 2010
H-Class	October 29, 2010

30 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

COUNTRY DIVERSIFICATION

Country	% of Long-Term Investments
China	32.6%
Taiwan, Province of China	21.2%
Cayman Islands	13.4%
Brazil	10.4%
India	10.4%
Republic of Korea	4.5%
Mexico	3.2%
Other	4.3%
Total Long-Term Investments	100.0%

Cumulative Fund Performance*

 

Ten Largest Holdings (% of Total Net Assets)
Alibaba Group Holding Ltd. ADR	5.3%
Taiwan Semiconductor Manufacturing Company Ltd. ADR	4.9%
HDFC Bank Ltd. ADR	1.4%
China Mobile Ltd. ADR	1.1%
JD.com, Inc. ADR	1.0%
Infosys Ltd. ADR	0.8%
Baidu, Inc. ADR	0.8%
Vale S.A. ADR	0.7%
NetEase, Inc. ADR	0.6%
Itau Unibanco Holding S.A. ADR	0.6%
Top Ten Total	17.2%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	Since Inception (10/29/10)
A-Class Shares	(37.27%)	(5.65%)	(9.50%)
A-Class Shares with sales charge‡	(40.25%)	(6.57%)	(9.97%)
C-Class Shares	(37.73%)	(6.37%)	(10.05%)
C-Class Shares with CDSC§	(38.35%)	(6.37%)	(10.05%)
H-Class Shares	(37.27%)	(5.68%)	(9.50%)
BNY Mellon Emerging Markets 50 ADR Index	(16.81%)	1.27%	(1.00%)
S&P 500 Index	(6.98%)	6.73%	10.94%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The BNY Mellon Emerging Markets 50 ADR Index and S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 31

SCHEDULE OF INVESTMENTS	March 31, 2020
EMERGING MARKETS 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 25.4%
Communications - 10.6%
Alibaba Group Holding Ltd. ADR*		610	$	118,633
China Mobile Ltd. ADR		684		25,766
JD.com, Inc. ADR*		540		21,870
Baidu, Inc. ADR*		170		17,134
America Movil SAB de CV — Class L ADR		721		8,493
Chunghwa Telecom Company Ltd. ADR		235		8,359
Pinduoduo, Inc. ADR*		223		8,034
Trip.com Group Ltd. ADR*		253		5,933
Telekomunikasi Indonesia Persero Tbk PT ADR		294		5,660
SK Telecom Company Ltd. ADR		184		2,994
iQIYI, Inc. ADR*		166		2,955
58.com, Inc. ADR*		57		2,777
China Telecom Corporation Ltd. ADR		86		2,625
Telefonica Brasil S.A. ADR		256		2,440
Momo, Inc. ADR		97		2,104
Grupo Televisa SAB ADR		313		1,815
Total Communications				237,592
Technology - 6.8%
Taiwan Semiconductor Manufacturing Company Ltd. ADR		2,329		111,303
2252586 Infosys Ltd. ADR		2,310		18,965
NetEase, Inc. ADR		43		13,801
ASE Technology Holding Company Ltd. ADR		949		3,549
United Microelectronics Corp. ADR		1,261		2,737
Wipro Ltd. ADR		848		2,629
Total Technology				152,984
Financial - 3.4%
HDFC Bank Ltd. ADR		825		31,730
Banco Bradesco S.A. ADR		2,491		10,114
China Life Insurance Company Ltd. ADR		920		8,979
ICICI Bank Ltd. ADR		972		8,262
Shinhan Financial Group* Company Ltd. ADR		291		6,783
KB Financial Group, Inc. ADR*		243		6,607
Woori Financial Group, Inc. ADR*		103		1,934
Bancolombia S.A. ADR		70		1,747
Total Financial				76,156
Consumer, Non-cyclical - 1.6%
TAL Education Group ADR*		238		12,676
New Oriental Education & Technology Group, Inc. ADR*		73		7,902
Fomento Economico Mexicano SAB de CV ADR		115		6,959
Ambev S.A. ADR		2,722		6,260
BeiGene Ltd. ADR*		16		1,970
BRF S.A. ADR*		447		1,296
Total Consumer, Non-cyclical				37,063
Energy - 1.2%
CNOOC Ltd. ADR		99		10,243
China Petroleum & Chemical Corp. ADR		158		7,695
PetroChina Company Ltd. ADR		130		4,680
Petroleo Brasileiro S.A. ADR		828		4,554
Total Energy				27,172
Basic Materials - 1.2%
Vale S.A. ADR		1,960		16,248
POSCO ADR		175		5,714
AngloGold Ashanti Ltd. ADR		255		4,241
Sasol Ltd. ADR*		354		711
Total Basic Materials				26,914
Industrial - 0.4%
ZTO Express Cayman, Inc. ADR*		267		7,070
Cemex SAB de CV ADR		936		1,985
Total Industrial				9,055
Utilities - 0.2%
Enel Americas S.A. ADR		452		2,739
Korea Electric Power Corp. ADR*		317		2,393
Total Utilities				5,132
Total Common Stocks
(Cost $533,215)				572,068
PREFERRED STOCKS† - 0.9%
Financial - 0.6%
Itau Unibanco Holding S.A. ADR		2,995		13,447
Energy - 0.3%
Petroleo Brasileiro S.A. ADR		1,385		7,465
Total Preferred Stocks
(Cost $30,618)				20,912
	Face Amount
U.S. TREASURY BILLS†† - 0.2%
U.S. Treasury Bills
0.50% due 04/30/201,2	$	4,000		4,000
Total U.S. Treasury Bills
(Cost $3,998)				4,000

32 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (continued)	March 31, 2020
EMERGING MARKETS 2x STRATEGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,3 - 49.1%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/204	$	799,097	$	799,097
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/204		307,345		307,345
Total Repurchase Agreements
(Cost $1,106,442)				1,106,442
Total Investments - 75.6%
(Cost $1,674,273)			$	1,703,422
Other Assets & Liabilities, net - 24.4%				549,164
Total Net Assets - 100.0%			$	2,252,586

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Purchased†
MSCI Emerging Markets Index Futures Contracts		2		Jun 2020	$	84,470	$	107

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements††
BNP Paribas	BNY Mellon Emerging Markets 50 ADR Index	1.59% (1 Month USD LIBOR + 0.60%)	At Maturity		04/29/20		700	$	1,500,941	$	(49,108	)
Goldman Sachs International	BNY Mellon Emerging Markets 50 ADR Index	1.14% (1 Week USD LIBOR + 0.55%)	At Maturity		04/28/20		1,100		2,359,055		(53,337	)
								$	3,859,996	$	(102,445	)

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is pledged as futures collateral at March 31, 2020.
2	Rate indicated is the effective yield at the time of purchase.
3	Repurchase Agreements — See Note 6.
4	All or a portion of this security is pledged as equity index swap collateral at March 31, 2020.
	ADR — American Depositary Receipt
	LIBOR — London Interbank Offered Rate
	See Sector Classification in Other Information section.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 33

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
EMERGING MARKETS 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	572,068	$	—	$	—	$	572,068
Preferred Stocks		20,912		—		—		20,912
U.S. Treasury Bills		—		4,000		—		4,000
Repurchase Agreements		—		1,106,442		—		1,106,442
Equity Futures Contracts**		107		—		—		107
Total Assets	$	593,087	$	1,110,442	$	—	$	1,703,529

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	102,445	$	—	$	102,445

** This derivative is reported as unrealized appreciation/depreciation at period end.

34 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value (cost $567,831)	$	596,980
Repurchase agreements, at value (cost $1,106,442)		1,106,442
Cash		458,828
Segregated cash with broker		7,020
Receivables:
Fund shares sold		298,425
Dividends		8,558
Foreign tax reclaims		4
Total assets		2,476,257
Liabilities:
Unrealized depreciation on OTC swap agreements		102,445
Payable for:
Fund shares redeemed		66,562
Swap settlement		42,032
Management fees		2,057
Variation margin on futures contracts		1,111
Transfer agent and administrative fees		853
Distribution and service fees		680
Portfolio accounting fees		343
Trustees’ fees*		66
Miscellaneous		7,522
Total liabilities		223,671
Commitments and contingent liabilities (Note 11)		—
Net assets	$	2,252,586
Net assets consist of:
Paid in capital	$	17,186,052
Total distributable earnings (loss)		(14,933,466	)
Net assets	$	2,252,586
A-Class:
Net assets	$	627,603
Capital shares outstanding		14,170
Net asset value per share	$	44.29
Maximum offering price per share (Net asset value divided by 95.25%)	$	46.50
C-Class:
Net assets	$	161,310
Capital shares outstanding		3,860
Net asset value per share	$	41.79
H-Class:
Net assets	$	1,463,673
Capital shares outstanding		33,045
Net asset value per share	$	44.29

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Dividends (net of foreign withholding tax of $1,857)	$	94,077
Interest		49,622
Income from securities lending, net		19
Total investment income		143,718
Expenses:
Management fees		69,453
Distribution and service fees:
A-Class		3,071
C-Class		3,004
H-Class		15,476
Transfer agent and administrative fees		19,576
Portfolio accounting fees		11,578
Registration fees		8,061
Professional fees		3,981
Licensing fees		3,096
Trustees’ fees*		2,129
Custodian fees		1,242
Line of credit fees		59
Miscellaneous		5,395
Total expenses		146,121
Net investment loss		(2,403	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(312,540	)
Swap agreements		(3,483,044	)
Futures contracts		(31,458	)
Net realized loss		(3,827,042	)
Net change in unrealized appreciation (depreciation) on:
Investments		(825,775	)
Swap agreements		(285,063	)
Futures contracts		(78	)
Net change in unrealized appreciation (depreciation)		(1,110,916	)
Net realized and unrealized loss		(4,937,958	)
Net decrease in net assets resulting from operations	$	(4,940,361	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 35

EMERGING MARKETS 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(2,403	)	$	72,708
Net realized loss on investments		(3,827,042	)		(4,080,724	)
Net change in unrealized appreciation (depreciation) on investments		(1,110,916	)		(811,319	)
Net decrease in net assets resulting from operations		(4,940,361	)		(4,819,335	)
Distributions to shareholders:
A-Class		(7,524	)		—
C-Class		(1,845	)		—
H-Class		(35,229	)		—
Total distributions to shareholders		(44,598	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		903,892			3,128,163
C-Class		1,815,669			1,588,188
H-Class		214,239,492			340,236,253
Distributions reinvested
A-Class		7,503			—
C-Class		1,805			—
H-Class		34,340			—
Cost of shares redeemed
A-Class		(2,144,611	)		(3,658,363	)
C-Class		(1,980,620	)		(1,600,378	)
H-Class		(214,946,228	)		(356,547,878	)
Net decrease from capital share transactions		(2,068,758	)		(16,854,015	)
Net decrease in net assets		(7,053,717	)		(21,673,350	)
Net assets:
Beginning of year		9,306,303			30,979,653
End of year	$	2,252,586		$	9,306,303
Capital share activity:
Shares sold
A-Class		14,019			44,229
C-Class		27,838			25,248
H-Class		3,178,461			4,741,011
Shares issued from reinvestment of distributions
A-Class		93			—
C-Class		24			—
H-Class		426			—
Shares redeemed
A-Class		(31,579	)		(49,144	)
C-Class		(30,269	)		(25,234	)
H-Class		(3,239,286	)		(4,960,263	)
Net decrease in shares		(80,273	)		(224,153	)

36 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	71.02		$	87.20		$	60.99		$	44.79		$	60.50
Income (loss) from investment operations:
Net investment income (loss)a		.17			.40			(.24	)		(.48	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		(26.42	)		(16.58	)		26.45			16.68			(14.83	)
Total from investment operations		(26.25	)		(16.18	)		26.21			16.20			(15.06	)
Less distributions from:
Net investment income		(.48	)		—			—			—			(.65	)
Total distributions		(.48	)		—			—			—			(.65	)
Net asset value, end of period	$	44.29		$	71.02		$	87.20		$	60.99		$	44.79
Total Returnb		(37.27	%)		(18.56	%)		42.97	%		36.17	%		(24.84	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	628		$	2,247		$	3,187		$	628		$	3,988
Ratios to average net assets:
Net investment income (loss)		0.25	%		0.54	%		(0.30	%)		(0.96	%)		(0.48	%)
Total expenses		1.86	%		1.84	%		1.76	%		1.76	%		1.75	%
Portfolio turnover rate		974	%		1,978	%		1,006	%		2,568	%		2,874	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	67.53		$	83.55		$	58.90		$	43.56		$	59.37
Income (loss) from investment operations:
Net investment income (loss)a		(.28	)		(.22	)		(.61	)		(.79	)		(.74	)
Net gain (loss) on investments (realized and unrealized)		(24.98	)		(15.80	)		25.26			16.13			(14.42	)
Total from investment operations		(25.26	)		(16.02	)		24.65			15.34			(15.16	)
Less distributions from:
Net investment income		(.48	)		—			—			—			(.65	)
Total distributions		(.48	)		—			—			—			(.65	)
Net asset value, end of period	$	41.79		$	67.53		$	83.55		$	58.90		$	43.56
Total Returnb		(37.73	%)		(19.17	%)		41.87	%		35.19	%		(25.48	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	161		$	423		$	522		$	361		$	271
Ratios to average net assets:
Net investment income (loss)		(0.44	%)		(0.33	%)		(0.82	%)		(1.55	%)		(1.49	%)
Total expenses		2.60	%		2.59	%		2.56	%		2.50	%		2.46	%
Portfolio turnover rate		974	%		1,978	%		1,006	%		2,568	%		2,874	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 37

EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016
Per Share Data
Net asset value, beginning of period	$	71.02		$	87.21		$	61.01		$	44.84		$	60.61
Income (loss) from investment operations:
Net investment income (loss)a		(.05	)		.50			(.25	)		(.42	)		(.41	)
Net gain (loss) on investments (realized and unrealized)		(26.20	)		(16.69	)		26.45			16.59			(14.71	)
Total from investment operations		(26.25	)		(16.19	)		26.20			16.17			(15.12	)
Less distributions from:
Net investment income		(.48	)		—			—			—			(.65	)
Total distributions		(.48	)		—			—			—			(.65	)
Net asset value, end of period	$	44.29		$	71.02		$	87.21		$	61.01		$	44.84
Total Return		(37.27	%)		(18.56	%)		42.95	%		36.04	%		(24.88	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,464		$	6,636		$	27,270		$	6,698		$	13,238
Ratios to average net assets:
Net investment income (loss)		(0.07	%)		0.71	%		(0.32	%)		(0.82	%)		(0.76	%)
Total expenses		1.87	%		1.85	%		1.77	%		1.76	%		1.74	%
Portfolio turnover rate		974	%		1,978	%		1,006	%		2,568	%		2,874	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

38 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

INVERSE EMERGING MARKETS 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the inverse (opposite) of the performance of the BNY Mellon Emerging Markets 50 ADR Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2020, Inverse Emerging Markets 2x Strategy Fund H-Class returned 16.40%, while the BNY Mellon Emerging Markets 50 ADR Index returned -16.81% over the same period.

For the period, Inverse Emerging Markets 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of -200% of the daily price movement of the BNY Mellon Emerging Markets 50 ADR Index.

The sectors that contributed the most to the performance of the underlying index over the past year were Consumer Discretionary, Information Technology, and Industrials. The sectors that detracted the most were Financials, Energy, and Communication Services.

The stocks that contributed the most to the return of the underlying index over the past year were Taiwan Semiconductor Manufacturing Co., Alibaba Group Holding Ltd. ADR, and JD.com, Inc. ADR Class A. The stocks that detracted the most were Itau Unibanco Holding S.A. Preferred ADR, Sasol Ltd. ADR, and HDFC Bank Ltd. ADR.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the most efficient manner possible and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations and were a factor in the Fund’s positive performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	October 29, 2010
C-Class	October 29, 2010
H-Class	October 29, 2010

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

THE RYDEX FUNDS ANNUAL REPORT | 39

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	Since Inception (10/29/10)
A-Class Shares	16.30%	(14.17%)	(11.56%)
A-Class Shares with sales charge‡	10.78%	(15.00%)	(12.01%)
C-Class Shares	16.96%	(14.60%)	(11.53%)
C-Class Shares with CDSC§	15.96%	(14.60%)	(11.53%)
H-Class Shares	16.40%	(14.20%)	(11.62%)
BNY Mellon Emerging Markets 50 ADR Index	(16.81%)	1.27%	(1.00%)
S&P 500 Index	(6.98%)	6.73%	10.94%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The BNY Mellon Emerging Markets 50 ADR Index and the S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

40 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
INVERSE EMERGING MARKETS 2x STRATEGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 74.7%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/202	$	484,772	$	484,772
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/202		186,451		186,451
Total Repurchase Agreements
(Cost $671,223)				671,223
Total Investments - 74.7%
(Cost $671,223)			$	671,223
Other Assets & Liabilities, net - 25.3%				227,307
Total Net Assets - 100.0%			$	898,530

Total Return Swap Agreements

Counterparty

Index

Financing Rate (Receive)

Payment Frequency

Maturity Date

Units

Notional Amount

Value and Unrealized Appreciation (Depreciation)

OTC Equity Index Swap Agreements Sold Short††

BNP Paribas

BNY Mellon Emerging Markets 50 ADR Index

(0.69)% (1 Month USD LIBOR - 0.30%)

At Maturity

04/29/20

124

$

264,974

$

8,669

Goldman Sachs International

BNY Mellon Emerging Markets 50 ADR Index

(0.14)% (1 Week USD LIBOR - 0.45%)

At Maturity

04/28/20

714

1,530,626

(6,913

)

$

1,795,600

$

1,756

††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 6.
2	All or a portion of this security is pledged as equity index swap collateral at March 31, 2020.
	ADR — American Depositary Receipt
	LIBOR — London Interbank Offered Rate
	See Sector Classification in Other Information section.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 41

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
INVERSE EMERGING MARKETS 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Repurchase Agreements	$	—	$	671,223	$	—	$	671,223
Equity Index Swap Agreements**		—		8,669		—		8,669
Total Assets	$	—	$	679,892	$	—	$	679,892

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	6,913	$	—	$	6,913

** This derivative is reported as unrealized appreciation/depreciation at period end.

42 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Repurchase agreements, at value (cost $671,223)	$	671,223
Cash		377,785
Unrealized appreciation on OTC swap agreements		8,669
Receivables:
Fund shares sold		163,227
Swap settlement		63,074
Total assets		1,283,978
Liabilities:
Unrealized depreciation on OTC swap agreements		6,913
Payable for:
Fund shares redeemed		375,817
Management fees		651
Transfer agent and administrative fees		212
Distribution and service fees		190
Portfolio accounting fees		109
Trustees’ fees*		19
Miscellaneous		1,537
Total liabilities		385,448
Commitments and contingent liabilities (Note 11)		—
Net assets	$	898,530
Net assets consist of:
Paid in capital	$	19,250,116
Total distributable earnings (loss)		(18,351,586	)
Net assets	$	898,530
A-Class:
Net assets	$	146,535
Capital shares outstanding		3,137
Net asset value per share	$	46.71
Maximum offering price per share (Net asset value divided by 95.25%)	$	49.04
C-Class:
Net assets	$	102,826
Capital shares outstanding		2,196
Net asset value per share	$	46.82
H-Class:
Net assets	$	649,169
Capital shares outstanding		13,995
Net asset value per share	$	46.39

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Interest	$	14,032
Total investment income		14,032
Expenses:
Management fees		6,231
Distribution and service fees:
A-Class		76
C-Class		87
H-Class		1,638
Transfer agent and administrative fees		1,763
Portfolio accounting fees		1,041
Registration fees		886
Trustees’ fees*		441
Professional fees		355
Custodian fees		118
Miscellaneous		361
Total expenses		12,997
Net investment income		1,035
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Swap agreements		163,330
Futures contracts		11,162
Net realized gain		174,492
Net change in unrealized appreciation (depreciation) on:
Swap agreements		42,848
Net change in unrealized appreciation (depreciation)		42,848
Net realized and unrealized gain		217,340
Net increase in net assets resulting from operations	$	218,375

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 43

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,035		$	8,795
Net realized gain (loss) on investments		174,492			(840,947	)
Net change in unrealized appreciation (depreciation) on investments		42,848			(19,504	)
Net increase (decrease) in net assets resulting from operations		218,375			(851,656	)
Distributions to shareholders:
A-Class		(74	)		—
C-Class		(291	)		—
H-Class		(4,157	)		—
Total distributions to shareholders		(4,522	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		948,187			1,199,460
C-Class		1,863,277			729,537
H-Class		52,112,944			138,431,280
Distributions reinvested
A-Class		55			—
C-Class		27			—
H-Class		3,705			—
Cost of shares redeemed
A-Class		(813,060	)		(1,206,928	)
C-Class		(1,767,237	)		(739,662	)
H-Class		(53,439,146	)		(136,590,922	)
Net increase (decrease) from capital share transactions		(1,091,248	)		1,822,765
Net increase (decrease) in net assets		(877,395	)		971,109
Net assets:
Beginning of year		1,775,925			804,816
End of year	$	898,530		$	1,775,925
Capital share activity:
Shares sold
A-Class		22,942			25,169
C-Class		51,267			16,881
H-Class		1,307,127			3,075,813
Shares issued from reinvestment of distributions
A-Class		2			—
C-Class		1			—
H-Class		115			—
Shares redeemed
A-Class		(20,207	)		(25,868	)
C-Class		(49,157	)		(17,267	)
H-Class		(1,336,862	)		(3,051,369	)
Net increase (decrease) in shares		(24,772	)		23,359

44 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	40.57		$	39.08		$	63.42		$	101.83		$	101.26
Income (loss) from investment operations:
Net investment income (loss)a		(.16	)		.23			(.28	)		(1.42	)		(1.92	)
Net gain (loss) on investments (realized and unrealized)		6.64			1.26	d		(24.06	)		(36.99	)		2.49
Total from investment operations		6.48			1.49			(24.34	)		(38.41	)		.57
Less distributions from:
Net investment income		(.34	)		—			—			—			—
Total distributions		(.34	)		—			—			—			—
Net asset value, end of period	$	46.71		$	40.57		$	39.08		$	63.42		$	101.83
Total Returnb		16.30	%		3.81	%		(38.35	%)		(37.72	%)		0.53	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	147		$	16		$	43		$	42		$	448
Ratios to average net assets:
Net investment income (loss)		(0.37	%)		0.51	%		(0.64	%)		(1.50	%)		(1.59	%)
Total expenses		1.89	%		1.88	%		1.76	%		1.75	%		1.75	%
Portfolio turnover rate		—			—			—			—			—

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	40.45		$	39.34		$	64.21		$	103.83		$	104.23
Income (loss) from investment operations:
Net investment income (loss)a		(.31	)		(.29	)		(.74	)		(1.88	)		(2.82	)
Net gain (loss) on investments (realized and unrealized)		7.03			1.40	d		(24.13	)		(37.74	)		2.42
Total from investment operations		6.72			1.11			(24.87	)		(39.62	)		(.40	)
Less distributions from:
Net investment income		(.34	)		—			—			—			—
Total distributions		(.34	)		—			—			—			—
Net asset value, end of period	$	46.82		$	40.45		$	39.34		$	64.21		$	103.83
Total Returnb		16.96	%		2.82	%		(38.77	%)		(38.17	%)		(0.29	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	103		$	3		$	19		$	56		$	371
Ratios to average net assets:
Net investment income (loss)		(1.09	%)		(0.63	%)		(1.46	%)		(2.20	%)		(2.44	%)
Total expenses		2.79	%		2.53	%		2.49	%		2.48	%		2.50	%
Portfolio turnover rate		—			—			—			—			—

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 45

INVERSE EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	40.27		$	38.77		$	63.00		$	101.28		$	100.80
Income (loss) from investment operations:
Net investment income (loss)a		.07			.19			(.30	)		(1.23	)		(2.04	)
Net gain (loss) on investments (realized and unrealized)		6.39			1.31	d		(23.93	)		(37.05	)		2.52
Total from investment operations		6.46			1.50			(24.23	)		(38.28	)		.48
Less distributions from:
Net investment income		(.34	)		—			—			—			—
Total distributions		(.34	)		—			—			—			—
Net asset value, end of period	$	46.39		$	40.27		$	38.77		$	63.00		$	101.28
Total Return		16.40	%		3.87	%		(38.46	%)		(37.80	%)		0.48	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	649		$	1,756		$	743		$	890		$	26,336
Ratios to average net assets:
Net investment income (loss)		0.19	%		0.42	%		(0.68	%)		(1.46	%)		(1.65	%)
Total expenses		1.87	%		1.87	%		1.77	%		1.76	%		1.74	%
Portfolio turnover rate		—			—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Reverse share split — Per share amounts for the years presented through March 31, 2017 have been restated to reflect a 1:6 reverse share split effective October 31, 2016.
d	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the period because of the sales and repurchases of Fund shares in relation to fluctuating market value of the investments of the fund.

46 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2020

EMERGING MARKETS BOND STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of the emerging markets bond market as defined by the Adviser.

The Emerging Markets Bond Fund H-Class returned -7.45% for the one-year period ended March 31, 2020. By comparison, the ICE Bank of America Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index returned -7.62% over the same period.

For most of 2019 and the beginning of 2020, emerging market countries experienced decreasing credit spreads, leading to positive performance for the Fund. Starting in early 2020, the coronavirus global pandemic caused countries around the world to shut down economies and issue stay-at-home orders, which disrupted global consumption and global production and increased credit spreads. In addition, increased political instability led to the expansion of credit spreads for some emerging market countries such as Argentina and Lebanon.

Most emerging market countries experienced an increase in credit spreads, with Argentina, South Africa, and Turkey experiencing some of the largest increases in credit spreads. During this period, United Arab Emirates (Abu Dhabi), Panama, and Ukraine were added to the Emerging Market credit default swap. Lebanon was both added and subsequently removed from the credit default swap.

Derivatives in the Fund were used to help provide efficient exposure to the emerging markets bond market and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations and were a factor in the Fund’s negative performance.

Performance displayed represents past performance, which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	October 8, 2013
C-Class	October 8, 2013
H-Class	October 8, 2013

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

THE RYDEX FUNDS ANNUAL REPORT | 47

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2020

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2020

	1 Year	5 Year	Since Inception (10/08/13)
A-Class Shares	(7.41%)	1.22%	0.20%
A-Class Shares with sales charge‡	(11.81%)	0.23%	(0.55%)
C-Class Shares	(8.13%)	0.39%	(0.63%)
C-Class Shares with CDSC§	(8.97%)	0.39%	(0.63%)
H-Class Shares	(7.45%)	1.20%	0.13%
ICE BofA Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index	(7.62%)	2.18%	3.17%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The ICE BofA Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Lass shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

48 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2020
EMERGING MARKETS BOND STRATEGY FUND

	Face Amount		Value
U.S. TREASURY BILLS†† - 1.0%
U.S. Treasury Bills
0.50% due 04/30/201,2	$	15,000	$	14,999
Total U.S. Treasury Bills
(Cost $14,994)				14,999
REPURCHASE AGREEMENTS††,3 - 50.5%
J.P. Morgan Securities LLC issued 03/31/20 at 0.01% due 04/01/204		537,646		537,646
BofA Securities, Inc. issued 03/31/20 at 0.00% due 04/01/204		206,787		206,787
Total Repurchase Agreements
(Cost $744,433)				744,433
Total Investments - 51.5%
(Cost $759,427)			$	759,432
Other Assets & Liabilities, net - 48.5%				714,250
Total Net Assets - 100.0%			$	1,473,682

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Interest Rate Futures Contracts Purchased†
U.S. Treasury 5 Year Note Futures Contracts		3		Jun 2020	$	376,265	$	5,715
U.S. Treasury 10 Year Note Futures Contracts		2		Jun 2020		277,719		1,543
					$	653,984	$	7,258

Centrally Cleared Credit Default Swap Agreements Protection Sold††
Counterparty	Exchange	Index	Protection Premium Rate			Payment Frequency		Maturity Date		Notional Amount		Value			Upfront Premiums Received			Unrealized Depreciation**
Barclays Bank plc	ICE	CDX.EM.33 Index		1.00	%		Quarterly		06/20/25	$	1,200,000	$	(140,400	)	$	(123,112	)	$	(17,288	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation (Depreciation)
OTC Credit Index Swap Agreements††
Goldman Sachs International	Invesco Emerging Markets Sovereign Debt ETF Swap	1.23% (1 Week USD LIBOR + 0.55%)	At Maturity		04/29/20		13,262	$	317,094	$	2,780
Goldman Sachs International	iShares J.P. Morgan USD Emerging Markets Bond ETF Swap	1.13% (1 Week USD LIBOR + 0.45%)	At Maturity		04/29/20		3,948		381,693		(3,896	)
								$	698,787	$	(1,116	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 49

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2020
EMERGING MARKETS BOND STRATEGY FUND

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is pledged as futures collateral at March 31, 2020.
2	Rate indicated is the effective yield at the time of purchase.
3	Repurchase Agreements — See Note 6.
4	All or a portion of this security is pledged as credit index swap collateral at March 31, 2020.
	CDX.EM.33 — Credit Default Swap Emerging Markets Series 33 Index
	ICE — Intercontinental Exchange
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2020 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
U.S. Treasury Bills	$	—	$	14,999	$	—	$	14,999
Repurchase Agreements		—		744,433		—		744,433
Interest Rate Futures Contracts**		7,258		—		—		7,258
Credit Index Swap Agreements**		—		2,780		—		2,780
Total Assets	$	7,258	$	762,212	$	—	$	769,470

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Credit Default Swap Agreements**	$	—	$	17,288	$	—	$	17,288
Credit Index Swap Agreements**		—		3,896		—		3,896
Total Liabilities	$	—	$	21,184	$	—	$	21,184

** This derivative is reported as unrealized appreciation/depreciation at period end.

50 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

EMERGING MARKETS BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2020

Assets:
Investments, at value (cost $14,994)	$	14,999
Repurchase agreements, at value (cost $744,433)		744,433
Cash		517,509
Segregated cash with broker		336,140
Unrealized appreciation on OTC swap agreements		2,780
Receivables:
Variation margin on credit default swap agreements		1,514
Protection fees on credit default swaps		433
Variation margin on futures contracts		121
Total assets		1,617,929
Liabilities:
Unamortized upfront premiums received on credit default swap agreements		123,112
Unrealized depreciation on OTC swap agreements		3,896
Payable for:
Swap settlement		11,785
Management fees		1,145
Transfer agent and administrative fees		555
Distribution and service fees		421
Portfolio accounting fees		229
Trustees’ fees*		46
Fund shares redeemed		15
Miscellaneous		3,043
Total liabilities		144,247
Commitments and contingent liabilities (Note 11)		—
Net assets	$	1,473,682
Net assets consist of:
Paid in capital	$	1,850,752
Total distributable earnings (loss)		(377,070	)
Net assets	$	1,473,682
A-Class:
Net assets	$	1,104,730
Capital shares outstanding		17,281
Net asset value per share	$	63.93
Maximum offering price per share (Net asset value divided by 95.25%)	$	67.12
C-Class:
Net assets	$	62,235
Capital shares outstanding		1,040
Net asset value per share	$	59.82
H-Class:
Net assets	$	306,717
Capital shares outstanding		4,830
Net asset value per share	$	63.50

STATEMENT OF OPERATIONS

Year Ended March 31, 2020

Investment Income:
Interest	$	133,548
Total investment income		133,548
Expenses:
Management fees		53,729
Distribution and service fees:
A-Class		526
C-Class		1,002
H-Class		17,138
Transfer agent and administrative fees		18,085
Portfolio accounting fees		10,748
Registration fees		6,948
Professional fees		4,897
Trustees’ fees*		2,039
Custodian fees		1,043
Miscellaneous		4,470
Total expenses		120,625
Net investment income		12,923
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(182	)
Swap agreements		(325,637	)
Futures contracts		291,685
Net realized loss		(34,134	)
Net change in unrealized appreciation (depreciation) on:
Investments		5
Swap agreements		22,950
Futures contracts		(70,901	)
Net change in unrealized appreciation (depreciation)		(47,946	)
Net realized and unrealized loss		(82,080	)
Net decrease in net assets resulting from operations	$	(69,157	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 51

EMERGING MARKETS BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	12,923		$	6,411
Net realized gain (loss) on investments		(34,134	)		278,777
Net change in unrealized appreciation (depreciation) on investments		(47,946	)		28,326
Net increase (decrease) in net assets resulting from operations		(69,157	)		313,514
Distributions to shareholders:
A-Class		(2,501	)		—
C-Class		(5,902	)		—
H-Class		(332,227	)		—
Total distributions to shareholders		(340,630	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		1,927,596			802,223
C-Class		145,366			562,652
H-Class		5,754,621			12,481,943
Distributions reinvested
A-Class		2,501			—
C-Class		5,902			—
H-Class		332,224			—
Cost of shares redeemed
A-Class		(1,529,027	)		(161,079	)
C-Class		(143,144	)		(571,192	)
H-Class		(14,659,065	)		(4,195,724	)
Net increase (decrease) from capital share transactions		(8,163,026	)		8,918,823
Net increase (decrease) in net assets		(8,572,813	)		9,232,337
Net assets:
Beginning of year		10,046,495			814,158
End of year	$	1,473,682		$	10,046,495
Capital share activity:
Shares sold
A-Class		27,204			10,840
C-Class		2,040			8,050
H-Class		76,190			173,562
Shares issued from reinvestment of distributions
A-Class		35			—
C-Class		87			—
H-Class		4,616			—
Shares redeemed
A-Class		(20,116	)		(2,266	)
C-Class		(1,923	)		(8,390	)
H-Class		(199,774	)		(58,196	)
Net increase (decrease) in shares		(111,641	)		123,600

52 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

EMERGING MARKETS BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	74.95		$	73.42		$	71.93		$	72.75		$	81.52
Income (loss) from investment operations:
Net investment income (loss)a		.03			.10			(.55	)		(.91	)		1.12
Net gain (loss) on investments (realized and unrealized)		(4.86	)		1.43			2.13			3.87			2.23
Total from investment operations		(4.83	)		1.53			1.58			2.96			3.35
Less distributions from:
Net investment income		(2.36	)		—			(.09	)		(3.70	)		(12.12	)
Net realized gains		(3.83	)		—			—			(.08	)		—
Total distributions		(6.19	)		—			(.09	)		(3.78	)		(12.12	)
Net asset value, end of period	$	63.93		$	74.95		$	73.42		$	71.93		$	72.75
Total Returnb		(7.41	%)		2.08	%		2.18	%		4.62	%		5.13	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,105		$	761		$	116		$	113		$	259
Ratios to average net assets:
Net investment income (loss)		0.03	%		0.14	%		(0.74	%)		(1.19	%)		1.59	%
Total expenses		1.68	%		1.66	%		1.58	%		1.58	%		1.58	%
Portfolio turnover rate		—			—			—			733	%		21,555	%

C-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	71.05		$	70.12		$	69.22		$	70.54		$	80.35
Income (loss) from investment operations:
Net investment income (loss)a		(.46	)		(.54	)		(1.06	)		(1.10	)		(1.00	)
Net gain (loss) on investments (realized and unrealized)		(4.58	)		1.47			2.05			3.56			3.31
Total from investment operations		(5.04	)		.93			.99			2.46			2.31
Less distributions from:
Net investment income		(2.36	)		—			(.09	)		(3.70	)		(12.12	)
Net realized gains		(3.83	)		—			—			(.08	)		—
Total distributions		(6.19	)		—			(.09	)		(3.78	)		(12.12	)
Net asset value, end of period	$	59.82		$	71.05		$	70.12		$	69.22		$	70.54
Total Returnb		(8.13	%)		1.33	%		1.41	%		4.09	%		3.73	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	62		$	59		$	82		$	90		$	129
Ratios to average net assets:
Net investment income (loss)		(0.61	%)		(0.79	%)		(1.49	%)		(1.54	%)		(1.33	%)
Total expenses		2.42	%		2.37	%		2.34	%		2.33	%		2.32	%
Portfolio turnover rate		—			—			—			733	%		21,555	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 53

EMERGING MARKETS BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c			Year Ended March 31, 2016c
Per Share Data
Net asset value, beginning of period	$	74.52		$	72.98		$	71.51		$	72.19		$	81.18
Income (loss) from investment operations:
Net investment income (loss)a		.15			.23			(.55	)		(.28	)		(.44	)
Net gain (loss) on investments (realized and unrealized)		(4.98	)		1.31			2.11			3.38			3.57
Total from investment operations		(4.83	)		1.54			1.56			3.10			3.13
Less distributions from:
Net investment income		(2.36	)		—			(.09	)		(3.70	)		(12.12	)
Net realized gains		(3.83	)		—			—			(.08	)		—
Total distributions		(6.19	)		—			(.09	)		(3.78	)		(12.12	)
Net asset value, end of period	$	63.50		$	74.52		$	72.98		$	71.51		$	72.19
Total Return		(7.45	%)		2.11	%		2.19	%		4.85	%		4.82	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	307		$	9,226		$	615		$	472		$	212
Ratios to average net assets:
Net investment income (loss)		0.20	%		0.32	%		(0.75	%)		(0.38	%)		(0.55	%)
Total expenses		1.67	%		1.70	%		1.58	%		1.54	%		1.56	%
Portfolio turnover rate		—			—			—			733	%		21,555	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Reverse share split — Per share amounts for the periods presented through March 31, 2017 have been restated to reflect a 1:4 reverse share split effective November 7, 2016.

54 | THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

NOTES TO FINANCIAL STATEMENTS

Note 1 – Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory trust, is registered with the SEC under the Investment Company Act of 1940 (”1940 Act”), as an open-ended investment company of the series type. Each series, in effect, is representing a separate fund (each, a “Fund”). The Trust is authorized to issue an unlimited number of no par value shares. The Trust accounts for the assets of each Fund separately.

The Trust offers a combination of seven separate classes of shares: Investor Class shares, A-Class shares, C-Class shares, H-Class shares, P-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share (“NAV”), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. C-Class shares of each Fund automatically convert to A-Class shares of the same Fund on or about the 10th day of the month following the 10-year anniversary of the purchase of the C-Class shares. This conversion will be executed without any sales charge, fee or other charge. After the conversion is completed, the shares will be subject to all features and expenses of A-Class shares. Institutional Class shares are offered primarily for direct investment by institutions such as pension and profit sharing plans, endowments, foundations and corporations. Institutional Class shares require a minimum initial investment of $2 million and a minimum account balance of $1 million. At March 31, 2020, the Trust consisted of fifty-two funds.

This report covers the following funds (collectively, the “Funds”):

Fund Name	Investment Company Type
Long Short Equity Fund	Non-diversified
Emerging Markets 2x Strategy Fund	Non-diversified
Inverse Emerging Markets 2x Strategy Fund	Non-diversified
Emerging Markets Bond Strategy Fund	Non-diversified

At March 31, 2020, A-Class, C-Class, H-Class, P-Class and Institutional Class shares have been issued by the Funds.

The Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund, and Emerging Markets Bond Strategy Fund are designed and operated to accommodate frequent trading by shareholders and, unlike most mutual funds, offer unlimited exchange privileges with no minimum holding periods or transactions fees, which may cause the Funds to experience high portfolio turnover.

Security Investors, LLC, which operates under the name Guggenheim Investments (“GI”), provides advisory services. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities.

Significant Accounting Policies

The Funds operate as investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

The NAV of each Class of a fund is calculated by dividing the market value of a fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

The Trust calculates a NAV twice each business day; at 10:45 a.m. and at the close of the New York Stock Exchange (“NYSE”), usually 4:00 p.m. for the Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund and Emerging Markets Bond Strategy Fund. All other Funds in this report will price at the afternoon NAV. The NAV is calculated using the current market value of each Fund’s total assets as of the respective time of calculation. These financial statements are based on the March 31, 2020, afternoon NAV.

(a) Valuation of Investments

The Board of Trustees of the Funds (the “Board”) has adopted policies and procedures for the valuation of the Funds’ investments (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Board has delegated to a valuation committee, consisting of representatives from Guggenheim’s investment management, fund administration, legal and compliance departments (the “Valuation Committee”), the day-to-day responsibility for implementing the Valuation Procedures,

THE RYDEX FUNDS ANNUAL REPORT | 55

NOTES TO FINANCIAL STATEMENTS (continued)

including, under most circumstances, the responsibility for determining the fair value of the Funds’ securities and/or other assets.

Valuations of the Funds’ securities and other assets are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Valuation Committee convenes monthly, or more frequently as needed, to review the valuation of all assets which have been fair valued for reasonableness. The Funds’ officers, through the Valuation Committee and consistent with the monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used and valuations provided by the pricing services.

If the pricing service cannot or does not provide a valuation for a particular investment or such valuation is deemed unreliable, such investment is fair valued by the Valuation Committee.

Equity securities listed or traded on a recognized U.S. securities exchange or the National Association of Securities Dealers Automated Quotations (“NASDAQ”) National Market System shall generally be valued on the basis of the last sale price on the primary U.S. exchange or market on which the security is listed or traded; provided, however, that securities listed on NASDAQ will be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. If there is no sale on the valuation date, exchange-traded U.S. equity securities will be valued on the basis of the last bid price.

Open-end investment companies are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds and closed-end investment companies are valued at the last quoted sale price.

U.S. Government securities are valued by independent pricing services, the last traded fill price, or at the reported bid price at the close of business.

Repurchase agreements are generally valued at amortized cost, provided such amounts approximate market value.

The value of futures contracts is accounted for using the unrealized appreciation or depreciation on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the official settlement price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The values of swap agreements entered into by a fund are accounted for using the unrealized appreciation or depreciation on the agreements that are determined by marking the agreements to the last quoted value of the index or other underlying position that the swaps pertain to at the close of the NYSE.

Investments for which market quotations are not readily available are fair-valued as determined in good faith by GI subject to review and approval by the Valuation Committee, pursuant to methods established or ratified by the Board. Valuations in accordance with these methods are intended to reflect each security’s (or asset’s or liability’s) “fair value”. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over U.S. Treasury securities, and other information analysis.

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

(b) U.S. Government and Agency Obligations

Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

(c) Futures Contracts

Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

56 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

(d) Swap Agreements

Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized appreciation or depreciation. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

Upon entering into certain centrally-cleared swap transactions, a Fund is required to deposit with its clearing broker an amount of cash or securities as an initial margin. Subsequent variation margin receipts or payments are received or made by the Fund depending on fluctuations in the fair value of the reference entity and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Upfront payments received or made by a Fund on credit default swap agreements and interest rate swap agreements are amortized over the expected life of the agreement. Periodic payments received or paid by a Fund are recorded as realized gains or losses. Payments received or made as a result of a credit event or termination of the contract are recognized, net of a proportional amount of the upfront payment, as realized gains or losses.

(e) Currency Translations

The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds. Foreign investments may also subject the Funds to foreign government exchange restrictions, expropriation, taxation, or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments.

The Funds do not isolate that portion of the results of operations resulting from changes in the foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized gain or loss and unrealized appreciation or depreciation on investments.

Reported net realized foreign gains and losses arise from sales of foreign currencies and currency gains or losses realized between the trade and settlement dates on investment transactions. Net unrealized appreciation and depreciation arise from changes in the fair values of assets and liabilities other than investments in securities at the fiscal period end, resulting from changes in exchange rates.

(f) Foreign Taxes

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in their Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of March 31, 2020, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.

(g) Security Transactions

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries, if any. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from Real Estate Investment Trusts (“REITs”) is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

(h) Distributions

Distributions of net investment income and net realized gains, if any, are declared and paid at least annually. Dividends are reinvested in additional shares, unless shareholders request payment in cash. Distributions are recorded on the ex-dividend date and are determined in accordance with U.S. federal income tax regulations which may differ from U.S. GAAP.

(i) Class Allocations

Interest and dividend income, most expenses, all realized gains and losses, and all unrealized appreciation and depreciation are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution and service fees are charged directly to specific classes. In addition, certain

THE RYDEX FUNDS ANNUAL REPORT | 57

NOTES TO FINANCIAL STATEMENTS (continued)

expenses have been allocated to the individual Funds in the Trust based on the respective net assets of each Fund included in the Trust.

(j) Cash

The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 0.08% at March 31, 2020.

(k) Indemnifications

Under the Funds’ organizational documents, the Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

Note 2 – Derivatives

As part of their investment strategy, the Funds utilize a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of amounts recognized in the Statements of Assets and Liabilities. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Financial Statements.

Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund’s financial position and results of operations.

The Funds may utilize derivatives for the following purposes:

Duration: the use of an instrument to manage the interest rate risk of a portfolio.

Index Exposure: the use of an instrument to obtain exposure to a listed or other type of index.

Leverage: gaining total exposure to equities or other assets on the long and short sides at greater than 100% of invested capital.

Liquidity: the ability to buy or sell exposure with little price/market impact.

For any Fund whose investment strategy consistently involves applying leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index or other asset. In addition, because an investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. The Fund’s use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

Futures Contracts

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to a Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as segregated cash with broker on the Statements of Assets and Liabilities; securities held as collateral are noted on the Schedules of Investments.

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The following table represents the Funds’ use and volume of futures on a monthly basis:

		Average Notional Amount
Fund	Use	Long		Short
Emerging Markets 2x Strategy Fund	Index exposure, Leverage, Liquidity	$	107,648	$	(30,038	)
Inverse Emerging Markets 2x Strategy Fund	Index exposure, Leverage, Liquidity		—		12,538
Emerging Markets Bond Strategy Fund	Duration, Index exposure, Leverage, Liquidity		3,454,984		—

Swap Agreements

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. When utilizing over-the-counter (“OTC”) swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing and are executed on a multi-lateral or other trade facility platform, such as a registered exchange. There is limited counterparty credit risk with respect to centrally-cleared swaps as the transaction is facilitated through a central clearinghouse, much like exchange-traded futures contracts. For a fund utilizing centrally cleared swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. There is no guarantee that a fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Total return and custom basket swaps involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset (such as an index or custom basket of securities) for a fixed or variable interest rate. Total return and custom basket swaps will usually be computed based on the current value of the reference asset as of the close of regular trading on the NYSE or other exchange, with the swap value being adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreement. When utilizing total return or custom basket swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying reference asset declines in value.

The following table represents the Funds’ use and volume of total return and custom basket swaps on a monthly basis:

		Average Notional Amount
Fund	Use	Long		Short
Long Short Equity Fund	Index exposure, Liquidity	$	9,021,426	$	17,032,117
Emerging Markets 2x Strategy Fund	Index exposure, Leverage, Liquidity		9,162,748		—
Inverse Emerging Markets 2x Strategy Fund	Index exposure, Leverage, Liquidity		—		1,341,953
Emerging Markets Bond Strategy Fund	Duration, Index exposure, Leverage, Liquidity		3,345,078		—

Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. A fund enters into credit default swaps as a “seller” or “buyer” of protection primarily to gain or reduce exposure to the investment grade and/or high yield bond market. A seller of credit default swaps is selling credit protection or assuming credit risk with respect to the underlying entity or entities. The buyer in a credit default swap is obligated to pay the seller a periodic stream of payments over the term of the contract provided that no event of default on an underlying reference obligation has occurred. If a credit event occurs, as defined under the terms of the swap agreement, the seller will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The notional amount reflects the maximum potential amount the seller of credit protection could be required to pay to the buyer if a credit event occurs. The seller of protection receives periodic premium payments from the buyer and may also receive or pay an upfront premium adjustment to the stated periodic payments. In the event a credit default occurs on a credit default swap referencing an index, a factor adjustment will take place and the buyer of protection will receive a payment reflecting the par less the default recovery rate of the defaulted index component based on its weighting in the index. If no default occurs, the counterparty will pay the stream of payments and have no further obligations to the fund selling the credit protection. For a fund utilizing centrally cleared credit default swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. For OTC credit default swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty, or in the case of a credit default swap in which a fund is selling credit protection, the default of a third party issuer.

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NOTES TO FINANCIAL STATEMENTS (continued)

The quoted market prices and resulting market values for credit default swap agreements on securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The following table represents the Funds’ use and volume of credit default swaps on a monthly basis:

		Average Notional Amount
Fund	Use	Protection Sold		Protection Purchased
Emerging Markets Bond Strategy Fund	Duration, Index exposure, Leverage, Liquidity	$	5,025,000	$	—

Derivative Investment Holdings Categorized by Risk Exposure

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of March 31, 2020:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Interest Rate contracts	Unrealized appreciation on OTC swap agreements	Unrealized depreciation on OTC swap agreements
	Variation margin on futures contracts	Variation margin on futures contracts
Credit contracts	Unrealized appreciation on OTC swap agreements	Unrealized depreciation on OTC swap agreements
	Variation margin on credit default swap agreements	Unamortized upfront premiums received on credit default swap agreements

The following table sets forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at March 31, 2020:

Asset Derivative Investments Value
Fund	Futures Equity Risk*		Swaps Equity Risk		Futures Interest Rate Risk*		Swaps Credit Risk*		Total Value at March 31, 2020
Long Short Equity Fund	$	—	$	1,178,278	$	—	$	—	$	1,178,278
Emerging Markets 2x Strategy Fund		107		—		—		—		107
Inverse Emerging Markets 2x Strategy Fund		—		8,669		—		—		8,669
Emerging Markets Bond Strategy Fund		—		—		7,258		2,780		10,038

Liability Derivative Investments Value
Fund	Futures Equity Risk*		Swaps Equity Risk		Futures Interest Rate Risk*		Swaps Credit Risk*		Total Value at March 31, 2020
Long Short Equity Fund	$	—	$	1,541,258	$	—	$	—	$	1,541,258
Emerging Markets 2x Strategy Fund		—		102,445		—		—		102,445
Inverse Emerging Markets 2x Strategy Fund		—		6,913		—		—		6,913
Emerging Markets Bond Strategy Fund						—		21,184		21,184

* Includes cumulative appreciation (depreciation) of futures contracts and centrally cleared swap agreements as reported on the Schedules of Investments. For exchange-traded and centrally cleared derivatives, variation margin is reported within the Statements of Assets and Liabilities.

60 | THE RYDEX FUNDS ANNUAL REPORT

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The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the year ended March 31, 2020:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity/Interest Rate contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts
Equity/Credit contracts	Net realized gain (loss) on OTC swap agreements
	Net change in unrealized appreciation (depreciation) on OTC swap agreements

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the year ended March 31, 2020:

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk			Futures Interest Rate Risk		Swaps Credit Risk			Total
Long Short Equity Fund	$	—		$	129,462		$	—	$	—		$	129,462
Emerging Markets 2x Strategy Fund		(31,458	)		(3,483,044	)		—		—			(3,514,502	)
Inverse Emerging Markets 2x Strategy Fund		11,162			163,330			—		—			174,492
Emerging Markets Bond Strategy Fund		—			—			291,685		(325,637	)		(33,952	)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk			Futures Interest Rate Risk			Swaps Credit Risk		Total
Long Short Equity Fund	$	—		$	(295,398	)	$	—		$	—	$	(295,398	)
Emerging Markets 2x Strategy Fund		(78	)		(285,063	)		—			—		(285,141	)
Inverse Emerging Markets 2x Strategy Fund		—			42,848			—			—		42,848
Emerging Markets Bond Strategy Fund		—			—			(70,901	)		22,950		(47,951	)

In conjunction with the use of derivative instruments, the Funds are required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Funds use margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Funds as collateral.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

Foreign Investments

There are several risks associated with exposure to foreign currencies, foreign issuers and emerging markets. A fund’s indirect and direct exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and the imposition of currency controls or other political developments in the U.S. or abroad. In addition, the Fund may incur transaction costs in connection with conversions between various currencies. The Fund may, but is not obligated to, engage in currency hedging transactions, which generally involve buying currency forward, options or futures contracts. However, not all currency risks may be effectively hedged, and in some cases the costs of hedging techniques may outweigh expected benefits. In such instances, the value of securities denominated in foreign currencies can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar.

The Funds may invest in securities of foreign companies directly, or in financial instruments, such as ADRs and exchange-traded funds, which are indirectly linked to the performance of foreign issuers. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Investing in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers, may involve risks

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NOTES TO FINANCIAL STATEMENTS (continued)

not typically associated with investing in U.S. issuers. The value of securities denominated in foreign currencies, and of dividends from such securities, can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar. Foreign securities markets generally have less trading volume and less liquidity than U.S. markets, and prices in some foreign markets may fluctuate more than those of securities traded on U.S. markets. Many foreign countries lack accounting and disclosure standards comparable to those that apply to U.S. companies, and it may be more difficult to obtain reliable information regarding a foreign issuer’s financial condition and operations. Transaction costs and costs associated with custody services are generally higher for foreign securities than they are for U.S. securities. Some foreign governments levy withholding taxes against dividend and interest income. Although in some countries portions of these taxes are recoverable, the non-recovered portion will reduce the income received by the Funds.

Emerging markets, which consist of countries that have an emerging stock market as defined by Standard & Poor’s^®, countries or markets with low- to middle-income economies as classified by the World Bank, and other countries or markets with similar characteristics as determined by GI, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Emerging markets can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile. As a result, the securities of emerging market issuers may present market, credit, currency, liquidity, legal, political and other risks different from, or greater than, the risks of investing in securities of developed foreign countries. In addition, the risks associated with investing in a narrowly defined geographic area are generally more pronounced with respect to investments in emerging market countries. The Fund may also be subject to this risk with respect to its investments in derivatives or other securities or financial instruments whose returns are related to the returns of emerging market securities.

Note 3 – Offsetting

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, are reported separately on the Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Cash and/or securities pledged or received as collateral by the Funds in connection with an OTC derivative subject to an ISDA Master Agreement generally may not be invested, sold or rehypothecated by the counterparty or the Funds, as applicable, absent an event of default under such agreement, in which case such collateral generally may be applied towards obligations due to and payable by such counterparty or the Funds, as applicable. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

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NOTES TO FINANCIAL STATEMENTS (continued)

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements:

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset in the Statements of Assets and Liabilities		Net Amount of Assets Presented on the Statements of Assets and Liabilities		Financial Instruments			Cash Collateral Received		Net Amount
Long Short Equity Fund	Custom basket swap agreements	$	1,178,278	$	—	$	1,178,278	$	(1,178,278	)	$	—	$	—
Inverse Emerging Markets 2x Strategy Fund	Swap equity contracts		8,669		—		8,669		—			—		8,669
Emerging Markets Bond Strategy Fund	Swap equity contracts		2,780		—		2,780		(2,780	)		—		—

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Liabilities1		Gross Amounts Offset in the Statements of Assets and Liabilities		Net Amount of Liabilities Presented on the Statements of Assets and Liabilities		Financial Instruments			Cash Collateral Pledged		Net Amount
Long Short Equity Fund	Custom basket swap agreements	$	1,541,258	$	—	$	1,541,258	$	(1,541,258	)	$	—	$	—
Emerging Markets 2x Strategy Fund	Swap equity contracts		102,445		—		102,445		(102,445	)		—		—
Inverse Emerging Markets 2x Strategy Fund	Swap equity contracts		6,913		—		6,913		(6,913	)		—		—
Emerging Markets Bond Strategy Fund	Swap equity contracts		3,896		—		3,896		(3,896	)		—		—

¹ Exchange-traded or centrally-cleared derivatives are excluded from these reported amounts.

The Funds have the right to offset deposits against any related derivative liabilities outstanding with each counterparty with the exception of exchange-traded or centrally-cleared derivatives. The following table presents deposits held by others in connection with derivative investments as of March 31, 2020.

Fund	Counterparty	Asset Type	Cash Pledged		Cash Received
Emerging Markets 2x Strategy Fund	Goldman Sachs International	Futures contracts	$	7,020	$	—
Emerging Markets Bond Strategy Fund	Barclays Bank plc	Credit default swap agreements		336,140		—

Note 4 – Fair Value Measurement

In accordance with U.S. GAAP, fair value is defined as the price that the Funds would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. U.S. GAAP establishes a three-tier fair value hierarchy based on the types of inputs used to value assets and liabilities and requires corresponding disclosure. The hierarchy and the corresponding inputs are summarized below:

Level 1 — quoted prices in active markets for identical assets or liabilities.

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NOTES TO FINANCIAL STATEMENTS (continued)

Level 2 — significant other observable inputs (for example quoted prices for securities that are similar based on characteristics such as interest rates, prepayment speeds, credit risk, etc.).

Level 3 — significant unobservable inputs based on the best information available under the circumstances, to the extent observable inputs are not available, which may include assumptions.

The types of inputs available depend on a variety of factors, such as the type of security and the characteristics of the markets in which it trades, if any. Fair valuation determinations that rely on fewer or no observable inputs require greater judgment. Accordingly, fair value determinations for Level 3 securities require the greatest amount of judgment.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The suitability of the techniques and sources employed to determine fair valuation are regularly monitored and subject to change.

Note 5 – Investment Advisory Agreement and Other Agreements

Under the terms of an investment advisory contract, the Funds pay GI investment advisory fees calculated at the annualized rates below, based on the average daily net assets of the Funds:

Fund	Management Fees (as a % of Net Assets)
Long Short Equity Fund		0.90	%
Emerging Markets 2x Strategy Fund		0.90	%
Inverse Emerging Markets 2x Strategy Fund		0.90	%
Emerging Markets Bond Strategy Fund		0.75	%

When the aggregate assets of each series of the Trust (excluding the Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund) and each series of Rydex Dynamic Funds equal or exceed $10 billion, the advisory fee rate paid by each individual Fund will be reduced in accordance with the asset level and breakpoint schedule set forth below.

Fund Assets Under Management	Fund Asset-Based Breakpoint Reductions
$500 million - $1 billion		0.025	%
> $1 billion - $2 billion		0.050	%
> $2 billion		0.075	%

GI pays operating expenses on behalf of the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, among others, on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Board has adopted a Distribution Plan applicable to A-Class shares, H-Class shares and P-Class shares for which GFD and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a Service Provider provides distribution services, the Funds will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services.

The Board has adopted a separate Distribution and Shareholder Services Plan applicable to its C-Class shares that allows the Funds to pay annual distribution and service fees of 1.00% of the Funds’ C-Class shares average daily net assets. The annual 0.25% service fee compensates a shareholder’s financial adviser for providing ongoing services to the shareholder. The annual distribution fee of 0.75% reimburses GFD for paying the shareholder’s financial adviser an ongoing sales commission. GFD advances the first year’s service and distribution fees to the financial adviser. GFD retains the service and distribution fees on accounts with no authorized dealer of record.

For the year ended March 31, 2020, GFD retained sales charges of $122,345 relating to sales of A-Class shares of the Trust.

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NOTES TO FINANCIAL STATEMENTS (continued)

Certain trustees and officers of the Trust are also officers of GI and/or GFD. The Trust does not compensate its officers or trustees who are officers, directors and/or employees of GI or GFD.

MUFG Investor Services (US), LLC (“MUIS”) acts as the Funds’ administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS maintains the books and records of the Funds’ securities and cash. U.S. Bank, N.A. (“U.S. Bank”) acts as the Funds’ custodian. As custodian, U.S. Bank is responsible for the custody of the Funds’ assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund’s average daily net assets and out of pocket expenses.

Note 6 – Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The joint account includes other Funds in the Guggenheim complex not covered in this report. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At March 31, 2020, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
J.P. Morgan Securities LLC					U.S. Treasury Note
0.01%					2.00%
Due 04/01/20	$	129,371,353	$	129,371,389	11/30/22	$	125,405,900	$	131,958,818
BofA Securities, Inc.					U.S. Treasury Note
0.00%					2.13%
Due 04/01/20		49,758,213		49,758,213	08/15/21		49,322,100		50,753,381

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

Note 7 – Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds’ securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class Z. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

At March 31, 2020, the Funds did not participate in securities lending transactions.

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NOTES TO FINANCIAL STATEMENTS (continued)

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers to evaluate potential risks.

Note 8 – Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Funds from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax or federal excise tax is required.

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken, or to be taken, on U.S. federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Funds’ financial statements. The Funds’ U.S. federal income tax returns are subject to examination by the Internal Revenue Service (“IRS”) for a period of three years after they are filed.

The tax character of distributions paid during the year ended March 31, 2020 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
Long Short Equity Fund	$	153,645	$	—	$	153,645
Emerging Markets 2x Strategy Fund		44,598		—		44,598
Inverse Emerging Markets 2x Strategy Fund		4,522		—		4,522
Emerging Markets Bond Strategy Fund		340,630		—		340,630

The tax character of distributions paid during the year ended March 31, 2019 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
Long Short Equity Fund	$	269,698	$	168,798	$	438,496

Note: For U.S. federal income tax purposes, short-term capital gain distributions are treated as ordinary income distributions.

The tax components of distributable earnings/(loss) as of March 31, 2020 were as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation/ (Depreciation)			Accumulated Capital and Other Losses			Total
Long Short Equity Fund	$	—	$	—	$	(1,473,431	)	$	(4,487,932	)	$	(5,961,363	)
Emerging Markets 2x Strategy Fund		—		—		(110,252	)		(14,823,214	)		(14,933,466	)
Inverse Emerging Markets 2x Strategy Fund		—		—		1,756			(18,353,342	)		(18,351,586	)
Emerging Markets Bond Strategy Fund		—		—		(18,399	)		(358,671	)		(377,070	)

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NOTES TO FINANCIAL STATEMENTS (continued)

For U.S. federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. Under the RIC Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital loss carryforwards will retain their character as either short-term or long-term capital losses. As of March 31, 2020, capital loss carryforwards for the Funds were as follows:

	Unlimited						Total
Fund	Short-Term			Long-Term			Capital Loss Carryforward
Long Short Equity Fund	$	(3,969,543	)	$	(518,389	)	$	(4,487,932	)
Emerging Markets 2x Strategy Fund		(13,627,027	)		(1,193,784	)		(14,820,811	)
Inverse Emerging Markets 2x Strategy Fund		(17,482,572	)		(869,455	)		(18,352,027	)

For the year ended March 31, 2020, the following capital loss carryforward amounts were utilized:

Fund	Utilized
Inverse Emerging Markets 2x Strategy Fund	$	174,492

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to investments in swaps, losses deferred due to wash sales, distributions in connection with redemption of fund shares, taxable overdistributions, and the “mark-to-market” of certain derivatives. To the extent these differences are permanent and would require a reclassification between Paid in Capital and Total Distributable Earnings (Loss), such reclassifications are made in the period that the differences arise. These reclassifications have no effect on net assets or NAV per share.

The following adjustments were made on the Statements of Assets and Liabilities as of March 31, 2020 for permanent book/tax differences:

Fund	Paid In Capital			Total Distributable Earnings/(Loss)
Long Short Equity Fund	$	(40,423	)	$	40,423
Inverse Emerging Markets 2x Strategy Fund		(99	)		99
Emerging Markets Bond Strategy Fund		176,707			(176,707	)

At March 31, 2020, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
Long Short Equity Fund	$	16,193,638	$	2,196,668	$	(3,670,099	)	$	(1,473,431	)
Emerging Markets 2x Strategy Fund		1,711,229		69,579		(179,831	)		(110,252	)
Inverse Emerging Markets 2x Strategy Fund		671,223		8,669		(6,913	)		1,756
Emerging Markets Bond Strategy Fund		759,427		14,942		(33,341	)		(18,399	)

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NOTES TO FINANCIAL STATEMENTS (continued)

Pursuant to U.S. federal income tax regulations applicable to regulated investment companies, the Funds have elected to treat net capital losses and certain ordinary losses realized between November 1 and March 31 of each year as occurring on the first day of the following tax year. The Funds have also elected to treat certain ordinary losses realized between January 1 and March 31 of each year as occurring on the first day of the following tax year. For the year ended March 31, 2020, the following losses reflected in the accompanying financial statements were deferred for U.S. federal income tax purposes until April 1, 2020:

Fund	Ordinary			Capital
Emerging Markets 2x Strategy Fund	$	(2,403	)	$	—
Inverse Emerging Markets 2x Strategy Fund		(1,315	)		—
Emerging Markets Bond Strategy Fund		—			(358,671	)

Note 9 – Securities Transactions

For the year ended March 31, 2020, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Fund	Purchases		Sales
Long Short Equity Fund	$	23,180,762	$	31,547,782
Emerging Markets 2x Strategy Fund		52,217,164		57,894,959

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the year ended March 31, 2020, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Fund	Purchases		Sales		Realized Gain
Emerging Markets 2x Strategy Fund	$	53,326	$	483,455	$	2,425

Note 10 – Line of Credit

The Trust (for all funds with the exception of the Long Short Equity Fund), along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 8, 2020. On March 30, 2020, the Board approved increasing the line of credit from $75,000,000 to $150,000,000. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 3.02% for the year ended March 31, 2020. The Funds did not have any borrowings outstanding under this agreement at March 31, 2020.

The average daily balances borrowed for the year ended March 31, 2020, were as follows:

Fund	Average Daily Balance
Emerging Markets 2x Strategy Fund	$	1,708

Note 11– Legal Proceedings

Tribune Company

Rydex Series Funds has been named as a defendant and a putative member of the proposed defendant class of shareholders in the case entitled Kirschner v. FitzSimons, No. 12-2652 (S.D.N.Y.) (formerly Official Committee of Unsecured Creditors of Tribune Co. v. FitzSimons, Adv. Pro. No. 10-54010 (Bankr. D. Del.)) (the “FitzSimons action”), as a result of ownership by certain series of the Rydex Series Funds of shares in the Tribune Company (“Tribune”) in 2007, when Tribune effected a leveraged buyout transaction (“LBO”) by which

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NOTES TO FINANCIAL STATEMENTS (continued)

Tribune converted to a privately-held company. In his complaint, the plaintiff has alleged that, in connection with the LBO, Tribune insiders and shareholders were overpaid for their Tribune stock using financing that the insiders knew would, and ultimately did, leave Tribune insolvent. The plaintiff has asserted claims against certain insiders, major shareholders, professional advisers, and others involved in the LBO. The plaintiff is also attempting to obtain from former Tribune shareholders, including the Rydex Series Funds, the proceeds they received in connection with the LBO.

In June 2011, a group of Tribune creditors filed multiple actions against former Tribune shareholders involving state law constructive fraudulent conveyance claims arising out of the 2007 LBO (the “SLCFC actions”). Rydex Series Funds has been named as a defendant in one or more of these suits. In those actions, the creditors seek to recover from Tribune’s former shareholders the proceeds received in connection with the 2007 LBO.

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2296 (S.D.N.Y.) (the “MDL Proceeding”).

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order.

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments.

On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. On April 3, 2018, Justice Kennedy and Justice Thomas issued a “Statement” related to the petition for certiorari suggesting that the Second Circuit and/or District Court may want to take steps to reexamine the application of the Section 546(e) safe harbor to the previously dismissed state law constructive fraudulent transfer claims based on the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. On April 10, 2018, Plaintiffs filed in the Second Circuit a motion for that court to recall its mandate, vacate its prior decision, and remand to the district court for further proceedings consistent with Merit Management. On April 20, 2018, the shareholder defendants filed an opposition to Plaintiffs’ motion to recall the mandate. On May 15, 2018, the Second Circuit issued an order recalling the mandate “in anticipation of further panel review.” On December 19, 2019, the Second Circuit issued an amended opinion that again affirmed the district court’s ruling on the basis that plaintiffs’ claims were preempted by Section 546(e) of the Bankruptcy Code. Plaintiffs filed a motion for rehearing and rehearing en banc on January 2, 2020. The Second Circuit denied the petition on February 6, 2020.

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. On January 6, 2017, the United States District Court for the Southern District of New York granted the shareholder defendants’ motion to dismiss the intentional fraudulent conveyance claim in the FitzSimons action. In dismissing the intentional fraudulent conveyance claim, the Court denied the plaintiff’s request to amend the complaint. The plaintiff requested that the Court direct entry of a final judgment in order to make the order immediately appealable. On February 23, 2017, the Court issued an order stating that it intended to permit an interlocutory appeal of the dismissal order, but would wait to do so until it has resolved outstanding motions to dismiss filed by other defendants.

On July 18, 2017, the plaintiff submitted a letter to the District Court seeking leave to amend its complaint to add a constructive fraudulent transfer claim. The shareholder defendants opposed that request. On August 24, 2017, the Court denied the plaintiff’s request without prejudice to renewal of the request in the event of an intervening change in the law. On March 8, 2018, the plaintiff renewed his request for leave to file a motion to amend the complaint to assert a constructive fraudulent transfer claim based on the Supreme Court’s ruling in Merit Management Group LP v. FTI Consulting, Inc. The shareholder defendants opposed that request. On June 18, 2018 the District Court ordered that the request would be stayed pending further action by the Second Circuit in the SLCFC actions.

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NOTES TO FINANCIAL STATEMENTS (concluded)

On December 18, 2018, plaintiff filed a letter with the District Court requesting that the stay be dissolved in order to permit briefing on the motion to amend the complaint and indicating plaintiff’s intention to file another motion to amend the complaint to reinstate claims for intentional fraudulent transfer. The shareholder defendants opposed that request. On January 14, 2019, the court held a case management conference, during which the court stated that it would not lift the stay prior to further action from the Second Circuit in the SLCFC actions. The court further stated that it would allow the plaintiff to file a motion to amend to try to reinstate its intentional fraudulent transfer claim. On January 23, 2019, the court ordered the parties still facing pending claims to participate in a mediation, to commence on January 28, 2019. The mediation did not result in a settlement of the claims against the shareholder defendants.

On April 4, 2019, plaintiff filed a motion to amend the Fifth Amended Complaint to assert a federal constructive fraudulent transfer claim against certain shareholder defendants. On April 10, 2019, the shareholder defendants filed a brief in opposition to plaintiff’s motion to amend. On April 12, 2019, the plaintiff filed a reply brief. On April 23, 2019, the court denied the plaintiff’s motion to amend. On June 13, 2019, the court entered judgment pursuant to Rule 54(b). On July 12, 2019, the Plaintiff filed a notice of appeal with respect to the dismissal of his claims and the District Court’s denial of his motion for leave to amend. Plaintiff filed an appellate brief on January 7, 2020. The shareholder defendants’ brief was filed on April 27, 2020.

None of these lawsuits alleges any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds held shares of Tribune and tendered these shares as part of Tribune’s LBO: Nova Fund, S&P 500^® Pure Value Fund, Multi-Cap Core Equity Fund, S&P 500^® Fund, Multi-Hedge Strategies Fund and Hedged Equity Fund (the “Funds”). The value of the proceeds received by the foregoing Funds was $28,220, $109,242, $9,860, $3,400, $1,181,160, and $10,880, respectively. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

Note 12 – COVID-19 and Recent Developments

The global ongoing crisis caused by the outbreak of COVID-19 is causing materially reduced consumer demand and economic output, disrupting supply chains, resulting in market closures, travel restrictions and quarantines, and adversely impacting local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and health conditions all over the world, the Funds’ investments and a shareholder’s investment in a Fund are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational risks.

Note 13 – Subsequent Events

The Funds evaluated subsequent events through the date the financial statements were available for issue and determined there were no material events that would require adjustment to or disclosure in the Funds’ financial statements.

70 | THE RYDEX FUNDS ANNUAL REPORT

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of Guggenheim Long Short Equity Fund, Rydex Emerging Markets 2x Strategy Fund, Rydex Inverse Emerging Markets 2x Strategy Fund and Rydex Emerging Markets Bond Strategy Fund and the Board of Trustees of Rydex Series Funds

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of Guggenheim Long Short Equity Fund, Rydex Emerging Markets 2x Strategy Fund, Rydex Inverse Emerging Markets 2x Strategy Fund and Rydex Emerging Markets Bond Strategy Fund (collectively referred to as the “Funds”), (four of the funds constituting Rydex Series Funds (the “Trust”)), including the schedules of investments, as of March 31, 2020, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (four of the funds constituting Rydex Series Funds) at March 31, 2020, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2020, by correspondence with the custodian, transfer agent, and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Guggenheim investment companies since 1979.

Tysons, Virginia
May 28, 2020

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OTHER INFORMATION (Unaudited)

Federal Income Tax Information

This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

In January 2021, shareholders will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by shareholders in the calendar year 2020.

The Funds’ investment income (dividend income plus short-term capital gains, if any) qualifies as follows:

Of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2020, the following funds had the corresponding percentages qualify for the reduced tax rate pursuant to the Jobs and Growth Tax Relief and Reconciliation Act of 2003 or for the dividends received deduction for corporations. See the qualified dividend income and dividend received deduction columns, respectively, in the table below.

Additionally, of the taxable ordinary income distributions paid during the fiscal year ended March 31, 2020, the following funds had the corresponding percentages qualify as qualified short-term capital gains as permitted by IRC Section 871(k)(2). See qualified short-term capital gain column in the table below.

Fund	Qualified Dividend Income			Dividend Received Deduction			Qualified Short-Term Capital Gain
Long Short Equity Fund		100.00	%		100.00	%		0.00	%
Emerging Markets 2x Strategy Fund		100.00	%		0.00	%		0.00	%
Emerging Markets Bond Strategy Fund		0.00	%		0.00	%		100.00	%

With respect to the taxable year ended March 31, 2020, the Funds hereby designate as capital gain dividends the amounts listed below, or, if subsequently determined to be different, the net capital gain of such year:

Fund	From long-term capital gain:		From long-term capital gain, using proceeds from shareholder redemptions:
Emerging Markets Bond Strategy Fund	$	—	$	78,498

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Sector Classification

Information in the Schedule of Investments is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

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OTHER INFORMATION (Unaudited)(concluded)

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds’ Forms N-PORT and N-Q are available on the SEC’s website at https://www.sec.gov. The Funds’ Forms N-PORT and N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by visiting guggenheiminvestments.com or by calling 800.820.0888.

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES
Randall C. Barnes (1951)	Trustee	Since 2019	Current: Private Investor (2001-present). Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).	157	Current: Purpose Investments Funds (2013-present). Former: Managed Duration Investment Grade Municipal Fund (2006-2016).
Angela Brock-Kyle (1959)	Trustee	Since 2016	Current: Founder and Chief Executive Officer, B.O.A.R.D.S. (2013-present). Former: Senior Leader, TIAA (1987-2012).	156	Current: Hunt Companies, Inc. (2019-present). Former: Infinity Property & Casualty Corp. (2014-2018).
Donald A. Chubb, Jr. (1946)	Trustee and Chair of the Valuation Oversight Committee	Since 2019	Current: Retired Former: Business broker and manager of commercial real estate, Griffith & Blair, Inc. (1997-2017).	156	Former: Midland Care, Inc. (2011-2016).
Jerry B. Farley (1946)	Trustee	Since 2019	Current: President, Washburn University (1997-present).	156	Current: CoreFirst Bank & Trust (2000-present). Former: Westar Energy, Inc. (2004-2018).
Roman Friedrich III (1946)	Trustee and Chair of the Contracts Review Committee	Since 2019	Current: Founder and Managing Partner, Roman Friedrich & Company (1998-present).	156	Former: Zincore Metals, Inc. (2009-2019).
Thomas F. Lydon, Jr. (1960)	Trustee and Vice Chair of the Contracts Review Committee	Since 2005 (Trustee) Since 2019 (Vice Chair of the Contracts Review Committee)	Current: President, Global Trends Investments (1996-present); Co-Chief Executive Officer, ETF Flows, LLC (2019-present); Chief Executive Officer, Lydon Media (2016-present).	156	Current: US Global Investors (GROW) (1995-present). Former: Harvest Volatility Edge Trust (3) (2017-2019).

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - concluded
Ronald A. Nyberg (1953)	Trustee and Chair of the Nominating and Governance Committee	Since 2019	Current: Partner, Momkus LLC (2016-present). Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).	157	Current: PPM Funds (9) (2018-present); Edward-Elmhurst Healthcare System (2012-present). Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-April 2020); Western Asset Inflation-Linked Income Fund (2003-April 2020); Managed Duration Investment Grade Municipal Fund (2003-2016).
Sandra G. Sponem (1958)	Trustee and Chair of the Audit Committee	Since 2016 (Trustee) Since 2019 (Chair of the Audit Committee)	Current: Retired. Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson-Companies, Inc. (2007-2017).	156	Current: SPDR Series Trust (78) (2018-present); SPDR Index Shares Funds (31) (2018-present); SSGA Active Trust (12) (2018-present); and SSGA Master Trust (1) (2018-present).
Ronald E. Toupin, Jr. (1958)	Trustee, Chair of the Board and Chair of the Executive Committee	Since 2019	Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999).	156	Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-April 2020); Western Asset Inflation-Linked Income Fund (2003-April 2020); Managed Duration Investment Grade Municipal Fund (2003-2016).

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INTERESTED TRUSTEE
Amy J. Lee**** (1961)	Trustee, Vice President and Chief Legal Officer	Since 2018 (Trustee) Since 2019 (Vice President and Chief Legal Officer)	Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: President and Chief Executive Officer, certain other funds in the Fund Complex (2017-2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).	156	None.

*	The business address of each Trustee is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each Trustee serves an indefinite term, until his or her successor is elected and qualified. Time served includes time served in the respective position for the Predecessor Corporation.
***	Each Trustee also serves on the boards of trustees of Guggenheim Funds Trust, Guggenheim Variable Funds Trust, Guggenheim Strategy Funds Trust, Fiduciary/Claymore Energy Infrastructure Fund, Guggenheim Taxable Municipal Managed Duration Trust, Guggenheim Strategic Opportunities Fund, Guggenheim Enhanced Equity Income Fund, Guggenheim Energy & Income Fund, Guggenheim Credit Allocation Fund, Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Funds and Transparent Value Trust. Messrs. Barnes and Nyberg also serve on the board of trustees of Advent Convertible & Income Fund.
****	This Trustee is deemed to be an “interested person” of the Funds under the 1940 Act by reason of her position with the Funds’ Investment Manager and/or the parent of the Investment Manager.

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS
Brian E. Binder (1972)	President and Chief Executive Officer	Since 2019	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President, Chief Executive Officer and Chairman of the Board of Managers, Guggenheim Funds Investment Advisors, LLC (2018-present); President and Chief Executive Officer, Security Investors, LLC (2018-present); Board Member of Guggenheim Partners Fund Management (Europe) Limited (2018-present); Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-present). Former: Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Head of Business Management and Consulting, Invesco Ltd. (2010-2012).
James M. Howley (1972)	Assistant Treasurer	Since 2016	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Mark E. Mathiasen (1978)	Secretary	Since 2017	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer	Since 2016	Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present).
Michael P. Megaris (1984)	Assistant Secretary	Since 2018	Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2012-present).
Elisabeth Miller (1968)	Chief Compliance Officer	Since 2012	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).
Margaux Misantone (1978)	AML Officer	Since 2017	Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Managing Director, Guggenheim Investments (2015-present). Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018).
William Rehder (1967)	Assistant Vice President	Since 2018	Current: Managing Director, Guggenheim Investments (2002-present).

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(concluded)

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS - concluded
Kimberly J. Scott (1974)	Assistant Treasurer	Since 2016	Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
Bryan Stone (1979)	Vice President	Since 2019	Current: Vice President, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2013-present). Former: Senior Vice President, Neuberger Berman Group LLC (2009-2013); Vice President, Morgan Stanley (2002-2009).
John L. Sullivan (1955)	Chief Financial Officer, Chief Accounting Officer and Treasurer	Since 2016	Current: Chief Financial Officer, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and Chief Compliance Officer, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); Chief Financial Officer and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer	Since 2017	Current: Vice President, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (2017); Senior Analyst of US Fund Administration, HGINA (2014–2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	The business address of each officer is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each officer serves an indefinite term, until his or her successor is duly elected and qualified.

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)

Who We Are

This Privacy Notice describes the data protection practices of Guggenheim Investments. Guggenheim Investments as used herein refers to the affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Guggenheim Investment Advisors (Europe) Limited, Guggenheim Real Estate, LLC, GS Gamma Advisors, LLC, Guggenheim Partners India Management, LLC, Guggenheim Partners Europe Limited, as well as the funds in the Guggenheim Funds complex (the “Funds”) (“Guggenheim Investments,” “we,” “us,” or “our”).

Guggenheim Partners Investment Management Holdings, LLC, located at 330 Madison Avenue, New York, New York 10017 is the data controller for your information. The affiliates who are also controllers of certain of your information are: Guggenheim Investment Advisors (Europe) Limited, Guggenheim Partners Europe Limited, Guggenheim Partners, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC and Security Investors, LLC, as well as the Funds.

Our Commitment to You

Guggenheim Investments considers your privacy our utmost concern. When you become our client or investor, you entrust us with not only your hard-earned money but also with your personal and financial information. Because we have access to your private information, we hold ourselves to the highest standards in its safekeeping and use. We strictly limit how we share your information with others, whether you are a current or former Guggenheim Investments client or investor.

The Information We Collect About You

We collect certain nonpublic personal information about you from information you provide on applications, other forms, our website, and/or from third parties including investment advisors. This information includes Social Security or other tax identification number, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, bank account information, marital status, family relationships, information that we collect on our website through the use of “cookies,” and other personal information that you or others provide to us. We may also collect such information through your inquiries by mail, e-mail or telephone. We may also collect customer due diligence information, as required by applicable law and regulation, through third party service providers.

How We Handle Your Personal Information

The legal basis for using your information as set out in this Privacy Notice is as follows: (a) use of your personal data is necessary to perform our obligations under any contract with you (such as a contract for us to provide financial services to you); or (b) where use of your personal data is not necessary for performance of a contract, use of your personal data is necessary for our legitimate interests or the legitimate interests of others (for example, to enforce the legal terms governing our services, operate and market our website and other services we offer, ensure safe environments for our personnel and others, make and receive payments, prevent fraud and to know the customer to whom we are providing the services). Some processing is done to comply with applicable law.

In addition to the specific uses described above, we also use your information in the following manner:

● We use your information in connection with servicing your accounts.

● We use information to respond to your requests or questions. For example, we might use your information to respond to your customer feedback.

● We use information to improve our products and services. We may use your information to make our website and products better. We may use your information to customize your experience with us.

● We use information for security purposes. We may use your information to protect our company and our customers.

● We use information to communicate with you. For example, we will communicate with you about your account or our relationship. We may contact you about your feedback. We might also contact you about this Privacy Notice. We may also enroll you in our email newsletter.

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

● We use information as otherwise permitted by law, as we may notify you.

● Aggregate/Anonymous Data. We may aggregate and/or anonymize any information collected through the website so that such information can no longer be linked to you or your device (“Aggregate/Anonymous Information”). We may use Aggregate/Anonymous Information for any purpose, including without limitation for research and marketing purposes, and may also share such data with any third parties, including advertisers, promotional partners, and sponsors.

We do not sell information about current or former clients or their accounts to third parties. Nor do we share this information, except when necessary to complete transactions at your request, to make you aware of investment products and services that we or our affiliates offer, or as permitted or required by law.

We provide information about you to companies and individuals not affiliated with Guggenheim Investments to complete certain transactions or account changes, or to perform services for us related to your account. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we must provide certain information about you to that company to complete the transaction. We provide the third party with only the information necessary to carry out its responsibilities and only for that purpose. And we require these third parties to treat your private information with the same high degree of confidentiality that we do. To alert you to other Guggenheim Investments products and services, we share your information within our family of affiliated companies. You may limit our sharing with affiliated companies as set out below. We may also share information with any successor to all or part of our business, or in connection with steps leading up to a merger or acquisition. For example, if part of our business was sold we may give customer information as part of that transaction. We may also share information about you with your consent.

We will release information about you if you direct us to do so, if we are compelled by law to do so, or in other circumstances as permitted by law (for example, to protect your account from fraud).

If you close your account(s) or become an inactive client or investor, we will continue to adhere to the privacy policies and practices described in this notice.

Opt-Out Provisions and Your Data Choices

The law allows you to “opt out” of certain kinds of information sharing with third parties. We do not share personal information about you with any third parties that triggers this opt-out right. This means YOU ARE ALREADY OPTED OUT.

When you are no longer our client or investor, we continue to share your information as described in this notice, and you may contact us at any time to limit our sharing by sending an email to CorporateDataPrivacy@GuggenheimPartners.com.

European Union Data Subjects and certain others: In addition to the choices set forth above, residents of the European Union and certain other jurisdictions have certain rights to (1) request access to or rectification or deletion of information we collect about them, (2) request a restriction on the processing of their information, (3) object to the processing of their information, or (4) request the portability of certain information. To exercise these or other rights, please contact us using the contact information below. We will consider all requests and provide our response within the time period stated by applicable law. Please note, however, that certain information may be exempt from such requests in some circumstances, which may include if we need to keep processing your information for our legitimate interests or to comply with a legal obligation. We may request you provide us with information necessary to confirm your identity before responding to your request.

Residents of France and certain other jurisdictions may also provide us with instructions regarding the manner in which we may continue to store, erase and share your information after your death, and where applicable, the person you have designated to exercise these rights after your death.

How We Protect Privacy Online

We take steps to protect your privacy when you use our web site – www.guggenheiminvestments.com – by using secure forms of online communication, including encryption technology, Secure Socket Layer (SSL) protocol, firewalls and user names and passwords. These safeguards vary based on the sensitivity of the information that we collect and store. However, we cannot and do not guarantee that these measures will prevent every unauthorized attempt to access, use, or disclose your information since despite our efforts, no Internet and/or other

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(concluded)

electronic transmissions can be completely secure. Our web site uses “http cookies”—tiny pieces of information that we ask your browser to store. We use cookies for session management and security features on the Guggenheim Investments web site. We do not use them to pull data from your hard drive, to learn your e-mail address, or to view data in cookies created by other web sites. We will not share the information in our cookies or give others access to it. See the legal information area on our web site for more details about web site security and privacy features.

How We Safeguard Your Personal Information and Data Retention

We restrict access to nonpublic personal information about you to our employees and in some cases to third parties (for example, the service providers described above) as permitted by law. We maintain strict physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

We keep your information for no longer than necessary for the purposes for which it is processed. The length of time for which we retain information depends on the purposes for which we collected and use it and/or as required to comply with applicable laws. Information may persist in copies made for backup and business continuity purposes for additional time.

International Visitors

If you are not a resident of the United States, please be aware that your information may be transferred to, stored and processed in the United States where our servers are located and our databases are operated. The data protection and other laws of the United States and other countries might not be as comprehensive as those in your country.

In such cases, we ensure that a legal basis for such a transfer exists and that adequate protection is provided as required by applicable law, for example, by using standard contractual clauses or by transferring your data to a jurisdiction that has obtained an adequacy finding. Individuals whose data may be transferred on the basis of standard contractual clauses may contact us as described below.

We’ll Keep You Informed

If you have any questions or concerns about how we treat your personal data, we encourage you to consult with us first. You may also contact the relevant supervisory authority.

We reserve the right to modify this policy at any time and will inform you promptly of material changes. You may access our privacy policy from our web site at www.guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us by email at CorporateDataPrivacy@GuggenheimPartners.com.

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Item 2. Code of Ethics.

The registrant’s Board of Trustees has adopted a code of ethics that applies to the registrant’s principal executive officer and principal financial officer. No substantive amendments were approved or waivers were granted to the Code during the period covered by this report. The Code is filed as an exhibit to this Form N-CSR.

Item 3. Audit Committee Financial Expert.

The registrant's Board of Trustees has determined that it has at least one audit committee financial expert serving on its audit committee (the “Audit Committee”), Sandra G. Sponem. Ms. Sponem is “independent,” meaning that she is not an “interested person” of the Registrant (as that term is defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended) and she does not accept any consulting, advisory, or other compensatory fee from the Registrant (except in her capacity as a Board or committee member).

Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees. The aggregate Audit Fees billed by the registrant’s principal accountant for professional services rendered for the audit of the annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for the fiscal years ended March 31, 2020 and March 31, 2019 were $852,722 and $867,833, respectively.

(b) Audit Related Fees. The aggregate Audit-Related Fees billed by the registrant’s principal accountant for assurance and related services that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item for the fiscal years ended March 31, 2020 and March 31, 2019 were $0 and $0, respectively.

(c) Tax Fees: The aggregate Tax Fees billed by the registrant’s principal accountant for professional services rendered for tax compliance, tax advice, and tax planning, including preparation of tax returns and distribution assistance, for the fiscal years ended March 31, 2020 and March 31, 2019 were $456,085 and $455,018, respectively. These services consisted of (i) preparation of U.S. federal, state and excise tax returns; (ii) U.S. federal and state tax planning, advice and assistance regarding statutory, regulatory or administrative developments, (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired and (iv) review of U.S. federal excise distribution calculations.

(d) All Other Fees. The aggregate All Other Fees billed by the registrant’s principal accountant for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item, for the fiscal years ended March 31, 2020 and March 31, 2019 were $0 and $0, respectively.

(e) Audit Committee Pre-Approval Policies and Procedures.

(1) The registrant’s audit committee reviews, and in its sole discretion, pre-approves, pursuant to written pre-approval procedures (A) all engagements for audit and non-audit services to be provided by the principal accountant to the registrant and (B) all engagements for non-audit services to be provided by the principal accountant (1) to the registrant’s investment adviser (not including a sub-adviser whose role is primarily portfolio management and is subcontracted or overseen by another investment adviser) and (2) to any entity controlling, controlled by or under common control with the registrant’s investment adviser that provides ongoing services to the registrant; but in the case of the services described in subsection (B)(1) or (2), only if the engagement relates directly to the operations and financial reporting of the registrant; provided that such pre-approval need not be obtained in circumstances in which the preapproval requirement is waived under rules promulgated by the Securities and Exchange Commission or New York Stock Exchange listing standards. Sections V.B.2 and V.B.3 of the registrant’s audit committee’s Audit Committee Charter contain the Audit Committee’s Pre-Approval Policies and Procedures and such sections are included below.

V.B.2.Pre-approve any engagement of the independent auditors to provide any non-prohibited services to the Fund, including the fees and other compensation to be paid to the independent auditors (unless an exception is available under Rule 2-01 of Regulation S-X).

(a) The categories of services to be reviewed and considered for pre-approval include the following (collectively, “Identified Services”):

Audit Services

• Annual financial statement audits

• Seed audits (related to new product filings, as required)

• SEC and regulatory filings and consents

Audit-Related Services

• Accounting consultations

• Fund merger/reorganization support services

• Other accounting related matters

• Agreed upon procedures reports

• Attestation reports

• Other internal control reports

Tax Services

• Recurring tax services:

o Preparation of Federal and state income tax returns, including extensions

o Preparation of calculations of taxable income, including fiscal year tax designations

o Preparation of annual Federal excise tax returns (if applicable)

o Preparation of calendar year excise distribution calculations

o Calculation of tax equalization on an as-needed basis

o Preparation of the estimated excise distribution calculations on an as-needed basis

o Preparation of quarterly Federal, state and local and franchise tax estimated tax payments on an as-needed basis

o Preparation of state apportionment calculations to properly allocate Fund taxable income among the states for state tax filing

purposes

o Provision of tax compliance services in India for Funds with direct investments in India

o Assistance with management’s identification of passive foreign investment companies (PFICs) for tax purposes

• Permissible non-recurring tax services upon request:

o Assistance with determining ownership changes which impact a Fund’s utilization of loss carryforwards

o Assistance with calendar year shareholder reporting designations on Form 1099

o Assistance with corporate actions and tax treatment of complex securities and structured products

o Assistance with IRS ruling requests and calculation of deficiency dividends

o Conduct training sessions for the Adviser’s internal tax resources

o Assistance with Federal, state, local and international tax planning and advice regarding the tax consequences of proposed or actual transactions

o Tax services related to amendments to Federal, state and local returns and sales and use tax compliance

o RIC qualification reviews

o Tax distribution analysis and planning

o Tax authority examination services

o Tax appeals support services

o Tax accounting methods studies

o Fund merger, reorganization and liquidation support services

o Tax compliance, planning and advice services and related projects

(b) The Committee has pre-approved Identified Services for which the estimated fees are less than $25,000.

(c) For Identified Services with estimated fees of $25,000 or more, but less than $50,000, the Chair or any member of the Committee designated by the Chair is hereby authorized to pre-approve such services on behalf of the Committee.

(d) For Identified Services with estimated fees of $50,000 or more, such services require pre-approval by the Committee.

(e) All requests for Identified Services to be provided by the independent auditor that were pre-approved by the Committee shall be submitted to the Chief Accounting Officer (“CAO”) of the Trust by the independent auditor using the pre-approval request form attached as Appendix C to the Audit Committee Charter. The Trust’s CAO will determine whether such services are included within the list of services that have received the general preapproval of the Committee.

(f) The independent auditors or the CAO of the Trust (or an officer of the Trust who reports to the CAO) shall report to the Committee at each of its regular quarterly meetings all audit, audit-related and permissible non-audit services initiated since the last such report (unless the services were contained in the initial audit plan, as previously presented to, and approved by, the Committee). The report shall include a general description of the services and projected fees, and the means by which such services were approved by the Committee (including the particular category of Identified Services under which pre-approval was obtained).

V.B.3. Pre-approve any engagement of the independent auditors, including the fees and other compensation to be paid to the independent auditors, to provide any non-audit services to the Adviser (or any “control affiliate” of the Adviser providing ongoing services to the Trust), if the engagement relates directly to the operations and financial reporting of the Trust (unless an exception is available under Rule 2-01 of Regulation S-X).

(a) The Chair or any member of the Committee designated by the Chair may grant the pre-approval for non-audit services to the Adviser (or any “control affiliate” of the Adviser providing ongoing services to the Trust) relating directly to the operations and financial reporting of the Trust for which the estimated fees are less than $25,000. All such delegated pre-approvals shall be presented to the Committee no later than the next Committee meeting.

(b) For non-audit services to the Adviser (or any “control affiliate” of the Adviser providing ongoing services to the Trust) relating directly to the operations and financial reporting of the Trust for which the estimated fees are $25,000 or more, such services require pre-approval by the Committee.

(2) None of the services described in each of Items 4(b) through (d) were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) Non-Audit Fees. The aggregate non-audit fees billed by the registrant’s accountant for the most recent fiscal year and the preceding fiscal year for services rendered to the registrant, the investment advisor, and any entity controlling, controlled by, or under common control with the advisor that provides ongoing services to the registrant were $456,085 and $455,018, respectively. These aggregate fees were less than the aggregate fees billed for the same periods by the registrant’s principal accountant for audit services rendered to the registrant, the investment advisor, and any entity controlling, controlled by, or under common control with the advisor that provides ongoing services to the registrant.

(h) Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a) The registrant’s President (principal executive officer) and Treasurer (principal financial officer) have evaluated the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) as of a date within 90 days of this filing and have concluded that based on such evaluation as required by Rule 30a-3(b) under the Investment Company Act, that the registrant’s disclosure controls and procedures were effective as of that date in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b) The registrant’s principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not Applicable.

Item 13. Exhibits.

(a)(1) The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is attached.

(a)(2) Separate certifications by the President (principal executive officer) and Treasurer (principal financial officer) of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) are attached.

(b) A certification by the registrant’s President (principal executive officer) and Treasurer (principal financial officer) as required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)) is attached.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)	Rydex Series Funds
By (Signature and Title)*	/s/ Brian E. Binder
	Brian E. Binder, President and Chief Executive Officer
Date	June 9, 2020

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*	/s/ Brian E. Binder
	Brian E. Binder, President and Chief Executive Officer
Date	June 9, 2020
By (Signature and Title)*	/s/ John L. Sullivan
	John L. Sullivan, Chief Financial Officer, Chief Accounting Officer and Treasurer
Date	June 9, 2020

^* Print the name and title of each signing officer under his or her signature.